On Monday, the Indian Finance Minister Mr. Arun Jaitley has presented the Union Budget highlights for the financial year 2016-17. This will offerconcession to the small and marginal income tax payers- he said. However, Mr. Jaitley has not brought any alternation this year too to personal income tax slabs.

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Key highlights of Union Budget’16:

  • Small tax payers will receive relief
  • Proposals for corporate tax
  • Moving forward to establish a pensioned society
  • Offering taxation certainty
  • Tech helps for accountability
  • Advancing the affordable housing projects
  • Rationalization and simplification of taxes
  • Economic discipline
  • Roadmap and related priorities
  • Advancement in Make In India
  • Mobilization of resources to agriculture, clean environment and rural economy
  • Encouraging employment and its related growth
  • Challenges in 2016-17
  • Promoting social sector, including healthcare division
  • Creation of employment opportunities
  • Welfare for farmers and agriculture field
  • Augmentation in education, skill sets and job creation
  • Investment and infrastructure
  • Advancements for rural division
  • Governance and easy-of-doing business
  • Skill development programs
  • Modification in financial sectors

With these key highlights of 2016 Union Budget, we can say that Modi govt. have brought the Indian economy on right track.The present Finance Minister Mr. Jaitley cited that the CPI inflammation has brought down from 9% to 5.4%. In addition he said that it’s a huge relief for the Indian citizens.

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In taxation:

  • Agriculture and infrastructure cases to be charged
  • 10-to-15% raise in excise duty on tobacco products except beedis
  • 1% service charge to be collected from every new luxury car purchased over 10lakhs and if the goods are purchased by directly paying cash, then the taxation will be included over the services worth 2lakh
  • Luxury cars and SUVs to be more expensive than usually its do and 4%of increment in tax especially for SUVs
  • Businesses with annual revenue less than 5cr to be taxed at 29%+ extra
  • From 1st June to 30th Sept, limited tax compliance window will be governed for declaring the hidden income at 45%, including penalties and surcharge
  • 1% excise increment to jewelry articles except silver
  • 5% taxation on Krishi Kalyan cases
  • Pollution cases of 1% on LPG, small petrol and CNG cars; 2.5% on diesel and 4% on higher model cars

In case of Personal Finance:

  • No alternation to existing income tax portions
  • 1000cr to be billed for the new EPF scheme
  • For first 3years, govt. will pay 8.33% EPF contribution to all new employees
  • Rent paid deduction will be increased from Rs. 20,000 to 60,000 for the benefit of people who prefer to stay on rented houses
  • Extra exemption of Rs. 50K for housing loans up to Rs. 35lakh if the house is not more than 50lakh
  • 15% surcharge on annual income over Rs. 1cr

In Social sector:

  • Implementation of Rs. 38,500cr on Mahatma Gandhi MGNREGA in the year 2016-17
  • Swacch Bharat Abhiyan to be paidRs. 9,500cr
  • Special hubs to be created for supporting ST/SC entrepreneurs
  • Indian govt. is focused to launch a new initiative to offer cooking gas to all BPL holders’ families with the help of state govt.
  • LPG to be offered in the name of women of the family; first 2000cr due for 5years for the BPL families
  • 87lakh crorehas been granted for municipalities and gram panchayats which is a quantum jump of 228%
  • Under the Shyama Prasad Mukherji Rurban Mission, 300 urban clusters to be arranged
  • Additional four new schemes to be implemented for animal welfare

In health section:

  • Fundamental dialysis equipment will get some relief as 2.2lakh renal patients merged every year in India
  • Implementation of new health protection scheme to provide health coverage up to 1lakh/family
  • National Dialysis Service program to be funded via PPP mode for offering dialysis program at all district hospitals
  • Senior citizens of India are cited to obtain added health coverage of Rs. 30K, following to the new scheme
  • PM Jan Aushadhi Yojana will be reinforced under which 300 more generic drug store are lined to establish

In education sector:

  • New schemes to acquire Rs. 500crto promote ST/SC entrepreneurs
  • 10+10 private and public educational institutions to be made first-class
  • All SLC and diplomacertificate holderswill get digital repository, 1000crs will be sanctioned for financing higher-education
  • 1500 established multi-skill development centers to get 1700crs
  • Establishment of 62 new Navodaya Vidyalayas for offering quality education
  • Digital literacy scheme to be initiated for covering 6cr additional rural households
  • Entrepreneurship training modules to be offered throughout educational institutions and via online courses
  • Goal is set to uplift the skill of 1cr youth in coming 3years under thePM Kaushal Vikas Yojna
  • National Skill Development Mission focused to train76lakh youth
  • 1500 additional Multi-Skill training institute to be established

In energy division:

  • 3000cr to be sanctioned for Nuclear Power Generation
  • to use comprehensive plans for exploiting nuclear energy in coming 15-20years
  • to offer incentive for exploration of deepwater gas
  • Deepwater gas to obtain pre-determined ceiling price by depending upon the alternate fuels’ landed price and calibrated market freedom

In Infrastructure And Investment:

  • 27,000cr to be dispatched for spending them on roadways development
  • Eligible 65 habitats to receive 2.23lakh spread kilometers of roadways; present construction velocity is 100kms/day
  • Shops to receive choicesfor remaining open all 7days in a week around markets
  • A sum total of 97000cr to be spend on roadways and highways’ developmental programs, including PMGSY
  • In budget’16, total infrastructure outlay stands at Rs. 2,21,246cr
  • On eastern and western coasts, new Greenfield ports are to be developed
  • Central govt. will work as a co-worker with State govt. to revive small-sized airports for extending connectivity to regional areas
  • 100% FDI for food products’ marketing those are produced and marketed across India
  • Government will alter Motor Vehicle Act to permit innovation in passenger vehicle segment

In Agriculture Section:

  • A sum total of Rs. 35984cr to be allocated for farmers’ and agriculture welfare
  • Around 28.5lakh hectares of land will be receiving irrigation facility
  • In 3years, govt. aimed to brought 5lakh acres of land under organic farming
  • 60,000cr to be sanctioned for recharging ground water as urgent need of water conservation is over head
  • 20,000cr fund to be sanctioned for NABARD for implementing it ondedicated irrigation
  • Implementation of new scheme called PM FASAL BIMA YOJNA to help Indian farmers

In Banking Sector:

  • Finance Minister saidRs. 25,000cr to be allocated for recapitalization of public sector banks
  • MUDRA target of disbursement has been increased to Rs, 1,80,000cr
  • The transformation process of govt. stake in IDBI bank below 50% has been initiated- said Jaitley
  • Good news for General Insurance Companies as they are going to be cited in the stock exchange market
  • In coming 3years, govt. has focused to install new ATMs and micro-ATMs in all post offices nationwide