Arun Jaitley presented his Union Budget on Monday. Here are the key things you should know
Finance Minister Arun Jaitley on Monday presented his Union Budget in Parliament.
Key takeaways:
Global economy is under serious crisis:
The risks of global slowdown and turbulance are mounting India must must strengthen its firewalls against these risks India must rely on domestic demand to ensure its growth doesn't slow down The country must continue with its economic reforms
The government is committed to ensuring the passage of the GST bill.
It will also back significant reforms to ensure that all benefits reach genuine beneficiaries, by giving statutory status to the Aadhaar platform.
Agriculture and farmer welfare expenditure will target doubling farmer income in five years A dedicated long term irrigation fund with 20,000 crore at NABARD.
Unified Agriculture Market Scheme to be launched A common e-market platform to be built APMC acts will be amended Online procurement to be promoted via the Food Corporation of India
Approved two schemes to extend digital literacy to an additional 6 crore rural households.
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SC/ST entrepreneurs are showing promise as entrepreneurs Under Standup India: SC/ST women entrepreneurs to benefit.
An enabling regulatory architecture to promote 10 public and 10 private world-class institutions.
Higher education to be promoted with 1,000 crore rupees to set up the higher education finance fund
A national board for skill development to be set up in partnership with private industry.
The government will pay the employees pension fund contribution for the first three years of employment for all new employees. Scheme applicable to people earning 15,000 rupees a month or less.
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Retail trade is the largest employer in this country: Small and medium shops should be given a choice to stay open on all seven days of the week.
Infrastructure to get total outlay of 2,21,246 crore rupees. Of this budget allocation of 55,000 crore rupees to be spent on roads, to be topped up with 15,000 crore that NHAI will raise via bonds, for road development.
Passenger traffic management to get a boost: Government will enact necessary rules to open up the road transport sector to private entrepreneurs, who will be able to run fleets of buses
Govt has started a series of measures to modernise ports and related infrastructure. Planning to roll out new greefield ports.
In civil aviation sector, an action plan in the works for revival of unserved and under-served airports, with an indicative cost of 50-100 crore rupees, in partnership with state governments
India is blessed with rich natural resources including oil and natural gas. Discovery and production has been below potential. There is a situation of rising demand, stagnant production and therefore rise in imports.
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Therefore government will incentivise deep-sea exploration
A public utility dispute resolution framework to be formed A new credit rating system to get stalled projects back on track Department of disinvestment will be renamed department of investment and asset management
A comprehensive code on the resolution of financial sector bankruptcies.
A financial data management centre will be set up.
RBI will facilitate greater participation of retail investors in the primary markets.
Measures to deepen the bond market.
Asset reconstruction companies to be strengthened.
SEBI Act to be ammended to include more members in the securities appelate tribunal.
25,000 crore rupees towards recapitalisation of public sector banks. Will find additional resources as needed.
Govt to stand "solidly" behind public sector banks.
Debt recovery tribunal to be strenghthened, including with technology.
Massive nationwide roll out of ATMs and micro-ATMs.
Agriculture and farmer welfare expenditure will target doubling farmer income in five years. A dedicated long-term irrigation fund with Rs 20,000 crore at NABARD
The government will pay the employees pension fund contribution for the first three years of employment for all new employees. Scheme applicable to people earning Rs 15,000 a month or less.
Infrastructure to get total outlay of Rs 2,21,246 crore. Of this, budget allocation of Rs 55,000 crore to be spent on roads, to be topped up with Rs 15,000 crore that NHAI will raise via bonds for road development
An action plan in the works for revival of unserved and under-served airports, with an indicative cost of 50-100 crore rupees, in partnership with state governments
Rs 25,000 crore towards recapitalisation of public sector banks
Direct benefit transfer in LPG will be extended to fertiliser on a pilot basis
The fiscal deficit targets have been retained at 3.5 percent and 3.9 percent for 2015-16 and 2016-17
Plan and non-plan classification will be done away with in the coming years.
Every new project will have a sunset time frame and an outcomes review
33 lakh small businesses currently benefiting from presumptive tax within limit of Rs 1 crore revenue: Limit to be raised to Rs 2 crore
Startups to get 100 percent tax breaks for three years. Capital gains will not be taxed, as spelt out in the Startup Action plan. Tax breaks on income from patents, under a patents regime
NBFCs can claim 5 percent deductions against bad loans
First-time home buyers to get an additional tax break of Rs 50,000 a year on interest on housing loans
Dividend distribution tax: 10 percent additional tax on dividend income beyond Rs 10 lakh
Tax evasion to be countered strongly. Domestic income tax transgressors will be allowed a one-time window to pay up 45 percent tax on undeclared income. As much as 50 percent tax on under-reported income and 200 percent on misreported income
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