Union Budget 2016: Know the latest details

Union Budget 2016 Know the latest details

 

Union Budget is presented every year on the last working day of February by the Finance Minister of India in Parliament. This, year Finance Minister Arun Jaitley, presented the Union budget for the Financial Year 2016-17, in the Parliament.

First of all let us know what Union Budget is and why it is presented every year.

 

 What is Union Budget?

 

If we want to define Union Budget, according to Article 112 of the Indian Constitution, the Union Budget of a year is a statement of the estimated receipts and expenditure of the government for that particular year. The Union Budget is also termed as the Annual Financial Statement.

 

Major announcement made by Finance Minister Arun Jaitley, while presenting the Union Budget 2016-17 are as follows: -

We will understand the major challenges and roadmaps which have been set this year in various sectors by the Finance Minister Mr. Arun Jaitley, with the help of the following points: –

 

 Impacts on Taxation

 

 The infrastructure and agriculture cess will be levied.

 10 to 15 per cent increment in the excise duty on Tobacco products other than beedis.

 On purchase of luxury cars over Rs. 10 lakh and in-cash purchase of goods and services over Rs. 2 lakh 1 per cent service charge.

 There will be 4% high capacity tax for SUVs, hence SUVs, Luxury cars will be more expensive.

 The companies which have revenue less than Rs 5 crore, will be taxed at 29% plus surcharge.

 On articles of jewelry, excluding silver 1% excise will be imposed.

 5 per cent Krishi Kalyan Cess to be levied on all services.

 Small petrol, LPG and CNG cars will be charged with 1% pollution cess.

 Dividend in excess of Rs. 10 lakh per annum to be taxed at additional 10 per cent.

 

 Impacts on Banking Sector

 

 Increment of Rs.180000 crore in target of disbursement under MUDRA.

 25, 000 crore will be invested for recapitalization of public sector banks.

 In the stock exchange list, General Insurance companies will be added.

 Process of transfer of government stake in IDBI Bank below 50% started.

 ATMs, micro-ATMs in post offices will be increased by the Indian Government in the next three years.

 

 Impacts on Investments and infrastructure Sector

 

 An investment of Rs. 27,000 crore will be made for roadways.

 65 eligible habitats to be connected via 2.23 lakh kms of road.

 Option will be given to Shops to remain open all seven days in a week across markets.

 An investment to be made of Rs. 55,000 crore for roads and highways. A total of Rs. 97,000 crore will be allocated for road construction, including PMGSY.

 India’s highest-ever production of motor vehicles was recorded in 2015.

 Total outlay of Rs. 2,21,246 crore is set for infrastructure in Budget 2016.

 New Greenfield ports to be developed on east and west coasts.

 Airports that are underserved, will be renewed with the help of partnership with States for regional connectivity.

 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.

 Motor Vehicle Act in passenger vehicle segment will be amended by Indian Government 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.

 

 Impacts on Personal Finance

 

 The existing income tax slabs will not be changed.

 An investment of Rs. 1,000 will be made for new EPF (Employees’ Provident Fund) scheme.

 EPF contribution of 8.33% will be paid for all new employees by the government for the first three years.

 Deduction for rent paid will be raised from Rs. 20,000 to Rs. 60,000 to benefit those living in rented houses.

 50,000 will be exempted additionally for housing loans up to Rs. 35 lakh, provided cost of house is not above Rs. 50 lakh.

 For housing construction of houses less than 60 sq. mtr, the service tax will be exempted.

 On income above Rs. 1 crore 15 per cent surcharge will be imposed.

 

 Impacts on Energy Sector

 

 For nuclear power generation, Rs. 3000 crore has earmarked.

 For the exploitation of nuclear energy, Government drawing. comprehensive plan to be implemented in next 15-20 years.

 For Deepwater gas exploration, Government will provide incentive.

 Deepwater gas new disc to get calibrated market freedom, pre-determined ceiling price based on landed price of alternate fuels.

 

 Impacts on Education Sector

 

 For the promotion of entrepreneurship among SC/ST, a Scheme will be introduced with an investment of Rs.500 cr.

 Planning will be made to make 10 public and 10 private educational institutions, world-class.

 Digital repository for all school leaving certificates and diplomas. Rs. 1,000 crore for higher education financing.

 An investment of Rs. 1,700 crore will be made for 1500 multi-skill development centres.

 62 new Navodaya Vidyalayas to provide quality education.

 To cover 6 crore additional rural households, digital literacy scheme to be launched.

 Entrepreneurship training to be provided across schools, colleges and massive online courses.

 1 crore youth will be skilled in the next 3 years under the PM Kaushal Vikas Yojna.

 National Skill Development Mission has imparted training to 76 lakh youth.

 1500 Multi-skill training institutes to be set up.

 

 Impacts on Agriculture Sector

 

 An investment of Rs. 35984 crores will be made for agriculture and farmer welfare.

 5 lakh hectares of land will be brought under irrigation.

 For organic farming, 5 lakh acres to be brought over a three year period.

 To focus on drought hit areas cluster development for water conservation, an investment of Rs. 60,000 crore will be made for recharging of ground water recharging.

 Dedicated irrigation fund in NABARD of Rs.20.000 cr.

 In case of crop loss, a nominal premium and highest ever compensation will be made under the PM Fasal Bima Yojna.

 

 Impacts on Health Sector

 

 Basic dialysis equipment will be introduced to get some relief as every year in India 2.2 lakh renal patients added.

 A new health protection scheme for health cover up to 1 lakh per family.

 National Dialysis Service Programme to provide dialysis at all district hospitals, with funds through PPP mode.

 Senior citizens will get additional healthcare cover of Rs 30,000 under the new scheme.

 PM Jan Aushadhi Yojana will be strengthened, 300 generic drug store will be opened.

 

 Impacts on Social Sector

 

 An investment of Rs. 38,500 crore will be made for Mahtma Gandhi MGNREGA for 2016-17.

 An investment of Rs.9,500 crores will be made for Swacch Bharat Abhiyan.

 Hub to support SC/ST entrepreneurs.

 A new initiative will be launched by the government to provide cooking gas to BPL families with state support.

 LPG connections to be provided under the name of women members of family and Rs 2000 crore allocated for 5 years for BPL families.

 87 lakh crore grants to gram panchayats and municipalities – a quantum jump of 228%.

 Under Shyama Prasad Mukherji Urban Mission, 300 urban clusters will be set up.

 Four schemes for animal welfare will be introduced.

 

Finally let’s take a short conclusion about the budget. In the budget Finance Minister Arun Jaitley did not take away the long term capital gains exemption or move it from 1 to 3 years for listed securities. This will definitely effect the stock market. The budget presents a good instance for macroeconomic responsibility.

Finally the best thing decided in the budget is to move focus on the executive action, legislative reform and the RBI, which may be obliged to cut interest rates in the near future based on the government prudence.

 

Eduncle also provides all the details and major highlights of the Railway Budget 2016-17. Get complete updates regarding the new schemes, trains and programmes being started by the Railway Ministry.

 

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