The Budget raises defence spending by 12.5 per cent to Rs 2.29 lakh crore. Non-plan expenditure for the current year has been estimated at Rs 12, 19,892 crore with additional amount for fertiliser subsidy and capital expenditure for armed forces.

The total expenditure estimates stand at Rs 17, 94,892 crore. Gross tax receipts will be Rs 13, 64,524 crore, of which Centre’s share will Rs 9, 77,258 crore. Non-tax revenues for current financial year will be Rs 2, 12,505 crore and capital receipts other than borrowings will be Rs 73,952 crore.

The Budget pegs the fiscal deficit for the current fiscal at 4.1 per cent of the GDP and 3.6 and 3 per cent in 2015-16 and 2016-17 respectively.

In an apparent reference to the previous government, Jaitley said slow decision making had resulted in a loss of opportunity and two years of sub-5 per cent growth in the economy has resulted in challenging situation.

He said government intends to usher in a policy regime that would bring the desired growth, lower inflation, sustained level of external sector balance and prudent policy stance.

The Finance Minister said the present situation presents a challenge of slow growth in manufacturing sector, in infrastructure and also the need to introduce fiscal prudence.

The tax to GDP ratio must be improved and non-tax revenue increased, he said while pruning the negative list for levy of service tax.

The government will constitute an Expenditure Management Commission to look into every aspect of expenditure reform. It will overhaul the subsidy regime while providing full protection to the marginalised.

Jaitely said the government would like to introduce the Goods and Services Tax (GST) to streamline tax administration, avoid harassment of business and ensure higher revenue collection.

Read more: Arun Jaitley Retains Fiscal Deficit Target At 4.1 Percent, Outlines Roadmap

                     Jaitley's Budget Gives Tax Relief, Promises Higher Growth