Monday, February 29th, 2016

Budget Highlights 2016-17

Narada Desk | February 29, 2016 12:57 pm Print
Arun Jaitley , Finance Minister

Arun Jaitley,  Finance Minister

New Delhi: The Annual Financial statement was presented by the Union Finance Minister, Arun Jaitley. ¬†This will be the minister’s second budget as part of the NDA government. The budget extended for 105 minutes and further analysis is in progress. The Budget highlights so far are –

*To reduce multiplicity of taxes and cascading, 13 taxes with collections of less than Rs.50 crore a year abolished

* Income tax department will expand e-sahyog to assist small taxpayers

* Scope of e-assessment to be expanded to seven mega cities to simplify compliance for taxpayers

* Taxation proposals to increase government revenue by Rs.19,610 crore

* Penalty to be 50 percent of tax in income under-reporting cases, 200 percent in misreporting of facts

* Tax arrears can be paid in lieu of interest liabilities in retrospective taxation cases

* Direct Benefit Transfer in fertilisers on pilot basis in few districts

* Limited tax compliance window from June 1 – September 30 for declaring undisclosed income at 45 percent including surcharge and penalties

* Clean energy cess increased from Rs.200/tonne to Rs.400/tonne on coal, lignite and peat

* Moving towards a low tax regime with non-litigious approach

* Committed to provide a stable and predictable taxation regime

* Relief of Rs.3,000 per year to taxpayers with income below Rs.5 Lakh per year to benefit one crore taxpayers

* Surcharge on income tax for incomes exceeding Rs.1 crore per annum raised from 12 percent to 15 percent

* Service tax exempted for general insurance schemes under Niramayi Swasthya Bima Yojana

* Suitable changes to be made in customs and excise duty rates to improve competitiveness and boost Make In India

* Plan, Non-Plan distinction to be removed from 2017-18

* For income below Rs.5 lakh per annum, tax ceiling has been raised from Rs.2,000 to Rs.5,000

* Relief to those in rented houses: Deduction raised from Rs.24,000 to Rs.60,000 under Section 88G

* Corporate income tax: Incentives for new manufacturing companies and relatively small enterprise companies

* Fiscal deficit for 2016-17 targeted at 3.5 percent

* Committed to implementing General Anti-Avoidance Rules (GAAR) from April 1, 2017

* New policy for managing assets of public enterprises

* Comprehensive approach to be adopted for government investment in central public sector enterprises

* Three initiatives for better delivery of public services

* Increased allocation of Rs.1,80,000 crore under PM MUDRA Yojana

* Market Stabilization Fund for Pulses gets Rs.900 crore

* Financial Data Management Centre for integrated data collection and analysis

* RBI Act being amended to provide statutory basis for monetary policy framework

* 100 percent FDI to be allowed through FIPB route in food products produced and marketed in India

* Department of Disinvestment to be renamed Department of Investment and Public Asset Management

* Comprehensive plan being drawn up to be implemented in the next 15-20 years for exploiting nuclear energy

* Government to provide health insurance of up to Rs.1 lakh per family; 300 generic drug stores to be opened under PM Jan Aushadhi Yojana

* Roads and highways allocated Rs.55,000 crore, 50,000 km of state highways to be taken up for upgradaing to national highways

* Stand Up India scheme allocated Rs.500 crore for SCs, STs women entrepreneurs

* Government to incentivise gas production from deep sea and other unutilised deep sources

* Public Utility Resolution of Disputes Bill for resolution of infra sector disputes

* Pradhan Mantri Kaushal Vikas Yojan gets Rs.1,700 crore

* Digital depository for school leaving certificates

* Higher education financing agency to be set up with fund of Rs.1,000 crore

* National Skill Development Mission has imparted training to 76 lakh youth; 1,500 multi-skill training institutes to be set up

* Model Shops and Establishments Bill to be circulated for voluntary adoption by states

* Current account deficit down to $14.4 billion

* Rs.2.87 lakh crore for rural and urban local bodies

* Animal welfare programme, animal health card, e-marketing platform for connecting breeders

* 100 percent village electrification to be achieved by May 1, 2018

* Appreciation for 75 lakh middle class and lower middle class families for willingly giving up LPG Subsidy

* Rs.19,000 crore allotted for PMGSY

* Rs.8.5 lakh crore of agricultural credit targetted in 2015-16; and Rs.9 lakh crore in 2016-17

* Rs.35,984 crore allocated for agriculture in 2016-17

* Five lakh acres to be brought under organic farming over three-year period

* MGNREGA to get Rs.38,500 crore

* Recapitalisation of banks during next fiscal

* Prudent fiscal policy needed, domestic demand should be raised, reforms need to be carried out

* Farm, rural sector, infra and social sector to get more funds

* Need to prioritise expenditure given recommendations of 7th Pay Commission and OROP implementation

* Nine pillars for reforming India, among them agriculture, social sector, education, infra, fiscal discipline, and tax reforms

* Presenting budget when global economy in a serious crisis

* Amidst global headwinds, the Indian economy has held its own

* Converted challenges we inherited into opportunities

* CPI inflation down to 5.4 percent from 9 percent-plus, bringing big relief to the public

* Forex reserves at highest-ever level