budget 2016 17

Presented by: Abhijit NayakMizul DasJayashree

Presented to: Mr. Anilesh Kapoor

BUDGET 2016-17

• “Budget” is the estimation of cost, revenues, and resources over a specific period for future financial goal.

• The Annual report on Indian Budget 2016 was announced “the third general budget” on 29th Feb.

• The Indian General Budget will primarily focus on stimulating growth without deviating too much from the fiscal deficit target as reported by the Financial Minister Arun Jaitley in his previous Budget.

• Total budgeted amount was 19,78,060 crores i.e. 10.8% hike from previous budget.

INTRODUCTION

• Lowering of the corporate tax from 30% to 29%. The first cut in the series planned to bring it down over the next four years to 25%.

• Annual Financial Budget 2015 had removed Wealth tax but enhanced the surcharge on tax from 10% to 12% for earning more than Rs.1 crore a year.

• About 8.5 crores employees, retirement savings are managed by the employees’ provident fund organisation could get an option to transfer over a third of their EPF contribution to the National Pension System, regulated by Pension Fund Regulatory and Development Authority or PFRDA.

HIGHLIGHTS

• The present Budget plans to change in the way the Union Government spends its money, new schemes focused on women and senior citizens, new law for dealing with black money stashed abroad, the passage of the Constitutional Amendment Bill for the introduction of GST

• To amend the “Employees’ Provident Fund Act of 1952” to make contributions to the employees’ pension scheme (EPS). 8.33% of their salary that is currently diverted to EPS, into the National Pension System (NPS)

• Total rural sector allocation Rs. 87,769 crore.

• Hub to support SC/ST entrepreneurs.

• Rs. 38,500 crore for MNREGA i.e. "Mahatma Gandhi National Rural Employment Guarantee Act"

• Agricultural credit target of Rs. 9 lakh crore.

• NHAI to raise Rs 15,000 cr through bonds in FY17. Allocated Rs. 800 crore for port development in FY17

• Rs 1700 crore for Pradhan Mantri Kaushal Vikas Yojana

EXPENDITURES

• Rs 9,000 crore allocated to Swaccha Bharat Abhiyaan

• Jaitley announces the nine pillars of his Budget- 1) Agriculture and farmers’ welfare, 2) rural sector, social sector including healthcare,3) education, skills and job creation, 4) infrastructure, 5) financial sector reforms, 6) ease of doing business, 7) fiscal discipline, 8) tax reforms to reduce compliance burden9) Governance reforms

• New scheme for BPL families for gas connections. Statutory backing for Aadhaar platform to ensure delivery of benefits.

• Rs. 2.87 lakh crore for gram panchayats as per recommendation of 14th finance commission

• Target of 10,000 kms of national highway and up-gradation of 50,000 kms of state highways in 2016/17

• Total outlay for infrastructure development stands at Rs 2.21 lakh crore in FY17

• A Higher Education Financing Agency to be set up, with a fund of 1000 cr

• Rural electrification: 5542 villages in Feb 2016, more than total combined achievement of previous three years

• A comprehensive measure used for estimation of price changes in a basket of goods and services representative of consumption expenditure in an economy is called consumer price index.

• CPI inflation was 9.4 per cent in the last 3 years of previous government. CPI inflation has come down to 5.5% under NDA government, despite two poor monsoons.

• CAD has declined to $14.4 billion this year, will be 1.4% of GDP at the end of fiscal

• Start-ups to get 100 per cent tax exemption for 3 years except MAT which will apply from April 2016-2019 for creation of jobs

• Government’s bold measures have helped India to stay ahead in challenging times. Growth exceeded 7.6% despite big fall in exports.

• 62 new Navodaya vidyalayas to be opened in next two years

• 3,500 medical stores will be opened under Pradhan Mantri Jan Aushodi Yojana to make quality medicine available

• Govt. to spend Rs 850 crore in a few years on animal husbandry, cattle and livestock breeding