Finance Minister Arun Jaitely today presented Union Budget for 2016-17, outlining the major financial policies to be followed in the coming financial year. Here are the 10 major takeaways from this year’s budget.
1. Farming sector has been allocated Rs 35,000 crores. Under Pradhan Mantri Krishi Sichai Yojana, another Rs 20,000 crores would be pumped in to bring irrigation towards drought prone regions. The budget aims to bring more than 28.5 lakh hectares of land would be turned cultivable in the upcoming fiscal year.
2. Rural India has been at the radar of PM Narendra Modi’s model of development. A total of Rs 87,765 crores have been allocated for rural development. Also, to address the issue of rural unemployment, Rs 3800 crore has been increased under the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA).
3. Infrastructural development has been the top priority for PM Modi. Jaitley announced a mammoth Rs 2.21 lakh crore allocation for the Infrastructure sector.
4. ‘Startup India’ and ‘Stand Up India’: Jaitley has announced an allocation of Rs 500 crore to pump the initiatives.
5. Atal Pension Yojana: Rs 3000 crore have been allocated for providing insurance to 1 lakh households under Atal Pension Yojana. The target has been set as 31st March 2017 to fulfill the plan.
6. Food Processing sector can now have a 100 per cent Foreign Direct Investment (FDI)
7. Corporate Tax would remain 25 per cent for those entrepreneurs whose turnover remains below Rs 5 crores per annum. However, if the limit exceeds, the tax would escalate to 29 per cent due to various cess applied.
8. Tax rebate on Housing: Rebate on rent of Rs 60,000 per annum, instead of the earlier limit of Rs 24,000.
9. Service Tax Increased: You would now have to pay 15 per cent service tax instead of 14.5. The move would marginally increase the cost incurred by people in restaurants and bars.
10. Excise duty on cigarettes, cigar and other tobacco related products will be increased by 10-15 per cent.