BUDGET 2016-17#VikasKaBudget

Budget 2016-17

Ved Prakash Panda

Budget 2016-17

A•Agriculture and farmers’ welfare are allocated Rs 35,984 crore.•Automation facilities will be provided in 3 lakh fair price shops by March 2017.

B•BPL families are allocated Rs 2,000 crore for initial cost of providing LPG connections.•Birth Centenary celebrations of Pandit Deen Dayal Upadhyay and 350th Birth Anniversary celebrations of Guru Gobind Singh get Rs 100 crore allocation.

C•Companies act will be amended to improve enabling environment for start-ups.

Budget 2016-17

• ‘Clean Energy Cess’ levied on coal, lignite and peat renamed to ‘Clean Environment Cess’ and rate increased from Rs 200 per tonne to Rs 400 per tonne.

D• Deen Dayal Antyodaya Mission will take up every

block under drought and rural distress as an intensive block.

• Digital literacy mission, a new scheme for rural India, to cover around 6 crore additional household within the next 3 years.

• Digital Depository for School Leaving Certificates, College Degrees, Academic Awards and Mark sheets to be set-up. Budget 2016-17

E•Excise on readymade garments with retail price of Rs 1000 or more raised to 2% without input tax credit or 12.5% with input tax credit.•2.5 lakh entrepreneurs will benefit from the “Stand Up India Scheme” which will facilitate at least two projects per bank branch.•“Ek Bharat Shreshtha Bharat” programme will be launched to link States and Districts in an annual programme that connects people through exchanges in areas of language, trade, culture, travel and tourism.

F•Foreign exchange reserves touched highest ever level of about 350 billion US dollars.

Budget 2016-17

• 100% FDI to be allowed through FIPB route in marketing of food products produced and manufactured in India.

• Fiscal deficit in RE 2015-16 and BE 2016-17 retained at 3.9% and 3.5%.

• Free baggage allowance for international passengers to be increased. Filing of baggage only for those carrying dutiable goods.

• Fertilizer companies will be provided with soil and seed testing facilities during the next three years .

G• GDP accelerated to 7.6% in 2015-16.• Gram Panchayats and municipalities will be given

a grant in aid of Rs 2.87 lakh crore as per the Budget 2016-17

recommendations of the 14th Finance Commission.

H•Health protection scheme will provide health cover up to Rs one lakh per family. For senior citizens an additional top-up package up to Rs 30,000 will be provided.•Higher Education Financing Agency to be set-up with initial capital base of Rs 1000 Crores.

I•Infrastructure cess, of 1% on small petrol, LPG, CNG cars, 2.5% on diesel cars of certain capacity and 4% on other higher engine capacity vehicles and SUVs. No credit of this cess will be available nor credit of any other tax or duty be utilized for paying this cess.

Budget 2016-17

•Irrigation projects, 89 in total, to be implemented under AIBP, which are languishing for a long time, will be fast tracked. A dedicated long term irrigation Fund will be created in NABARD with an initial corpus of about Rs 20,000 crore. Infrastructure gets total outlay of Rs 2,21,246 crore.

J•Jan Aushadhi Yojana will see setting up of 3,000 stores during 2016-17.

K• Krishi Kalyan surcharge - Surcharge levied at 7.5% of undisclosed income to be used for agriculture and rural economy. Budget 2016-17

L•Loan repayment - To reduce the burden on farmers, a provision of Rs 15,000 crore has been made in the BE 2016-17 towards interest subvention.

M•MGNREGS is allocated a sum of Rs 38,500 crore.•MNREGA to take up the creation of 5 lakh farm ponds and dug wells in rain fed areas and 10 lakh compost pits for production of organic manure.

N•National Land Record Modernisation Programme has been revamped.•62 Navodaya Vidyalayas will be opened.

Budget 2016-17

• ‘National Dialysis Services Programme’ to be started under National Health Mission through PPP mode.

• National Scheduled Caste and Scheduled Tribe Hub to be set up in partnership with industry associations.

O• Organic farming to be promoted through ‘Parmparagat

Krishi Vikas Yojana’ and ‘Organic Value Chain Development in North East Region’.

P• ‘Pradhan Mantri Krishi Sinchai Yojana’ to be

implemented in mission mode. 28.5 lakh hectares will be brought under irrigation.

• Prime Minister Fasal Bima Yojana to be allocated 5,500 crore.

Budget 2016-17

• Pradhan Mantri Gram Sadak Yojana to be allocated Rs 19,000 crore. Will connect remaining 65,000 eligible habitations by 2019.

• Price Stabilisation Fund with a corpus of Rs 900 crore to help maintain stable prices of Pulses.

Q• Quality of education will be given extra focus through

Sarva Shiksha Abhiyan.

R• Rural sector is allocated Rs 87,765 crore.• Rashtriya Gram Swaraj Abhiyan, a new scheme,

proposed with allocation of Rs 655 crore.• Roads sector gets a total investment of

Rs 97,000 crore during 2016-17.Budget 2016-17

S•Social sector including education and health care is allocated Rs 1,51,581 crore.•Soil Health Card scheme will cover all 14 crore farm holdings by March 2017.•Skill development gets an allocation of Rs 1804 crore. 1500 skill training institutes to be set-up.

T•Tax rebate ceiling under section 87A raised from Rs 2000 to Rs 5000 to lessen tax burden on individuals with income upto Rs 5 laks.•Targeted Delivery of Financial and Other Subsidies,

Budget 2016-17

Benefits and Services by using the Aadhar framework to be introduced as a bill.•Tobacco products’ excise duties raised by about 10 to 15%. This does not include beedi.•Time limit of one year for disposing petitions of the tax payers seeking waiver of interest and penalty.

U•Unified Agricultural Marketing ePlatform to provide a common e- market platform for wholesale markets.•Underreporting of income will lead to a penalty of 50% of tax while it is 200% of tax where there is misreporting of facts

Budget 2016-17

V•100% village electrification by May 1, 2018.•Vulnerable sections will be focussed through Pradhan Mantri Fasal Bima Yojana, New health insurance scheme to protect against hospitalisation expenditure and facility of cooking gas connection for BPL families.

W•Withdrawal up to 40% of the corpus at the time of retirement to be tax exempt in the case of National Pension Scheme (NPS). Annuity fund which goes to legal heir will not be taxable.•White revolution - To make dairying an acceptable and economically viable entrepreneurship Rs 578 crore will be allocated.

Budget 2016-17

X•X-factor - Jaitley wore a blue kurta -- a shade lighter than his Nehru jacket -- and white pyjama. Modi chose a crisp, pristine white kurta and pyjama with his trademark Nehru jacket style.•R K Shanmukham Chetty, who presented Independent India’s first budget in 1947, chose pinstripes, while in 1950, John Mathai chose an ultra-formal look in a three-piece grey suit, complete with a tie.

Y•Yojanas - 8 policies were in focus in this budget - Pradhan Mantri Fasal Bima Yojana, Pradhan Mantri Krishi Sinchai Yojana, Parmparagat Krishi Vikas Yojana, Pradhan Mantri Gram Sadak Yojana,

Budget 2016-17

• Prime Minister Fasal Bima Yojana, Jan Aushadhi Yojana, Pradhan Mantri Mudra Yojana, Deen Dayal, Upadhyay Grameen Kaushalya Yojana.

Z• Zero investor confidence, low growth and high

inflation were some challenges inherited by the NDA from the previous govt, Jaitley said in Parliament on 29th february Monday.

Budget 2016-17

Budget 2016-17

• The share of service tax has gradually increased, now contributing 14% of total tax collected by the government

Budget 2016-17

A closer look at how subsidies are distributed across various sectors reveals that share of food subsidies has been the highest since 2013.

Now, half of the total subsidy goes to food. Subsidy of petroleum has varied over time, perhaps due to fluctuating oil prices.

Share of fertilisers in total subsidy has gone down from 43% in 2009 to 28% in 2016-17 budget estimates.

Budget 2016-17

Share of subsidies as proportion of total expenditure has decreased from 2012 onwards,

when it reached a peak value of 18.23 per cent. In 2016-17, 12.66 per cent of spending — Rs. 2,50,432.93 crore — has been proposed for various subsidies.

Budget 2016-17

BRICS is the acronym for the association of five major emerging economies – Brazil, Russia, India, China and South Africa.

As the total government revenue varies widely among the BRICS nations, budgetary allocation to a sector as percentage of GDP is good indicator to compare government spending. Russia has the highest military allocation in percentage terms, followed

by India and China. For education and health, India has the lowest allocation in percentage terms.

Budget 2016-17

I would rate the budget 7/10 from the point of government’s inclusive economic development agenda.

It is a pro-people’s budget with an aim to balance rural and urban growth. Infra and agri sectors are the main beneficiaries of this budget.

The urban-rural connect through roads and electrification is a good move however, it’s critical to ensure these allocations are utilized during the year.

Sadly, there is nothing innovative in the budget that could boost investment in

the manufacturing sector to support the ‘Make in India’ agenda of the government.

The real job creation and economic growth will come with boosting the manufacturing sector. Disappointed to see a downgrading of R&D (research and development).

Budget 2016-17

FROM MY POINT OF VIEW...

Making PAN mandatory for any purchases above one lakh rupees is going to have a serious impact on consumption. Not more than 13 % of Indians have PAN card and only about 4% of them pay Income Tax. Without expanding the PAN and Income Tax net, a move like this will enormously hamper the consumption space.

I expect its significant impact on retailing as well as on manufacturing, especially of Consumer Durable products like televisions, gadgets, furniture and other home products.

I see quite a few positives in this budget, I see one announcement that can prove to be a dampener.

Budget 2016-17