Finance Minister Arun Jaitley presented the Union Budget 2016-17 in Lok Sabha on Monday morning. This is Jaitley’s 2nd full year budget for the Modi government and the 3rd since the government took office in May 2014. The Union Budget is the annual financial statement that embodies the estimated receipts and expenditures of the Government of India for the coming financial year.
Here are the highlights:
FM on Agriculture and Farmer Welfare
- Govt targets to double farmers’ income by 2020
- 28.5 lakh hectares of farmland will be brought under irrigation
- Rs 17,000 crore allocated for Pradhan Mantri Sichai Yojna
- Credit availability for farmers made easier
- Credit offtake of farmers hiked to Rs 9 lakh crore
FM on public sector banks
- Capital infusion of 25,000 crore which is an increased allocation from last year
- Govt open to diluting stakes in public sector banks to below 50 %
FM on Social Sector and Healthcare
- Rs 38,500 cr allocated for MNREGA in 2016-17, the highest ever if entire amount is spent
- Govt to provide LPG connection to 1.5 crore BPL families this year
- Govt aims to target 5 crore BPL families with LPG connection in the next 3 years
- Upto Rs 1 lakh health cover per family in new scheme
- Additional Rs 30,000 top up cover for senior citizens
- Govt has targeted dialysis in a big way through public-private-partnerships.
- Certain equipment for dialysis exempt from basic customs duty, Excise CVD
FM on infrastructure and investment
- Rs 55,000 crore allocated for Road and Highways
- Govt allows private investment in passenger traffic on roads
- 100 % FDI in marketing of food processing units which will be producing in India
FM on Taxes
- No change in income tax slabs
- Relief for small tax payers. Tax rebate on rent up from Rs 24,000 to Rs 60,000 per annum
- Cars made expensive. New cess levied on purchase of cars.
- Branded clothes and jewellery made more expensive. Excise of 12.5% with input tax credit on jewellery.