Budget 2016 Highlights: Arun Jaitley gives his plan for 2016-17

| Monday, February 29, 2016 - 14:48
First Published |
Union Budget 2016
New Delhi: Union Finance Minister Arun Jaitley on Monday presented his third General Budget and highlighting the Centre's efforts in the last year, he said that Union Budget 2016 would be a positive one. "Amidst global headwinds, the Indian economy has held its own."
Jaitley said that 100% foreign direct investment (FDI) to be allowed through FIPB route in food products produced and marketed in India. Jaitley also said that Consumer price index (CPI) inflation has come down to 5.4% from 9 plus, bringing big relief to the public, adding "growth of GDP has accelerated to 7.6%."
To discourage use of tobacco products, government proposes 10-15% exicse duty on Tobacco. Also consumers will have to spend more money for branded clothes.
Hitting out at the previous UPA government, he said that the Narendra Modi-led NDA government was trying to bridge the trust deficit that they had 'inherited' from them. "We have increased our plans expediture in contrast to the usual trend of decreasing it," he said.
"Foreign exchange reserves are at highest ever level," Jaitley said and said that the government's focus would be on farmers and developing new irrigation infrastructure.
"We must now look ahead. Since foreign markets are down, we must  rely on the domestic markets so that the economy doesn't slow down. We see challenges as opportunities," he said.

Union Budget 2016 Highlights:

  • Government fully committed to remove black money from the economy FM
  • Levy of heavy penalty for non payment of tax has led to high litigation. Proposal to modify scheme for penalties
  • To reduce multiplicity of taxes - 13 taxes with collection less than Rs. 50 crores a year abolished.
  • 11 new benches of tax tribunals to be established to reduce pendency
  • Propose to accept diff recommendations of Justice Eshwar Committee examining simplification of Income tax laws.
  • Branded cloths as well as gold to be expensive FM
  • Income tax dept. will expand e-sahyog to assist small taxpayers
  • New grading system of imposing penalties to be introduced on the basis of under reporting or concealment of income.
  • Service tax exemption for construction of affordable housing upto 60 sq.m. under state & central housing schemes
  • Services provided by #EPFO exempted from service tax.
  • Krishi Kalyan cess to be imposed on all taxable services for agricultural sector.
  • Corporate tax reduced by 1% for SME's. 25% tax for all new corporates FM
  • Earlier: 12%, Now: 15% - surcharge on income tax for those with incomes exceeding 1 crore per annum.
  • Clean energy cess increased from Rs. 200/ton to 400/ton on coal, lignite and peat.
  • Ltd period compliance window for taxpayers to declare undisclosed income. Declarations to have immunity from prosecutions
  • Krishi Kalyan cess of 0.5% from june 1 FM
  • Limited tax compliance window: 45% including surcharge and penalties and immunity from prosecution.
  • 10-15% excise duty on Tobacco to discourage use of tobacco products.
  • Service tax exemption for services under the Deen Dayal Gram Jyoti Yojana.
  • Committed to increase investment in asset reconstruction companies.
  • Measures to promote affordable housing
  • Service tax exempted for general insurance schemes under Niramayi Swasthya Bima Yojana. 
  • Committed to implementing GAAR from April 1, 2017.
  • Financial aid and distribution through mandatory Aadhar will reduce leakage of funds
  • A special patent regime proposed to power innovation and research.
  • Relief to those in rented houses: Deduction raised from Rs 24,000 to 60,000 under Section 88G.
  • Ceiling of tax rebate for tax payers with up to Rs 5 lakh annual income to be raised to Rs 5000 from Rs 2000.
  • Limit of deduction of rent paid increased to Rs 60,000 per annum. 
  • Initial sum of 100 crore each for celebrating birth anniversary of Deen Dayal Upadhyaya, Guru Gobind Singh ji.
  • Tax proposals to provide relief to small taxpayers through rebates. 
  • Comprehensive measures to be adapted for efficient management in CPSC's
  • It is time to review working of FRBM Act - committee to be constituted to study the Act.
  • Fiscal deficit for FY 2016-'17 targeted at 3.5%.
  • More no. of benches of Security Appellate Tribunal to be introduced by amending SEBI Act to reduce pendency
  • 55,000 crore for roads and highways
  • A bill on targeted delivery of financial services using Aadhar to be introduced.
  • Public Money should reach the poor and deserving without any leakage
  • Amount sanctioned under PM Mudra Yojana has reached Rs.1 lakh crore to cover 2.5 crore borrowers by Feb, 2016.
  • RBI act to be amended to give statutory backing for monetary policy.
  • Department of Disinvestment to be renamed as Department of Investment and Public Asset Management.
  • New financial data management centre to facilitate integrated data analysis
  • DBT to farmers for fertilisers in some districts for now
  • RBI Act to be amended to give statutory backing for monetary policy
  • Comprehensive Code to be introduced to provide a specialised resolution mechanism for bankruptcy of banks.
  • Focus on developing the quality of education in the country. 
  • 100% FDI to be allowed through FIPB route in food products produced and marketed in India. 
  • Govt is drawing a comprehensive plan to be implemented in the next 15-20 years for exploiting nuclear energy.
  • Expecting 2016 to become a fruitful year for ST and SC entrepreneur
  • Government to incentivise gas production from deep sea and other unutilised deep sources. 
  •  Digital literacy scheme for rural India
  • Target of 10,000 kms of national highway and up gradation of 50,000 kms of state highways in 2016/17
  • 85% of stalled road projects back on track. Total allocation to road sector including PMGSY: Rs. 97,000 crores. 
  • To focus on the health condition of the poor people 
  • Government to provide health insurance of upto Rs.1 lakh per family. 300 generic drug stores to be opened.
  • Objective to skill 1 crore youth in the next 3 years under the PM Kaushal Vikas Yojana
  • 1500 multi skill training institutes to be set up.
  • National Skill Development Mission has imparted training to 76 lakh youth.
  • To provide LPG connection in the name of women members of poor household.
  • Government will pay EPF contribution of 8.33% for all new employees for first three years. 
  • 1700 crores for Pradhan Mantri Kaushal Vikas Yojana.
  • Dedicated irrigation fund worth Rs.20,000 crore.
  • Rs.5,500 crore for crop insurance scheme.
  • National marketing platform for agriculture will help create a national market.
  • We plan to launch National Digital Literacy for rural India Mission
  • Rs 9,000 crores allocated to Swaccha Bharat Abhiyaan.
  • Union cabinet has approved #StandUpIndia scheme to encourage SC & ST entrepreneurs.
  • SC/ST hub to be constituted under MSME ministry to encourage SC/ST entrepreneurship.
  • 62 new Navodya Vidyalayas to be opened in uncovered districts under Sarva Siksha Abhiyaan.
  • To provide LPG connection in the name of women members of poor household.
  • Government will pay EPF contribution of 8.33% for all new employees for first three years.
  • 1700 crores for Pradhan Mantri Kaushal Vikas Yojana.
  • A higher education financing agency to be set up, with a fund of 1000 crores.
  • We need to prioritize our expenditure, given recommendations of #7thCPC and #OROP implementation: FM Jaitley
  • We have to prudent fiscal policy, raise domestic demand and carry out reforms: FM Jaitley
  • Government's focus is on the rural and social sectors, infrastructure and recapitalization of banks.
  • Need to develop economy and lives of people: Arun Jaitley.
  • Recapitalization of banks will be done during next financial year.
  • 5 lakh acres to be brought under organic farming over a three year period.
  • Agenda for next year is to undertake transformative measures based on 9 pillars for India.
  • Our aim is to double the income of farmers in five years. Rs. 35,984 crores total allocation for farmers' welfare.
  • Pradhanmantri Krishi Sinchaai Yojna strengthened and implemented in mission mode.
  • A dedicated irrigation fund worth Rs 20,000 crore to be initiated under NABARD.
  • The soil health card scheme to be implemented with greater vigour, all farmers to be included under it by 2017.
  • A unified e-platform on agriculture to be dedicated to the nation on the birthday of Dr. B. R. Ambedkar.
  • Allocation of Pradhanmatri Gram Sadak Yojna to be increased to 19,000 crore.
  • MGNREGA to get Rs.38,500 crore.
  • 300 rurban clusters to be set up under Shyama Prasad Mukherji Rurban Mission.
  • Rural development allocated Rs.87,765 crore. Rs.2.87 lakh crore aid to rural and urban local bodies.


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