Budget 2015: Tax-free infra bonds for railways & roads announced

NEW DELHI: Moving ahead with his government's focus on building infrastructure, Finance Minister Arun Jaitley in his budget speech announced introduction of tax-free infra bonds for railways and roads.

"We have increased the budgetary allocation to roads & railways," said Jaitley. Jaitley also allocated Rs 25000 crore for Rural Infrastructure Development Fund. Allocation on infrastructure was upped by Rs 70,000 crore. A National Investment & Infrastructure fund was also announced.

Emphasising the thrust need to encourage entrepreneurship and businesses in India, Finance Minister Arun Jaitley in his budget speech said that the government will aim to make India a manufacturing hub with the 'Make in India' programme.

While acknowledging his government's aim towards greater fiscal consolidation, Jaitley in his budget speech said that he will be able to meet the stated 4.1% fiscal deficit target for the current fiscal year.

Stating that the government is committed to maintaining a fiscal deficit target of 3% in the medium term, Jaitley said, "The fiscal target is 3% for FY 17-18. Fiscal consolidation is on track."

Stating that Budget 2015 comes in the backdrop of a better growth environment than in the past, Jaitley on Saturday said, "World predicting that it is India's chance to fly."

"India is going to take off on a faster growth trajectory." "While global growth forecasts have come down, India's forecasts have either been maintained or scaled up," Jaitley said in his Budget speech.