Monday, 29 February 2016

Budget 2016 - 2017 - All you need to know

๐Ÿ‡ฎ๐Ÿ‡ณUnion Budget๐Ÿ’ฐ 2016:
In his introductory speech as he presented the Union Budget, Jaitley focused on the difficulties and challenges faced by the country amid a global crisis. He said that the ๐Ÿ‡ฎ๐Ÿ‡ณ economy has held firm despite the global crisis.

๐Ÿ”ฐ Current Account Deficit declined to 14.4 billion US Dollars from 18.5 billion dollars

๐Ÿ”ฐ GDP growth has accelerated to 7.6%. CPI inflation has come down to 5.4%.

๐Ÿ”ฐ India's Forex reserves are at the highest level at $350 billion.

๐Ÿ”ฐ Union Budget to have 9⃣ pillars - agriculture sector, rural sector, social sector including healthcare, education & job creation, infrastructure, financial reforms, Ease of doing business, prudent government finances, tax reforms

๐Ÿ”ฐ Govt targets to cover 14 crore farm holdings by 2017, Paramparagat Krishi Vikas Yojana to bring 5 lakh acres under organic farming.

๐Ÿ”ฐ Big outlay for irrigation - ₹86500 cr over next 5 years. 28.5 lakh hectares to be brought under irrigation.

๐Ÿ”ฐ Dedicated irrigation fund of ₹20,000 crore to be set up under NABARD

๐Ÿ”ฐ ₹15,000 cr for loan repayment for farmers. Rs 19,000 crore to be allocated for Pradhan Mantri Gram Sadak Yojana

๐Ÿ”ฐ Rs 19,000 crore to be allocated for Pradhan Mantri Gram Sadak Yojana.

๐Ÿ”ฐ A path-breaking farm insurance scheme PM fasal bima yojana alloted ₹5500 cr

๐Ÿ”ฐ 2.87 lakh cr stationed as grants to gram panchayats for development of rural economy

๐Ÿ”ฐ Deendayal Antyoday Mission for drought affected blocks.

๐Ÿ”ฐ ₹38500 crore for MNREGA in 2016-17, highest ever in a year.

๐Ÿ”ฐ 5542 villages have been electrified already & Govt targets 100% Rural electrification by 1st May 2018. ₹8500 Cr allotted.

๐Ÿ”ฐ ₹9000 crore allocated for Swachh Bharat Abhiyaan

๐Ÿ”ฐ Digital Literacy mission to be launched to cover 60 million rural Indians

๐Ÿ”ฐ 300 urban clusters to be set up under Shyama Prasad Mukherji Rurban Mission

๐Ÿ”ฐ Total Rural development spending in Budget2016 will be ₹87765 crore

๐Ÿ”ฐ ₹2000 crore for providing LPG connection to 1.5 crore BPL families in 2016-17

๐Ÿ”ฐ National Dialysis Services program to be launched across district hospitals. They are to be funded in PPP model.

๐Ÿ”ฐ Health protection scheme to provide insurance up to ₹1 lakh per family. Additional ₹30000 for senior citizens. 3,000 stores to be opened for generic drugs.

๐Ÿ”ฐ Expansion of sarva shiksha abhiyaan. 20 institutions to be supported to become world-class research institutions ₹1000Cr allotted. 62 new navodaya vidyalayas to be set up. _

๐Ÿ”ฐ ₹5000 cr Stand up India scheme approved for promotion of SC, ST and women entrepreneurs.

๐Ÿ”ฐ The govt will pay EPF contribution of 8.33% for all new employees for 1st three years for salary up to ₹15000 per month.

๐Ÿ”ฐ FM calls for small shops should be allowed to open 7 days a week. Model Shops and Establishments Bill to be circulated, for voluntary adoption by states.

๐Ÿ‡ฎ๐Ÿ‡ณUnion Budget๐Ÿ’ฐ 2016: Infrastructure Sector

๐Ÿ”ฐ Govt to allocate ₹55000 cr for roads and highways. Total investment in Road Sector would be ₹97000 crore. A total of ₹2,18,000 cr allocation for roads and railways.

๐Ÿ”ฐ Around 70 languishing projects are 85% on track. Highest road building contracts given in 2015 - ₹55000 cr + ₹15cr NHAI bonds.

๐Ÿ”ฐ Govt to incentivise gas production, deep sea gas exploration

๐Ÿ”ฐ Govt to partner with state governments to revive some airports to increase regional connectivity. Govt drawing action plans for 160 airports and airstrips that can be developed at cost of ₹50-100 cr each.

๐Ÿ”ฐ Govt to amend Motor Vehicle Act to open up road passenger sector.

๐Ÿ”ฐ Total outlay for infrastructure is at ₹2.31 lakh crore.

๐Ÿ‡ฎ๐Ÿ‡ณUnion Budget๐Ÿ’ฐ 2016: Financial Reforms

๐Ÿ”ฐ Reforms to FDI policy: insurance & pension, food processing and stock exchange. 100% FDI in the marketing of food products manufactured in India through FIPB route.

๐Ÿ”ฐ Central legislation to be introduced to deal with the menace of Ponzi schemes and finance related frauds.

๐Ÿ”ฐ Asset reconstruction companies regulations to be liberalised.

๐Ÿ”ฐ ₹25000 cr to recapitalise public sector banks. Banking Board Bureau and a road for consolidation of public sector banks will be spelled out in FY 2017.

๐Ÿ”ฐ Number of measures to be undertaken to deepen corporate bond market

๐Ÿ”ฐ Department of Disinvestment to be renamed as Department of Investment and Public Asset Management.

๐Ÿ”ฐ ATMs and micro ATMs to be rolled out in the rural areas through the post offices.

๐Ÿ”ฐ ₹1 lakh cr lent out so far under PM mudra yojana. A target of ₹1.8 lakh in 2016.

๐Ÿ”ฐ Disbursement of subsidies will be done through Aadhar.

๐Ÿ”ฐ Fiscal deficit targeted at 3.9% and 3.5% for the FY 16 and FY 17.

๐Ÿ”ฐ 60,000 crore for water resources management.

๐Ÿ”ฐ Bill to amend the Companies Act to be introduced in the Budget Session. Aimed at easing norms for start-ups.

๐Ÿ”ฐ FY17 Plan Expenditure: ₹5.5 lakh cr, Non-Plan Expenditure -₹14.82 lakh Cr_

๐Ÿ”ฐ FM to get rid of plan/non-plan classification to go away from 2017-18 ๐Ÿ˜ฑ

๐Ÿ”ฐ Debt recovery tribunals to be strengthened

๐Ÿ”ฐ Revenue deficit target to be 2.6% of Revenue expenditure

๐Ÿ‡ฎ๐Ÿ‡ณUnion Budget๐Ÿ’ฐ 2016: Tax Reforms

๐Ÿ”ฐ Tax proposals to focus relief to small tax payers, measures to moving towards pension society, reducing litigation, simplification and rationalisation of taxation, use of technology.

๐Ÿ”ฐ Tax audit limit extended up to ₹2 crore.

๐Ÿ”ฐ House Rent Allowance relief raised from ₹24,000 to ₹60,000

๐Ÿ”ฐ Govt will assist startups through 100% deduction in profits for 3 out of 5 years.

๐Ÿ”ฐ Corporate tax: Phasing out of exemptions to continue.Corp tax rate for new manufacturing units at 25% + surcharge + cess, lowering of corporate income tax rate for companies with turnover less than ₹5cr to 29% + surcharge + cess

๐Ÿ”ฐ Customs & excise duty rates to undergo changes to improve competitiveness and boost Make In ๐Ÿ‡ฎ๐Ÿ‡ณ.

๐Ÿ”ฐ Additional rebate of ₹50000 for 1⃣st time house buyers for loans up to 35 lakhs & reduction of service tax 4 affordable housing. 100% deduction for profits from building flats up to 30 square metres in metro cities.

๐Ÿ”ฐ Withdrawal up to 40% from NPS to be tax exempted.

๐Ÿ”ฐ Existing Income Tax slabs remain unchanged.

๐Ÿ”ฐ 1% service charge on purchase of luxury cars over ₹10 lakh and in-cash purchase of goods and services over ₹2 lakh. 4% high capacity tax for SUVs. To introduce 1% infra cess on petrol cars, 2.5% on diesel cars. 1% cess on LPG, CNG and other such cars.

๐Ÿ”ฐ Excise duty on most tobacco products raised by 10-15%

๐Ÿ”ฐ Limited period compliance window (Sep 30th) for domestic taxpayers to declare undisclosed income. Declarations to have immunity from prosecutions.

๐Ÿ”ฐ CleanEnergy cess to be renamed as CleanEnvironment cess. To be increased from ₹200/ton to 400/ton on coal, lignite and peat.

๐Ÿ”ฐ Krishi Kalyan Cess to be imposed on all taxable services for the agricultural sector.

๐Ÿ”ฐ New dispute resolution scheme - taxpayer can settle cases by paying tax+interest. no penalty in cases where the dispute is less than ₹10 lakhs. 11 new benches for customs and service tax appeals tribunal.

๐Ÿ”ฐ Non-residents without PAN to get relief. Customs baggage rules for passengers to be simplified.

๐Ÿ”ฐ ₹19610 of net revenue gain from direct and indirect taxes

๐Ÿ”ฐ Removal of 13 different cesses with revenue collection less than ₹50 crores annually

some additional coverage
๐Ÿ’ก Sensex down 347 points.
๐Ÿ’ก For the 1⃣st time, hard copies of Budget not distributed to journalists. FM going green๐ŸŒ.

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