Narendra Modi led government has delivered its first full fledged union budget today where many big changes happened. There were many promises made for the poor. Mainly income tax relaxation has disappointed all the middle class income group who were eagerly waiting for a good announcement. Let us see what all announcements made by Arun Jaitley in the union budget 2015 presented on 28 February 2015.
Taxation is the key point of any union budget where government shows its future trend. Most of the middle class income group were expecting some relief from income tax in the union budget 2015 by the Modi government as this government had criticized Congress on its taxation policy before coming to the power. Also in the previous year, while announcing the tax rebate, Arun Jaitley assured that there will be more relief in the union budget 2015. But union budget 2015 has maintained old tax slabs and there are two minor changes to the taxation. In this budget one can additionally save tax for 50000 rupees by investing money into National Pension Scheme (NPS). Contribution to NPS will not be reflected in 80C. Also one can save tax on health insurance for 25000 rupees.
Wealth tax was abolished in the union budget 2015. Corporate tax will be reduced from 30% to 25% over four year period. To facilitate the reduction in corporate tax, government will remove few subsidies in a phased manner.
Super rich who are earning more than one crore annually will have to pay extra 2% as surcharge. Service tax has been increased to 14% from 12%. Petrol and diesel prices will be hiked
from today midnight.
25,000 crore rupees allocated for Rural Infrastructure Development Bank. Micro Irrigation Programme has been allocated with 5300 crore rupees. Government has set the target of 8.5 lakh crore rupees towards farmers credit. Many were expecting that the government might announce tax for farmers who get more than 50 lakh rupees income from farming.
Infrastructure was the main attraction in the Union Budget 2015. A whooping 70000 crore rupees allocated for infrastructure sector by Arun Jaitley. Rail, road and irrigation project bonds were made tax free. 150 crore rupees allocated for Atal Innovation Mission. Atal Innovation Mission will concentrate on improving expertise of entrepreneurs and researchers. 5 ultra mega power projects of 4000 MW capacity will be set up by the government.
In the Union Budget 2015, education also stood as main attraction with announcements of AIIMS, IITs and IIMs. Government is committed to setup AIIMS in Jammu & Kashmir, Punjab, Tamil Nadu, Himachal Pradesh, Bihar and Assam. IIT institutes will be setup in Karnataka. Dhanbad's Indian School of Mines will be upgraded as an IIT. Arun Jaitley's constituency Amritsar is gifted with PG institute of Horticulture. University of Disability Studies will be setup in Kerala. Arunachal Pradesh is gifted with Centre of Film Production, Animation and Gaming. Also IIM will be setup in Jammu & Kashmir and Andhra Pradesh states of India.
Defence is allocated with 2,46,726 crore rupees which is 9.87 per cent higher than the last year's budget. Government is keen to encourage manufacturing of defence equipment in our own country as a part of Make in India.
Arun Jaitley has promised to extend Visa on Arrival facility for 150 countries against existing 45 countries to improve and encourage tourism in our country. Also few places are earmarked for developing which includes churches and convents of old Goa, Hampi, Elephanta caves, forests of Rajasthan, Leh Palace, Varanasi, Jallianwala Bagh, Qutb Shahi tombs at Hyderabad.
So let us hope that the government will succeed in developing our nation with more and more pace.