The govt’s achievements highlighted by Jaitley on budget day included: substantial push to inclusion via Jan Dhan Yojana, transparent coal auctions and the emergence of Swachh Bharat as a national movement.
In the Budget, the govt laid the initial road map for a host of transformative reforms — especially GST and the JAM trinity (Jan Dhan, Aadhaar, Mobile) for delivering subsidies directly and efficiently to beneficiaries.
Data put forward by the FM showed an easing of inflation and a projected GDP growth of 8–8.5%. A Monetary Policy Framework agreement with the RBI would aim to keep inflation below 6%, creating room for monetary easing, it was announced.
Budget 2015-16 presented a long-term “Team India” vision for 2022: housing for all, universal access to basic services like 24×7 power, clean water and sanitation, rural electrification, agricultural modernisation and improved education and healthcare access.
In his budget document, Jaitley identified five major challenges: a) stressed farm incomes, b) weak manufacturing, c) low infra investment, d) tighter resources due to higher tax devolution to states, and e) the need for fiscal discipline.
To tackle these challenges, Jaitley’s budget proposed: a) more public investment, b) continued support for flagship social schemes, and c) a more realistic fiscal road map that would target a 3% fiscal deficit by 2017–18. Additional finances, if any, will be directed towards infra, it was announced.Agriculture was accorded priority with schemes for soil health, irrigation and major credit allocations through NABARD and cooperative institutions. A unified National Agriculture Market was proposed with the aim of integrating fragmented markets and helping farmers get better prices.
To boost entrepreneurship and small businesses, Budget 2015-16 announced the MUDRA Bank, Trade Receivables Discounting System (TReDS), a new bankruptcy code and expanded access to formal finance through the postal network.
The Budget laid the foundation for a universal social security net via affordable insurance and pension schemes such as PMSBY, PMJJBY and Atal Pension Yojana.
Jaitley’s budget showed a significant rise in infrastructure investment — including in roads, railways, power projects, ports and five new Ultra Mega Power Projects. A National Investment and Infrastructure Fund would be set up with the aim to mobilise long-term financing, it was announced.
The Budget also sought to promote innovation and startups through the Atal Innovation Mission and SETU.
Financial market reforms announced by Jaitley included: a) setting up a Public Debt Management Agency, b) merging the Forward Markets Commission with SEBI, b) establishing a unified financial redress agency, and d) steps toward an internationally competitive tax regime.
Jaitley also proposed a number of notable measures related to gold, including a) a gold monetisation scheme, b) sovereign gold bonds and c) an Indian gold coin.
There was no proposal to cut personal income tax, but Jaitley proposed a reduction in corporate tax from 30% to 25% over four years while phasing out exemptions.
The Budget sought to take the fight against black money to the next level with a new law prescribing heavy penalties and imprisonment for undisclosed foreign assets.
Some of the other notable announcements included: promote Make in India, simplify compliance, support renewable energy, expand skill development, strengthen higher education and provide tax reliefs to the middle class.
Overall, in a nutshell, Budget 2015-16 aimed to revive growth, bring structural reforms, improve governance and speed up inclusion.
