Finance Minister Arun Jaitley on Saturday announced a budget aimed at high growth, saying the pace of cutting the fiscal deficit would slow as he seeks to boost investment and ensure that ordinary people benefit.

Here are the highlights of Jaitley's budget for the fiscal year that begins on April 1.

TAXATION

* To abolish wealth tax

* Replaces wealth tax with additional 2 pct surcharge on super rich

* Proposes to cut to 25 percent corporate tax over next four years

* Corporate tax of 30 percent is uncompetitive

 * Net gain from tax proposals seen at 150.68 billion rupees

 * Jaitley proposes modification of permanent establishment norms so that the mere presence of a fund manager in India would not constitute a permanent establishment of the offshore fund, resulting in adverse tax consequences.

* Proposes to rationalise capital gains tax regime for real estate investment trusts

* Expects to implement goods and services tax by April 2016

* To reduce custom duty on 22 items

* Proposes to increase service tax rate and education cess to 14 percent from 12.36 percent

* Plans to introduce direct tax regime that is internationally competitive on rates without exemptions

* Exemptions for individual tax payers to continue

* To enact tough penalties for tax evasion in new bill
* Tax dept to clarify indirect transfer of assets and dividend paid by foreign firms

FISCAL DEFICIT

* Fiscal deficit seen at 3.9 percent of GDP in 2015/16

* Will meet the challenging fiscal target of 4.1 percent of GDP

* Remain committed to meeting medium term fiscal deficit target of 3 percent of GDP

* Current account deficit below 1.3 percent of GDP

* Jaitley says have to keep fiscal discipline in mind despite need for higher investment   

GROWTH

* GDP growth seen at between 8 percent and 8.5 percent y/y

* Aiming double digit growth rate, achievable soon   

INFLATION

* Expects consumer inflation to remain close to 5 percent by March, opening room for more monetary policy easing

* Monetary policy framework agreement with the RBI clearly states objective of keeping inflation below 6 percent

* "One of the achievements of my government has been to conquer inflation. This decline in my view represents a structural shift."   

REVENUES

* Revenue deficit seen at 2.8 percent of GDP

* Non tax revenue seen at 2.21 trillion rupees

* Agricultural incomes are under stress   

DISINVESTMENT

* Government targets 410 billion rupees from stake sales in companies

* Total stake sale in 2015/16 seen at 695 billion rupees   

MARKET REFORMS

* Propose to merge commodities regulator with SEBI

* To bring a new bankruptcy code

* Jaitley says will move to amend the RBI act this year, and provide for a monetary policy committee

* To set up public debt management agency

* Proposes to introduce a public contract resolution of disputes bill

* To establish an autonomous bank board bureau to improve management of public sector banks