GDP in 2015-16 to be 8-8.5%; double-digit growth soon, says Jaitley

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NEW DELHI: Finance Minister Arun Jaitley Saturday said growth in the next financial year will rise to 8-8.5 % and clock double-digit level in the subsequent years. "Growth in 2015-16 is expected to be between 8-8.5 per cent. Aiming for a double digit rate seems feasible very soon," he said while presenting the Budget for 2015-16 in the Lok Sabha. The Central Statistical Organisation (CSO) has recently revised the base year for calculation of GDP growth to 2011-12. As per this, the economic growth rate in 2013-14 is estimated at 6.9 per cent and for 2014-15 at 7.4 per cent. The Economic Survey had yesterday said that growth will receive a boost from the cumulative impact of reforms, lower oil prices, likely monetary policy easing facilitated by lower inflation, and forecasts of a normal monsoon in 2015-16. The government headed by Prime Minister Narendra Modi, which assumed power in May last year, has initiated a slew of economic reforms, including de-regulation of diesel prices, raising FDI caps in several sectors, and direct transfer of LPG subsidy to beneficiaries. Highlights Clean energy cess increased from Rs 100 to 200 per metric ton of coal to finance Increase in exemption limit of health insurance premium from Rs 15,000 to Rs 30,000 Retrospective tax provisions will be avoided Tax department to put out a clarification on indirect transfer of assets and dividend paid by foreign firms Reduced taxes on technical services to 10% from 25% Propose to reduce rate of basic custom duty on certain imports to minimize impact of duty inversion 100 per cent tax exemption in CSR activities for Clean Ganga fund and ‘Swachh Bharat Kosh’ According to black money law, provision of punishment up to 10 years Implementation of GAAR deferred for two years, will be applied from 2017 Govt to abolish wealth tax Exemptions for individual tax payers to continue Propose to enact a comprehensive new law on black money ​Non-filing of returns, or filing of returns with inadequate information will attract rigorous imprisonment Concealment of income will be prosecutable with rigorous imprisonment Quoting PAN a must for all purchases above Rs 100,000 Foreign Exchange Management Act to allow for seizure of foreign assets 'Benami' property transaction bill to tackle black money transaction in real estate soon High corporate tax with too many exceptions gives us worst of both worlds, we neither get revenues nor investments Revive growth, investment for jobs to youth Rs 13, 12, 2000 crore for non-planned expenditure GST is expected to play transformative role in the way our economy functions It has been our endeavour in the last 9 months to foster a stable taxation policy Corporate tax reduced from 30% to 25% for next four years   Exemptions for individual tax payers to continue Propose to enact a comprehensive new law on black money ​Non-filing of returns, or filing of returns with inadequate information will attract rigorous imprisonment Concealment of income will be prosecutable with rigorous imprisonment Defence Budget enhanced to Rs 2,46,727 crore rupees To allocate Rs 75 crore for electric vehicles Aim to make India manufacturing hub of the world Propose to setup an IT-based student financial aid system under the PM ‘Vidya Laxmi scheme’ Govt proposes to bring in a regulatory reform law Putting scam, scandal and corruption behind us, Parliament needs to look into a procurement law and how it will shape Will increase visa-on-arrival facility from 43 to 150 countries Propose to increase visa-on-arrival to 150 countries to increase tourism Govt to do away with distinctions between FII and FDI and replace it with composite caps Have decided to provide another 1000 crores to Nirbhaya fund After success of visas on arrival in 43 countries, propose to increase the countries covered under this scheme to 150 Propose to introduce a gold monetization scheme Propose to work on developing Indian gold coin, which carries the Ashok Chakra. It will help recycle gold available in country Will deepen Indian bond market at par with the world standards Intend to create a direct tax regime, which is internationally competitive on rates Unclaimed deposits of Rs 3,000 crore in EPF to be used for benefit of senior citizens Discourage transaction in cash to discourage black money Second unit of Kudankulam nuclear power station to be commissioned in 2016 PPP model of Infrastructure to be re-vitalized and re-aligned 5 ultra mega power projects through transparent auction system of 4,000 MW Government is establishing a mechanism 'self employment' to support all aspects of start up business Will enhance the allocations to MNREGA by 5,000 crore Investment in infrastructure will go up by 70,000 crore in 2015-16 Propose the 'Nayi Manzil' scheme for youth GST will put in place state of art indirect tax system by April 1, 2016 New scheme called ‘Nayi Manzil’ to enable minority youth without school leaving certificates to get employment Tax-free infrastructure bonds for projects in railways and roads An accident insurance cover of Rs 2 lakh for a premium of Rs 12 per month Will also launch the 'Atal pension yojana', which will provide a defined pension Govt committed to bring a universal social security system for all Govt to contribute 50 per cent f beneficiary premium in its new accounts opened before 31st December 2015 Propose a new scheme of providing physical aids for senior citizens living below poverty line The rupee has become stronger by 6.4 per cent Estimated GDP is 7.4 per cent, we have to think in terms of a quantum jump One of the achievements of my government has been is to conquer inflation Domestic and international investors are seeing us with renewed hope Our objective is to improve quality of life and to pass benefits to common man   Will achieve target of building 6 crore toilets, 50 lakh toilets already constructed Expect the CPI inflation to remain close to 5 per cent towards the end of year The three achievements of our government have been – ‘Jan Dhan Yojana’, transparent auctions and ‘Swachh Bharat Abhiyan’ Domestic and international investors are seeing us with renewed hope Our actions have not only being confined to core and macroeconomic areas alone   The latest CPI inflation is 5.1 per cent and WPI inflation is negative We are round the clock, round the year government The credibility of Indian economy has been re-established, the world is predicting that it's India's chance to fly States more empowered more than before Tax buoyancy is low, however, we will meet the promise of fiscal deficit of 4.1 per cent of GDP this year   2 crore houses in rural India, 4 crore in urban India by 2022 Agricultural income is under stress, have to increase investment in infrastructure Manufacturing has declined from 18 per cent to 17 per cent of the GDP Public Investment needs to step in to catalyse the investment in PPP 2015-16 GDP seen between 8-8.5 per cent, best in five years   Rs 6335 crores has been so far transferred directly as LPG subsidies to consumers We intend to achieve to achieve fiscal deficit of 3 per cent in 3 years National unified market for farm produce Need a well-targeted system of subsidies rather than to cut subsidies Double-digit growth seems feasible soon