The budget 2015-16 envisages the reduction of the fiscal deficit from 4.1% of GDP during 2014–15 to 3.9% of GDP next year (2015-16).
This is wider than the previous target of 3.6% of GDP set out in the budget presented in July, 2014. The Union government’s capital expenditure is set to rise by an impressive 25% year on year in FY 2015–16, from under 3% in FY 2014–15.
In a major move, the central government has proposed the merger of commodity futures market regulator, the Forward Markets Commission (FMC) with the stock market regulator, the Securities and Exchange Board of India (SEBI), to strengthen the regulation of commodities market.
Other enabling provisions have been suggested by amending the Forward Contracts(Regulation) Act, 1952, and the Securities Contracts (Regulation) Act, 1956. Stressing on the importance of Goods and Services Tax (GST) in playing a transformative role for the Indian economy through the development of a common Indian market, the Finance Minister said that the government was on its way to implement GST from April 1, 2016.
The Finance Minister also announced initiatives for putting gold to productive use. He proposed to:
(I) Introduce a Gold Monetisation Scheme, which would replace both the present Gold Deposit and Gold Metal Loan schemes.
(ii) Develop an alternate financial asset, a Sovereign Gold Bond, as an alternative to purchasing metal gold.
(iii) Commence work on developing an Indian Gold Coin, which would carry the Ashok Chakra on its face.
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