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Short Notes on Union Budget 2016-17
The India’s Finance Minister, Arun Jaitley has announced the India’s national budget of NDA Govt. in 2016-17. They are majorly focused on reviving the growth under various sectors to support small taxpayers and small investors with some new schemes and other benefits by keeping an eye on common man benefits with special prominence to the sectors like Education, Jobs & Training, Tax benefits, Agriculture, Roads, Railways, Banks, Insurance Companies, Irrigation, social sector including health, women and child development, welfare of Castes and Scheduled Tribes, minorities, infrastructure. Here are the some key points of the union budget 2016-17.
Highlights of Union Budget 2016-17
- Total Budget in 2016-17: Rs.19.78 lakh crore.
- Planned Budget Estimation – Rs.5.5 lakh crore.
- Non-Planned Budget Estimation – Rs.14.28 lakh crore.
Focus on Agricultural Growth:
- Pradhan Mantri Krishi Sinchay Yojana (PMKSY) – To bring 28.5 lakh hectares of land under cultivation as part of PMKSY programme.
- Budget estimate of Rs.86, 500 crores for developing 89 irrigation projects.
- Allocation of Rs.6000 crore for sustainable groundwater management.
- 27, 000 Crores allocated for PMGSY in 2016-17.
- Estimation of Rs.9 Lakh Crores as agricultural farm credit.
- With the initial fund of Rs.20, 000 crores as irrigation fund will be created in NABARD.
- Budget estimate of Rs.500 Crore for the production of pulses and to cut the inflation on pulses.
Gram Panchayat, Municipalities and Rural Development Programs:
- Budget allocation to make developments in rural sector – Rs.87, 765 crores.
- 2.87 Lakh Crore to make developments in gram panchayats, municipalities.
- To set up the Digital Literacy Mission.
- Modernization of land records.
- To make amendments in Rashtriya Gram Swaraj Programme (RGSP) with the budget estimate of Rs.655 crore.
- The budget allocation of Rs.1, 80, 000 Crores under MUDRA Scheme.
- Allocation of Rs.38, 500 crores for MGNREGS (Mahatma Gandhi National Employment Guarantee Scheme).
- “Ek Bharat Shrestha Bharat” a new scheme to link the states and districts to make exchanges in the areas of language, travel, trade, culture, and tourism.
- Rs.2000 Crores is allocated to make easy to get LPG cylinders for the women members of BPL families.
- Rs.9000 Crores is allocated for Swachh Bharat Abhiyaan in 2016-17.
- To set up Digital Depository for preserving the educational certificates, mark-sheets, awards etc.,
- To launch Higher Education Financing Agency (HEFA) with the initial budget of Rs.1000 crore.
- The new launch of 62 JNVs (Jawahar Navodaya Vidyalayas) in some uncovered districts.
- To make improvements in ‘Sarva Shiksha Abhiyan’ to focus on quality of education
- Allocation of Rs.1804 Crores for skill development.
- To establish National Board for Skill Development Certification.
- Pradhan Mantri Kaushal Vikas Yojana (PMKVY) – 1500 skill development training institutes will be launch under this scheme.
- Education and Training through online courses.
- Allocation of Rs.100 Crores for the Birthday celebrations of Deendayal Upadhyay and Guru Gobind Singh 300th birth anniversary.
- Income tax slab is raised from 3 lakhs to 5 lakhs to relive the small level employees from paying the tax.
- No service tax for the houses which have been built under 60 SQ. meters.
- On Tobacco – The excise duty is increased from 10 to 15%.
- Increase on surcharge payable amount from 12% to 15% for the persons whose total annual income is more than Rs.1 crore.
- Tax rebate hiked from Rs.2000 to Rs.5000 under 87A and the people whose annual income is below Rs.5 Lakhs has to pay Rs.3000 instead of Rs.2000.
- Tax relief for First time home buyers: 50, 000 per anum for the loan of Rs.35 Lakhs in 2016-17.
Jobs & Tax Benefits:
- National Career Service – To set up 100 model career centers by the end of 2016.
- 33% of EPS contribution if they register in EPFO (Employment Provident Fund Organization) in first 3 years of employment.
- Income tax amendments under Section 80 JJ-AA to the employees.
- Tax exemption for the withdrawal of 40% amount of NPS (National Pension Scheme) at the time of retirement.
Roads & Railways:
- 2, 18,000 is estimated to be spent on capital expenditure of roads and railways in 2016-17.
- 27, 000 Crore under PMGSY.
- 55, 000 Crore for Road Transport and Highways.
- 15, 000 Crore for NHAI bonds.
- 1, 21, 000 Crore for Railways.
- Changes in FDI policy.
- Changes in SARFAESI Act to strengthen Asset Reconstruction Companies (ARCs).
- Road with 10,000 Kms of national highways will be approved in 2016-17.
- Budget estimate of Rs.97, 000 crores on infrastructure for roads & highways is a big boost.
Public Sector Banks:
- Budget estimate of Rs.25, 000 Crore for the recapitalisation of public sector banks.
- Plans to increase no. of ATMs, Micro ATMs in post offices in the next 3 years.
- “Stand Up India Scheme”.
- General Insurance Companies will be listed in stock exchange to make the developments in transparency, accountability and efficiency.
- In 2016-17, the fiscal deficit target is estimated as 3.5% of GDP.
- To set up a committee for reviewing FRBM Act.
- To set up a new health scheme under that each family can avail hospitalization expenditure up to Rs.1 lakh and Rs.30, 000 as an additional benefit for senior citizens.
- To make improvements in PM Jan Aushadhi Yojana by opening 3000 medical stores to provide medicines.
- To start ‘National Dialysis Services Programme’ under National Health Mission.
- To provide 100% electrification in all the uncovered villages by 1st May 2018.