Who prepares budget Dept. of economic affairs Eco survey( ) : Dept. of Economic Affairs & CSO Chief Economic Adviser to FM : Arvind Subramanian Finance Secretary + FM Theme : Creating opportunity & Reducing vulnerability

Appropriation bill: to get permission of parliament, to take out cash from Consolidated fund of India- Art 266. Finance Bill: to get permission of parliament to collect taxes from people. Art 265. Annual financial statement: to show the parliament data about his incoming and outgoing money. Art 112

Achievements Success of Jan Dhan Yojana Coal Auction Transparent process where coal bearing states are going to benefit Swatch Bharat Abhiyan : Regenerate India, 50 lakh (13-14) toilets already continued, 6 crore target (14-15)

challenges 1 ) Agricultural incomes are under stress 2 ) Manufacturing has declined 18 % to 17 % of gdp, Manufacturing exports have remained 10 % gdp 3) Mindful of the need of fiscal discipline insite of rising demand of public investment (42 %) 4) Maintaining fiscal discipline : 4.1 % of GDP 5 ) Investment in Infrastructure (PPP) public investment to catalyse transformation

Taxation Abolition of wealth text Additional 2 % surcharge for the super rich with in come over Rs 1 crore Rate of corporate tax to be reduced to 25 % in next 4 years No change in text slabs Total exemption of up to Rs. 4,44, 200 can be achieved Service tax from 12.6 to 14 %

Type 1 Taxes on income & expenditure : Centre Type 1 : Taxes on income : State Corporate tax Income Tax Fringe benefit tax (abolished) Interest Tax (abolished) Hotel recipe Tax (abolished) Agriculture Income tax Professional tax Type 2 : Taxes on properties Land revenues Stamp duty Property tax in urban areas Direct Taxes :

Type 2 : property, Assets, capital transaction : Centre Securities Transaction Tax (STT) Capital gains tax Wealth tax Banking Transaction Tax Estate duty Gift tax

100 % deduction on donations Swatch bharat kosh Clean Ganga fund National fund for control of drug abuse

Indirect Taxes Centre State Custom duty Excise duty Service tax CST Sales tax Excise duty on liquor & narcotics Motor vehicle tax Entertainment tax Advertisement tax Luxury tax Batting gambling tax

Service Tax : Art 268, 88 th,2003, > 10 lakh Negative value Exempted Service tax doesn’t apply to these services To change this list, need to amend finance act 17 categories : post, RBI services, residential house for rent, road transport Agri : Labour, sericulture, pissiculture Bank loans, deposits By gov. Notification Budget 2015 : varishta Bima yojana

Budget 2015 :Service tax

Gross Vs Net

Subsidies

FRBM ACT

Agriculture Pradhan Mantri Krishi Sinchai Yojana Effective & hassle free loans for small & marginal farmers – 25,000 crore RIDF – NABARD 15,000 crore long term rural credit 16,000 crore short term cooperative credit Total 8.5 lakh crore credit

Pradhan mantra Gram vikas Yojana Gram Sinchai Yojana : per drop, more crop Paramparagat Krishi vikas Yojana (Organic farming) Deregulate fertiliser sector (Shanta kumar committee rec.) National Agri Market (unified Market ) Rs. 5,300 crore to support Micro Irrigation Programme.

Soil Health Card (Swasth Dhara, Khet hara), card to display soil fertility – 14 crore cards in next 3 years – 100 mobile testing lab. Mridaprikshak : digital – mobile –soil test kit ICAR – Bhopal Test soil parameters

Infrastructure Rs. 70,000 crore Tax free bonds for projects in rail /road (PMGSY, golden qudrilat, ) PPP model for infra. Dev to be revitalised and gov to bear more risk Atal Innovation Mission to be established to draw on expertise of entrepreneurs and researchers to foster scientific innovations; allocation of (Rs. 150 crore) Gov. proposes to set up 5 ultra mega power projects

Amrut mahotsav 2022 Housing for all : 2 crore urban, 4 crore rural Electricity: Govt. proposes to set up 5 ultra mega power projects, each of 4000MW, Din dayal gramin vidhyutikaran Yojana Job : skill India Education: 1 ssc school in 5 km Agriculture : irrigation, Value Adition IT

Education AIIMS in Jammu and Kashmir, Punjab, Tamil Nadu, Himachal Pradesh, Bihar and Assam IIT in Karnataka; Indian School of Mines in Dhanbad to be upgraded to IIT PG institute of Horticulture in Amritsar. Kerala to have University of Disability Studies centre of film production, animation and gaming to come up in Arunachal Pradesh IIM for Jammu and Kashmir and Andhra Pradesh.

Welfare Scheme JAM trinity (Jan Dhan Yojana, Aadhaar and Mobile) to improve quality of life and to pass benefits to common man. Six crore toilets across the country under the Swachh Bharat Abhiyan MUDRA bank will refinance micro finance orgs. to encourage first generation SC/ST entrepreneurs. DBT will be further be expanded from 1 crore to 10.3 crore For the Atal Pension Yojana, govt. will contribute 50% of the premium limited to Rs. 1,000 a year.

Rs. 5,000 crore additional allocation for MGNREGA. Govt. to use Rs. 9,000 crore unclaimed funds in PPF/EPF for Senior Citizens Fund New scheme for physical aids and assisted living devices for people aged over 80. Housing for all

Renewable energy Rs. 75 crore for electric cars production. Renewable energy target for 2022: 100K MW in solar; 60K MW in wind; 10K MW in biomass and 5K MW in small hydro

Tourism