As the Finance Minister stood up to start his eloquent budget speech he began with many strong statements – “The nation is not happy with the status quo. We are a country with the desire to grow and people want to free themselves from the curse of poverty. The nation has become aspirational and is in no mood to suffer unemployment.” He has stated the the government will leave no stone unturned towards this.
Giving an indication of what lays ahead he has clearly stated that the government will take steps to improve fiscal prudence and also take hard and bold steps to spur growth. Reiterating the most fundamental personal finance concept of not spending more than what we earn and spending beyond means, he has indicated a sensible approach to the budgetary allocation. He has made a very honest statement that the wellness of the states will be kept in mind before taking any decision with regard to taxation.
– The FM has set a fiscal deficit target of 3.6% and 3.0% for 2015-17
– Fuel Subsidy will be targeted – implying that the middle class may have to shell out more for oil prices. ?
– Looking for a growth of 7-8% in the next coming years indicating that the government is serious on boosting the industry. This could also mean a stronger economy with better cash flow and better control on inflation.
– Retrospective taxation will be abolished immediately thus giving a high confidence especially to multi-national corporations.
– High benefits aimed for Low cost housing investments. Could boost the realty sector in the long run.
– Greater autonomy to banks – this could lead to better service and more innovative products.
– Smart Cities – 100 smart cities to be developed as ancillary cities to major cities – 7060 Crore committed
– Tourism – E-visas to be introduced at 9 airports, this could lead to more business travel and tourism.
– Kisan Vikas Patra – To be introduced again
– Skill India – Multi school program to skill the youth for employ ability and entrepreneurial skills.
– Cleaner cities – Swach bharat abhiyaan
– 1000 Crore for Prime minister agriculture development program
– Committed to provide 24/7 power supply across the country
– 200 Crores set aside for Vallabhai Patel Statue!
– Credit enhancement facility for Entrepreneurs from Scheduled classes.
– FDI in several sectors
– FDI in Insurance to be raised – we could see more competition in the domain and more investments coming in. This could lead to better products and reduced premiums.
– More inclusive society for Differently able persons – Aid for purchasing aids.
– Incentives for Visually challenged persons – Braille presses to be modernised
– Women Safety – 150 Crore for safety of women in major cities.
– Unified account scheme for PF to be launched
– INR 14389 Crores for Rural roads
– Rural housing allocation increased to 8000 Crores.
– MNREGA to target more productive work
– 4 more AIIMS institutions is under consideration in Andhra, Vidharba, Uttaranchal and Westbengal. Government medical colleges in most other states. Each year – an AIIMS to be set up to ensure every state has an AIIMS
– Broad band connectivity to be improved. Software product startups to be supported.
– 5 new IITS and IIMs to be setup
– Urban Renewal – 4 fundamental activities – Safer water, Sewerage, Solid waste management and Digital connectivity.
– Planning of Metro rail for cities with over 2 Million population
– Housing for all by 2022 – Additional tax incentives for Housing loans especially for youngsters. Sum of 4000 Crores to improve loan flow
– Easier flow of FDI in housing sector to help improve housing. This could mean cheaper loans and stable real estate prices.
– Investment in agro technology to be promoted.
…To be continued…