Budget 2016: Key highlights
Finance Minister Arun Jaitely on Monday i.e, 29th Feb 2016, presented India’s national budget for 2016-17 in the Lok Sabha, Here are the Budget 2016 Key Highlights.
Budget 2016 Key Highlights
Agriculture Sector Budget 2016- Rs 35,984 Cr
- Prandhan Mantri Krishi Yojana – To bring 28.5 Lacs hectares under irrigation
- Implementation of 89 projects under AIBP to be fast tracked.
- Dedicated long term fund will be created under NABARD with initial corpus of about 20 Cr.
- Programme for sustainable management of ground water resources with an estimated cost of Rs. 6000 Cr wll be implemented through 3 multilateral funding.
- Retails outlets for Fertilizer companies will be provided with soil and seed testing facilities during the next three years
- Unified Agricultural Marketing ePlatform – To provide common e-commerce platform for wholesale markets
- Pradhan Mantri Gram Sadak Yojana Allocation to be increased to 19,000 cr
- Will connect remaining 65,000 eligible habitations by 2019.
- To reduce the burden of loan repayment on farmers, a provision of 15,000 Cr has been made in the BE 2016-17 towards interest subvention.
Rural Sector Budget 2016 – Rs 87,765 Cr
- Gram Panchayats and Municipalities Aid, Rs.2.87 lakh crore as per recommendations of the 14th Finance Commission
- Mahatma Gandhi National Rural Employment Gurantee Act (MGNREGS) – Rs,38,500 Cr
- Rurban Clusters will be developed under the Shyama Prasad Mukherjee Rurban Mission 300 by 1st May 2018
- 100% Village electrification, new scheme Rashtriya Gram Swaraj Abhiyan proposed with allocation of Rs.655 Cr
Social Sector Budget 2016- Rs. 1,51,581 Cr
- LPG connections to BPL families – 2,000 Cr
- New health protection scheme will provide health cover up to one lakh per family,For senior citizens an additional top-up package up to 30,000 will be provided.
National Dialysis Services Programme – To be stared under National Health Mission through PPP
Stand Up India Scheme – mode to facilitate at least two projects per bank branch, benefiting at least 2.5 lakh entrepreneurs.
- New Navodaya Vidyalayas will be opened
- Digital Depository – Higher Education Financing Agency to be set-up with initial capital base of Rs, 1000 Cr, for School Certificates, College Degrees, Academic Awards and Mark sheets to be set-up.
Skills Development Budget 2016 – Rs. 1,804 Cr
- Multi Skill Training Institutes 1500 to be set-up
- National Board for Skill Development Certification to be setup partnership with the industry and academia
Massive Open Online Courses – Entrepreneurship Education and Training
- Deduction under Section 80JJAA of the Income Tax Act will be available to all assesses who are subject to statutory audit under the Act.
- 100 Model Career Centers to operational by the end of 2016-17 under National Career Service.
- Model Shops and Establishments Bill to be circulated to States
Infrastructure Budget 2016 – Rs.2,21,246 Cr
- 10,000 kms of National Highways to be awarded in 2016-17
- Allocation of 55,000 Cr for Roads
- Additional 15,000 Cr to be raised by NHAI through bond
- Amendments to be made in Motor Vehicles Act to open up the road transport sector in the passenger segment
Financial Sector – Budget 2016
- 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 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.
- Comprehensive Central Legislation to be bought to deal with the menace of illicit deposit taking scheme.
- Increasing members and benches of the Securities Appellate Tribunal.
- 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 exchange
- Banks get a big boost: Rs 25,000 crore towards recapitalization of public sector banks.
- Banking Board Bureau will be operational, 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
- Govt to increase ATMs, micro-ATMs in post offices in next three years
- 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 & in-cash purchase of goods and services over Rs. 2 lakh.
- 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.
- 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.
- No changes have been made to existing income tax slabs
- Rs 1,000 crore allocated for new
Happy Trading Cheers !!