Monday, 7 March 2016

UNION BUDGET HIGHLIGHTS 2016-17

Tax
  • Infrastructure and agriculture cess to be levied.
  • Excise duty raised from 10 to 15 per cent on tobacco products other than beedis
  • 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.
  • 0.5 per cent Krishi Kalyan Cess to be levied on all services.
  • Pollution cess of 1 per cent on small petrol, LPG and CNG cars; 2.5 per cent on diesel cars of certain specifications; 4 per cent on higher-end models.
  • Dividend in excess of Rs. 10 lakh per annum to be taxed at additional 10 per cent.
  • SUVs, Luxury cars to be more expensive. 4% high capacity tax for SUVs.
  • Companies with revenue less than Rs 5 crore to be taxed at 29% plus surcharge
  • Limited tax compliance window from Jun 1 – Sep 30 for declaring undisclosed income at 45% incl. surcharge and penalties
  • Excise 1 per cent imposed on articles of jewellery, excluding silver.
Social

  • Rs. 38,500 crore for Mahtma Gandhi MGNREGA for 2016-17
  • Swacch Bharat Abhiyan allocated Rs.9,500 crores.
  • Hub to support SC/ST entrpreneurs
  • Government is launching a new initiative to provide cooking gas to BPL families with state support.
  • LPG connections to be provided under the name of women members of family: Rs 2000 crore allocated for 5 years for BPL families.
  • 2.87 lakh crore grants to gram panchayats and municipalities – a quantum jump of 228%.
  • 300 urban clusters to be set up under Shyama Prasad Mukherji Rurban Mission
  • Four schemes for animal welfare.
Education, Skills and Job Creation

  • 62 new Navodaya Vidyalayas will be opened
  • Sarva Shiksha Abhiyan to increasing focus on quality of education
  • Regulatory architecture to be provided to ten public and ten private institutions to emerge as world-class Teaching and Research Institutions
  • 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.
Financial Sector Reforms

  • A comprehensive Code on Resolution of Financial Firms to be introduced.
  • Statutory basis for a Monetary Policy framework and a Monetary Policy Committee through the Finance Bill 2016.
  • A Financial DataManagement 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.
  • Comprehensive Central Legislation to be bought to deal with the menace ofillicit deposit taking schemes.
  • Increasing members and benches of the Securities Appellate Tribunal.
  • 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.
Health

  • 2.2 lakh renal patients added every year in India. Basic dialysis equipment gets some relief.
  • A new health protection scheme for health cover upto 1 lakh per family.
  • PM Jan Aushadhi Yojana to be strengthened, 300 generic drug store to be opened National Dialysis Service Prog with funds thru PPP mode to provide dialysis at all district hospitals.
  • Senior citizens will get additional healthcare cover of Rs 30,000 under the new scheme
Energy

  • Rs. 3000 crore earmarked for nuclear power generation
  • Govt drawing comprehensive plan to be implemented in next 15-20 years for exploiting nuclear energy
  • Govt to provide incentive for deepwater gas exploration
  • Deepwater gas new disc to get calibrated market freedom, pre-determined ceiling price based on landed price of alternate fuels.
Agriculture

  • Total allocation for agriculture and farmer welfare at Rs 35984 crores
  • 28.5 lakh heactares of land wil be brought under irrigation.
  • 5 lakh acres to be brought under organic farming over a three year period
  • Rs 60,000 crore for recharging of ground water recharging as there is urgent need to focus on drought hit areas cluster development for water conservation.
  • Dedicated irrigation fund in NABARD of Rs.20.000 cr
  • Nominal premium and highest ever compensation in case of crop loss under the PM Fasal Bima Yojna.
Banking

  • Banks get a big boost: Rs 25,000 crore towards recapitalisation of public sector banks. Jaitley says: Banking Board Bureau will be operationalised, we stand solidly behind public sector banks.
  • Target of disbursement under MUDRA increased to 1,80,000 crore
  • Process of transfer of government stake in IDBI Bank below 50% started
  • General Insurance companies will be listed in the stock exchange
  • Govt to increase ATMs, micro-ATMs in post offices in next three years
Investments and infrastructure

  • Rs. 27,000 crore to be spent on roadways
  • 65 eligible habitats to be connected via 2.23 lakh kms of road. Current construction pace is 100 kms/day
  • Shops to be given option to remain open all seven days in a week across markets.
  • Rs. 55,000 crore for roads and highways. Total allocation for road construction, including PMGSY, – Rs 97,000 crore
  • India’s highest-ever production of motor vehicles was recorded in 2015
  • Total outlay for infrastructure in Budget 2016 now stands at Rs. 2,21,246 crore
  • 100 per cent FDI in marketing of food products produced and marketed in India
  • Dept. of Disinvestment to be renamed as Dept. of Investment and Public Asset Management
  • Govt will amend Motor Vehicle Act in passenger vehicle segment to allow innovation.
  • MAT will be applicable for startups that qualify for 100 per cent tax exemption
  • Direct tax proposals result in revenue loss of Rs.1060 crore, indirect tax proposals result in gain of Rs.20,670 crore
  • New greenfield ports to be developed on east and west coasts
  • Revival of undeserved airports. Centre to Partner with States to revive small airports for regional connectivity
Roadmap & Priorities

  • ‘Transform India’ to have a significant impact on economy and lives of people.
  • Focus on enhancing expenditure in priority areas of – farm and rural sector, social sector, infrastructure sector employment generation and recapitalisation of the banks.
  • Continue with the ongoing reform programme and ensure passage of the Goods and Service Tax bill and Insolvency and Bankruptcy law.
Rural Sector

  • Allocation for rural sector – ` 87,765 crore.
  • 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
  • Every block under drought and rural distress will be taken up as an intensive Block under the Deen Dayal Antyodaya Mission
  • A sum of ` 38,500 crore allocated for MGNREGS.
  • 300 Rurban Clusters will be developed under the Shyama Prasad Mukherjee Rurban Mission
  • A new Digital Literacy Mission Scheme for rural India to cover around 6 crore additional household within the next 3 years.
  • National Land Record Modernisation Programme has been revamped.
  • New scheme Rashtriya Gram Swaraj Abhiyan proposed with allocation of ` 655 crore
  • 100% village electrification by 1st May, 2018.
  • District Level Committees under Chairmanship of senior most Lok Sabha MP from the district for monitoring and implementation of designated Central Sector and Centrally Sponsored Schemes.
  • Priority allocation from Centrally Sponsored Schemes to be made to reward villages that have become free from open defecation.