A Steady Budget From Modi/Jaitley Combine
Finance Minister Arun Jaitley presented a steady budget for financial year 2015-16, and projected a fiscal deficit of 3.9% for the financial year 2015-16.
While revenue receipts for the government are likely to increase only marginally to Rs 11,41,575 crore from Rs 11,26,294 crore in 2014-15, total expenditure is likely to go up 5.7% to Rs 17,77,477 crore from Rs 16,81,158 crore.
Plan expenditure, which boosts assets and creates jobs, will decline marginally to Rs 4,65,277 crore from Rs 4,67,934 crore.
Defence expenditure will increase 10.95% to Rs 2,46,727 crore from an estimated expenditure of Rs 2,22,370 crore in 2014-15.
Swachh Bharat Mission, a pet project of Prime Minister Narendra Modi, will be allocated funds from a proposed 2% cess on all or certain services to be decided at a later date.
Infrastructure spending is likely to be increased by Rs 70,000 crore in the current financial year.
| Category | 2012-13 | 2013-14 | 2014-15 (Revised) | 2015-16 (Budget) |
|---|---|---|---|---|
| Revenue Receipts | 879232 | 1014724 | 1126294 | 1141575 |
| Capital Receipts | 531140 | 544723 | 554864 | 635902 |
| Non-plan Expenditure | 996747 | 1106120 | 1213224 | 1312200 |
| Plan Expenditure | 413625 | 453327 | 467934 | 465277 |
| Fiscal Deficit | 490190 (4.8%) | 502858 (4.4%) | 512628 (4.1%) | 555649 (3.9%) |
Source: Budget 2015; figures in Rs crore; fiscal deficit is as % of GDP
Health, education, women welfare and tribal upliftment also found mention in the Finance Minister’s speech.
Budget 2014-15 had estimated a revenue loss of Rs 22,200 crore due to direct tax exemptions and a gain of Rs 7,525 crore due to changes in indirect taxes – a net loss of Rs 14,675 crore.
This time, sops for direct taxes can lead to revenue loss of Rs 8,315 crore and a gain of Rs 23,383 crore due to modifications in indirect taxes – a net gain of Rs 15,068 crore.
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