The budget allocates funds across several key sectors of the Indian economy. It aims to double farmer incomes by 2022 by allocating Rs. 35,984 crore for agriculture and providing irrigation for 28.5 lakh hectares at a cost of Rs. 17,000 crore. It also increases allocations for rural development, social sectors like education and healthcare, and infrastructure development. While some taxes are increased on tobacco, luxury goods, and diesel vehicles, individual taxpayers below Rs. 5 lakh annual income and senior citizens receiving medical insurance of Rs. 130,000 will receive relief.

1. UNION BUDGET 2016-
2017
SUBMITED BY ,
SHABISTAN KHAN
15/155

2. HIGHLIGHTS OF THE BUDGET
 GDP growth at 7.6% despite slowdown in global economy
from 3.4% to 3.1%. CPI inflation down to 5.4%
 CAD from $18.4 billion in first half of last year to $14.4
billion this year
 To double income of farmers by 2022, sets aside Rs
35,984 crore for the purpose; to bring 28.5 lakh hectare
under irrigation at a cost of Rs 17,000 crore
 Only 46% of 141 hectares of net cultivable area is
irrigated, target to bring 28.5 lakh ha under irrgation, at Rs
17,000 cr next year
 Rural Sadak Yojana allocation at Rs 19,000 cr for FY17
representing 60% of central funding, rest 40% to come
from states, taking total allocation to Rs 27,000 cr; 100 km
road construction per day currently to be stepped up

3.  Provision of Rs 15,000 crore to ease burden on loan
repayment in form on interest subvention for farmers
 Proposed Rs 5,500 cr for crop insurance scheme
 Rs 2.87 lakh crore as aid to Gram Panchayats, as
recommended by Finance Commission; quantum jump of
228%
 Rs 2.87 lakh crore as aid to Gram Panchayats, as
recommended by Finance Commission; quantum jump of
228%
 Rs 38,500 cr allocated for MGNREGA, highest amount
ever under the scheme
 Rs 25,000 crore allocated for recapitalisation of PSU
Banks
 Fiscal deficit to be retained at 3.9% of GDP; FY17 fiscal
deficit target at 3.5%
 15.3% increase in Plan Expenditure to Rs 5.5 lakh crore,
this is the last year of the 12th Plan.

4.  Plan vs non-plan distinction to be erased in FY2017. Every
new scheme to have sunset date and outcome review
 Relief to small tax payer earning less than 5,00,000 p.a.,
additional relief u/s 87A from Rs 2,000 to Rs 5,000
 Relief to those living in rented houses and not getting HRA
from employers to go up from Rs 24,000 to Rs 60,000
 Corporate tax: Effective rate of tax comes to 24.8%.
Accelerated depreciation limited to 40% for first year. IT rate for
FY17 of relatively small enterpises, with turnover of less than
Rs 5 crore limited to 29% plus cess
 10% tax on dividends in excess of Rs 10 lakh received by
individuals, HUFs; this will be in addition to DDT; LTCG period
for unlisted firms reduced to 2 years
 Withdrawal up to 40% of corpus from Pension to be made tax-
exempt

5.  Infra cess of 1% on all diesel cars of certain capacity,
SUVs, some other cars as part of pollution control
measure
 45% tax (including surcharge and penalty) on
undisclosed income declared under new window
between June 1- September 30, with no provision of
scrutiny of books
 Retrospective Tax: High level committee headed by
Revenue Secretary to allay fears
 Net revenue gain from direct and indirect tax
proposals: Rs 19,600 cr
 Swacch Bharat Abhiyan allocated Rs.9,500 crores.

6. SECTOR WISE ALOCATION OF
THE
FUND
 Allocation for Agriculture and Farmers’ welfare got
more fund ` Rs.35,984 crore
 Allocation for rural sector got Rs. 87,765 crore.
 Allocation for social sector including education and
health care got Rs1,51,581 crore.
 Total investment in the road sector, including
PMGSY allocation, would be Rs 97,000 crore
during 2016-17.

7. BENEFITS OF
INDIVIDUAL
 New health insurance cover of INR 1,00,000 per
family.
 Hub to support for SC/ST entrepreneurs
 Taxation norms for professionals eased.
 INR 130,000 per annum for senior citizen medical
insurance.
 rebate increased from 2000 to 5000 INR.
 Taxation norms for professionals eased.

8. BURDEN OF
INDIVIDUAL
 Surcharge of 15% on taxable income
above INR 1 crore.
 Additional taxes introduced in the form
of Infrastructure cess and Krishi Kalyan
cess
 Increase in the price of SV’s and Luxury
cars
 Increase in the prices of Branded
Jewelry

9. BENEFITS OF INDUSTRY
 10 public and 10 private educational institutions to be
made world-class.
 Agri Min seeks animal health card scheme
 Amendment to the Companies Act to ensure speedy
registration and boost start-ups.
 Tax holiday for startups for three of five years of
setting up the company.
 Small shops should be given the choice to remain
open on all 7 days a week.
 Lowering of Corporate IT rate for companies not
exceeding Rs. 5 crore turnover to 25% plus surcharge

10. BURDEN OF
INDUSTRY
 Excise duty on Tobacco product up by 10-
15%,cigarettes set to cash more
 Burden on Readymade garments as the duty has
been raised from 2-5% .
 Automobile sector negatively affected as there is
hike in the duty on purchase of Luxury cars, SUV’s
and XUV’s.

11. SUBSIDIES
 Subsidies on food, fertiliser and petroleum have
been pegged lower by over 4% to nearly Rs 2.31
lakh crore for 2016-17
 LPG connection for women members of rural
homes
 Government to provide health insurance of upto
Rs. 1 lakh per family.
 Hub to support SC/ST entrepreneurs

12. PRICES OF GOODS AND SERVICE
WHICH ARE BEEN INCREASED OR
DECREASED IN THE BUDGETR
 Increase in the price of tobacco and its products
 Increase in the price of readymade garments by 2-5
%
 The prices of Branded Jewelry has been increased
 Increase in the price of Mobiles & Tablets and the
adapters used for electric instruments.
 BenefitBanks ed as special norms are made for their
recovery.

13.  Decrease in the price of the coal gas, water gas,
producer gas, and all such similar gases, and
other gaseous hydrocarbons other than petroleum
products have gone down form 10 to 5 %
 Prices of refrigerator containers reduced by 12.5
% to 6%.
 Decline in the prices of the electronic goods.

14. CONCLUSION
 The Budget presented is well balanced with the aim of
reaching the Government’s money to the poor in order
to benefit them, and the policies have been framed in
such a way so that the welfare of the poor would be on
the higher side. This included :-
 Allation of funds for MNREGA
 Rural infrastructure development.
 Rebate increment.
 Small scale industries got a good development
provisions.
 Also startups which are generally small in size get tax
holidays.
 LPG benefits for rural household.

15.  Also overall development has not been neglected,
every sector has got share to take advantage
from:-
Airline industry.
• Road and railways
• Electronics & IT.
• Agricultural sector
• Health and education.
• Real Estates.
• Banking sector.
• Oil and gas sector.
• Small and Medium scale industries etc.