Budget 2016: Here are the top proposals from FM Arun Jaitley

Union Finance Minister Arun Jaitley presented his third budget on Monday.
Indian Finance Minister Arun Jaitley arrives at parliament house to present federal budget 2016-17, in New Delhi, India, Monday, Feb. 29, 2016. It was Jaitley’s second full budget since Prime Minister Narendra Modi won a huge majority in national election in 2014, on the back of promises to turn around the economy and boost job creation. Government plans to launch a new initiative to provide cooking gas to BPL families with state support. Remember, the #GiveUp campaign that the government had earlier introduced invoking people who don’t need LPG connections to give them up. Jaitley said over 75 lakh people had given up their subsidies.
Read more: Budget highlights
(Source: Express photo by Amit Mehra)

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. The other pillars, he added, include focus on agriculture and rural areas with a view to doubling farm income by 2022.
Pointing out the government’s focus on the agricultural sector, Jaitley has allocated Rs 35,984 crores for the farming sector. The minister announced that 5 lakh acres will be brought under organic farming in the next three years under the Krishi Vikas Yojana.
Read more: Budget highlights
(Source: Express photo by Amit Mehra)

To lessen burden on individuals with income not exceeding 5 lakh, I propose sealing of tax rebate under sec 87A from 2000 to Rs5000: Arun Jaitley Rs 38,500 crore has been allocated for MNREGA – the job scheme that was introduced by the earlier UPA government. This is the highest-ever allocation the scheme has gotten. Remember, this is the scheme that was called a ‘living monument of the failures of UPA’ by Prime Minister Narendra Modi.
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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. The government proposes to allocate Rs 97,000 crore allocation for road sector including rural roads. This is a boost for Surface Transport Minister Nitin Gadkari who has pledged to substantially increase the number of kilometres of roads built per day.
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Service Tax to be exempted on general insurance schemes under NIRMAYA Scheme: Arun Jaitley. The government came out with one time four-month compliance window for domestic black money holders to come clean by paying tax and penalty of 45 per cent. The government plans to open the compliance window under the Income Tax Disclosure Scheme from June 1 to September 30 2016 with option to pay amount due within 2 months of declaration.
Read more: Budget highlights

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

SUVs and luxury cars will become more expensive.

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

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.

Govt to develop 300 ‘rurban’ clusters: Jaitley

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

Arun Jaitley announced three initiatives for better delivery of public services

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

Jaitley said that amid global economic crisis the World Economic Forum says India’s growth is extraordinary

Jaitley will be walking a tightrope as he is expected to strike a balance between announcing tax cuts to industries and providing relief for farmers under distress. The finance minister is also wary about implementing the 7th Pay commission recommendations as he had set a target of reducing the fiscal deficit to 3.5 per cent by next year. (Source: Express photo by Renuka Puri)

Prime Minister Narendra Modi on Sunday equated the presentation of the Union Budget with an “exam”, and said he remained “full of confidence” about facing it. (Source: Express photo by Renuka Puri)

Budget should focus on reviving the dormant investment cycle and raising the revenue base as the present macroeconomic stability is primarily driven by collapse of global commodities prices led by oil, India Ratings said.
Stressing on the need to revive investment, the report noted that though capital expenditure increased by 25.5 per cent in FY16 over FY15, as a percentage of GDP, it is still stuck at 1.7 per cent and needs to go up to 2 per cent. (Source: Express photo by Renuka Puri)

Last year’s budget saw Jaitley open up 15 sectors, including defence and civil aviation, for Foreign Direct Investment. Foreign investors craving for faster reforms this year may see Jaitley extend the invitation for investment in more public sectors. (Source: PTI)

The Economic Survey, tabled in Parliament Friday, has projected real GDP growth for 2016-17 to be in the 7-7.75 per cent range. The Central Statistics Office has estimated growth to be 7.6 per cent for the current fiscal year. The survey, which sets the stage for Finance Minister Arun Jaitley’s third annual budget, pegs this forecast as being conditional upon a rebound in agricultural growth and the absence of any international crisis that might trigger fresh headwinds for the domestic economy. (Source: Express photo by Renuka Puri)