Union Budget 2015 - An Analysis by Sandeep Waghmare

UNION BUDGET 2015 – AN ANALYSISBY SANDEEP WAGHMARE

Presented at: Department of Business Management, RTM Nagpur University | 11th Feb, 2015

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Concept of budget

05/01/2023By Sandeep Waghmare

Among other things, following are the typical characteristics of a Public Budget

Estimates of Expenditure and Revenue (Sectoral, Target/Focus areas, etc.)

Has a tenure of 1 year Highlights short term goals and long term strategy

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Indian scenario – challenges of new economy


Growing start-up ecosystem Trend moving towards employment creation than only seeking employment Sectors opened: Agriculture, Social Sector, Internet, Urban Transport Changing commerce: E-Commerce, mCommerce, micro payments

Poor rank on ease of doing business Significant entry barrier Sustained red tape Societal perception

Skills gap across sectors / hierarchy Reliance on conventional skills Lower acceptability to change Access to skill enhancement


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Vision for growth – a need

Improve internal business environment to drive “Ease of Doing Business” Focussed incentives Simplified taxation Reduced red tape

Make India more competitive Adopting global best practices in business Provide skilled labour Diversify from protective policieis

Drive social inclusion, thereby, push towards growth Ensure financial inclusion (Jan Dhan) Assure housing (Low Cost Housing schemes) Improve services (water supply, sanitation, health)

Pushing toward independent India …

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Marching towards self reliance


Reform the urban sector Enhance the quality of urban life via improved services Improve connectivity within as well as between urban centres Create environment of brain drain

Raise the outreach of energy via more and better generation and improved distribution Focus on renewable sector (Solar / Wind / etc.) (e.g. created 70000 new jobs in 2013-

14 while adding 12GW to grid) Adopt technology based loss reduction (e.g. Nagpur water supply, R-APDRP) Promote technology innovation to improve outreach to off-grid regions (e.g. micro

grids) Improve public distribution system

Increase storage capacity (e.g. new warehouses, etc.) Enhance distribution via rail / road /etc. (e.g. new terminals, etc.) Improve tracking and quality management

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While much remains to be done, some of the key offerings of the Budget 2015 are listed.

Budget 2015 offerings



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Overall - Reinstating commitment to growth

Funding to be raised via..#1: Road cess in form of increased excise on Petrol and Diesel#2: Government divestments proposed to the tune of Rs.695 billion#3: More onus on CPSUs to raise investment/funds via capital markets as well as otherwise#4: Private equity via PPPs to raise Rs.200 billion

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Infrastructure: Investment boost through higher public spending


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Power: Boost to investments


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How will the budget boost manufacturing? ↗


Support through forward and backward linkages – like road, rail, etc.

Improvement in ease of doing business – speedy processing, reformed bankruptcy laws, etc.

Reduction in custom and excise duty on certain inputs - supporting “Make in India”

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Capacity building and Entrepreneurship


National Skills Mission set up under the Skill Development Authority New AIIMS, IITs and IIMs along with other National Institutes to be

set up A fully IT-based Student Financial Aid Authority to be set up. It will

administer and monitor scholarships as well as educational loan schemes through the Pradhan Mantri Vidya Lakshmi Karyakaram

Visa-on-Arrivals for 150 countries might provide easy access to students, researchers and academicians

Self Employment and Talent Utilization (SETU) plans an outlay of Rs.1000 crores for young companies and technologies

“No student should have to miss higher education due to financial constraint” – Arun Jaitley, Union Minister

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Services – empowering change


Greater and more flexible financial allocations to States

Reformed PPP model to ensure government picks up more risk of the project

Urban renewal schemes continue to be shared between Centre and State

Emphasis on technology adoption

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Building clearer accountability


Enhanced transparency Double entry system attendance.gov.in/

Citizen led initatives Janaagraha SLB Connect

Crowd sourcing IMakeMyCity Etc.

One other key emphasis on

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What remains to be done…


Focussed approach to innovative business models like eCommerce, etc.

Unstable exchange rate of USD, primary currency for students going for higher education

And much more…

15 THANK YOU!

Union Budget 2015 - An Analysis by Sandeep Waghmare

Economy & Finance

Transcript of Union Budget 2015 - An Analysis by Sandeep Waghmare