Finance Minister Arun Jaitley will present his fourth Union Budget on Wednesday in Parliament. Let’s take a look at the major steps announced by Jaitley in his previous budgets.
Income tax slabs were kept the same and the exemption limit was raised from Rs 50,000 to Rs 2.5 lakh. For senior citizens the limit was raised to Rs 3 lakh.
PPF investment limit was increased from Rs 1 lakh to Rs 1.5 lakh.
Kisan Vikas Patra was announced along with National Savings Certificate with insurance cover.
The mandatory wage ceiling of subscription to employee pension scheme was raised from Rs 6,500 to Rs 15,000 while minimum pension amount was increased to Rs 1,000 per month.
Consumer electronics like LCD, LED TVs became cheaper while the costs of tobacco and tobacco products, aerated drinks went up
In new projects, 5 new IIMs were announced to come up in Himachal Pradesh, Bihar, Odisha, Punjab and Rajasthan. Five more IITs in Jammu, Chattisgarh, Goa, Andhra Pradesh and Kerala. Four more institutions like the All India Institute of Medical Sciences in Andhra Pradesh, West Bengal, Vidarbha in Maharashtra and Poorvanchal in Uttar Pradesh
Digital India programme was announced for broad band connectivity at rural level. Kisan TV and Arun Prabha TV was also announced. For digital literacy, National Rural Internet and Technology Mission for services in villages and schools, training in IT skills was proposed.
EPFO launched “Uniform Account Number” Service for contributing members.
Beti Bachao, Beti Padhao Yojana was announced for welfare of girl child and welfare services of women along with the announcement of Free Drug Service and Free Diagnosis Service to achieve Health For All.
Swachh Bharat Abhiyan found its first mention. ₹2,037 crore was announced for Integrated Ganga Conservation Mission called ‘Namami Gange’,
Smart Cities project was proposed where the government would develop 100 cities into world class smart cities with advanced technologies in healthcare, infrastructure, education, telecom, transport etc.
New Urea policy was initiated for farmer welfare. Expansion of welfare schemes under MGNREGA.
Taxation:Wealth Tax was abolished. Announcement of reduction of corporate tax from flat 35 per cent to 25 per cent in four years. No change in tax slabs. 100% exemption was proposed for contribution to Swachch Bharat, apart from CSR and Service tax was increased to 14 per cent.
Agriculture: Rs 25,000 crore was set aside for Rural Infrastructure Development Bank. ₹5,300 crore for support to Micro Irrigation Programme and a target of Rs 8.5 lakh crore was set for Farmers credit.
Education: Investment to AIIMS in Jammu and Kashmir, Punjab, Tamil Nadu, Himachal Pradesh, Bihar and Assam; IIT in Karnataka; Indian School of Mines in Dhanbad to be upgraded to IIT.
Defence: Rs 2,46,726 crore allocated which was an increase of 9.87 per cent from the preceding year. Focus was kept on Make in India for manufacturing in Defence Sector and drawing more FDI into Defence sector.
Welfare schemes: GST and JAM trinity (Jan Dhan Yojana, Aadhaar and Mobile) were announced as welfare schemes. Housing for all by 2020 was announced in which government would aid construction of 2 crore houses in urban areas and 6 crore houses in rural areas. It also announced the upgradation of 80,000 secondary schools. Jaitley also announced a universal social security system for all citizens.
Claiming that CPI inflation was down from over 9 per cent to 5.4 per cent, Jaitley presented his third budget.
Excise duty was raised from 10 to 15 per cent on tobacco products. 1 per cent service levy was applicable though on purchasing luxury cars prices over Rs10 lakh and cash purchases of over Rs2 lakh.
SUVs, Luxury cars became more expensive as 4% high capacity tax was imposed for SUVs.
Companies which had an annual revenue below Rs5 crore were taxed at 29 per cent and surcharge in addition.Limited tax compliance window was announced from June 1 – September 30 2016 for disclosure of undisclosed/unaccounted income/wealth at 45 per cent surcharge and penalties.. for declaring undisclosed income at 45 per cent inclusive surcharge and penalties. Also, 1 per cent excise duty was imposed on jewellery including silver.
Excise 1 per cent imposed on articles of jewellery, excluding silver. 0.5 per cent Krishi Kalyan Cess was also announced to be levied on all services. Furthermore, a pollution cess of 1 per cent on small vehicles run on petrol, CNG, LPG was announced; 2.5 per cent pollution cess on diesel cars of laid out specifications. An extra 4 per cent levy was applicable on higher-end vehicles.
Personal Finance: Tax slabs remained unchained. Rs 1,000 crore was set aside for a new EPF (Employees’ Provident Fund) scheme. Government announced that it will pay EPF contribution of 8.33% for all new employees in the first three years of their employment.
Deduction for rent paid was increased from Rs 20,000 to Rs 60,000 for benefit to people living in rented accomodations.
Exemption of Rs 50,000 for housing loans up to Rs 35 lakh was announced with the rider that the cost of the house should not exceed Rs 50 lakh. Further a 15 per cent surcharge was imposed on incomes over Rs 1 crore
Health: New health scheme to give cover of Rs 1 lakh to each family. Senior citizens will get additional healthcare cover of Rs 30,000 under the new scheme. Scheme named PM Jan Aushadhi Yojana to be strengthened under which 300 generic drug stores were to be opened.
Education: Rs.500 crore allotted to promote for promoting entrepreneurship SC/ST and backward classes. 10 public and 10 private educational institutions to be made world-class. A digital repository service was formed for school leaving certificates and diplomas.
Digital literacy scheme was announced with the aim of covering 6 crore additional rural households. Aim to skill 1 crore youth in the next 3 years under the PM Kaushal Vikas Yojna-FM Setting up of new 1500 Multi-skill training institutes announced.
Agriculture: Farmer welfare allocation was a total Rs 35,984 crores. Plan to bring 28.5 lakh heactares land under irrigation. Plan to bring 5 lakh acres under organic farming.Rs 60,000 crore ground water recharging. for recharging of ground water recharging as there is urgent need to focus on drought hit areas cluster development for water conservation. Dedicated irrigation fund was allotted in NABARD of Rs 20.000.