Finance Minister Arun Jaitley’s Union Budget 2016-17 addresses Rural India!
Indian Finance Minister Arun Jaitley arrives at parliament house to present federal budget 2016-17, in New Delhi, India, Monday, Feb. 29, 2016. It was Jaitley’s second full budget since Prime Minister Narendra Modi won a huge majority in national election in 2014, on the back of promises to turn around the economy and boost job creation. Government plans to launch a new initiative to provide cooking gas to BPL families with state support. Remember, the #GiveUp campaign that the government had earlier introduced invoking people who don’t need LPG connections to give them up. Jaitley said over 75 lakh people had given up their subsidies
Finance Minister Arun Jaitley's Union Budget 2016-17 addresses Rural India! pic.twitter.com/kcMVvs50pL
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# 4-month Compliance Window for domestic black money holders; tax, interest on them at 45%.
# Surcharge on super-rich with income of over Rs 1 cr raised to 15%, from 12%.
# House rent deduction raised from Rs 20,000 to Rs 60,000.
# Corporate Tax for new manufacturing units fixed at 25%.
# First home buyers to get additional deduction of Rs 50,000 on interest for loan up to Rs 35 lakh; cost of house should not be more than Rs 50 lakh.
# Budget lists 9 transformative pillars including doubling farm income by 2022, infrastructure, investment, reforms.
# Start-ups to get 100% tax exemption for 3 years except MAT which will apply from April 2016-2019.
# To give statutory status to Aadhaar programme.
# Jaitley concludes Budget 2016 speech, which lasted for 1 hour 41 minutes.
# No change in Income Tax slab.
# Proposal to amend customs act to provide for deferred payment of custom duty for importers & exporters within proven track record.
# I accept suggestion from Rahul Gandhi on providing relief(exemption of duty on braille paper) to differently-abled people.
# Proposal to abolish 13 different cesses levied by various ministries in which revenue collection is less than Rs 50 crores per year.
# Excise duty on most tobacco products raised by 10-15%.
# Limited tax compliance window: 45% incl surcharge and penalties and immunity from prosecution.
# Govt is completely committed to removing black money from the economy.
# Krishi Kalyan cess to be imposed on all taxable services for agricultural sector.
# Jaitley proposes to lower corporate IT rate for next financial year of relatively small enterprises companies with turnovers not exceeding Rs 5 cr.
# Service tax exemption for construction of affordable housing up to 60 sq. m. under state and central housing schemes
# Incentives for new manufacturing companies and smaller enterprise companies.
# Service tax exempted for general insurance schemes under Niramayi Swasthya Bima Yojna.
# I propose to increase limit of deduction in respect of rent paid from Rs 24000 per year to Rs 60000 per year.
# People who do not have any house of their own & don’t get any house rent allowance from their employer get a reduction of Rs 24000 per year.
# Committed to implementing GAAR from April 1, 2017.
# To lessen burden on individuals with income not exceeding 5 lakh, I propose sealing of tax rebate under sec 87A from Rs 2000 to Rs 5000.
# For tax payers earning below Rs 5 lakh, ceiling on tax rebate increased by Rs 3,000.
# Tax proposals to provide relief to small taxpayers through rebates.
# 100% FDI in the marketing of food products produced and manufactured in India.
# Fiscal deficit at 3.9% in 2015-16 and at 3.5% in 2016-17; no deviation from fiscal deficit roadmap.
Also Read | Jaitley’s Budget: 100% FDI in multi-brand retail for food products
# 160 airports and airstrips can be revived at a cost of Rs 50-100 Crore each.
# Fiscal deficit for Financial Year 2016-’17 targeted at 3.5%.
# I have proposed an allocation of Rs 25000 crores in Budget 2016 towards recapitalization of public sector banks.
# An increased allocation of Rs 1,80,000 Crores under PM MUDRA Yojana.
# Prudence lies in adhering to fiscal targets.
# A bill on targeted delivery of financial services using Aadhar to be introduced.
# We are not interfering in lending and personal issues of the banks.
# Public money should reach the poor and deserving without any leakage.
# A National Dialysis Services Program will be introduced under National Health Mission.
Also Read | Jaitley proposes listing of PSU general insurance companies in Budget
# I propose to amend the SEBI act 1992 in coming year to provide for more number of benches of Securities Appellate Tribunal.
# Comprehensive Code to be introduced to provide a specialised resolution mechanism for bankruptcy of banks/insurance companies.
# Department of Disinvestment to be renamed as Department of Investment and Public Asset Management.
# Govt will enact necessary amendments in the Motor Vehicles Act and open up the road transport sector in passenger segment.
# 100% FDI through FAPB route in marketing of food products produced and manufactured in India.
# To streamline institutional arrangemnt for resolution of disputes in infra related to construction contracts, public utility contracts, PPP.
# Rs 1,000 crore allocated for new EPF (Employees’ Provident Fund) scheme.
# A public utility resolution of disputes bill will be introduced during 2016-17.
# These shops should be given a choice to remain open on all 7 days of the week of voluntary basis.
Also Read | Focus on rural India, social welfare in Jaitley’s speech
# Rs. 1000 cr set aside for higher education financing.
# These shops should be given a choice to remain open on all 7 days of the week of voluntary basis.
# Will be further topped up by additional Rs 15000 cr to be raised by NHAI through bonds.
# If shopping malls are kept open all 7 days of the week, why not small and medium shops?
# I have proposed to allocate a sum of Rs 55000 crore in Budget 2016 for roads and highways.
# Retail trade is largest service sector employer in country. Many more jobs are created in this, provided the regulations are simplified.
# Total outlay for infrastructure in Budget 2016 now stands at Rs 2,21,246 Cr.
# Allocate Rs 55,000 Crores for roads and highways, total investment in Road Sector would be Rs 97,000 crore.
# A national careers service was launched in July 2015. We propose to make 100 model career centres operational by end of 2016.
# Objective to skill 1 crore youth in the next 3 years under the PM Kaushal Vikas Yojna.
# Senior citizens will get additional healthcare cover of Rs 30,000 under the new scheme.
# 1500 Multi skill training institutes will be set up.
# National SC/ST Hub to support SC/ST entrepreneurs.
# Govt will launch a new health protection scheme which will provide health cover upto Rs 1 lakh per family
# Stand Up India scheme allocated Rs 500 Crores for SC, ST and women entrepreneurs – 2 projects to be promoted per bank branch per category
# Rs 9,000 crores allocated to Swachh Bharat Abhiyaan.
Also Read | Rs 500 crore for SC/ST,women entrepreneurs, says Jaitley
# I have set aside a sum of Rs 2000 crores in Budget 2016 to meet the initial cost of providing these LPG connections.
# We have decided to embark upon massive mission to provide an LPG connection in the name of women members of poor households.
# For rural development as a whole I have allocated Rs 87765 crores in this budget.
# We plan to launch digital literacy mission scheme for rural India to cover around 6 crore additional households in next 3 years.
# 300 rurban clusters to be set up under Shyama Prasad Mukherji Rurban Mission.
# MNREGA to get 38,500 crore rupees.
# Govt is committed to achieve 100% village electrification by 1st May 2018.
# MGNREGA to get 38,500 crore rupees.
# Sum of Rs 2.87 lakh crore will be given as grant in aid to gram panchayat,municipalities as pr 14th finance comm recommendation.
# 65 eligible habitats to be connected via 2.23 lakh kms of road.Current construction pace is 100 kms per day.
# Allocation to PM Fasal Bima Yojana for 2016/17 is Rs. 5500 crores.
# We need to prioritise our expenditure, given recommendations of 7th PC & OROP implementation.
# Must look ahead of risk of global slow down. Must ensure macro stability and fiscal management.
# We inherited an economy of slow growth, high inflation and low faith in government.
# Enactment of law for statutatory platform to Aadhaar platform.
# New initiative to cooking gas to BPL families.
# Three social sector initiatives: farm sector insurance, health insurance for all and cooking gas subsidy for below poverty line families.
# Money to the government belongs to the people.
# Our external situation is robust, CAD has declined to USD 14.4 bn this year, will be 1.4% of GDP at the end of fiscal.
# We have to prudent fiscal policy, raise domestic demand, carry out reforms.
# Rs 19,000 crore to be allocated for Pradhan Mantri Gram Sadak Yojana.
# A dedicated irrigation fund worth Rs 20,000 crore to be set up under NABARD.
# 5 lakh acres to be brought under organic farming over a three year period.
Also Read | It’s cheaper to live in New Delhi & Mumbai than other global cities
# Total allocation for agriculture and farmers’ welfare is Rs. 35,984 crores.
# Since foreign markets are weak we must rely on domestic demand and Indian markets to ensure that Indian growth doesn’t slow down.
# Govt will reorient its intervention in the farm and non farm sector to double the income of farmers by 2022.
# Nominal premium and highest ever compensation in case of crop loss under the PM Fasal Bima Yojna.
# FY 2016-17 will be challenging for government expenditure
# We inherited an economy of slow growth, high inflation and low faith in government
# Growth of GDP has accelerated to 7.6%.
# Amidst slowdown in global growth and trade, the Indian economy has held its ground firmly.
# I am presenting this budget when global economy is in a serious crisis.
# Amidst global headwinds, the Indian economy has held its own.
# Lot of confidence and hope continues to be build around India.
# The CPI inflation has come down to 5.4% from 9 plus, bringing big relief to the public.
# 14th Finance Commission recommendation has increased devolution of funds to the states by 55%.
# Foreign exchange reserves are at the highest ever level at $350 bn.
# I am presenting this budget when the global economy is in serious crisis We converted difficulties and challenges to an opportunity.
# Global economy in serious crisis .
Infrastructure and agriculture cess to be levied.
Excise duty raised from 10 to 15 per cent on tobacco products other than beedis
1 per cent service charge on purchase of luxury cars over Rs. 10 lakh and in-cash purchase of goods and services over Rs. 2 lakh.
SUVs, Luxury cars to be more expensive. 4% high capacity tax for SUVs.
Companies with revenue less than Rs 5 crore to be taxed at 29% plus surcharge
Limited tax compliance window from Jun 1 – Sep 30 for declaring undisclosed income at 45% incl. surcharge and penalties
Excise 1 per cent imposed on articles of jewellery, excluding silver.
0.5 per cent Krishi Kalyan Cess to be levied on all services.
Pollution cess of 1 per cent on small petrol, LPG and CNG cars; 2.5 per cent on diesel cars of certain specifications; 4 per cent on higher-end models.
Dividend in excess of Rs. 10 lakh per annum to be taxed at additional 10 per cent.
No changes have been made to existing income tax slabs
Rs 1,000 crore allocated for new EPF (Employees’ Provident Fund) scheme
Govt. will pay EPF contribution of 8.33% for all new employees for first three years
Deduction for rent paid will be raised from Rs 20,000 to Rs 60,000 to benefit those living in rented houses.
Additional exemption of Rs. 50,000 for housing loans up to Rs. 35 lakh, provided cost of house is not above Rs. 50 lakh.
Service tax exempted for housing construction of houses less than 60 sq. m
15 per cent surcharge on income above Rs. 1 crore
Rs. 38,500 crore for Mahtma Gandhi MGNREGA for 2016-17
Swacch Bharat Abhiyan allocated Rs.9,500 crores.
Hub to support SC/ST entrpreneurs
Government is launching a new initiative to provide cooking gas to BPL families with state support.
LPG connections to be provided under the name of women members of family: Rs 2000 crore allocated for 5 years for BPL families.
2.87 lakh crore grants to gram panchayats and municipalities – a quantum jump of 228%.
300 urban clusters to be set up under Shyama Prasad Mukherji Rurban Mission
Four schemes for animal welfare.
2.2 lakh renal patients added every year in India. Basic dialysis equipment gets some relief.
A new health protection scheme for health cover upto 1 lakh per family.
National Dialysis Service Prog with funds thru PPP mode to provide dialysis at all district hospitals.
Senior citizens will get additional healthcare cover of Rs 30,000 under the new scheme
PM Jan Aushadhi Yojana to be strengthened, 300 generic drug store to be opened
Scheme to get Rs.500 cr for promoting entrepreneurship among SC/ST
10 public and 10 private educational institutions to be made world-class.
Digital repository for all school leaving certificates and diplomas. Rs. 1,000 crore for higher education financing.
Rs. 1,700 crore for 1500 multi-skill development centres.
62 new navodaya vidyalayas to provide quality education
Digital literacy scheme to be launched to cover 6 crore additional rural households
Entrepreneurship training to be provided across schools, colleges and massive online courses.
Objective to skill 1 crore youth in the next 3 years under the PM Kaushal Vikas Yojna-FM Jaitley
National Skill Development Mission has imparted training to 76 lakh youth. 1500 Multi-skill training institutes to be set up.
Rs. 3000 crore earmarked for nuclear power generation
Govt drawing comprehensive plan to be implemented in next 15-20 years for exploiting nuclear energy
Govt to provide incentive for deepwater gas exploration
Deepwater gas new disc to get calibrated market freedom, pre-determined ceiling price based on landed price of alternate fuels.
Investments and infrastructure
Rs. 27,000 crore to be spent on roadways
65 eligible habitats to be connected via 2.23 lakh kms of road. Current construction pace is 100 kms/day
Shops to be given option to remain open all seven days in a week across markets.
Rs. 55,000 crore for roads and highways. Total allocation for road construction, including PMGSY, – Rs 97,000 crore
India’s highest-ever production of motor vehicles was recorded in 2015
Total outlay for infrastructure in Budget 2016 now stands at Rs. 2,21,246 crore
New greenfield ports to be developed on east and west coasts
Revival of underserved airports. Centre to Partner with States to revive small airports for regional connectivity
100 per cent FDI in marketing of food products produced and marketed in India
Dept. of Disinvestment to be renamed as Dept. of Investment and Public Asset Management
Govt will amend Motor Vehicle Act in passenger vehicle segment to allow innovation.
MAT will be applicable for startups that qualify for 100 per cent tax exemption
Direct tax proposals result in revenue loss of Rs.1060 crore, indirect tax proposals result in gain of Rs.20,670 crore
Total allocation for agriculture and farmer welfare at Rs 35984 crores
28.5 lakh heactares of land wil be brought under irrigation.
5 lakh acres to be brought under organic farming over a three year period
Rs 60,000 crore for recharging of ground water recharging as there is urgent need to focus on drought hit areas cluster development for water conservation.
Dedicated irrigation fund in NABARD of Rs.20.000 cr
Nominal premium and highest ever compensation in case of crop loss under the PM Fasal Bima Yojna.
Banks get a big boost: Rs 25,000 crore towards recapitalisation of public sector banks. Jaitley says: Banking Board Bureau will be operationalised, we stand solidly behind public sector banks.
Target of disbursement under MUDRA increased to 1,80,000 crore
Process of transfer of government stake in IDBI Bank below 50% started
General Insurance companies will be listed in the stock exchange
Govt to increase ATMs, micro-ATMs in post offices in next three years