Highlights of Union Budget 2015-16: PDF Download

Friends..As you all know, Union Finance Minister Arun Jaitley today (28 February 2015) presented the Union Budget 2015-16 in Parliament. Questions related to this budget will surely be asked in upcoming competitive Exams and mainly in Bank Exams. So in this post, we are sharing with you the highlights of the Union Budget 2015-16.

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--> No change in personal Income Tax * Health Insurance Premium deduction hiked from Rs. 15,000 to Rs. 25,000; for senior citizens to Rs. 30,000

--> Transport allowance exemption hiked to Rs. 1,600, from Rs. 800 per month

--> Additional 2% surcharge on people earning over Rs. 1 cr; to fetch Rs. 9,000 cr

--> Wealth tax abolished

--> Direct Taxes Code (DTC) dropped

--> Rs. 50,000 deduction for contribution to New Pension Scheme

--> To lower Corporate Tax to 25% over next four years

--> GAAR implementation deferred by 2 years to April 2017

--> Service Tax rate hiked to 14%, from 12.36%

--> Tax free bonds for roads, railways, irrigation projects

--> 2015—16 growth between 8—8.5%, double digit growth feasible

--> Retail inflation close to 5% by March, room for monetary policy easing

--> To achieve fiscal deficit of 3% of GDP by 2017—18

--> Fiscal Deficit target 3.9% in 2015—16, 3.5% in 2016—17

--> Revenue Deficit to be 2.8% in 2015—16

--> Current Account Deficit for 2014—15 to be below 1.3% of GDP

--> To introduce comprehensive law to deal with black money

--> Benami property transaction bill to tackle black money transaction in real estate soon

--> 100% deduction for contribution to Swachh Bharat, Clean Ganga projects

--> GST to be put in place by April 1, 2016

--> Internationally competitive direct tax regime to be put in place to incentivise saving

--> Incentivise use of credit, debit cards; disincentivise cash transaction to curb black money.

Here are sector-wise highlights:

TAXATION

* Abolition of Wealth Tax.

* Additional 2% surcharge for the super rich with income of over Rs. 1 crore.

* Rate of corporate tax to be reduced to 25% over next four years.

* No change in tax slabs.

* Total exemption of up to Rs. 4,44,200 can be achieved.

* 100% exemption for contribution to Swachch Bharat, apart from CSR.

* Service tax increased to14 per cent.

AGRICULTURE

* Rs. 25,000 crore for Rural Infrastructure Development Bank.

* Rs. 5,300 crore to support Micro Irrigation Programme.

* Farmers credit - target of 8.5 lakh crore.

INFRASTRUCTURE

* Rs. 70,000 crores to Infrastructure sector.

* Tax-free bonds for projects in rail road and irrigation

* PPP model for infrastructure development to be revitalised and govt. to bear majority of the risk.

* Atal Innovation Mission to be established to draw on expertise of entrepreneurs, and researchers to foster scientific innovations; allocation of Rs. 150 crore.

* Govt. proposes to set up 5 ultra mega power projects, each of 4000MW.

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.

DEFENCE

* Allocation of Rs. 2,46,726 crore; an increase of 9.87 per cent over last year.

* Focus on Make in India for quick manufacturing of Defence equipment.

WELFARE SCHEMES

* GST and 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.

* Housing for all by 2020.

* Upgradation 80,000 secondary schools.

* 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.

* New scheme for physical aids and assisted living devices for people aged over 80 .

* Govt. to use Rs. 9,000 crore unclaimed funds in PPF/EPF for Senior Citizens Fund.

* Rs. 5,000 crore additional allocation for MGNREGA.

* Govt. to create universal social security system for all Indians.

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

* Develpoment schemes for churches and convents in old Goa; Hampi, Elephanta caves, Forests of Rajasthan, Leh palace, Varanasi , Jallianwala Bagh, Qutb Shahi tombs at Hyderabad to be under the new toursim scheme.

* Visa on Arrival for 150 countries.

FINANCIAL SECTOR

* Forward Markets Commission to be merged with the Securities and Exchange Board of India.

* NBFCs registered with the RBI and having asset size of Rs 500 crore and above to be considered as ‘financial institution’ under Sarfaesi Act, 2002, enabling them to fund SME and mid-corporate businesses

* Permanent Establishment norms to be modified to that mere presence of offshore fund managers in the country does not lead to “adverse tax consequences.”

Courtesy in preparing this article: The Hindu

Official Budget Speech: English and Hindi

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Economic Survey 2014-15 Highlights PDF

A day before Prime Minister Narendra Modi government's first full Union Budget, the Economic Survey has been tabled in Parliament on 27 February 2015 by Finance Minister Arun Jaitley. It has highlighted that the Indian economy would grow by more than 8 percent in the 2015-16 fiscal year. Following are the highlights of Economic Survey 2014-15:

* GDP growth seen at 8.1–8.5 per cent in 2015-16

* Double digit growth trajectory; 8–10 per cent GDP in coming years

* Inflation shows declining trend during April-December

* Current Account Deficit (CAD) to decline to about 1 per cent in 2015-16

* To adhere to fiscal deficit target of 4.1 per cent of GDP; to aim for 3 per cent

* Committed to fiscal consolidation; to enhance revenue generation

* More reforms on anvil; Goods and Services Tax, expanding direct benefit transfers to be game-changers

* Foodgrains production for 2014-15 estimated at 257.07 million tonnes; will exceed last 5-year average by 8.5 million tonnes

* NITI Aayog, 14th Finance Commission to enhance fiscal federalism

* External Sector returning to strength, resilience

* Need balance between ‘Make in India’ and ‘Skilling India’

* Services sector negotiations at WTO crucial for India in removing many market access barriers

* Revitalise PPP model to revive investment

* Manufacturing and services equally important for growth

* Consumer inflation in 2015-16 to be between 5-5.5%

* Lower inflation opens up space for more monetary easing

* There is scope for big bang reforms

* Labour, capital, land, market reform and skills to be engines of growth

* JAM Trinity — Jan Dhan Yojana, Aadhaar, Mobile — to help transfer of funds to poor without leakage

* Shield domestic industry to promote ‘Make In India’

* Borrowings to fund investment, not for meeting expenses

* Food subsidy bill in April-Jan up 20% to Rs. 1.08 lakh cr

* Reform Railway’s structure, commercial practices, overhaul of technology

* Public investment key growth engine in short-run for Railways, but not a substitute for private investment

* More disinvestments on the anvil in current fiscal

* Under-recoveries on petroleum products to come down to Rs. 74,664 crore in 2014-15, from Rs. 1.39 lakh crore in FY14

4Ds — Deregulation, Differentiation, Diversification, Disinter (better bankruptcy laws) — to push financial sector growth

* Implementation of GST to boost GDP, exports

* Suggests medium to long term fiscal policy to target deficit, expenditure

* Global commodity prices to remain weak in 2015

* Ecommerce sector to witness 50% growth in 5 years

You can download this article as PDF by clicking the 'print friendly' button below.

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Questions related to Sukanya Samridhi Yojana

Friends.. As you are aware Prime Minister Narendra Modi on 22 January 2015 launched a small deposit scheme Sukanya Samridhi Yojana for girl child under the Beti Bachao Beti Padhao (BBBP) campaign. In this post we are bringing you some probable questions that can be asked related to this Yojana in the upcoming exams.

1) Who can open account in the name of Girld Child under Sukanya Samridhi Yojana? - Guardian/Natural Guardian

2) A Guardian can open how many accounts under SSY? - Only one account in the name of one girl child and maximum two accounts in the name of two different girl children.

3) An account under SSY can be opened up to the age of ___ years only from the date of birth? - 10 Years

4) Whether nomination facility is available for accounts under SSY? - No

5) Minimum amount for opening of SSY Account? - Rs.1000 (Subsequent deposit should be in multiple of Rs.100/-)

6) Maximum amount that can be deposited in a financial year in this account? - Rs.1,50,000

7) Whether there is any limit on the number of deposits? - No

8) What is the interest rate for the financial year 2014-15 under Sukanya Samridhi Yojana account? - 9.1%

9) Partial withdrawal, maximum upto 50% of the balance standing at the end of the preceding financial year can be taken after Account holder is attaining age of ___ years? - 18 Years

10) Sukanya Samridhi Account can be closed after completion of ___ years? - 21

11) If account is not closed after maturity, balance will continue to earn interest as specified for the scheme from time to time. State whether the statement is correct? - Yes

12) Normal premature closure will be allowed after completion of 18 years provided which condition? - Girl is married

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Questions related to NITI Ayog for exams

Union government has recently revamped and renamed Planning commission as National Institution for Transforming India (NITI) Aayog. Here are some probable questions related to NITI Ayog for upcoming exams.

1) Expand 'NITI' in NITI Aayog? - National Institution for Transforming India

2) Who heads the NITI Aayog as its chairperson? - Prime Minister of India

3) Government had announced formation of NITI Aayog on? - 1 January 2015

4) What is the structure of Governing Council of NITI Aayog? - Chief Ministers of all the States and Lieutenant Governors of Union Territories

5) Who appoints the Vice-Chairperson of Vice-Chairperson? - Prime Minister

6) What is the composition of Part time members in NITI Aayog? - Maximum of 2. They will from leading universities research organizations and other relevant institutions on a rotational basis.

7) What is the composition of Ex Officio members in NITI Aayog? - Maximum of 4 members of the Union Council of Ministers to be nominated by the Prime Minister.

8) Who was recently appointed as the Vice Chairperson of NITI Aayog? - Arvind Panagariya

9) Who are the present Ex-Officio Members of NITI Aayog? - Rajnath Singh, Arun Jaitley, Suresh Prabhu and Radha Mohan Singh

10) Who are the present Special Invitees of NITI Aayog? - Nitin Gadkari, Smriti Zubin Irani and Thawar Chand Gehlot

11) Who are the present Full-time Members of NITI Aayog? - Bibek Debroy & V. K. Saraswat

12) Who was recently appointed as the CEO of NITI Aayog? - Sindhushree Khullar

If anybody would like to add more more questions you can comment below..we will add them here. 

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Questions related to Kisan Vikas Patra for Bank Exams

Friends.. As you might have noticed in the recent Bank/Insurance Exams, in every shift one question related to Kisan Vikas Patra (KVP) was asked. Hence, in this post we are sharing with you some probable questions related to KVP which will be useful in the upcoming exams.

1) Union government on which date relaunched the erstwhile popular small savings instrument Kisan Vikas Patra (KVP) to encourage people to save more and keep them off fraudulent schemes? - November 18, 2014

2) Amount invested in Kisan Vikas Patra would get doubled in? - 100 months or eight years and four months

3) Will the investors get any tax benefit for their investment in Kisan Vikas Patra? - No

4) Kisan Vikas Patra certificates would be available in the denominations of? - Rs 1,000, 5,000, 10,000 and 50,000

5) What is the upper limit on investment in KVPs? - No upper limit

6) Kisan Vikas Patra certificates can be encashed after a lock-in period of? - 30 months or 2 years and 6 months

7) Kisan Vikas Patra certificates can be issued jointly? - Yes, it can be issued in single or joint names.

8) Whether KVP can be transferred from one person to any other person/persons? - Yes & multiple times also possible.

9) Is nomination facility available for KVP? - Yes.  The facility of transfer from one post office to another anywhere in India is also permitted.

10) Can Kisan Vikas Patra certificates be pledged as security to avail loans from the banks? - Yes

11) Kisan Vikas Patra savings scheme was originally launched in which year? – 1^st April 1988

12) What was the maturity period of the earlier KVP scheme when it was launched? - 5 years and six months

13) In which year earlier KVP was discontinued? - 2011

14) Why was the earlier KVP discontinued by UPA government? - Following the Shyamala Gopinath Committee report which suggested that KVPs may be discontinued as they are prone to misuse.

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Know more about Kisan Vikas Patra

Union government on 19 November 2014 relaunched the erstwhile popular small savings instrument Kisan Vikas Patra (KVP) to encourage people to save more and keep them off fraudulent schemes. Here are the things you should know about the scheme.

* Kisan Vikas Patra savings scheme was originally launched in 1988. The maturity period of the scheme when launched was five and half years and the money invested doubled on maturity. KVP was a popular saving scheme that doubled the money invested in eight years and seven months.

* However, KVP was discontinued by the UPA government in 2011 following the Shyamala Gopinath Committee report. It had suggested that KVPs may be discontinued as they are prone to misuse.

* In the newly launched scheme amount invested in Kisan Vikas Patra would get doubled in 100 months or eight years and four months. This means KVPs would be giving a return of 8.7 per cent annually. This is in line with 8.70 per cent per annum interest rate offered by another popular savings instrument public provident fund (PPF).

* However, investors would not get any tax benefit for their investment in Kisan Vikas Patra unlike in PPF.

* The Kisan Vikas Patra certificates would be available in the denominations of Rs 1,000, 5,000, 10,000 and 50,000 and there is no upper limit on investment in KVPs.

* Kisan Vikas Patra certificates can be encashed after a lock-in period of 30 months or 2 years and 6 months. Thereafter, investors can withdraw in any block of six months.

* Kisan Vikas Patra certificates can be issued in single or joint names and can be transferred from one person to any other person/persons, multiple times.

* The facility of transfer from one post office to another anywhere in India and of nomination will be available.

* Kisan Vikas Patra certificates can also be pledged as security to avail loans from the banks.

* Initially, the Kisan Vikas Patra certificates will be sold through post offices, but later on they will be made available to the through designated branches of nationalised banks.

* Kisan Vikas Patra was very popular among the investors and the percentage share of gross collections secured in KVP was in the range of 9 per cent to 29 per cent against the total collections received under all National Savings Schemes in the country. Gross collections under Kisan Vikas Patra in 2010-11 were Rs. 21631.16 crore which was 9 per cent of the total gross collections during the year. Kisan Vikas Patra scheme was withdrawn in 2011.

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Know about Pradhan Mantri Jan Dhan Yojana

* The government rolled out its ambitious financial inclusion programme, the Pradhan Mantri Jan Dhan Yojana (PMJDY) on 28 August 2014, and said about 1.5 crore accounts were opened on August 28 through thousands of camps, exceeding the firstday target of 1 crore accounts.

* The programme is Prime Minister Narendra Modi's first blockbuster social upliftment scheme and is aimed at improving the lives of millions of India's poor by bringing them into the financial mainstream and freeing them from the clutches of usurious moneylenders, while giving them a modicum of insurance cover.

* Buoyed by the performance on Day 1, Modi shortened the time for achieving the 7.5 crore new accounts to five months from six, urging the finance ministry to complete the task by January 26.

* The prime minister topped up each account with life insurance cover of Rs 30,000, adding to the Rs 1 lakh accidental insurance benefit already available under the account that will come bundled with a Ru-Pay-enabled debit card.

* After six months of satisfactory operations, the account would be eligible for Rs 5,000 overdraft facility, designed to take the poor out of the clutches of moneylenders. Subsequently, these accounts will be also used for providing micro pensions.

* PMJDY was simultaneously launched at multiple centres by 20 chief ministers and several union ministers — Home Minister Rajnath Singh in Lucknow, External Affairs Minister Sushma Swaraj in Bhopal, Human Resource Development Minister Smriti Irani in Surat, Law Minister Ravi Shankar Prasad in Chennai and Information & Broadcasting Minister Prakash Javadekar in Pune.

* In all, 600 programmes and 77,852 camps were organised on the first day for the opening of bank accounts.

* All the 6 lakh villages to be mapped according to the sub service area. Villages with over 2,000 population to get full-fledged brick & mortar branches. Each bank to have at least one fixed point banking outlet catering to 1,000 to 1,500 households.

* Expansion of network includes: 50,000 Business Correspondents - targets set for bank, 7,000 branches and 20,000 new ATMs in the first phase.

* Other features include: Project management consultant/group to be engaged to help financial services department. A web portal would be created for reporting/monitoring of progress.  Roles of various stakeholders like departments, state governments, RBI, NABARD, NPCI and others identified. Gram Dak Sevaks in rural areas are proposed as Business Correspondents of banks.

* Direct benefits transfers for LPG could be routed through these accounts.

* With the introduction of new technology introduced by National Payments Corporation of India (NPCI), a person can transfer funds, check balance through a normal phone which was earlier limited only to smart phones so far.

* Mobile banking for the poor would be available through National Unified USSD Platform (NUUP) for which all banks and mobile companies have come together.

Other highlights of the scheme

1) Modi had announced the scheme on Independence Day in his address to the nation.

2) The logo of the mission was created by Priya Sharma through competition in My Gov.in platform.

3) The name “Jan Dhan” was also chosen through an online competition on the MyGov Platform and received more than 6000 suggestion from Indian citizens. After evaluation the jury shortlisted “Jan Dhan” which was suggested by 7 individuals.

4) Slogan of this scheme is " Mera Khata – Bhagya Vidhaata” (My Bank Account – The Creator of the Good Fortune).

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PM’s address to the Nation at Red Fort on the 68th Independence Day- Highlights

Prime Minister, Shri Narendra Modi, today called upon all citizens to contribute to the cause of building national character. Addressing the nation for the first time from the ramparts of the Red Fort on the 68th Independence Day, he said, it is an occasion for introspection for all, as to how his or her acts would weigh on the scale of National Interest. Let all actions be in the National Interest, and be seen as a contribution towards nation building, the Prime Minister said.  Greeting the people of India on Independence Day, Shri Narendra Modi stated that he was addressing them not as “Pradhan Mantri” but as “Pradhan Sewak” – the first servant.

Here are the highlights of his speech and new schemes announced

Prime Minister Narendra Modi announced a series of initiatives aimed at empowering the common man, and unleashing the potential of India`s youth.

* In a major new scheme to universalize banking access and financial inclusion, the Prime Minister announced the Pradhanmantri Jan-Dhan Yojana which will provide for a bank account, a debit card and an insurance amount of Rs. one lakh, to poor families.

* A nationwide “Skill India” movement will be initiated to provide skills which ensure employability.

* Prime Minister also announced a vision of “Come and Make in India” inviting manufacturers from across the world to invest in India, and help boost India`s industrial growth.

* Shri Narendra Modi announced his Government`s resolve to work towards Digital India, which would provide information and services to the people in a timely and effective manner.

* Stressing on the need for cleanliness, the Prime Minister announced his Government`s resolve for “Swachh Bharat” – a vision which will be launched on October 2nd this year, to be accomplished by 2019, on the 150th birth anniversary of Mahatma Gandhi. In a related initiative, the Prime Minister said the first step towards “Swachh Bharat” begins with immediate effect, through a commitment to build toilets in all schools, including separate toilets for girls, within one year.

* Prime Minister announced the launch of the Saansad Adarsh Gram Yojana, under which each Member of Parliament would be invited to make one model village in his constituency, by 2016. He said a complete blueprint for this scheme would be announced on October 11th, the birth anniversary of Shri Jayaprakash Narayan.

* Shri Narendra Modi announced that a new institution would be created to replace the Planning Commission. This new institution would respect the federal structure of the country, he asserted.

Referring to reports of the positive change in work culture of the Union Government since he took over as Prime Minister, the Prime Minister said he was taken aback by such news reports – since it should be the norm for Government Servants to work with due diligence. The Prime Minister said the fact that this should make news, shows how low our collective standards of duty and responsibility have fallen. The Prime Minister called upon society to give up the selfish attitude of “Mera Kya, Mujhe Kya.”

The Prime Minister also said he was appalled by the discord and disunity among various Government departments that he saw after assuming office. He assured the people that he would resolve this issue, so that the Government of India worked not as an assembled entity, but as an organic entity. The Prime Minister said development and good governance were the only two tracks which could take the nation forward.

The Prime Minister expressed dismay at the rising number of rape incidents in the country. Pointing out that daughters are asked a lot of questions in a family, he called upon parents to question their sons also, and keep a tab on their activities. Every rapist is someone`s son, the Prime Minister said. In a similar vein, he called upon misguided youth who had taken to terrorism or Maoism, to give up violence and return to the national mainstream.

The Prime Minister quoted Shri Aurobindo and Swami Vivekananda, reflecting on their vision to see India as a “Jagatguru” once again, and called upon all Indians to help convert this vision into reality.

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RBI's monetary policy review 5 August 2014: Highlights

Freinds..Here are the highlights of RBI’s bi-monthly monetary policy statement released on 5 August 2014.

>> Short-term lending (repo) rate unchanged at 8%

>> Cash reserve ratio (CRR) unchanged at 4%

>> SLR cut by 0.50% to 22% to unlock banking funds

>> Estimates GDP growth at 5.5% for current fiscal

>> Targets 8% CPI inflation by January 2015, 6% by Jan 2016

>> Lowers banks’ SLR holdings in held-to-maturity category by 0.5% to 24%

>> Govt policies to improve domestic demand, supply conditions

>> Higher oil prices, pass-through of administered price increases pose upside risks to inflation

>> Monsoons still a concern, posing risks to inflation

>> Govt action on food management and fast-tracking project completion to improve supply

>> Banking sector reforms will continue

>> Next bi-monthly policy statement on September 30.

 Current RBI rates as on 5 August 2014 are as follows:

 1) Bank Rate- 9%

2) Repo Rate- 8%

3) Reverse Repo rate- 7%

4) Cash Reserve Ratio (CRR)- 4%

5) Statutory Liquidity Ratio (SLR)- 22%

6) Marginal Standing Facility- 9%

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