Key Highlights of Union Budget

Finance Minister Arun Jaitley today presented his Union Budget 2016-17 in parliament. Here are the key highlights of his speech:
Cabinet approves Union Budget for 2016-17.
We are of the opinion that money with the govt lies in the ownership of the people.
Through structural reforms we must empower firewalls against risks; depend more on domestic market so that growth is not hampered.
We had to work in a depressive global environment and discouraging political atmosphere.
CPI inflation was 9.4 per cent during the last 3 years of the previous government’s tenure. It has declined to 5.5 per cent now: FM
Indian growth is on a fastrack; we have converted difficulties and challenges into opportunity: FM
Growth has aggregated to 7.6 pc in 2015-16 irrespective of contraction of global exports: FM
CAD has reduced to USD 14.4 bn this year, and should be of the order of 1.4 pc of GDP at the end of fiscal: FM
The global slowdown is taking its toll, further complicating the economic planning for India.
We see these hurdles as opportunities.
FY17 will impose an additional burden due to OROP, Pay commission recommendations.
We wish to cater to recapitalization of banks.
We are focussed on passing GST and Bankcruptcy Code.
Three major schemes will be implemented to help underprivileged: Pradhan Mantri Fasal Yojana, Health Insurance scheme, launching initiative to ensure LPG connection for BPL families.
Key points of focus: Incentivise gas discovery and exploration of gas, dispute resolution in PPP projects, banking sector reforms.
Govt will undertake 9-point reforms, including steps to ensure ease of business in governance, and fiscal discipline to ensure profitability for the masses.
Agriculture and farmers’ welfare:
Look at doubling farmer income by 2020
Govt will refurbish interventions in farming sector; we need to look at optimal utilization of water resources.
28.5 lakh hectares will be brought under irrigation
A channelised irrigation fund with Rs 20,000 crore under NABARD
Important prog for sustainable groundwater maintenance
Govt to set aside Rs 412 crore to catalyse organic farming
Accessibility of markets is critical for farmers
Implementing Pradhan Mantri Gram Sadak Yojana as a unique venture--to be allocated Rs19,000 crore in FY17 ; Rs 27,000 crore in total--to prepone completion target to 2019 from 2022
To cater to farmers in the wake of calamities, special emphasis has been laid on ensuring timely flow of credit, target is Rs 9 lakh crore in FY17
We have to affirm benefit of MSP reaches all parts of country--residual states will be encouraged to take up decentralized procurement, effective arrangement of pulse procurement
E-market portal to be established for connecting breeders and farmers
Visible uprise in yield of honey
90% of domestic honey is now being exported
Allocation of Rs 35,984 crore for farm sector: FM
Rural areas:
Cluster-facilitation teams under MGNREGA to be made effective for optimization of water resources
Rs 38,500 cr allocated for MNREGA in 2016-17, the highest ever if entire amount is expended
As of 1 April 2015, 18,542 villages were not at all electrified--As on 23 Feb 2016, 5,542 villages have been fully electrified
2.87 lakh crore to be given as a grant-in-aid for gram panchayats and municipalities; it is a quantum jump of 228 per cent
Govt is dedicated towards achieving 100% village electrification by 1 May 2018.
We need to preach digital literacy in rural areas—have plans to implement Digital literacy mission for more than 6000 households in rural areas
Modernization of land records absolutely essential--to be implemented as a central sector scheme
Govt to develop 300 ‘urban’ clusters
Social sector
To run a  scheme to provide LPG connections in womens’ names
Express gratitude to 75 lakh households who have sacrificed LPG subsidy
Almost 2.2 lakh new patients of end-stage renal diseases get additionally affected in India every year
Plans to start National Dialysis programme under PPP scheme
3,000 stores to be operated for quality medicines under PM Jan Ausadhi Yojana in 2016-17
SC and ST entrepreneurs--Rs500 crore to encourage this under Stand-Up India
Next big step is to focus on quality education--committed to improve higher education institutions
Plans to set up a higher education financing agency (non-profit)--initial corpus of Rs 1,000 crore
Digital depository for ensuing school-leaving certificates other academic certificates
Entrepreneurship education and training to be imparted in schools and colleges
Job creation:
Will give out EPF contribution of 3.33% for all new employees joining EPFO to incentivise employers
National Career Service--35 million job-seekers have registered; propose to interconnect  State employment exchanges with this
Retail trade--largest employer in country
Small and medium-shops should be given option to remain open for business all 7 days on voluntary basis
Model shops bill on voluntary basis for states
Infra and investment:
Roads sector: Nearly 85% of stalled projects to be put back on track
Accelerated road construction--to allocate Rs 55,000 crore for roads and highways, additional Rs15,000 crore to be raised by NHAI through bonds. Total allocation of Rs 97000 crore.
Rs 2.18 trillion for roads and railways
Speed of completion of road projects to rise to 10,000km in 2016-17
Total outlay for infra in BE is at Rs2.21 trillion
Passenger traffic on roads more streamlined now--totally unreformed sector; absolution of permit raj is medium-term goal; to open up road transport sector in passenger segment; states will have choice of adopting new legal framework; provision for more streamlined public transport sector
Ports--to set up new greenfield ports
Civil aviation--plan for revitalising underserved airports; to partner with state govts to refurbish some of these airports
Natural resources: To incentivise gas production from deep sea, high temperature areas
Govt has achieved largest coal production growth in over 2 decades
Power sector--setting up plan spanning 15-20 years to augment capacity in nuclear power sector
Initiative for reinvigoration of pvt sector--public utility resolution of dispute bills; new credit rating system for infrastructure
Further reforms to be implemented in FDI policy--area of insurance and pension, stock exchanges etc
Duty drawback scheme enlarged to accommodate more products, countries
FDI policy should benefit farmers, food processing industry-100% FDI through FIPB route in marketing of food products produced and processed in India
Department of disinvestment to be renamed
Financial sector reforms:
Bankruptcy code to be introduced soon
RBI Act 1934 to be reset for providing statutory basis for monetary policy framework
Financial data management centre to be established
New derivative products
Stressed assets-ARCs have a major role--necessary amendment to Sarfaesi Act will be done
Central legislation to tackle fraudulent schemes
To restructure SEBI act for more benches for SAT
Banks—Rs 25,000 crore allocated for recapitalisation of PSBs. Stand firmly behind these banks.
Banking board bureau to be operationalised during this fiscal
Debt recovery tribunals to be empowered for speedier dispute resolution
To bring about massive rollout of ATMs over next 3 years
Insurance firms under the ownership of firms will be listed on stock exchanges
Ease of doing business:
Initiatives—introduction of targeted delivery of subsidies through Aadhaar, social security platform for use of Aadhaar; DBT on a pilot basis for fertilizers
Bill to amend companies act--facilitating environment for start-ups
Create deeper engagement b/w states and districts--Ek Bharat, Shresth Bharat
70th anniversary of Independence in 2017--Ek Bharat, Shresth Bharat is a part of this mission
Fiscal situation:
FRBM roadmap: Prudence is related to adherence of fiscal targets
Budget and revised estimates for FY15-16 stand at 3.9% and 3.5% of GDP respectively
Total expenditure in budget--Rs19.78 trillion
Retaining fiscal deficit target at 3.5% for FY17
Plan/Non-plan classification to be warded off from FY17-18
Revenue deficit target at 2.5% of GDP
FRBM: Much better to have a fiscal target range; Review of this Act essential.
To set up committee to review FRBM
Seventh Pay Commission--Enabled interim provisions--restructured more than 1,500 central schemes; Allocated Rs100 crore each for birth anniversary celebrations of Pt. Deendayal Upadhyay, Guru Gobind Singh
Tax reforms:
Relief to small taxpayers, steps for moving towards pension society, reducing litigation, simplifying taxation
Ceiling of tax rebate amended to Rs 5,000 for income less than Rs5 lakh
Relief to persons living in rented houses--Deduction for rent paid will be raised from Rs 20,000 to Rs 60,000 to benefit those living in rented houses.
Presumptive taxation schemes--to raise turnover limit to Rs 2 crore--relief for many in MSME category
Give out Presumptive taxation scheme to all professionals with gross receipts up to Rs 50 lakh
Corporate tax rate reduction to be calibrated with benefits of phasing out exemptions
Corporate tax rate for establishments with turnover less than Rs 5 crore lowered to 29% of surcharge plus cess
Make in India--100% deduction of profits for start-ups; MAT will apply
To implement GAAR effective from 1 April 2017
To cut down customs duty on refrigerated containers
Exemption for braille paper
Pension society--Exemption of service tax for NPS, EPFO to employees
Affordable housing--100% deduction on profits for flats up to 30 sq.mt within metro cities from 2016-19; MAT will apply
First-time home buyers--relief on housing loans for up to Rs 50 lakh
Surcharge on luxury cars costing more than Rs10 lakh
0.5% cess on all taxable services to be given to agriculture development--Krishi Kalyan surcharge
Environment--Infrastructure cess on all vehicles for pollution
To impose additional duty on jewellery
Change excise duty on branded readymade garments
Revive clean energy cess on coal, others
Raise duty on tobacco products (other than beedi) by 10-15%
Reducing litigation:
Tax evasion will be countered firmly
Limited period compliance window to declare undisclosed income
Black money--3 lakh tax cases pending before authority--a new dispute resolution scheme; taxpayer can settle case by paying disputed tax and interest
On retrospective tax amendments--committed to providing stable tax regime; committee will be chaired by revenue secretary
One-time scheme for dispute resolution for pending retrospective tax amendment case
Justice Easwar committee--abolish 13% cesses levied by various ministries
rationalise TDS provisions for income tax
Non-residents without PAN--higher rate won’t apply on furnishing alternate ID
To amend customs act
Use of technology:
Will use in tax department in a big way
To expand scope of e-assessment for taxpayers in 7 big cities
Govt will pay interest @9% in case of delay in giving appellate orders beyond 90 days
Impact of tax proposals will lead to revenue gain of Rs 19,610 crores
Conclusion of budget speech
Introduction of Finance bill 2016.