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Union Budget 2016 Highlights At JCMM, Belagavi

Union Budget 2016 – Economic Survey & Highlights

Economic Survey (2015-16):

  • India’s GDP may be in 7-7.75 per cent range in 2016-17.
  • Gross domestic savings have stayed at 33 per cent of GDP.
  • India’s Tax payers at 4% (23%). Rising income would expand the tax base.
  • Corporate & Banks need 4Rs: Recognition, Recapitalisation, Resolution and Reform

State of Indian Economy

Agriculture:

  • 5 per cent Krishi Kalyan Cess / Fasal Bima Yojana.
  • 5 lakh acres organic farming / 28.5 lakh ha. Pradhan Mantri Krishi Sinchai Yojana.
  • Dedicated Long Term Irrigation Fund in NABARD with a corpus of Rs. 20,000 Crs.
  • Sustainable Ground Water / 5 lakh farm ponds and 10 lakh compost pits.
  • Soil Health Cards / 2,000 model fertilizer outlets with Soil and Seed testing facilities.
  • Unified Agricultural Marketing E Platform on 14th April, 2016.

Rural Development:

  • 38,500 crore for MGNREGA / 2.87 lakh Crs to GPs, Municipalities (Jump of 228%)
  • 300 Rurban clusters to be set up under Shyama Prasad Mukherji Rurban Mission
  • Drought/ rural distress areas to be taken under Deen Dayal Antoyodaya Mission.
  • All villages will be electrified by 1st May, 2018.
  • DBT in fertilizer will be launched on pilot basis./ Automation of 3 lakh (5.35) FPS.

Social Development:

  • LPG in the name of women of BPL family, Rs 2000 Crs. for 5 years.
  • 3000 stores under Prime Minister’s Jan Aushadhi Yojana in 2016- 17.
  • National Dialysis Services Programme will be launched. (2.2 lakh renal patients/year)
  • A new Eco System for SC/ST entrepreneurs and SC/ST Hub in MSME Ministry.

Education

  • Digital Repository / 1000 Crs. For Higher Learning / 62 Navodaya Vidyalayas
  • Digital literacy scheme to be launched to cover 6 Crore additional rural households
  • 1500 Multi Skill Training Institutes will be set up under PM Kaushal Vikas Yojana
  • NB for Skill Development Certification in partnership with Industry and Academia.
  • Entrepreneurship Training in Colleges, Schools, ITIs and VT Centers through MOOC.
  • Interlinking of State Employment Exchanges with National Career Service Platform.

Investments and infrastructure

  • 100 Kms per day / Amendment to Cos Act and EDBI
  • Allocates 22.5% more for infrastructure development.
  • To raise FI Investment in PSEs except banks to 49% (24%)
  • Under Disinvestment, total stake sales in 2016/17 seen at 56,500 Crs.
  • To encourage CPSEs to Divest own assets for raising Resources for New projects
  • 100 percent FD Investment to be allowed in Food Processing industry

Banking & Taxation:

  • PSU Banks get Rs 25,000 Crs towards recapitalisation. (1.8L Crs)
  • Target of disbursement under MUDRA increased to 1.8L Crs.
  • Govt to increase ATMs, micro-ATMs in POs in next three years
  • Government along with central bank to set retail inflation target every 5 years
  • Net revenue gain of 1.96L Crs from Taxes
  • Proposes limited Compliance window on undeclared income of domestic Tax payers
  • Total subsidy seen at 25000 Crs in 2016/17 (* Food * Petroleum * Fertilizer)

‘Ek Bharat Shreshtha Bharat’ will be launched to link States and Districts.

  • Rationalization of Central Plan Schemes. (1500 is 330 Central / Sponsored Schemes).
  • India likely to be fastest growing major economy in the world in 2016
  • Current Account Deficit (CAD) limits at 1.4 percent of GDP / Forex reserve at $350 bn.
  • Financial inclusion proceeding with pace under PMJD Yojana
  • Services Sector remains key driver of economic growth, with 66.1% growth in 2015-16
  • India ranks first in milk production, accounting for 18.5 percent of world production
  • Impressive strides made in the power sector: Addition of generation capacity, moves towards one market in power, reform of discoms and development of renewable energy

 

Important:  Agriculture – Skill – Entrepreneurship – Environment – Women – Digital India.

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