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New Delhi: Union Finance Minister Arun Jaitley began presenting the Budget for the financial year 2016-17 in Parliament today by pointing out that amidst slowdown in global growth and trade the Indian economy has held its ground firmly and the growth of GDP has accelerated to 7.6%.
The Finance Minister told the House that we are committed to eliminating black money and announced a voluntary disclosure scheme for this purpose. He said that Fiscal deficit for 2016-17 is targeted at 3.5% and revenue deficit estimate for FY 2015-16 is down to 2.5%. He went on to annoiunce that no changes have been made in the existing income tax slabs.
Since the Budget proposals were more project specific and not based on macro economics, there was a direct and immediate impact on the stock market as the Sensex dropped 500 points when the Budget was being presented.
Sensex falls 500 points amid Jaitley’s Union budget tax proposalsSensex falls 500 points amid Jaitley’s Union budget tax proposalsThe Finance Minister presented Tax proposals to provide relief to small taxpayers through rebates. He also announced relief to those in rented houses by staying that deduction is proposed to be raised from Rs 24,000 to 60,000 under Section 88G.
Jaitley further said that revenue deficit target for FY16 is 2.5% against budgeted estimates of 2.8%.
Focusing on Corporate income tax, the Finance Minister said incentives for new manufacturing companies, small enterprise companies are proposed..
The Finance Minister said that foreign exchange reserves are at highest ever level and CPI inflation has declined to 5.4%
Jaitley said that recapitalization of banks will be done during next FY. He further said we have to create a prudent fiscal policy, raise domestic demand and carry out reforms.
The Budget is also committed to increase investment in asset reconstruction companies
Foreign exchange reserves are now 350 billion US dollars, Jaitkey told the House.
Important announcements:
Rs 55,000 crore to be allocated for roads and highways and 10,000 km of national highways to be approved.
Govt to provide health insurance of upto Rs 1 lakh per family.
National Skill Development Mission gave training to 76 lakh youth,1500 institutes to be set up.
Rs 9,000 crores allocated to Swaccha Bharat Abhiyaan.
Rashtriya Gram Swaraj Abhiyan: New restructured scheme to increase the governance capabilities of PRIs to be launched.
Appreciation for 75 lakh Middle class and lower middle class for willingly giving up LPG Subsidy.
Stand Up India scheme allocated Rs 500 Crores for SC, ST and women entrepreneurs.
100 % village electrification to be achieved by 1st May, 2018
Rs. 87,765 crores for rural development as a whole have been allocated in the budget.
300 rurban clusters to be set up under Shyama Prasad Mukherji Mission
Rs 9,000 crores allocated to Swaccha Bharat Abhiyaan
New restructured scheme to increase the governance capabilities of PRIs to be launched: Rashtriya Gram Swaraj Abhiyan
Appreciation for 75 lakh Middle class and lower middle class for willingly giving up LPG Subsidy
National SC/ST Hub in partnership with industry associations to support SC/ST entrepreneurs
85% of stalled road projects back on track
Total allocation to road sector including PMGSY: Rs. 97,000 crores
There will be a new policy for management of assets of public enterprises
100% FDI through FAPB route in marketing of food products produced in India
Department of Disinvestment to be renamed as Dept of Investment and Public Asset Management
RBI Act being amended to provide statutory basis for monetary policy framework
100% FDI to be allowed through FIPB route in Food Products Produced and Marketed in India
RBI Act being amended to provide statutory basis for monetary policy framework
100% FDI to be allowed through FIPB route in Food Products Produced and Marketed in India
Comprehensive Code to provide mechanism for bankruptcy of banks/insurance companies
Banking Board Bureau will be operationalised, we stand behind public sector banks
Rs 900 crore for Market Stabilization Fund for pulses
A bill on targeted delivery of financial services using Aadhar to be introduced
DBT on pilot basis in fertilisers to be introduced in some districts
Rs 100 crore to celebrate birthday of Deen Dayal Upadhyay
Service tax exempted for general insurance schemes under Niramayi Swasthya Bima Yojna
Suitable changes to be made in customs and excise duty rates to boost Make In India
Relief of Rs 3000 per year to taxpayers with income below Rs 5 Lakh per year
Rs 100 crore to celebrate birthday of Deen Dayal Upadhyay
Service tax exempted for general insurance schemes under Niramayi Swasthya Bima Yojna
Suitable changes to be made in customs and excise duty rates to boost Make In India
Relief of Rs 3000 per year to taxpayers with income below Rs 5 Lakh per year
100% deduction for profits of undertakings from housing projects in cities during June 2016-March 2019
Services provided by EPFO exempted from service tax
Service Tax exemption for services under the Deen Dayal Gram Jyoti Yojana
Krishi Kalyan Cess of 0.5% on all taxable services
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