Union Budget 2016-17: Highlights
HIGHLIGHTS OF BUDGET 2016-17
Agriculture and Rural
- Allocation for Agriculture and Farmers’ welfare is 35,984 crore
- ‘Pradhan Mantri Krishi Sinchai Yojana’ to be implemented in mission mode. 28.5 lakh hectares will be brought under irrigation.
- A dedicated Long Term Irrigation Fund will be created in NABARD with an initial corpus of about 20,000 crore
- Soil Health Card scheme will cover all 14 crore farm holdings by March 2017
- Unified Agricultural Marketing ePlatform to provide a common e- market platform for wholesale markets
- Allocation under Prime Minister Fasal Bima Yojana 5,500 crore.
- 850 crore for four dairying projects – ‘Pashudhan Sanjivani’, ‘Nakul Swasthya Patra’, ‘E-Pashudhan Haat’ and National Genomic Centre for indigenous breeds
- Allocation for rural sector – 87,765 crore.
- A sum of 38,500 crore allocated for MGNREGS.
- 300 Rurban Clusters will be developed under the Shyama Prasad Mukherjee Rurban Mission
- 100% village electrification by 1st May, 2018.
- 2.87 lakh crore will be given as Grant in Aid to Gram Panchayats and Municipalities as per the recommendations of the 14th Finance Commission
- New scheme Rashtriya Gram Swaraj Abhiyan proposed with allocation of 655 crore
- Allocation for social sector including education and health care – 1,51,581 crore.
- 2,000 crore allocated for initial cost of providing LPG connections to BPL families.
- 3,000 Stores under Prime Minister’s Jan Aushadhi Yojana will be opened during 2016-17.
- ‘National Dialysis Services Programme’ to be started under National Health Mission through PPP mode
- “Stand Up India Scheme” to facilitate at least two projects per bank branch. This will benefit at least 2.5 lakh entrepreneurs.
- National Scheduled Caste and Scheduled Tribe Hub to be set up in partnership with industry association
- Allocation of 100 crore each for celebrating the Birth Centenary of Pandit Deen Dayal Upadhyay and the 350th Birth Anniversary of Guru Gobind Singh
Education, Job Creation and Skill Development
- 62 new Navodaya Vidyalayas will be opened
- Higher Education Financing Agency to be set-up with initial capital base of ` 1000 Crores
- Digital Depository for School Leaving Certificates, College Degrees, Academic Awards and Mark sheets to be set-up.
- Allocation for skill development – 1804. crore.
- National Board for Skill Development Certification to be setup in partnership with the industry and academia
- 1500 Multi Skill Training Institutes to be set-up.
- GoI will pay contribution of 8.33% for of all new employees enrolling in EPFO for the first three years of their employment. Budget provision of 1000 crore for this scheme
- 100 Model Career Centres to operational by the end of 2016-17 under National Career Service
Infrastructure and Investment
- Total investment in the road sector, including PMGSY allocation, would be ` 97,000 crore during 2016-17.
- Total outlay for infrastructure – 2,21,246 crore.
- Comprehensive plan, spanning next 15 to 20 years, to augment the investment in nuclear power generation to be drawn up.
- 100% FDI to be allowed through FIPB route in marketing of food products produced and manufactured in India
Financial Sector Reforms
- Statutory basis for a Monetary Policy framework and a Monetary Policy Committee through the Finance Bill 2016.
- A Financial Data Management Centre to be set up.
- RBI to facilitate retail participation in Government securities.
- New derivative products will be developed by SEBI in the Commodity Derivatives market.
- Amendments in the SARFAESI Act 2002 to enable the sponsor of an ARC to hold up to 100% stake in the ARC and permit non institutional investors to invest in Securitization Receipts.
- Allocation of 25,000 crore towards recapitalisation of Public Sector Banks
- Target of amount sanctioned under Pradhan Mantri Mudra Yojana increased to 1,80,000 crore.
- General Insurance Companies owned by the Government to be listed in the stock exchanges.
- Introduce DBT on pilot basis for fertilizer.
- Price Stabilisation Fund with a corpus of 900 crore to help maintain stable prices of Pulses.
- “Ek Bharat Shreshtha Bharat” programme will be launched to link States and Districts in an annual programme that connects people through exchanges in areas of language, trade, culture, travel and tourism
- Fiscal deficit in RE 2015-16 and BE 2016-17 retained at 3.9% and 3.5%.
- Revenue Deficit target from 2.8% to 2.5% in RE 2015-16
- Committee to review the implementation of the FRBM Act.
- Raise the ceiling of tax rebate under section 87A from `2000 to `5000 to lessen tax burden on individuals with income upto 5 lakhs.
- Increase the limit of deduction of rent paid under section 80GG from 24000 per annum to 60000, to provide relief to those who live in rented houses
- New manufacturing companies incorporated on or after 1.3.2016 to be given an option to be taxed at 25% + surcharge and cess provided they do not claim profit linked or investment linked deductions and do not avail of investment allowance and accelerated depreciation
- 100% deduction of profits for 3 out of 5 years for startups setup during April, 2016 to March, 2019. MAT will apply in such cases.
- Commitment to implement General Anti Avoidance Rules (GAAR) from 1.4.2017.
- Withdrawal up to 40% of the corpus at the time of retirement to be tax exempt in the case of National Pension Scheme (NPS). Annuity fund which goes to legal heir will not be taxable
- In case of superannuation funds and recognized provident funds, including EPF, the same norm of 40% of corpus to be tax free will apply in respect of corpus created out of contributions made on or from 1.4.2016
- Limit for contribution of employer in recognized Provident and Superannuation Fund of ` 1.5 lakh per annum for taking tax benefit.
- Deduction for additional interest of `50,000 per annum for loans up to 35 lakh sanctioned in 2016-17 for first time home buyers, where house cost does not exceed 50 lakh.
- Additional tax at the rate of 10% of gross amount of dividend will be payable by the recipients receiving dividend in excess of 10 lakh per annum
- Surcharge to be raised from 12% to 15% on persons, other than companies, firms and cooperative societies having income above 1 crore
- Tax to be deducted at source at the rate of 1 % on purchase of luxury cars exceeding value of ten lakh and purchase of goods and services in cash exceeding two lakh.
- Excise duties on various tobacco products other than beedi raised by about 10 to 15%
Read previous article: « Trophies and Cups related to Hockey and Cricket
Advertisement by Google