UNION BUDGET 2014-15 : HIGHLIGHTS OF INTERIM BUDGET !!!

India's Interim Budget or VOTE ON ACCOUNT....(Full Year Budget on JUNE -JULY 2014.)

GROSS DOMESTIC PRODUCT ESTIMATED TO GROW AT 4.9 %, +/- 0.5 % IN FY14 - 15. 

AT CURRENT PRICES THE ADVANCE GDP ESTIMATE OF 2013 - 14 IS ₹ Rs. 105,39,605 LAKHS CR AND AT 2004-05 PRICES ITS AT Rs. 57,48,564 LAKHS CR.

FY15 TOTAL SUBSIDES AT Rs. 2,46,397 CR.

FY15 FERTILIZER SUBSIDIES AT  Rs. 67,971 CR.

FY15 FOOD SUBSIDIES AT  Rs. 1,15,000 CR.

FY15 OIL & PETROL SUBSIDIES AT  Rs. 63,427 CR.

FY15 FISCAL DEFICIT AT Rs. 5,28,631 CR.

THE CENTER'S EXPENDITURE 2014 - 15 PROJECTED AT Rs. 17,63,214 Cr.

BUDGET AT GLANCE (₹. in Cr) - 2014-15
1) REVENUE RECEIPTS	11,67,131
2) Tax Revenue (net to Centre)	9,86,417
3) Non- Tax Revenue (net to Centre)	1,80,714
4) CAPITAL RECEIPTS (5+6+7)	5,96,083
5) Recoviers of Loans	10,527
6) Other Receipts	56,925
7) Borrowings & other liabilities	5,28,631
8) TOTAL RECEIPTS (1+4)	17,63,214
9) NON PLAN RECEIPTS	12,07,892
10) On Revenue account  of which	11,07,781
11) Interest Payments	4,27,011
12) On Capital Account	1,00,111
13) PLAN EXPENDITURE	5,55,322
14) On Revenue account	4,42,273
15) On Capital Account	1,13,049
16) PLAN EXPENDITURE (9+13)	17,63,214
17) Revenue Expenditure (10+14)	15,50,054
18) Of which Grants for creation of Capital Assets	1,46,581
19) Capital Expenditure (12+15)	2,13,160
20) REVENUE DEFICIT (17-1)	3,82,923
21) EFFECTIVE REVENUE DEFICIT (20-18)	2,36,342

22) FISCAL DEFICIT (16- (1+5+6))

5,28,631

23) PRIMARY DEFICIT (22-11)

1,01,620

SOME MORE POINTS FROM BUDGET:-

• No change in Income tax rates and slabs.
• Growth in Q3 and Q4 FY14 will be at least 5.2 %
• Fiscal Deficit to be contained at 4.6 %.
• Current Account Deficit will be contained at $45 million and can only be addressed by Foreign Investments.
• Core Inflation to be at 3 % but Food Inflation remains a Key worry.
• Agriculture GDP growth is expected at 4.6 % in current year.
• Exports have recovered sharply and is estimated at $ 326 billion in current fiscal.
• Gov to start 4 Ultra Mega Power Projects in FY15 and over 29,000 MW of power capacity to be added during the fiscal, there is a construction underway for 50,000 MW of conventional (thermal) Power.
• Two projects sanctioned under Nirbhaya Fund; orignal Rs. 1,000 Cr made non- lapsable; another Rs. 1000 Cr granted.
• There were 296 projects worth Rs. 6,60,000 Cr cleared by Cabinet Committee on investment by end of January 2014.
• Agriculture credit will cross $45 billion as against $41 billion in 2012-13.
• Food grain production estimated at $ 263 million tons in 2013-14.
• Foreign Exchange Reserves up by $ 15 billion.
• Over rs. 45,000 Cr allocated for scheduled caste sub-plan.
• Budgetary support to railway at Rs. 29,000 Cr in 2014-15.
• Plan Expenditure to be at Rs. 5,55,322 Cr in 2014-15.
• Non- Plan Expenditure in 2014-15 is estimated to be over Rs. 10 lakh Cr.
• Defence sector allocated Rs. 2.24 lakh Cr an increase of 10 % in the allocation inFY15.
• Govt approves 1 rank 1 pay for retired jawans.
• Proposes Rs. 11,200 Cr for Capital Infusion in Public Sector Banks.
• Budgetary support to railways raised to Rs. 29,000 Cr.
• All taxes on Eports to be waived for manufacturing sector.
• Community Radio to be promoted with Rs. 100 Cr.
• Excise duty on capital goods reduced from 12 % to 10 %.
• Cars to be cheaper as FM proposes to reduce excise duty on Automoblies. Excise duty on small cars.motorcycles reduced fom 12 % to 8 %.
• Excise duty onSUV's reduced to 24 % on large cars to 20 %.
• Excise duty for all mobiles phones to be 6 %.
• Saops, TV, Fridges to be cheaper now.
• Growth for next year should be 5 %.

India's Interim Budget or VOTE ON ACCOUNT..what it means ?

A national interim Budget refers to the budget of a government that is going through a transition period. These budgets are common in democracies where one political party or a coalition is voted out and another political party or a coalition is voted into office. The two governments often have different fiscal plans, so the old government budget is cut short and a new budget is created. The interim Budget helps span the transition time between the two governments so that the government can continue to function. Countries like India use the term interim Budget specifically to describe this period. A national interim Budget is created out of necessity. National governments require interim budgets to function in the months it takes for a new government to create its own budget plan.

A vote-on-account presents an estimate of expenditures to be sanctioned by the exchequer till the Budget is passed. The Budget announces new programmes and estimates the public expenditure for the fiscal year. A vote-on-account cannot alter direct taxes since they need to be passed through a finance bill. In the Budget, fresh taxes may be imposed, old ones may go. Direct taxes like income tax and indirect taxes are both open to change. The common feature is that both include the previous year's financial performance of the government.

The significance:

The government cannot present a full budget because in such a short session, there's no time to debate proposals in Parliament. Expenditure for new schemes will have to form part of the new budget, which can be approved only after April 1. Also, it is ideally the new government's prerogative to decide how it'll raise and spend money. The newly formed government cannot be burdened by the previous government's budgetary allocations. While these are the technicalities, many look upon the vote on account as election rhetoric. Many look at it as a window where the government highlights its achievements ahead of elections. Experts say voters reward you for what you did in the first four years rather than what you did in the last six months. Whether or not the government succeeds in wooing the voter, the fact is that India is battling an economic meltdown like 2009. The government will have to take steps to reboot the economy. What remains to be seen though is whether these steps will be a part of the vote-on-account.

READ HERE TO KNOW LAST UNION BUDGET AT QUICK GLANCE - CLICK HERE

READ HERE TO KNOW MORE ON LONG TERM INVESTING - CLICK HERE

VIEW THE POWER POINT PRESENTATION ON

RETURN ON CAPITAL

Best Regards,

BHAVIKK SHAH

UNION BUDGET 2013 - 14 : HIGHLIGHTS !!!

GROSS DOMESTIC PRODUCT ESTIMATED TO GROW AT 5.5 %, +/- 0.5 % IN FY13 - 14. 

AT CURRENT PRICES THE ADVANCE GDP ESTIMATE OF 2012 - 13 IS Rs. 93,88,876 LAKHS CR AND AT 2004-05 PRICES ITS AT Rs. 54,82,111 LAKHS CR.

FY14 TOTAL SUBSIDES AT Rs. 2,31,000 CR.

FY14 FERTILIZER SUBSIDIES AT  Rs. 66,000 CR.

FY14 FOOD SUBSIDIES AT  Rs. 90,000 CR.

FY14 OIL & PETROL SUBSIDIES AT  Rs. 65,000 CR.

FY14 FISCAL DEFICIT AT Rs. 5,42,000 CR.

FY14 GROSS MARKET LOANS ARE Rs. 6,29,000 CR.

STATE PF ARE Rs. 10,000 CR.

EXTERNAL AID ARE Rs.10,560 CR.

OTHERS ARE Rs. 12,297 CR.

THE CENTER'S EXPENDITURE 2013 - 14 IS PROJECTED AT Rs. 14,90,925 Cr.

IN FLOW (Rs. in Cr)
CORPORATE TAX	4,19,520
INCOME TAX	2,47,639
CUSTOMS DUTY	1,87,308
EXCISE DUTY	1,97,554
SERVICE TAX	1,80,141
TAX OF UNION TERRITORY	2,758
TAX RECEIPTS FOR CENTRAL	8,84,078
STATE's SHARE IN TAX RECEIPTS	3,50,842
TOTAL TAX RECEIPTS	12,34,920

NON TAX RECEIPTS	AMOUNT
INTEREST RECEIPTS	17,764
DIVIDENDS & PROFITS	73,866
EXTERNAL GRANTS	1,456
OTHER NON TAX RECEIPTS	78,000
RECEIPTS OF UNION TERRITORY	1,166
TOTAL	1,72,252

NON DEBT CAPITAL RECEIPTS	66,468
RECOVERY OF LOANS & ADVANCES	10,654
MISC. CAPITAL RECEIPTS	55,814

* Out of the Tax Receipts the Center has to keep aside for Calamity & Contingency Fund of Rs. 4,800 Crs.

FISCAL DEFICIT (In Rs.)	AMOUNT
MARKET LOAN	4,84,000
EXTERNAL AID	10,560
STATE PF	10,000
OTHERS	12,297
TOTAL	5,42,499

OUT FLOW (Rs. in Cr)
PLAN EXPENDITURE	5,55,322
NON PLAN EXPENDITURE	11,09,975
OR
REVENUE EXPENDITURE	14,36,169
CAPITAL EXPENDITURE	2,29,129
DEFENSE	2,03,672
CENTRAL PLAN OUT LAY	99,030
GRANTS TO STATES & UTs	76,981
PENSIONS	70,726
INTEREST PAYMENTS	3,70,684
LOANS TO PSUs	417
OTHER GENERAL SERVICES	22,903
LESS OTHERS	302
CENTRAL PLAN	3,20,038
POSTAL DEFICIT	6,717
EXPENSES of UTs with out Legislature	4,395
NON PLAN CAPITAL OUTLAY	30,131
ECONOMIC SERVICES	24,334
GRANTS TO FOREIGN GOVT.	4,114
CENTRAL PLAN AID TO STATES	1,23,222
SOCIAL SERVICES	23,114
POLICE SERVICE	40,895

SOME MORE POINTS FROM BUDGET:-

• No change in Income tax rates and slabs.
• Imposed Surcharge of 10% on person whose taxable income exceeds Rs.1 Cr/yr. This will apply to Individuals, HUF's, Firms & entities with similar tax status.
• The additional surcharge will be force for only one year i.e. FY 2013-14.
• Increased surcharge from 5% to 10% on domestic companies whose taxable income exceeds Rs.10 Cr/yr, in case of foreign companies who pay the higher rate of Corp tax the surcharge will increase from 2% to 5%.
• Effective Tax rate @33.99% for domestic co. having income more than Rs.10 Cr.
• Effective MAT rate for Domestic co @21%.
• DDT surcharge increased from 5% to 10%.
• Tax credit of Rs. 2000 for income upto Rs.5 lakhs.
• To impose TDS @1% on the value of the transfer of Immovable property wherein consideration exceeds Rs. 50 lakhs, Agriculture land will be exempted.
• STT on Equity futures reduced from 0.017 to 0.01 %.
• STT on MF/ETF redemptions at fund counter reduced from 0.25 to 0.001%.
• STT on MF/ETF purchase/sale on exchange reduced from 0.1 to 0.001% only on seller.
• To levy CTT on non-agriculture commodities futures contracts at 0.01% of the price of the trade. CTT will be allowed as deduction if the income from such transaction forms part of business income.
• Import duty on Set Top Boxes raised from 5% to 10%.
• Import duty on Luxury Cars & vehicles & Yachts raised from 75% to 100%.
• Duty free Gold limit increased to Rs.50,000 in case of Male passenger & Rs.1,00,000 in case of female passenger subject to conditions.
• Excise duty on SUV's increased from 27% to 30%, not applicable to SUV registered as Taxis.
• Effective custom duty on SUV's increased from 138% to 178%.
• Vehicle Parking now comes under Service Tax.
• PSU Banks to get Rs. 14,000 Cr for Recap & Capital infusion of Rs. 12517 Cr by FY13.
• Home Loans upto Rs. 25 lakhs to be allowed additional deduction of interest of Rs.1 lakh.
• To set up India's first Women's Bank as a PSB with Rs. 1000 Cr as initial capital. It will obtain the necessary approval & banking licence by October 2013.
• FY14 disinvestment target Rs. 40,000 Crs.
• Farm GDP was 3.6 % in 11th Plan in GDP growth of 5.6 %.
• GOV. will need $75 billion to finance Current Account Deficit over next 2 years.
• Investor holding stake of 10% or less in a company will be treated as FII.
• Investor holding stake of more than 10% in a company will be treated as FDI.
• FII will be permitted to use their investment in corporate bonds & Gov. securities as collateral to meet their margin requirements.
• Small & medium enterprise incl. Start Ups will be permitted to list on SME Exchange without being required to make an Initial Public Offer,but the issue will be restricted to informed investor.
• FII will be permitted to trade in Exchange Traded Currency Derivative to the extent of their Indian Rupee Exposure in India.
• Stock Exchanges to be allowed to introduce Dedicated Debt Exchange.
• JNNURM will be given Rs. 14873 Cr,this will help in purchase of 10,000 buses by hilly stations.
• More institutions be allowed to raise Tax Free Bonds upto a total sum of Rs.50,000 Cr.
• Rajiv Gandhi Equity Saving Scheme to be liberalised -1st time investors can invest   into Mutual Funds &Listed shares for 3 successive years. The income limit will be raised from Rs. 10,00,000 to Rs. 12,00,000.
• Investment allowance @15% to manufacturing company that invests more than Rs. 100 Cr in plant & machinery during 1.4.2013 to 31.3.2015.
• To introduce Inflation Indexed Bonds or Inflation Index National Security Certificates.
• To provide Low Cost finance to viable renewable energy projects and Generation based incentives for Wind Energy projects.
• Govt. proposes to expand FM Radio services to 294 more cities &about 839 new FM radio channels will be auctioned in 2013-14, All cities having a population of more than 1 lkh will be covered by private FM radio   services.
• Defence sector allocated Rs. 2.03 lakh Cr.
• Corporate surcharge reduced from 7.5 % to 5 %.
• Dividend from foreign subsidiary to Indian companies down from 30 % to 15 %

READ HERE TO KNOW LAST UNION BUDGET AT QUICK GLANCE - CLICK HERE

READ HERE TO KNOW MORE ON LONG TERM INVESTING - CLICK HERE

VIEW THE POWER POINT PRESENTATION ON

RETURN ON CAPITAL

UNION BUDGET 2011 - 12 : HIGHLIGHTS

GROSS DOMESTIC PRODUCT ESTIMATES IN FY12 ARE  Rs. 71,57,000 LAKH CR AND AT 2004-05 PRICES 48,86,000 LAKH CR.

TOTAL SUBSIDES AT Rs. 1.43 LAKH CR.

FERTILIZER SUBSIDIES AT  Rs. 50,000 CR,
FOOD SUBSIDIES AT  Rs. 60,500 CR
OIL & PETROL SUBSIDIES AT  Rs. 23,600 CR.

FISCAL DEFICIT AT Rs. 4,12,817 CR.

MARKET LOANS = Rs. 3,43,000 CR

STATE PF = Rs. 10,000 CR.
EXTERNAL AID = Rs.14,500 CR.

LESS OTHERS = Rs. 13,866 CR.
THE CENTER'S EXPENDITURE 2011 - 12 IS PROJECTED AT Rs. 12,57,729 Cr.

IN FLOW (Rs. in Cr)
TAX RECEIPTS	6,64,457
CORPORATE TAX	3,59,990
INCOME TAX	1,72,026
CUSTOMS DUTY	1,51,700
EXCISE DUTY	1,64,116
SERVICE TAX	82,000
TAX OF UNION TERRITORY	1,973

NON TAX RECEIPTS	AMOUNT
INTEREST RECEIPTS	19,578
DIVIDENDS & PROFITS	42,624
EXTERNAL GRANTS	2,173
OTHER NON TAX RECEIPTS	59,891
RECEIPTS OF UNION TERRITORY	1,169
TOTAL	1,25,435

NON DEBT CAPITAL RECEIPTS	55,020
RECOVERY OF LOANS & ADVANCES	15,020
MISC. CAPITAL RECEIPTS	40,000

* Out of the Tax Receipts the Centre has to keep aside States share of Rs. 2,63,458 cr & for Calamity & Contingency Fund of Rs. 4,525 crs.

OUT FLOW (Rs. in Cr)
PLAN EXPENDITURE	4,41,547
NON PLAN EXPENDITURE	8,16,182
OR
REVENUE EXPENDITURE	10,97,162
CAPITAL EXPENDITURE	1,60,567
DEFENCE	1,64,415
SUBSIDIES	1,43,570
GRANTS TO STATES & UTs	66,311
PENSIONS	54,521
INTEREST PAYMENTS	2,67,986
LOANS TO PSUs	496
OTHER GENERAL SERVICES	19,105
LESS OTHERS	368
CENTRAL PLAN	3,35,521
POSTAL DEFICIT	5,018
EXPENSES of UTs with out Legislature	3,592
NON PLAN CAPITAL OUTLAY	13,212
ECONOMIC SERVICES	25,391
GRANTS TO FOREIGN GOVT.	2,301
CENTRAL PLAN AID TO STATES	1,06,026
SOCIAL SERVICES	20,862
POLICE SERVICE	29,685

SOME MORE POINTS FROM BUDGET

à    PSU Banks to get Rs. 20157 cr in FY12.

à    Priority Home Loans up from Rs. 20 lakhs to Rs. 25 lakhs.

à    1 % Interest subvention on Home Loans of Rs. 15 lakhs.

à    FY12 disinvestment target Rs. 40,000 crs.

à    Equity Fund of Rs. 100 cr for Micro finance companies.

à    Farm GDP was 5.4 % in FY11 in GDP growth of 8.6 %.

à    To give 3 % Interest subsidy to farmers on early payment of loans.

à    To allow Foreign Direct Investments in Mutual Funds.

à    Cold Storage Chains will be given Infrastructure status.

à    Exemption of Rs. 20,000 on investment in Infra bonds continued for 1 more year.

à    Tax free bonds of Rs. 30,000 cr for Infrastructure sectors to be declared.

à    Rural infra bonds of Rs. 18,000 cr to be declared.

à    Social Schemes allocate Rs. 58,000 crs.

à    Education sector allocated Rs. 52,057 cr up by 24 % in FY12.

à    Corporate surcharge reduced from 7.5 % to 5 %.

à    Dividend from foreign subsidiary to Indian companies down from 30 % to 15 %.

à    Minimum Alternate Tax raised from 18 % to 18.5 % of Book profit.

à    Developer of SEZ & SEZ operators, LLPs brought under MAT.

à    Ship owners allowed duty free import on spare parts.

à    Custom duty on imports of Micro irrigation systems down from 7.4 % to 5 %.

à    10 % Excise duty on Branded garments

à    20 % Ad volerm export duty on Iron ore.

à    NO Excise duty on Ultra Mega Power Projects equipments.

à    Air Conditioner restaurants serving liquor, hotels charging Rs.1000/day will attract Service Tax.

à    Service Tax on Domestic Air tickets Rs. 50, & on international tickets Rs.250

UNION BUDGET 2012 - 13 : HIGHLIGHTS

GROSS DOMESTIC PRODUCT ESTIMATED TO GROW AT 7.6 %, +/- 0.25 % IN FY12 - 13. AT CURRENT PRICES THE ADVANCE GDP ESTIMATE OF 2011 - 12 IS Rs. 83,91,691 LAKH CR  AND AT 2004-05 PRICES Rs. 52,47,530 LAKH CR.

TOTAL SUBSIDES AT Rs. 1,90,015 CR.

FERTILIZER SUBSIDIES AT  Rs. 60,974 CR,

FOOD SUBSIDIES AT  Rs. 75,000 CR

OIL & PETROL SUBSIDIES AT  Rs. 43,580 CR.

FISCAL DEFICIT AT Rs. 5,13,590 CR.

MARKET LOANS = Rs. 4,79,000 CR

STATE PF = Rs. 12,000 CR.

EXTERNAL AID = Rs.10,148 CR.

LESS OTHERS = Rs. 12,442 CR.

THE CENTER'S EXPENDITURE 2012 - 13 IS PROJECTED AT Rs. 14,90,925 Cr.

IN FLOW (Rs. in Cr)
TAX RECEIPTS	7,71,071
CORPORATE TAX	3,73,227
INCOME TAX	1,95,786
CUSTOMS DUTY	1,86,694
EXCISE DUTY	1,94,350
SERVICE TAX	1,24,000
TAX OF UNION TERRITORY	2,310

NON TAX RECEIPTS	AMOUNT
INTEREST RECEIPTS	19,231
DIVIDENDS & PROFITS	50,153
EXTERNAL GRANTS	2,887
OTHER NON TAX RECEIPTS	1,207
RECEIPTS OF UNION TERRITORY	1,136
TOTAL	74,614

NON DEBT CAPITAL RECEIPTS	41,650
RECOVERY OF LOANS & ADVANCES	11,650
MISC. CAPITAL RECEIPTS	30,000

* Out of the Tax Receipts the Center has to keep aside States share of Rs. 3,01,921 cr & for Calamity & Contingency Fund of Rs. 4,620 crs.

OUT FLOW (Rs. in Cr)
PLAN EXPENDITURE	5,21,025
NON PLAN EXPENDITURE	9,69,900
OR
REVENUE EXPENDITURE	12,86,109
CAPITAL EXPENDITURE	2,04,816
DEFENCE	1,93,408
SUBSIDIES	1,90,015
GRANTS TO STATES & UTs	64,211
PENSIONS	63,183
INTEREST PAYMENTS	3,19,759
LOANS TO PSUs	465
OTHER GENERAL SERVICES	21,382
LESS OTHERS	346
CENTRAL PLAN	3,03,582
POSTAL DEFICIT	5,727
EXPENSES of UTs with out Legislature	3,875
NON PLAN CAPITAL OUTLAY	23,971
ECONOMIC SERVICES	24,105
GRANTS TO FOREIGN GOVT.	3,114
CENTRAL PLAN AID TO STATES	1,16,985
SOCIAL SERVICES	20,784
POLICE SERVICE	35,611

SOME MORE POINTS FROM BUDGET

à    PSU Banks to get Rs. 15,888 cr in FY13.

à    Income Tax exemption limit raised from Rs.180,000 to Rs. 200,000.

à    There will be TDS on Buying/Selling of immovable property. TDS of 1 % of the transaction value if transaction value is more than Rs. 50 lakhs in Tire 1 cities or more than Rs. 20 lakh in other cities. 

à  Proposal to launch Rajiv Gandhi Equity Scheme which allows a deduction of 50 % to new retailers with the lock in of 3 years, who invest uto Rs. 50,000 directly in equities and whose annual income is below Rs. 10 lakhs.

à    Priority Home Loans upto Rs. 25 lakhs with 1 % Interest subvention on Home Loans of Rs. 15 lakhs.

à    A deduction of upto Rs.5,000 has been allowed on prevention health check up. 

à    FY12 disinvestment target Rs. 30,000 Crs.

à    UID Project allocated Rs. 14,232 Cr..

à    To allow Foreign Direct Investments in Corporate Bonds.

à    Education sector allocated Rs. 25,555 Cr.

à    Security Transaction Tax reduced 20 % from 0.125 % to 0.10 % on all Delivery Cash Transaction. 

à    Service Tax raised from 10 % to 12 %. 

à  Custom duty on standard gold bars, coins of purity 99.5 % and Platinum have been hiked from 2 % to 4 % & on non -standard gold from 5 % to 10 %.

à  Cash Purchase of Bullion or jewellery in excess of Rs. 2 lakh will be liable to TDS at 1 % . 

à   FM proposes to reopen assessment upto 16 years for overseas assets to check unaccounted money.

à   Minimum Alternate Tax raised from 18 % to 18.5 % of Book profit.

à Two way fungibility in Indian Depository Receipts would be allowed subject to ceiling for greater foreign participation .

à  Individual tax payers are allowed a deduction of up to Rs. 10,000 for interest from savings bank account.

UNION BUDGET 2015-16 : HIGHLIGHTS !!!

GROSS DOMESTIC PRODUCT ESTIMATED TO GROW AT at 8.00 % - 8.50 % for FY15 - 16

AT CURRENT PRICES THE ADVANCE GDP ESTIMATE OF 2014 - 15 IS ₹ Rs. 126,53,762 LAKHS CR AND AT 2011-12 PRICES ITS AT Rs. 106,56,925 LAKHS CR.

FY15 FISCAL DEFICIT AT Rs. 5,55,649 CR.
FY15 TOTAL SUBSIDES AT Rs. 2,43,811 CR.

FY15 FERTILIZER SUBSIDIES AT  Rs. 72,968 CR.

FY15 FOOD SUBSIDIES AT  Rs. 1,24,000 CR.

FY15 OIL-PETROLUEM SUBSIDIES AT Rs. 30,270 CR.

FY15 NET MARKET LOANS OF Rs. 4,56,205 CR.

FY15 STATE PF OF Rs. 10,000 CR.

FY15 EXTERNAL AID OF Rs. 11,173 CR.

THE CENTER'S EXPENDITURE 2014-15 IS PROJECTED AT Rs. 17,77,477 Cr.

INFLOWS (Rs. in Crs)	AMOUNT
CORPORATE TAX	4,70,628
INCOME TAX	3,27,367
CUSTOMS DUTY	2,08,336
EXCISE DUTY	2,29,808
SERVICE TAX	2,09,774
TAX OF UNION TERRITORY	3,577
GROSS TAX REVENUES	14,49,490
TAX RECEIPTS (net)	9,19,842

NON TAX RECEIPTS (Rs. in Crs)	AMOUNT
INTEREST RECEIPTS	23,600
DIVIDENDS & PROFITS	1,00,651
EXTERNAL GRANTS	1,774
OTHER NON TAX RECEIPTS	94,413
RECEIPTS OF UNION TERRITORY	1,296
TOTAL	2,21,734

DEBT RECEIPT (Rs. in Crs)	AMOUNT
MARKET LOANS	4,56,405
SHORT TERM BORROWINGS	30,063
Securities Issued against Small Savings	22,408
STATE PROVIDEND FUND (Net)	10,000
EXTERNAL ASSISTANCE (Net)	11,173
OTHER RECEIPTS (Net)	13,559
TOTAL	5,43,608

NON DEBT CAPITAL RECEIPTS (Rs. in Crs)	AMOUNT
RECOVERY OF LOANS & ADVANCES	10,753
MISC. CAPITAL RECEIPTS	69,500
TOTAL	80,253

* Out of the Tax Receipts the Center has to keep aside States share of Rs. 5,24,000 cr & for Calamity & Contingency Fund of Rs. 5,690 crs.

OUT FLOW (Rs. in Cr)	AMOUNT
PLAN EXPENDITURE	3,30,020
NON PLAN EXPENDITURE	12,06,027
OR
REVENUE EXPENDITURE	15,36,047
CAPITAL EXPENDITURE	2,41,430
DEFENCE	2,46,727
SUBSIDIES	2,43,811
GRANTS TO STATES & UTs	1,08,552
PENSIONS	88,521
INTEREST PAYMENTS	4,56,145
OTHER GENERAL SERVICES	30,936
POSTAL DEFICIT	6,665
EXPENSES of UTs without Legislature	4,998
ECONOMIC SERVICES	28,984
OTHER NON PLAN CAPITAL OUTLAY	10,582
ECONOMIC SERVICES	22,075
GRANTS TO FOREIGN GOVT.	4,342
POLICE	51,791
SOCIAL SERVICES	29,143
LOANS TO STATE & UT GOVT	79
LOANS TO FOREGIN GOVT	158
OTHERS	188

SOME MORE POINTS FROM BUDGET

®  Govt. committed to achieve Fiscal deficit target of 4.1 % of GDP followed by fiscal deficit of 3.9 % for 2015-16 and to achived 3.00 % in next 3 years with target of 3.5 % in 2016-17 and 3 % in 2017-18.

®   Rs. 2,46,726 Cr allocated to Defence sector and focus will be on Make In India for quick Manufacturing of Defence Equipment.  

® Propose to merge commodity regulator Forward Market Commission with SEBI. Proposes to introduce a public contract resolution of disputes bill.

®    To bring a new Bankruptcy Code in 2015-16. To establish an Autonomous bank board bureau to improve management of Public Sector banks.
®  Abolition of Wealth Tax this will be a loss of Rs. 1008 cr but proposes additional 2 % surcharge for the super rich with income of over Rs. 1 Cr. 

®  No Changes in Tax Rates & Slabs for Individuals, but proposes rate of corporate tax to be reduce to 25 % over next four years.
®   Total exemption of upto Rs. 4,44,200 can be achieved; Service Tax increased to 14 %. 

®  Announced a universal security system that would require half the corpus being contributed by the Union. And the premium woould be as low as Rs. 12 per annum.
® Announced the Atal Pension Yojana, where the government will contibute 50 % of premium limited to Rs. 1000 per year and a Prime Minister Jeevan Jyoti Bima Yojana which will provide insurance cover of Rs. 3 lakh with a premium of just Rs, 330 per year. The Pradhan Mantri Suraksha Bina Yojna will cover accidental death risk of Rs. 2 Lakh for a premium of just Rs. 12 per year. Proposes to create a Universal Social Security System for all Indians.
®  To introduce Prime Minister Jeevan Jyoti Bima Yojana which will provide insurance cover of Rs. 3 lakh with a premium of just Rs, 330 per year. The Pradhan Mantri Suraksha Bina Yojna will cover accidental death risk of Rs. 2 Lakh for a premium of just Rs. 12 per year. Proposes to create a Universal Social Security System for all Indians. To introduce new schemes for physical aids and assisted living devices for people aged over 80. Govt to use Rs. 9,000 Cr unclaimed funds in PPF/EPF accounts for Senior Citizens Fund. 
®  Transport allowance has been raised from Rs. 800 per month to Rs. 1600 per month. Health Insurance premium deduction has been hiked from Rs. 15,000 to Rs. 25,000.
®  To allow Rs. 80,000 as deduction for serious diesases for senior citizens, Super senior citizens to get 30,000 deduction on medical expenses.

® Allocates Rs. 5,000 Cr additional allocation for MGNREGA. Also Proposes 100 % exemption for contribution to Swachch Bharat apart from CSR.
®   To allocate Rs. 25,000 Cr for Rural Infrastructure Development Bank, to allocate Rs. 5,300 Cr to support Micro Irrigation Programme and sets Farmers credit to be Rs. 8.5 lakh Cr. To allocate Rs. 70,000 Cr to Infrastructure sector. To issue Tax Free Bonds for projects in Rails & Irrigation. To Allocate Rs. 150 Cr for Research & Developement. Proposes to set up 5 Ultra Mega Power Projects each of 4,000 MW. 

®  Atal Innovation Mission to be established to draw on expertise of entrepreneurs and researchers to foster scientific innovation.

®    Visas on arrivals extended from 43 countries to 150 countries. Development schemes for Churches and Convents in Old Goa, Hampi, Elephanta Caves, Forests of Rajasthan, Leh Palace, Varanasi town, Jallianwala Baugh, Qutb Shahi tombs at Hyderabad to be under the new toursim scheme.

® GAAR deferred for two years. And Financial Inclusion of 12.5 Cr families now financially mainstreamed in 100 Days. To introduce Sovereign Gold Bond as an Alternative to purchasing metal gold. New scheme for depositors of gold to earn interest and jewellers to obtain loans on their metal accounts. To Develop an Indian Gold Voin, which will carry Ashok Chakra on its face to reduce the demand for foregin coins and recycle the gold available in the country.

®  To allocate Rs. 75 Cr for Electric Car Production. Targets 100 KMW in Solar, 60 KMW in Wind, 10 KMW in biomass and 5 KMW in small hydra in renewable enrgy by 2022. Clear Energy Cess increased from Rs. 100 to Rs. 200 per metric ton of Coal to Finance Green Energy Fund. 

® Government to construct 50,000 toilets under Swachh Bharat Abhiyan. Two programmes to be introduced - GST & JAM Trinity. GST will be implemented by April 2016. Gov. targets Housing for all by 2020. To have upgradation of 80,000 Secondary schools.
®  MUDRA bank will refinance micro finance orgs to encourage first generation SC/ST entrepreneurs.

® Direct Benefits Transfer will be further expanded from 1 Cr to 10.3 Cr people. 

® To Allocate Rs. 33,150 Cr to healthcare. To Construct AIIMS in J&K, Punjab, Tamil Nadu, Himachal Pradesh, Bihar & Assam. And proposes IIT in Karnataka Indian Institute of Mines in Dhanbad to be upgraded to IIT. To construct Post Graduate Instiute of Horticulture in Amritsar. To construct Centre of Film production, animation and gaming to come up in Arunachal Pradesh.

® Plans to set up national Investment Infra Fund. And will need to build additional 1,00,000 Km of Road and need to encourage Public Ports to corporatize under companies act.

®   Prosposes to do away with different types of Foregin Investment & Replace them withh composite caps. To allow Foregin investment in Alternative Investment Funds.

®  Excise duty on footwear with leather uppers and having retail price of more than Rs. 1000 per pair reduced to 6 % from 10 %. Proposed to Exempt SAD on all items. Increase excise duty to 12.5%. Reduced custom duty on 22 items. Custom Duty on commercial Vehicals raised from 10 % to 40 %. 

®    Excise levy on Cigarettes and the compounded levy Scheme applicable to Pan Masala, Gutkha and other Tobacco products also changed.

®   Clean Energy cess increased from Rs. 100 to Rs. 200 per metric tonne of coal .etc to finance clean Environment.  

®  Proposes to rationalised capital gains tax regime for real estates investmetn trusts. Rental Income from REITS to have pass through facility.

®  Quoting PAN a must for all Purchase or Sale above Rs. 1,00,000. Acceptance of re-payment of an advance of Rs. 20,000 or more in Cash for Purchase of Immovable Property to be prohibited. Benami Transaction (Prohibition) Bill to curb domestic black money be introduced in current session of Parliament. Provision will be made to tackle splitting of reportable transaction.

®   Additional Investmetn allowance (@15%) and additional depreciation (@35%) to new manufacturing units set up during the period 01-04-2015 to 31-03-2020 in notified backward areas of Andhra Pradesh and Telangana. Rate of Income Tax on royalty and fees for technical services & support reduced from 25 % to 10 % to facilitate technology inflow.    

®  FY15 disinvestment target Rs. 69,500 Crs and 26,353 Cr through disinvestments in PSUs. Market Stabilisation Scheme of Rs. 20,000 Cr, Communication receipt Rs. 42,865 Cr

*Dear Reader friend, if you enjoyed this article, please do share it with your Friends and Colleagues through Facebook and Twitter, and drop in your valuable thoughts in comment box..

READ HERE TO KNOW MORE ON LONG TERM INVESTING - CLICK HERE

VIEW THE POWER POINT PRESENTATION ON

RETURN ON CAPITAL