Union Budget 2016-2017: Live Feed

Dear Readers,
The general budget speech is going on in Loksabha and our Finance Minister, Mr. Arun Jaitley is presenting the budget for the financial year 2016-2017. We are providing you the Budget Live Feeds and it will help you learn the schemes and the changes launched by the union government.

Below are the key points:
  • ‘Forex reserves are at highest level at $350 billion
  • 2016: Current account deficit seen at 1.4% of GDP
  • ‘3 schemes to address weaker sections’
  • GDP growth has accelerated to 7.6%. CPI inflation has come down to 5.4%.
  • FY 16-17 will have the additional burden of implementing the VII pay commission and the defence OROP.
  • New scheme for BPL families for gas connections. Staturtory backing for Aadhaar platform to ensure delivery of benefits.
  • Jaitley announces the nine pillars of his Budget — Agriculture and farmers’ welfare, rural sector, social sector including healthcare, education, skills and job creation, infrastructure, financial sector reforms, ease of doing business, fiscal discipline, tax reforms to reduce compliance burden.
  • 28.5 lakh hectares to be brought under irrigation.
  • Paramparagat Krishi Vikas Yojana to bring 5 lakh acres under organic farming.
  • Unified e-platform for farmers to be inaugurated on Ambedkar’s birthday.
  • Agricultural credit target of Rs. 9 lakh crore. Govt to allocate Rs 5,500 crore for crop insurance scheme.
  • Rs. 2.87 lakh crore for gram panchayats as per recommendation of 14th finance commission.
  • Rs. 38,500 crore for MNREGA. Highest ever for the rural employment scheme.
  • 5,542 villages have been electrified, more than the last three years combined.
  • Rs. 9,000 crore for Swachch Bharat Abhiyan.
  • Two schemes for digital literacy for rural India to cover 6 crore households in the next three years.
  • Total rural sector allocation Rs. 87,769 crore.
  • Government to provide health insurance of upto Rs. 1 lakh per family; top up of Rs. 35,000 for people above 60 years. 3,000 stores to be opened for generic drugs.
  • National dialysis service programme under PPP model. LPG connection for women members of rural homes.
  • Hub to support SC/ST Entrpreneurs.
  • 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.
  • Small shops should be given the choice to remain open on all 7 days a week.
  • More than 70,000 road projects were languishing at the beginning of the year. Nearly 85% of these projects have been put back on track.
  • Rs. 97,000 crore for all roads. Total outlay on roads and rails will be Rs. 2.80 lakh crore.
  • 10,000 km of national highways in 2016-17 and 50,000 km state highways to be converted to NH roads.
  • Total outlay for infrastructure is at Rs. 2.31 lakh crore.
  • Motor Vehicles Act to be amended to enable entrepreneurship in the road transport sector.
  • There are 160 airports and airstrips which can be revived.
  • In the power sector, the govt is drawing up a plan for 15-20 years to augment investment in nuclear power. Rs. 3,000 crore per annum for this.
  • 100% FDI through FAPB route in marketing of food products produced and manufactured in India.
  • RBI Act to be amended to provide for monetary policy panel
  • Amendmends to boost Asset Reconstruction Companies to manage NPAs of public sector banks.
  • Rs. 25,000 crore for recapitalisation of public sector banks. General insurance companies owned by the govt to be listed in stock exchanges.
  • EPF at 8.3 per cent for new employees joining the scheme.
  • Direct Benefit Transfer for fertiliser subsidy.
  • Dept of Disinvestment renamed as Dept of Investment and Public Asset Management.
  • Rs. 900 crore for buffer stock of pulses.
  • Amendment to the Companies Act to ensure speedy registration and boost start-ups.
  • A bill on targeted delivery of financial services using Aadhar to be introduced.
  • Debt recovery tribunals to be strengthened
  • FDI policy: Changes in insurance, pension, asset reconstruction
  • Fiscal deficit at 3.5% of GDP in 2016-17.
  • Rs. 100 crore for Deendayal Upadhyay’s birthday celebrations and Guru Gobind Singh 300th birth anniversary.
  • Ceiling under 87A to be increased to Rs. 3,000. HRA deduction up from Rs. 24,000 to Rs. 60,000 p.a.
  • Lowering of Corporate IT rate for companies not exceeding Rs. 5 crore turnover to 25% plus surcharge.
  • Tax holiday for startups for three of five years of setting up the company
  • 40% of withdrawal at the time of retirement under National Pension Scheme to be tax exempt.
  • Additional exemption of Rs. 50,000 for housing loans up to Rs. 35 lakh, provided cost of house is not above Rs. 50 lakh.
  • 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.
  • Infrastructure cess to be levied.
  • No changes have been made to existing income tax slabs.
  • Limited period compliance window for domestic taxpayers to declare undisclosed income. Declarations to have immunity from prosecutions.
  • 4% high capacity tax for SUVs.
  • Committed to stable taxation regime. No more retrospective amendments.
  • Excise duty on tobacco increased by 10-15 per cent.
  • No Service Tax for houses built under 60 square metres.
  • 13 different cesses levied by various ministries with collections less than Rs.50 crore a year to be done away with.
  • Rs. 1,060 crore revenue loss through direct tax proposals.
  • Finance Minister Arun Jaitley tables the Union Budget 2016 and the Finance Bill.

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