Union Budget 2016-17 (Highlights) curtsy by BANKEXAMSINDIA.COM

The Union Minister for Finance, Corporate Affairs and Information & Broadcasting, Shri Arun Jaitley presented the General Budget
2016-17 in New Delhi on February 29, 2016.
The Minister of State for Finance, Shri Jayant Sinha is also seen in the picture.
Highlights of the Railway Budget 2016-17
Finance Minister, Arun Jaitley in his budget speech mentioned about 9 pillars for transforming India.

9 pillars for transforming India
 Tax reforms,
 Promoting ease of doing business in India
 Ensure fiscal discipline
 Emphasis on governance reforms
 Greater emphasis on Social sectors, Education & Skill building
 Job creation
 Infrastructure investment,
 Financial sector reforms
 Focus on agriculture to double farm income

WHAT IS BUDGET? Budget is an Annual financial statement of the estimated receipts and expenditure of the Government for the financial year. (1st April –31st March).

•  Total expenditure for 2016-17 has been projected at Rs. 19.78 lakh crore
•  It consists of Rs. 5.50 lakh crore under Plan & Rs. 14.28 lakh crore under Non-Plan
•  Fiscal deficit to be retained at 3.9% of GDP; FY17 fiscal deficit target at 3.5%
•  Current Account Deficit (CAD) has declined from 18.4 billion US dollars to 14.4 billion during the same period last year.
•  India`s growth rate - GDP has now accelerated to 7.6% compared to the last three years.

There were many announcements in the Union Budget 2016-17 related to individual sectors.It also included new schemes, amendments, laws , duties etc.,They have been categorized under different headings below:

Individual Taxes, Cess & Tax Rates:

No change in personal Income Tax slabs 

 Raise the ceiling of tax rebate under section 87A from Rs.2000 to Rs.5000 for individual with income upto Rs.5 lakhs 

 House rent paid under section 80GG increased from Rs.24000 /annum to Rs.60000 

 Surcharge on super-rich with income of over Rs. 1 cr raised to 15 per cent, from 12 per cent 

 First home buyers to get additional deduction of Rs. 50,000 on interest for loan up to Rs. 35 lakh; while buying house upto 50 lakhs. 

 Corporate Tax for new manufacturing units fixed at 25%

 New manufacturing companies incorporated on or after 1.3.2016 to be given an option to be taxed at 25% + surcharge

 10% tax on income from worldwide exploitation of patents developed & registered in India.

BankExamsIndia.com Union Budget 2016-17 Highlights

 Krishi Kalyan Cess at 0.5% on all taxable services to be introduced from June 1, 2016 

 ‘Clean Energy Cess’ levied on coal, lignite & peat renamed to ‘Clean Environment Cess’ and has been increased from `200 /tonne to `400 /tonne’ 

 Infrastructure Cess of 1% on small petrol, LPG, CNG cars, 2.5% on diesel cars & 4% on other higher engine capacity vehicles & SUVs is to be introduced. 

 Surcharge on super-rich with income of over Rs. 1 cr raised to 15 per cent, from 12 per cent

Agriculture Sector Related

• Allocation for Agriculture and Farmers’ welfare is Rs.35,984 crore
• Unified Agricultural Marketing ePlatform to be launched that will provide a common online platform for wholesale markets.
• ‘Pradhan Mantri Krishi Sinchai Yojana’ to be implemented & 28.5 lakh hectares will be brought under irrigation.
• Allocation under Prime Minister Fasal Bima Yojana ` 5,500 crore.
• A dedicated Long Term Irrigation Fund will be created in NABARD with an initial corpus of about ` 20,000 crore
• Rs.850 crore shall be allotted for four dairying projects - ‘Pashudhan Sanjivani’, ‘Nakul Swasthya Patra’, ‘E-Pashudhan Haat’ & ‘National Genomic Centre for Indigenous Breeds’
• Soil Health Card scheme would cover all 14 crore farm holdings by March 2017
• ‘Parmparagat Krishi Vikas Yojana’ & 'Organic Value Chain Development in North East Region' are to be used to promote organic farming.

Rural & Social Sector were allocated Rs.87,765 crore & Rs.1,51,581 crore

• 100% village electrification by 1st May, 2018.
• MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme) has been allotted Rs. 38,500 crore
• Under the Deen Dayal Antyodaya Mission - Every block under drought and rural distress will be taken up
• Under the Shyama Prasad Mukherjee Rurban
• Mission - 300 Rurban Clusters will be developed
• A new Digital Literacy Mission Scheme to be implemented for rural India to cover around 6 crore household within the next 3 years
• Rs. 2,000 crore has been allocated as initial cost for providing LPG connections to BPL families.
• Rashtriya Gram Swaraj Abhiyan, a new scheme has been proposed with an allocation of Rs.655 crore.
• New health protection scheme to provide health cover up to Rs.1 lakh per family is to be introduced.
• National Dialysis Services Programme’ to be started under National Health Mission.
• A Digital Depository is to be setup for storing Certificates, College Degrees & Mark sheets.
• Higher Education Financing Agency to be set-up with initial capital base of ` 1000 Crores
• National Scheduled Caste & Scheduled Tribe Hub to be set up
• 62 new Navodaya Vidyalayas shall be opened
• Sarva Shiksha Abhiyan shall focus more on the quality of education

Technology, Cleanliness, Service & Other Initiatives

• Total outlay for infrastructure – Rs. 2,21,246 crore.
• National Board for Skill Development Certification to be setup
• Govt of India to pay EPF contribution of 8.33% of new employees for first 3 years.
• 100 Model Career Centres to operational by the end of 2016-17 under National Career Service.
• New credit rating system for infrastructure projects to be introduced.
• 100% FDI to be allowed through FIPB route in marketing of food products produced and manufactured in India.
• Aadhaar programme would be given statutory status
• A comprehensive Code on Resolution of Financial Firms to be introduced.
• Department of Disinvestment renamed Department of Investment & Public Asset Management
• Stand Up India allocated Rs. 500 crore
• 9,000 crore allocated to Swachh Bharat Abhiyaan
• 25,000 cr for recapitalisation of PSU banks.
• A Financial Data Management Centre to be set up.
• General Insurance Companies owned by the Government to be listed in the stock exchanges.
• Bill for Targeted Delivery of Financial and Other Subsidies, Benefits and Services by using the Aadhar
• framework to be introduced.
• “Ek Bharat Shreshtha Bharat” programme will be launched.It is aimed connect people through exchanges in areas of language, trade, culture, travel and tourism.
• 100% deduction of profits for 3 out of 5 years for startups setup during April, 2016 to March, 2019.