Budget 2016: Arun Jaitley tables pro-rural budget, tax sops for small income Indians

Budget 2016 LIVE: Arun Jaitley announced an allocation of nearly Rs 36,000 crore for the farm sector while raising the agri-credit target to Rs 9 lakh crore for the next fiscal

By: Express Web Desk | New Delhi | Updated: February 29, 2016 5:20 pm
budget 2016, budget live, union budget 2016, general budget, 2016 budget news, budget news, union budget news, general budget news, budget 2016 news, budget income tax, union budget 2016, income tax, budget expectations, arun jaitley, budget news india, budget india news Budget 2016 LIVE: Finance Minister Arun Jaitley arrives at the Parliament to present the federal budget for the 2016/17 fiscal year, in New Delhi, India, February 29, 2016. (REUTERS/Adnan Abidi )

Finance Minister Arun Jaitley today listed ‘nine pillars’ including tax reforms, promoting ease of doing business and ensuring fiscal discipline, that will transform India. Unveiling the Budget 2016-17, he said the pillars also include emphasis on governance reforms.

Aiming to double farmers income by 2022, the minister also announced an allocation of nearly Rs 36,000 crore for the farm sector while raising the agri-credit target to Rs 9 lakh crore for the next fiscal.

The budget offered sops for small and marginal income tax payers, hiked the surcharge by 3 per cent on earnings above Rs 1 crore, levied a pollution cess on petrol, diesel cars and SUVs and offered a one-time compliance window for domestic black money holders slapping a tax and penalty of 45 per cent.

Watch Budget 2016: Editors First Take on Arun Jaitley’s Announcements

For market reactions to the budget, click here

HIGHLIGHTS FROM UNION BUDGET 2016

4:50 pm: Find out which items have gone costly and which have gone cheap. Click here

2:15 pm: The nine pillars of the Jaitley budget – Read here

2:10 pm: What do you think were the key themes in Jaitley’s speech. Click to know here

2:05 pm: What has Jaitley announced for the rural sector? Click here

2:00 pm: Read all the top announcements made by the Finance Minister here

12:45 pm: The Finance Minister has concluded his speech.

12:42 pm: Pollution cess of 1 per cent on small petrol, LPG and CNG cars; 2.5 per cent on diesel cars of certain specifications; 4 per cent on higher capacity vehicles

12:40 pm: Plan and non-Plan classification of Budget will be done away with from Fiscal 2017-18: Jaitley

FM introduces one-time dispute resolution scheme for retro tax cases, payment of tax arrears to lead to waiving of penalty and interest: Jaitley

High level committee headed by Revenue Secretary to oversee creation of fresh liability using retrospective tax legislation: Jaitley

Clean energy cess increased from Rs 200/ton to 400/ton on coal, lignite and peat: Jaitley

A fund of Rs 900 crore started for stabilising market crisis of pulses: Jaitley

Long term capital gains period for unlisted companies to be reduced from 3 to 2 years: Jaitley

12:35 pm: Arun Jaitley increases excise duty on tobacco products except bidis by 10-15 per cent.

SUVs and luxury cars will become more expensive.

12:30 pm: Fiscal deficit target for 2015-16 and 2016-17 retained at 3.9 pc and 3.5 pc respectively: Jaitley

First home buyers to get additional deduction of Rs 50,000 on interest for loan upto Rs 35 lakh. Cost of house should not be more than Rs 50 lakh: Jaitley

Rs 900 cr provided to buffer fund created to moderate prices of pulses: Jaitley

Service tax on single premium annuity to be reduced to 1.5 per cent from 3.5 per cent: Jaitley

12:25 pm: Service Tax to be exempted on general insurance schemes under NIRMAYA Scheme: Jaitley

Target delivery of financial, other intermediary services will be introduced using Aadhar in this Budget session: Jaitley

In 2016-17, govt eyes Rs 1,80,000 crore credit target through Mudra bank: Jaitley

Govt to increase ATMs, micro-ATMs in post offices in next three years: Jaitley

Accelerated depreciation to be limited to 40 pc wef from Apr 1, 2017 as part of phasing out of exemptions to industry: Jaitley

Consolidation roadmap for public sector banks to be spelt next year; govt open to reducing its stake in PSBs below 50 percent: Jaitley

12:20 pm: Sensex plunges nearly 300 points, Nifty over 100 points as Arun Jaitley presents Budget 2016-17

12:15 pm: For tax payers earning below Rs 5 lakh, ceiling on tax rebate increased by Rs 3,000: Jaitley

To lessen burden on individuals with income not exceeding 5 lakh, I propose sealing of tax rebate under sec 87A from 2000 to Rs5000: Jaitley

12:10 pm: Govt to allow 100 per cent FDI through FIPB in marketing of food products produced and manufactured in India: Jaitley

Govt to bring new policy for strategic sale of CPSE assets: Jaitley

12:05 pm: More FDI reforms proposed in insurance, pension, asset restructuring companies and stock markets: Jaitley

A new credit rating system for infrastructure will be developed: Jaitley

A Public Utility Resolution of Disputes Bill to be passed to solve problems in infrastructure contracts, PPP and public utilities: Jaitley

Govt preparing a comprehensive plan for nuclear power generation and allocation could be up to Rs 3,000 crore per annum: Jaitley

Govt considering to provide calibrated market freedom to new gas production from deep sea, ultra deep sea to boost stagnant domestic output: Jaitley

160 airports and airstrips can be revived at a cost of Rs 50-100 crore each, says Jaitley

12 noon: Abolition of permit law will be our medium-term goal in public transport: Jaitley

Proposed to allocated Rs 55,000 crore for roads and highways; total investment in road sector would be Rs 97,000 crore: Jaitley

Total outlay for infrastructure at Rs 2.21 lakh crore for 2016-17: Jaitley

Rs 97,000 cr allocation for road sector including rural roads: Jaitley

Shopping malls to be allowed to open on all seven days of week; a model shops and establishment bill to be circulated to states: Jaitley

85 pc of stuck road projects have been put back on track; highest ever contracts awarded in current fiscal: Jaitley

Govt to pay 8.33 percent towards employee pension fund: Jaitley

11:55 am: 

62 new Navodaya vidyalayas to be opened in next two years: Jaitley

Govt to provide Rs 500 crore for Stand Up India scheme: Jaitley

A new health protection scheme to provide cover up to Rs one lakh per family; top up of Rs 35,000 for people above 60 years: Jaitley

3,000 medical stores will be opened under Pradhan Mantri Jan Aushodi Yojana to make quality medicine available: Jaitley

75 lakh people have given up LPG subsidy: Jaitley

Rs 87,765 cr allocated for rural development: Jaitley

11:52 am: There won’t be any hard copies of the budget this time, announces the Finance Ministry.

11:50 am: By the way, the markets do not seem to be enthused by Jaitley’s budget. While Sensex is down 120 points, Nifty is below 7000

11:45 am:

Duty cuts announced for dialysis equipment: Jaitley

11:40 am: 

Rs 9,000 crore allocated for Swacch Bharat Abhiyan: Jaitley

Rs 55,000 crore for roads and highways in this budget: Jaitley

11:35 am: 

Govt to develop 300 ‘rurban’ clusters: Jaitley

Rs 2.87 lakh crore will be given as grants-in-aid to village panchyats and municipalities to boost rural economy: Jaitley

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

States will be encouraged to take up decentralised procurement of foodgrains: Jaitley

Aim for 100% village electrification by May 2018: Jaitley

11:30 am: Arun Jaitley allocates Rs 38,500 crore for MGNREGA (the highest ever) – a scheme that this government had once described as a ‘living example of the failures of the Congress government.

11:25 am: Click here to read in Hindi

11:20 am: We have to prudent fiscal policy, raise domestic demand, carry out reforms: Jaitley

28.5 lakh hectares will be brought under irrigation: Jaitley

Will spend 60,000 crores for water resources management: Jaitley

2.87 lakh crore as aid to gram panchayats: Jaitley

11:15 am: Aim to double farmers’ income by 2022: Jaitley

Govt is launching a new initiative to provide cooking gas to BPL families with state support.

Next financial year will cast an additional burden due to implementation of 7th Pay Commission and OROP: Jaitley

Recapitalization of banks will be done in the next fiscal year: Jaitley

11:10 am: Jaitley outlines the nine pillars on which the budget is prepared.

Broad points:

1. Agriculture and farmers welfare
2. Rural sector with focus on employment
3. Social sector with healthcare
4. Educational skills and job creation
5. Infrastrucuture and investment
6. Financial sector reforms
7. Governance and ease of doing business to enable potential
8. Fiscal discipline
9. Tax reforms to reduce tax burden

11:05 am: World Economic Forum says India’s growth is extraordinary: Jaitley

Hope continues to build around India: Jaitley

CPI inflation has come down, GDP growth now 7.6 per cent. CAD declined to 14.4 per cent and will be 1 per cent of GDP by end of fiscal: Jaitley

11:00 am: There are protests now in the Lok Sabha on the part of the opposition. As the Finance Minister rises to present the budget, there is uproar on the opposition benches.

10:45 am: The Cabinet has cleared the Budget 2016-17.

10:06 am: The Finance Minister called on President Pranab Mukherjee earlier today at the Rashtrapati Bhawan.

10:05 am: Cabinet meeting begins at Parliament ahead of the presentation of the budget.

9:55 am: Copies of the budget have been brought to the Parliament.

 

9:50 am: Do state budgets matter more than the Union budget? Read more here

9:45 am: Arun Jaitley has reached the Parliament premises.

9:30 am: Prime Minister Narendra Modi said he has an examination today and that he is ‘fully confident’. Read story here

8.52 am: Here is all that you need to know about Union Budget 2016-17 that will be tabled in the Parliament on Monday.

8.45 am: IT and telecom hardware makers expect the government to extend differential duty structure on mobile phones for 10 years while bringing personal computers under the regime to give a boost to domestic manufacturing. READ MORE

8.30 am: “Hangout” with Arvind Panagariya, vice chairman of Niti Aayog and Amitabh Kant, CEO of NITI Aayog on Wednesday and Thursday as they explain the intricacies of Union Budget and explicate its real impact on various crucial sectors of the economy. READ MORE

 

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