KEY HIGHLIGHTS FROM BUDGET 2016-17

UNION BUDGET 2016

A Realistic One, Not Just Feel Good

KEY HIGHLIGHTS FROM BUDGET 2016

1. Big focus on agriculture and farmers’ welfare

– Farmers’ income to be doubled by 2022.

– 28.5 lakh hectares will be brought under irrigation under Pradhan Mantri Krishi Sinchai Yojana.

89 irrigation projects, requiring Rs. 86,500 crore in next five years, to be fast tracked. 23 of these projects to be completed before 31st March, 2017.

– Dedicated Long Term Irrigation Fund will be created in NABARD with initial corpus of Rs. 20,000 crore.

– Total outlay on irrigation including market borrowings is R. 12,157 crore.

Major program for Sustainable Ground Water management proposed for multilateral funding at a cost of Rs. 6,000 crore.

– 5 lakh farm ponds and dug wells in rain-fed areas and 10 lakh copost pits for production of organic manure will be taken up.

– Soil Health Cards will be given to 14 crore farm holdings by March, 2017.

– 2,000 model retail otlets of fertilizer companies with soil and seed testing facilities, will be opened in the next three years.

Unified Agricultural Marketing E Platform to be dedicated to the Nation on the Birthday of Dr. Ambedkar on 14th April, 2016.

2. Rs. 27,000 crore including State’s share to be spent on PMGSY in 2016-17. Target date of completion of PMGSY advanced from 2021 to 2019.
3. Rs. 9 lakh crore will be given as Agricultural credit in 2016-17.
4. FCI will undertake online procurement of food grains. This will bring transparency and convenience to farmers through prior registration and monitoring of procurement.
5. Pashudhan Sanjeevani, an animal wellness programme, will be undertaken. Nakul Swasthya Patras to be issued.

Rural Sector

Rs 2.87 lakh crore will be given as Grant in Aid to Gram Panchayats and Municpalities as per the recommendations of the 14th FC. This translates to – Rs. 81 lakh per gram panchayat and over Rs. 21 crore per Municipality.

– Every Block in drought and rural distress areas will be taken up under Deen Dayal Antoyodaya Mission.

– 300 Rurban Clusters will incubate growth Centers in Rural Area.

– All villages will be electrified by 1st May, 2018.

A new Digital Literacy Mission scheme will be launched for rural India to cover around 6 crore households in next three years.

– Modernization of Land Records through revamped National Land Records Program.

– Rashtriya Gram Swaraj Program to be launched.

Education

62 new Navaodaya Vidyalayas to be opened in remaining uncovered districts in next two years.

– An enabling regulatory architecture will be provided to 10 public and 10 private institutions to emerge as world class teaching and research institutions.

– Higher Education Financing Agency will be set up with an initial capital base of Rs. 1,000 crore.

– Digital Depository will be set up for educational certificates, mark-sheets, awards etc.

Skills

1500 Multi Skill Training Institutes will be set up under Pradhan Mantri Kaushal Vikas Yojana

– National Board for Skill Development Certification will be set up in partnership with industry and academia.

– Entrepreneurship education and training will be provided in 2200 colleges, 300 schools, 500 govt. it is and 50 vocational training centres through open online courses.

Job Creation

Measures in the sectors of Infrastructure, Investment, Banking, Insurance etc.

Rs. 2, 18,000 crore will be spent on capital expenditure of roads and railways in 2016-17.

– Includes: Rs. 27,000 crore PMGSY

55,000 crore Road Transport and highway

15,000 crore NHAI Bonds

1, 21,000 crore Railways

Unserved and underserved airstrips to be revived by AAI and also in partnership with State Governments.

Road transport sector (passenger segment) to be opened up by removing permit system. This will benefit the poor and middle class, encourage new investment, promote start up entrepreneurs and create new jobs. This is a major reform measure.

– Discovery and exploration of fas in difficult areas will be incentivized by giving them calibrated marketing freedom. This is a major reform measure.

– To promote private participation in infrastructure projects, Public Utility (Resolution of Disputes) Bill will be introduced; and guidelines for renegotiation of PPP agreements will be issued, without compromising transparency.

Changes in FDI Policy.

For the benefit of farmers, 100% FDI through FIPB route will be permitted for marketing of food products, produced and manufactured in India. This will give big encouragement to food processing industry and create new jobs.

– Guidelines for strategic disinvestment have been approved and will be spelt out.

– Individual units of CPSEs can be disinvested to raise resources for investment in new projects.

– In the financial sector, a comprehensive Code on Resolution of Financial Firms will be enacted. Together will the Bankruptcy and Insolvency Law, this will fill a major systemic vacuum. This is a big reform measure.

– SARFAESI Act to be amended to strengthen Asset Reconstruction Companies. This will help in dealing with stressed assets of Banks.

– Public Sector Banks (PSB) – (a) Recapitalization of PSBs; (b) roadmap to be spelt out for consolidation of PSBs; (c) considering reduction of Government equity in IDBI Bank to 49% of below; (d) DRTs to be strengthened with computerized processing of court cases.

– General Insurance Companies will be listed in stock exchanges for improving transparency, accountability and efficiency.

Fiscal Discipline

Fiscal deficit target of 3.5% of GDP in 2016-17

– Committee for review of FRBM Act.

– Removal of Plan/Non Plan classification from 2017-18

– Rationalization of Central Plan Schemes. More than 1500 Central Plan schemes have been restructured to about 300 Central sector and 30 centrally sponsored.

Budget 2016: Here’s the list of what’s cheaper & what’s dearer

Cars, cigarettes, branded garments, air travel will become more expensive, while footwear, solar lamps and routers are slated to be cheaper following a host of changes in the tax structure in the Budget for 2016-17.

Following is a list of items that will turn costlier:

1. Cars
2. Cigarettes
3. Cigar
4. Tobacco
5. All services like bill payments, eating out, air travel
6. Readymade garments and branded apparel of more than Rs 1,000
7. Gold and Silver; jewelery articles excluding..
8. Aluminum foil
9. Air Travel
10. Plastic bags and sacks
11. Ropeway, cable car rides
12. Imported imitation jewellery.
13. Industrial solar water heater
14. Legal services

Following is a list items that will turn cheaper:

1. Footwear
2. Solar lamp
3. Router, broadband modems and set top boxes, Digital video recorder and CCTV cameras
4. Hybrid electric vehicles
5. Sterilised dialyzer
6. Low cost houses with less than 60 sq mt carpet area
7. Hiring of folk artists for performance
8. Refrigerated containers
9. Pension plans
10. Microwave ovens

Our Some Best Services Read it Here…

Commodity Market Tips, MCX Copper Tips, MCX Tips, Crude oil tips, Nifty Options Tips, Share Market Live, Financial Advisory Company in Indore, Stock Advisory Company in Indore

 CapitalStars Financial Research Financial Advisory Services 

www.capitalstars.com | T:+91-731-6790000,6669900