Union Budget 2016-17 Highlights

Union Budget 2016-17 has been presented in parliament on nine pillars i.e. Governance, ease of doing business, fiscal discipline, tax reforms, Agriculture and farmers welfare , Rural sector with focus on employment , social sector with healthcare , Educational skills and job creation , Infrastructure and investment and financial sector reforms.

Highlights of Union Budget 2016-17 are

  • Higher allocation of fund for agriculture, infrastructure and social sectors,
  • Start-ups to get 100% tax exemption for 3 years except MAT
  • Govrnment is committed to 100% electrification by 1 May, 2018. 542 villages will be covered in Feb 2016.
  • Health protection scheme up to Rs 1 lakh .The scheme will provide Rs 1 lakh to each family.
  • farmer insurance, Health insurance and cooking gas subsidy for BPL
  • 3,000 new drug stores, dialysis centers to come up
  • To recue loan burden to farmers, government allocates Rs 15,000 crore
  • Fiscal deficit secured at 3.5%,
  • India’s Forex reserves are at its highest ever level at $350 billion
  • Current account deficit is 1.4% of GDP’ in FY15,
  • GDP growth has accelerated to 7.6%,
  • CPI inflation has come down to 5.4%
  • No changes have been made to existing income tax slabs , Relief of Rs 3000 per year has been given to taxpayers with income below Rs.5 Lakh per annum. From now on a 15 % surcharge on income tax for those with incomes exceeding 1 crore per annum whereas it was 12 percent until now.
  • 1,000 crore rupees will be allocated for Employees’ Provident Fund (EPF) scheme,
  • Government will pay 8.33% EPF contribution for all new employees for first three years,
  • Services provided by EPFO exempted from service tax
  • An additional Rs 50,000 deduction on interest on loans for first home buyers for loans up to Rs 35 lakh, provided the value of house does not exceed Rs 50 Lakh.
  • HRA deduction amount has increased from Rs 24,000 per annum to Rs 60,000 per annum.
  • Rs 25,000 crore has been kept for recapitalization of public sector banks
  • Government owned insurance firms will be listed on stock exchanges
  • RBI Act 1934 to be amended to provide statutory basis for monetary policy framework