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Budget 2015 Live: Next phase of subsidy rationalisation will be on LPG


3.57: This Budget, the government has focussed on subsidy rationalisation rather than subsidy withdrawal. it will soon begin the second phase of LPG subsidy rationalisation. In his Budget speech, the finance minister urged the affluent class to relinquish LPG subsidy enjoyed by them.

3.54: The FM explained the rational behind extending the target of lowering fiscal deficit to 3 percent. “There was very less headroom to work on that.” Instead the government has been keen to incentivise taxpayers.

3.40: Speaking to the press, the FM said he expects growth rates to be better in FY16 than in FY15. He said revenue projections for FY16 is set at 16 percent. Indian states are destined to become financially more powerful now since 62% of national revenue will go them

3.00: Modi on Twitter — 2015 Budget will further reignite our growth engine, signalling the dawn of a prosperous future.

2.45: The government plans to use excise revenue from Petrol and diesel to build highways and railways

2.40: The FM said he was keen to raise savings rate to 36 percent of GDP. Experts say the nominal GDP growth for next fiscal is likley to stand at 11-12 percent.

2.35: The Budget did not raise or cut personal income tax slabs, but the finance minister has kept the option open to tinker with it later. Addressing the House after his speech, he said “not ruling out raising personal income tax slabs going forward.”

2.25: The Budget introduced 10 percent TDS for Provident Funds. Allowed withdrawal before 5 years. Jaitley’s Budget said interest paid by branches to foreign banks will be subject to withholding tax.

2.20: The FM says extending fiscal consolidation plan    by one year will not materially change anything. Budget 2015 did not compromise on social sector spending.

2.00: The 50 percent depreciation will now be unavailable on new assets in 1st year but will be granted in second year.

1.42: Increase in surcharge leads to corporate tax moving up to 34.6 percent for FY16

1.41: Road Cess on petrol & diesel increased to Rs 8/L from Rs 2/L. Excise duty on mineral water and aerated drinks increased to 18 percdent.

1.40: MAT not applicable on FPIs a relief for foreign investors. Reduction in royalty rates positive for telecom companies

1.38: With falling crude prices, Budget 2015 exempted education cess from all petroleum products.

1.05: The government is eyeing Rs 4.7 lakh crore corporate tax revenue of in FY16

12.55: In a move that will promote clean energy drive, the Budget proposed to waive excise duty on electric and hybrid vehicles

12.50: Vallabh Bhansali says it is a great Budget it balanced between a lot of subjects.

12.42: The best attempt this Budget has made is to provide detailed roadmap to curb blackmoney. The intent of the government is very clear and people trying to avoid tax will find it difficult to keep unaccounted cash, Analyses Madhu Kela.

12.40: The main focus was on the ease of doing business and Jaitley managed to deliver, says Ashok Wadhwa of Ambit

12.36: Madhu Kela says the Budget is laudable. The clarity for next five years is commendable.

12.29: While conclusing his speech, Jaitley said the government’s aim is to receive Rs 41,000 crore from divestments in FY16. FY15 divestment proceeds to be Rs 26,353 crore.  FY16 divestment target at Rs 69,500 crore.

12.29: For the coming fiscal, the government’s  gross borrowing figure has been estimated at Rs six lakh crore

12.28: Transport allowance doubled from Rs 800 to Rs 1600 per month

12.26: Deduction limit for health insurance premium raised to Rs 25000 from Rs 15,000. The same for senior citizens has been raised to Rs 30,000. He also announced an exemption of Rs 50,000 for contribution to pension scheme.

12.25: Although he annouced 100 percent tax deduction for Swachh Bharat and clean Ganga, the FM also said a clean energy cess will be introduced to finance clean energy drive. There will be an enabling provision to levy a Swachh Bharat cess should the need arises.

12.20: The super rich tax, a legacy of the previous government, is back. The FM abolished wealth tax but levied additional 2 percent surcharge on super rich.

12.18: No change in personal income tax slabs.

12.16: GAAR deferred by two years

12.15: Income tax levy on royalty fees for technicals reduced to 10 percent

12.12: Central excise duty to be raised to 12.5 percent.

12.07: As a major boost to industry, Jaitley reduced corporate tax rate to 25 percent from 30 percent earlier for the next 4 years. The FM said he will rationalise & remove exemptions for corporates in the next 4 years.

12.03: The government estimates FY16 total expenditure at Rs 17.77 lakh crore. Of this planned expendiure stands at Rs 4.65 lakh crore and non planned expenditure ar Rs 13.12 lakh crore.

12.00: FY16 defence allocation at Rs 2.46 lakh crore.

11.59: The Budget announced allocation of Rs 33,150 crore towards healthcare.

11.58: In a bid to boost north eastern states, The Union Budget proposed setting up of film institute in Arunachal Pradesh. 

11.55: To allocate Rs 75 crore for electric vehicles

11.54: The governemt will do away with distinction between FPIs and FDIs

11.48:To incentivise credit, debit card transactions. Indians will be encouraged to go the RuPay way. The government will introduce made in India gold coins to reduce demand for foreign coins.

11.42: to set up 5 ultra mega power projects of 4,000 mw.

11.38: Propose to merge commodities regulator with SEBI. He also proposed to introduce a public contract resolution of disputes bill

11.35: As a major incentive, jaitley proposed tax-free infra bonds for  road, railways & infra projects. In the same direction, he announced setting up of national infrastructure fund. The government will introduce regulatory reform law for infrastructure

11.34: To lift infrastructure, expenditure in the sector will go up to Rs 70000 crore. He said road outlays will increase by Rs 14,031 cr in FY16.

11.31: The finance minister said non-banking finance corporations (NBFC) will be treated at par with banks if they have a size of over Rs 500 crore

11.26: He also proposed Rs 20,000 crore for Mudra Bank to boost SMEs

11.24: Jaitley proposed to allocate Rs 5,300 crore for micro-irrigation, Rs 25,000 crore for rural infrastructure and Rs 34,699 cr for MNREGA. He also proposed Rs 8.5 lakh crore Farm Credit  in FY16

11.20: Direct transfer of benefits to be further expanded. Jaitley also mentioned the government is considering scaling up of disinvestment target

11.18: Firm on achieving medium-term fiscal deficit target of 3 percent of GDP. Hoping to achieve fiscal deficit of 3 percent by FY18

11.13: Likely to end FY15 with GDP of 7.4%

11.10: Expect monetary policy easing ahead as CPI inflation will only go lower. Expect CPI to remain close to 5 percent by year-end. Formation of monetary policy committee shortly.

11.07: GST to be in place by April 1, 2016

11.06: Embraced states as equal partners of growth. In a span of 100 days, made Jan Dhan Yojna a success. Swacch Bharat transformed into movement to transform India. Target of building 6 crore toilets. It i a step towards preventive healthcare.

11.03: India 2nd best stock market, current account deficit (CAD) for FY15 to be below 1.3 percent  of GDP

11.02: Govt taken several steps to energies the Indian economy

11.01: I present the Budget in a far better economic environment than in the past: Jaitley

11.00: Finance minister Arun Jaitley begins Budget speech. Market up 236 points.

10.53: Cabinet approves Union Budget 2015-16. Finance minister Arun Jaitley to begin speech shortly.

10.43: If the Budget facilitates right incentives, Nilesh Shah of Kotak Mah AMC, thinks that alone can see domestic savings being channelized into stock markets. It will take market higher. If retirement savings are offered incentive schemes, that alone can help a long way. He says market has become quite optimistic post yesterday’s Economic Survey.

10.39: The market is expecting a lot of things including announcement  on public spending and planned expenditure. If there is no specific thrust on infrastructure then it may not be taken kindly by the market, says Nirmal Jain.

10.29: The PPP model has to be fairer towards the private sector, says Biocon chief  Kiran Shah Mazumdar who believes that is a majot step to seek private sector investments. She hopes to see major announcements with regards to start-ups.

10.24: E&Y chairman Memani says he is looking forward to details on how the government plans to raise funds for its recently announced plans

10.20:  Sunil Munjal expects the finance minister to lower exemptions and introduce moderate tax rates. He is also hoping the Budget speech focusses on labour reforms and clariefies on GST.

10.03: Ashok Wadhwa, Group CEO, Ambit Holdings Pvt Ltd believes the finance minister may increasing service tax rate. If concessions are provided to any sector, then the government should not bring legislations through backdoor. He hopes the finance minister is forthrigh enough to paln things for a five year period,  and not destroy confidence of investor community by taking back incentives in the form of tax.

9.55: Chetan Ahya Morgan Stanley is looking at fiscal consolidation, efforts to raise capex and overall reforms commitment that would lead to job creation.

9.45: Speaking to CNBC-TV18, Adrian Lin said he was not expecting one or two announcements from finance minister Arun Jaitly this Budget, rather a basket of reforms, starting from steps taken to lift infrastructure and quality expenditure in capital competitiveness. 

9.41: Jaitley reaches Parliament

9.38: The Finance Minister is also likely to pursue the path of fiscal consolidation and keep the fiscal deficit target at 3.6 per cent of GDP.

9.26: Finance minister Arun Jaitley is headed to Parliament to present the NDA government’s first full year Budget. Termed as a ‘make or break’ fiscal exercise, this Budget is widely expected to unveil pro-common man measures and push forward ‘Make In India’ campaign.

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If the Budget facilitates right incentives, Nilesh Shah thinks that alone can see domestic savings being channelized into stock markets. It will take market higher. If retirement savings are offered incentive schemes, that alone can help a long way


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