Highlights of the speech of the Union Budget for 2016-17, presented by Finance Minister Arun Jaitley in the Lok Sabha today:-  

• Finance Minister Jaitley begins speech in Lok Sabha
• Financial markets battered globally
• Indian econ has held ground firmly amid global turmoil
• Had inherited an economy of low growth
• Converted difficulty into opportunity
• We converted challenge into opportunity
• Our external situation is robust
• Confidence, hope continue to be held around India
• Global economy in serious crisis
• Global trade has contracted
• IMF has held India as bright spot
• World econ forum said India’s growth extraordinarily high
• Indian econ still bright spot despite challenges
• GDP grew notwithstanding global meltdown
• India GDP has accelerated to 7.6% now
• India’s external situation is robust
• Must carry out reforms
• Must have prudent fiscal policy, up domestic demand
• Pay panel, defence pension to add to spending in FY17
• FY16, FY17 will be extremely challenging for govt spend
• Must continue with pace of reforms
• Must ensure growth does not slow down
• Must ensure macro-economic stability
• Strengthened firewalls against global risks
• Plan spend increased under FY16 revised estimates
• Risk of global slowdown is mounting
• Money with govt belongs to people
• We had to work in unsupported global environment
• Forex reserves highest ever at $350 billion
• Foreign exchange reserves are at highest ever level
• FY16 CAD projected at 1.4% of GDP
• To make significant changes in FDI policy
• To incentivise gas exploration
• Aim to work on passage of GST, Bankruptcy Code
• FY17 priority to give additional resources to rural areas
• Need to provide for bank recapitalisation
• Must priorities spending in FY17
• Managed to improve FY16 financial condition on revenue buoyancy
• Infra invest to enhance quality of life
• To have prudent mgmt of govt expenses for fiscal prudence
• To focus on tax reforms
• To undertake tax reform to improve compliance
• To focus on prudent mgmt of govt finance
• To focus on governance, ease of doing business
• To focus on infra investment
• To provide dispute resolution for PPP platform
• Allotted 90 billion rupees for Swachh Bharat mission
• Allotted 1.5 billion rupee for land record digitalisation FY17
• 7.5 million households gave up LPG subsidy
• 1 billion rupees for birth anniversary of Guru Gobind Singh
• 1 billion rupees for birth anniversary of Deen Dayal Upadhyay
• Interim provision made for pay panel suggestions execution
• Committed to financial requirements of announced econ packages
• Made interim provision for seventh pay panel
• To up MSME category turnover cap to 20 million rupees
• To drive towards self-sufficiency in hydrocarbon sector
• Jaitley stands up, continues Budget speech

Fiscal Health:-  

• To have fiscal deficit target range
• FY17 fiscal deficit target at 3.5% of GDP
• FY16 fiscal deficit pegged at 3.9% of GDP
• Prudence lies in adhering to fiscal targets

FY16 Revised:-  

• FY16 revenue deficit 2.5% of GDP
• Ensured development agenda is not compromised

FY17 Estimates:-  

• FY17 total expenditure 19.78 trillion rupee
• FY17 total spend at 19.78 trillion rupees
• FY17 non-plan expenditure 14.3 trillion rupees
• FY17 plan expenditure 5.5 trillion rupee
• Total resources to states in FY17 at 996 billion rupees
• To scrap plan, non-plan expenditure distinction
• To do away with plan, non-plan classification of spending
• Plan allocation to stress on rural, infra, social sectors

Inflation:-  

• CPI inflation came down to 5.4% under our govt
• Fall in CPI inflation providing big relief to public
• Plan to up spend on farm, rural, social sectors FY17
• Need to create new infrastructure for irrigation
• Need to address water resource utilisation
• To allocate 359.8 billion rupees for farm, farmers’ welfare
• Need to give income security to farmers
• Need to think beyond food security
• To allocate 4.12 billion rupees for organic farming
• Policy to convert city waste into compost
• 140 million farms to be covered by soil health card by Mar 2017
• Fertiliser co to market city compost fertilisers
• 600 billion rupees for sustainable mgmt of water resources
• Soil health card plan being implemented with great vigor
• To form 200 billion rupee long-term irrigation fund in NABARD
• To allot 865 billion rupees in five yrs for irrigation schemes
• To bring 2.85 million ha under PM irrigation plan
• To allocate 170 billion rupees for irrigation scheme FY17
• FY17 Crop insurance scheme allocation 55 billion rupees
• FY17 interest subvention for farmers seen 150 billion rupee
• Farm credit target for FY17 at 9 trillion rupees
• 9.7 million ton Agri storage capacity added FY16
• 3.68 billion rupees provided for soil health scheme FY17
• 12 states have amended APMC Act to join e-market plan
• Unified Agri market e-platform to be launched on Apr 14
• Plan e-market platform for agriculture wholesale markets
• To allot 5 billion rupees under food security plan for pulses
• 5 billion rupees for pulses production in 622 districts
• 86,000 ton honey produced in FY16; 90% exported
• Need to focus on drought-hit areas
• Food Corp of India to make online payment of farm goods
• To launch 4 new dairy programmes
• To take up allied activities to increase farm income
• To encourage states to take up decentralised procurement
• Made effective mgmt for pulses procurement
• MSP online procurement system through FCI
• To encourage states for decentralised procurement of crops
• Allocate 55 billion rupees for PM Fasal bima Yojna
• Price stabilisation fund for pulses has 9 billion rupee corpus
• To introduce direct benefit plan for fertiliser on pilot

Social Sector, Education:-

• To focus on educational skills, job creation
• Plan law to give statutory backing to Aadhaar
• To announce health scheme covering 1/3rd of population
• Health insurance, BPL cooking gas scheme planned
• To focus on delivery of benefits to needy
• Infra, social sectors to have more govt spend
• BPL families to get LPG connection
• Aim to list public sector general insurance cos
• To undertake 3 major schemes for weaker sections of society
• Self-help groups’ set up hastened for livelihood generation
• FY17 aid to gram panchayat, municipality at 2.87 trillion rupee
• Digital depository for school, college-leaving documents
• Education, skill development, jobs 4th pillar of Budget
• To allot 10 billion rupee for higher education financing agency
• 62 new Navodaya schools to focus on quality education
• 1.52 trillion rupees allocated for social sector
• To form national scheduled caste, tribe hub in MSME min
• Stand-up India scheme allocation 5 billion rupees
• This must be year of empowering scheduled castes, tribes
• 5 billion rupees for scheduled caste, tribe entrepreneurs
• Aadhaar not to be proof of citizenship or domicile
• Social security platform to be used for Aadhaar
• Aadhaar bill to be introduced FY17
• To introduce targeted delivery of subsidies via Aadhaar
• Task force to rationalize human resources in ministries

Skill Development, Job Creation:-  

• 17 billion rupees for skill development scheme FY17
• 1,500 multi-skill training institutes across country
• To interlink national, state employee bureaus
• Plan to set up 100 model career centers
• 10 billion rupees for new EPF scheme
• Govt to pay 8.33% EPF contribution for new staff 1st 3 yrs

Rural Development:-  

• Allocated 877.65 billion rupees for rural development FY17
• Rural insurance scheme for farmers planned
• To provide more funds to vulnerable sections in rural areas
• Cluster facilitation under rural job plan to conserve water
• 385 billion rupees for rural job plan FY17
• See 228% jump in gram panchayat allotment
• To focus on rural employment, infrastructure
• National digital literacy mission to cover 60 million houses
• Need to spread digital literacy in rural areas
• FY17 allocation for rural electrification 85 billion rupees
• All villages to be electrified by May 1, 2018
• 18,542 villages not electrified as of Apr 1, 2015
• To allot 190 billion rupees FY17 for PM Gram Sadak Yojana
• To spend 270 billion rupee with states FY17 on rural roads plan
• To launch new panchayat scheme at 6.5 billion rupees
• To allot 877.65 billion rupees for rural development schemes
• To allot 20 billion rupees for LPG connection to rural women

Healthcare:-

• To start National Dialysis Service under PPP mode
• To exempt certain dialysis equipment from basic custom duty
• Health protection scheme with 100,000 rupee/family cover
• 3000 drug stores to be opened under PM Aushadhi Yojana
• To provide 130,000 rupee/yr health cover to senior citizens
• To launch new health protection scheme

Industry:-  

• Propose to circulate model shops and establishments bill
• To give choice to shops to remain open on 7 days/week
• 10,000 km of national highways to be added FY17
• Total outlay for infra 2.21 trillion rupees FY17
• Total outlay for roads, railway 2.18 trillion rupees FY17
• Total investment in road sector 970 billion rupees
• NHAI to raise 150 billion rupees via bonds FY17
• Allot 550 billion rupees for roads, highways FY17
• 85% of 70 stranded road projects back on track FY16
• To allot 550 billion rupees for roads, highways
• India’s highest ever kilometer of highways awarded in 2015
• 30 billion rupees/yr to augment nuclear power in 15-20 yrs
• Market freedom for gas from difficult blocks to have price cap
• Mull calibrated market freedom for gas from difficult blocks
• Need to diversify resources for power generation
• Drawing up comprehensive plan on nuclear power
• To incentivise ultra-deep sea gas exploration
• Achieved highest coal production growth
• To provide incentives for gas production from tough blocks
• 10 non-functional air strips to be redeveloped
• To partner with state govts to develop airports
• Started series of measures for modernizing ports
• To partner with states to develop regional airports
• Medium-term goal is to abolish permit raj
• Plan new public transport policy to up private participation
• FY17 allocation for new port development 8 billion rupees
• Motor Vehicles Act to be amended to up passenger segment
• New green field ports to be developed on east, west coasts
• Govt to open up road transport sector
• Medium-term goal is to abolish permit raj
• 50,000 km state highways to be converted to national highways
• FY17 total infrastructure outlay 2.21 trillion rupees
• To have new policy for mgmt of assets of PSUs
• NITI Aayog to identify PSUs for strategic sale
• To encourage PSUs to divest individual assets
• 100% FDI in marketing of food products produced in India
• To have more FDI reforms in asset restructuring companies
• To change FDI policy for asset reconstructions cos
• To modify FDI policy for bourses, asset recast cos
• Duty drawback schemes to be widened, deepened
• Have deepened, expanded duty drawback scheme
• More FDI reforms in insurance, stock exchanges, pension
• To modify FDI policy for insurance, pension sectors
• FDI policy to address requirements of farmers
• To allow mobilization of 313 billion rupee by govt infra bodies
• Mulling gas production incentive from high temperature area
• May incentivise gas production from ultra deep water areas
• Mulling incentives for gas production from deep sea areas
• New credit rating system for infra to be developed
• To issue guidelines for renegotiation of PPP contracts
• Received conflicting suggestions on FRBM roadmap
• To amend Companies Act for ease of doing business
• Will amend companies act this Parliament session
• Registration of cos to be done in one day
• 300,000 fair price shops to be automated by Mar 2017

Financial Sector,Banking:-  

• Banking Board bureau to be operational in FY17
• To strengthen debt recovery tribunal
• Considering cutting stake in IDBI Bank to below 50%
• Stand solidly behind PSU banks
• To find resources if PSU banks need additional capital
• Allot 250 billion rupees for recapitalisation of PSU banks FY17
• Not interfering in lending activities of PSU banks
• To amend SEBI act to provide for more SAT benches
• To bring legislation FY17 on illicit deposit taking schemes
• Sponsor in asset recast cos can hold 100% stake
• Financial Data Management Centre to be established
• To allow 100% FDI in asset recast cos
• To make necessary amendments in SARFASI Act
• Bankruptcy code to help deepen corporate bond market
• SEBI to develop new commodity derivative products
• SEBI to introduce new derivative products in commodity market
• To adopt comprehensive approach for invest in central PSUs
• To introduce comprehensive Bankruptcy Code in Parliament
• To rename divest dept as Dept of Invest & Public Asset Mgmt
• To amend RBI Act to implement monetary policy framework
• Vibrant financial sector critical for econ growth
• PM Mudra Yojana target to give 1.8 trillion rupees loans FY17
• To draw road for consolidation of PSU banks
• Banking board bureau to be operational zed in FY17
• To draw roadmap for consolidation of PSU banks
• To take up massive rollout of micro-ATMs across nation
• Public money should reach poor without leakages
• Nationwide rollout of ATMs via post offices
• To list govt-owned general insurance cos on stock exchanges
• To list general insurance cos on stock exchanges
• To set up panel to review FRBM Act
• Time has come to review FRBM Act
• Propose to set up committee to review FRBM Act
• Govt open to reducing its stake in PSU banks below 50%
• Consolidation roadmap for PSU banks next year

Indirect Tax:-

• Propose changes in customs duty to push Make in India plan
• Exempt svc tax on general insurance plans in Nirmaya scheme
• Committed to implementing GAAR from Apr 1, 2017
• Asset recast cos’ income to be taxed at hands of investors
• Propose special patent regime to power innovation, research
• Services provided by EPFO exempted from service tax
• STT of 0.05% on options contracts
• Service tax waiver for houses of less than 60 sq meter
• Service Tax exempt for svc under rural electrification plan
• To give excise duty exemption to ready-mix concrete
• Excise of 12.5% with input tax credit on jewellery
• To abolish 13 cesses by ministries
• To amend Central Value Added Tax credit rules
• To amend CENVAT credit rules
• Taxation panel to fix demand under retrospective tax cases
• Hope old cases on retrospective tax reach conclusion soon
• No retrospective taxation to be undertaken
• 1-time no-interest liability in retrospective tax cases
• To up excise duty on various tobacco products by 10-15%
• Cos incorporated post Mar 1 to be taxed at 25%+ surcharge
• Doubles clean energy cess on coal to 400 rupees/ton
• To up excise duty on some tobacco products by 10-15%
• Infra cess of 2% on diesel cars
• 4% infra cess on high capacity vehicles, SUVs
• To levy 1% infra cess on small petrol, LPG, CNG cars
• Direct Tax:-  Plan simplification, rationalization of taxes
• Tax rebate on rent paid upped to 60,000 rupees vs 24,000
• Tax changes to support Make in India, affordable housing
• To give relief to small taxpayers
• To launch steps to move towards pension society
• To give relief to small tax payers
• Withdrawal upto 40% from Natl Pension plan to be tax exempt
• To allow lower corporate tax for some cos from FY17
• Reduction in corporate tax has to be calibrated
• Faster depreciation rate under income tax act at 40% FY17
• Reduction in corporate tax has to be calibrated
• Detailing roadmap for phasing out corporate tax exemption
• Propose 0.5% Krishi Kalyan cess on all taxable services Jun 1
• Propose Krishi Kalyan cess
• To raise surcharge on income over 10 million rupees to 15%
• 10% tax on recipient if got dividend over 1 million rupees/yr
• Some home buyers to get extra exemption of 50,000 rupee/yr
• No changes in income tax slabs
• To rationalize tax deducted at source for small tax payers
• Penalty of 200% of tax for misreporting of income
• Penalty of 50% of tax for under-reporting of income
• Penalty to be 50% of tax in income under-reporting cases
• Modifying scheme of penalty under Income Tax Act
• Revenue secy to head committee on taxation
• Committed to stable, predictable taxation regime
• To focus on bringing to book people with black money
• Prosecution immunity for undisclosed income declaration
• 300,000 tax cases worth 5.5 trillion rupees pending
• New dispute resolution scheme for taxation proposed total 45% Tax
• Compliance window for undisclosed income Jun 1-Sep 30
• 7.5% surcharge on undisclosed income in compliance window
• Govt committed to removing black money
• To move towards low tax regime with non litigious approach
• Limited period compliance window on undisclosed income
• To strongly counter tax evasion
• Moving towards a low tax regime