Citing that the government is committed to ease of doing business in India, Finance Minister Arun Jaitley presented the Union Budget 2016-17 in the Parliament on Monday. Here is a look at how different sectors have benefited from the Budget.
Agriculture and rural sector
ADVERTISEMENT
ADVERTISEMENT
- Allocation for agriculture is Rs. 35, 984 crore.
- Allocation under Pradhan Mantri Gram Sadak Yojana increased to Rs. 19,000 crore.
- Allocation for rural sector is Rs. 87,765 crore.
ADVERTISEMENT
- A sum of Rs. 38,500 crore allocated for MGNREGS.
- 100 per cent village electrification by May 1, 2018.
- Agricultural credit target of Rs. 9 lakh crore. Govt to allocate Rs 5,500 crore for crop insurance scheme.
- Paramparagat Krishi Vikas Yojana to bring 5 lakh acres under organic farming.
Social sector
- Allocation for social sector including education and health care is Rs. 1,51,581 crore.
- A new health protection scheme for health cover upto Rs. 1 lakh per family. Senior citizens will get additional healthcare cover of Rs. 30,000.
- 3,000 stores to be set up for generic drugs.
- Rs. 9,000 crore for Swachch Bharat Abhiyan.
- National dialysis service programme under PPP model. LPG connection for women members of rural homes.
Education and jobs
- 62 new Navodaya Vidyalayas will be opened
- Higher Education Financing Agency to be set-up with initial capital base of Rs. 1000 crore.
- 10 public and 10 private educational institutions to be made world-class. Digital repository for all school leaving certificates and diplomas.
- Allocation for skill development is Rs. 1804 crore.
- Govt. will pay EPF contribution of 8.33 per cent for all new employees for first three years.
Infrastructure
- Total investment in the road sector, including PMGSY allocation, would be Rs. 97,000 crore.
- Total outlay for infrastructure in Budget 2016 now stands at Rs. 2,21,246 crore.
- Allocation of Rs. 55,000 crore in the Budget for Roads. Additional Rs. 15,000 crore to be raised by NHAI through bonds.
- 10,000 km of national highways in 2016-17 and 50,000 km state highways to be converted to NH roads.
- New greenfield ports to be developed on east and west coasts. Revival of underserved airports. Centre to Partner with States to revive small airports for regional connectivity
- Plan to augment nuclear power in the next 15-20 years.
- Reforms in FDI policy in the areas of Insurance and Pension, Asset Reconstruction Companies, Stock Exchanges.
Financial sector
- Statutory basis for a Monetary Policy framework and a Monetary Policy Committee through the Finance Bill 2016.
- Allocation of Rs. 25,000 crore towards recapitalisation of Public Sector Banks.
- General Insurance Companies owned by the Government to be listed in the stock exchanges.
Personal finance
- People with income less than Rs. 5 lakh to get deduction of Rs 5,000 under section 87A, up from Rs 2,000 last year. HRA deduction up from Rs. 24,000 to Rs. 60,000 p.a.
- 40% of withdrawal at the time of retirement under National Pension Scheme to be tax exempt.
- Additional exemption of Rs. 50,000 for housing loans up to Rs. 35 lakh, provided cost of house is not above Rs. 50 lakh.
- No changes have been made to existing income tax slabs.
Source: indiabudget.nic.in