Union Budget 201516

Presented by
Dr. Kaustubh Jain
Associate Professor
Department of Commerce

AISECT University

Introduction
Union Budget 2015-16 is being presented by Finance
Minister Mr. Arun Jaitley in the Parliament. We are
bringing you the highlights and key announcements of
Budget 2015-16.

The objective of this Budget is to improve quality of life and

to pass benefits to common man.

Real GDP expected to accelerate to 7.4%

Roadmap to achieve Fiscal deficit of 3% of GDP in three

years: Target is 3.9% in 2015-16, 3.5% in 2016-17, 3% in
2017-18.

Stock market - Second best performing in 2014.

Vision for Team India led by PM

Housing for all - 2 crore houses in Urban areas

and 4 crore houses in Rural areas.
Basic facility of 24x7 power, clean drinking water,
a toilet and road connectivity.
Substantial reduction in poverty.
Electrification of the remaining 20,000 villages
including off-grid Solar Power- by 2020.
Providing medical services in each village and city.

Broad themes
Measures to curb black money,
Job creation through revival of growth and
investment and promotion of domestic
manufacturing Make in India ,
Improve ease of doing business - Minimum
Government and maximum governance,
Improve quality of life and public health
Swachh Bharat,
Benefit to middle class tax-payers; and
Stand alone proposals to maximize benefit
to the economy.

What is A GOOD BUDGET

Government primarily requires money to
spend on social infrastructure, physical
infrastructure & than transforming funds
to the poor, so that distribution of income
becomes more equal.Therefore , a good
budget is one that has element of having
something for each sector.

RAIL BUDGET

Increase in daily passenger carrying capacity from

21 million to 30 million in 5 years.

Increase the track length by 20% over next five

years.

To increase freight carrying capacity from 1 billion

to 1.5 billion in 5 years.

Toll free number 182 to be launched for women &

safety issues.

Introduction of no new train.

No increase in passenger fare.

New Gold Scheme

We import around 800-1000 tons of gold each year.

To develop sovereign gold bond.

To introduce gold monetization scheme to allow

depositors to earn interest.

To introduce Indian made gold coins with Ashoka

Chakra to reduce demand for foreign gold.

Agriculture sector

Farm Credit Target of Rs.8.5 lakh crore for the farm

credit.

Micro Irrigation Programme Provision of 5300 crore

for Micro irrigation programme.

Rural Infrastructure Development Bank Provision

of 25,000 crore for RIDB.

Soil Health Try to make soli health better through

organic

farming

for

enhancing

agricultural

productivity.

Electrification Target of electrification of 20,000

villages.

Agriculture sector

Education and Skill India

An IIT to be set up in Karnataka and Indian School of

Mines, Dhanbad to be upgraded in to a full-fledged IIT.
New All India Institute of Medical Science (AIIMS) to be
set up in J&K, Punjab, Tamil Nadu, Himachal Pradesh
and Assam. Another AIIMS like institutions to be set up
in Bihar.
A post graduate institute of Horticulture Research &
Education is to be set up in Amritsar.
3 new National Institute of Pharmaceuticals Education
and Research in Maharashtra, Rajasthan & Chattisgarh
and one institute of Science and Education Research is
to be set up in Nagaland & Orissa each.

EFFECT ON ECONOMY AND

gdp
GDP growth in 2015-16, projected to be
between 8 to 8.5%.
Monetary Policy Framework Agreement with
RBI, to keep inflation below 6%.
CPI inflation projected at 5% by the end of
the year, consequently, easing of monetary
policy.

Major Challenges Ahead

Major challenges are :

Fiscal Roadmap
Good governance
Agriculture
Infrastructure
Financial Market
Monetizing Gold
Investment

Expected Income of Union Budget 201516

Conclusions

Due to all these reasons, the intended out-comes

are

unlikely

to

be

realized

by

this

Budget.

Consequently, the marginalized sections will have

little respite from economic hardships they have
been suffering. In this sense, the Union Budget
2015-16 continues the past trends in spite of the
opportunities that exist, the many new proposals
contained in it and the feeling the FM tried to
generate that there is much that is different.

Thank You