The document summarizes key points from the Indian budget announced by Finance Minister Arun Jaitley. Some highlights include increasing income tax exemption limits and deductions for home loans and investments. Funding was allocated for developing smart cities and increasing budgets for education, startups, and infrastructure projects. Foreign investment caps were raised for defense and insurance, and policies aimed to boost affordable housing and consolidate public sector banks.
The document summarizes key points from the Indian budget announced by Finance Minister Arun Jaitley. Some highlights include increasing income tax exemption limits and deductions for home loans and investments. Funding was allocated for developing smart cities and increasing budgets for education, startups, and infrastructure projects. Foreign investment caps were raised for defense and insurance, and policies aimed to boost affordable housing and consolidate public sector banks.
The document summarizes key points from the Indian budget announced by Finance Minister Arun Jaitley. Some highlights include increasing income tax exemption limits and deductions for home loans and investments. Funding was allocated for developing smart cities and increasing budgets for education, startups, and infrastructure projects. Foreign investment caps were raised for defense and insurance, and policies aimed to boost affordable housing and consolidate public sector banks.
I-T exemption limit up from 2L to 2.5L. For those aged above 60 but below 80 also increased from 2.5 lakh to 3 lakh Deduction limit on interest for home loan increased from 1.5L to 2L Deduction limit under Section 80C up from 1L to 1.5L. Lock-in for long-term capital gains tax on sale of listed non-equity MFs raised to 3 years, tax rate up from 10% to 20% Government allocated Rs 7,600 crore for developing 100 smart cities.Not just smart cities, Jaitley provided a major boost to urban development across the country , raising the budgetary allocation for this fiscal by 133% The budget allocation to education has been increased by 12% to Rs 83,771 crore. He has eased up FDI in construction by reducing minimum built up area requirement from 50,000 sq m to 20,000 sq m and halving capital requirement to $10 million. Arun Jaitley proposed a Rs 10,000-crore fund to capitalize start-ups and micro, small and medium enterprises (MSMEs). Government has tried to manage expectations of various stakeholders through a number of small steps for the common man, the domestic consumer and the foreign investor. At first cut this budget is not inflationary, provides some tax relief and supports a mild pickup in growth this year. It does this by putting more money in people's hands through raising the exemption limit and concessions on housing loans and small savings. For example, we estimate savings to households will be around Rs 11,000 to Rs 34,000 this fiscal, depending on their tax bracket.
On the money-raising front, the budget rightly relies on nontax revenues this year as the ability to push up tax revenues is limited in a slowdown. And market conditions are ripe for offloading public sector stakes. The government has also stressed on divestment. Government proposes to raise Rs 63,000 crore this year equal to what it had raised in the last three years put together in just the remaining nine months of the current fiscal. Govt proposes to launch 'Digital India programme to ensure broad band connectivity at village level. 5 IIMs to be opened in HP, Punjab, Bihar, Odisha and Rajasthan 5 more IITs in Jammu, Chattisgarh, Goa, Andhra Pradesh and Kerala. 4 more AIIMS like institutions to come up in Andhra Pradesh, West Bengal, Vidarbha in Maharashtra and Poorvanchal in Uttar Pradesh. Kisan TV for farmers, Arun Prabha TV for northeast. National Rural Internet and Technology Mission for services in villages and schools, training in IT skills proposed Govt proposes Ultra-Modern Super Critical Coal Based Thermal Power Technology A project on the river Ganga called Jal Marg Vikas for inland waterways between Allahabad and Haldia; Rs 4,200 crore set aside for the purpose. EPFO to launch the Uniform Account Number Service for contributing members. New programme Neeranchal to give impetus to watershed development in the country with an initial outlay of Rs. 2142 crores. Free Drug Service and Free Diagnosis Service to achieve Health For All Beti Bachao, Beti Padhao Yojana to generate awareness and help in improving the efficiency of delivery of welfare services meant for women. Two National Institutes of Ageing to be set up at AIIMS, New Delhi and Madras Medical College,Chennai Economic initiatives Composite cap of foreign investment to be raised to 49 per cent in Defence and Insurance sectors. Requirement of the built up area and capital conditions for FDI reduced to 20,000 square metres and USD 5 million respectively for development of smart cities. Manufacturing can sell its products through retail including Ecommerce platforms.
Requirement to infuse Rs.2,40,000 crore as equity by 2018 in our banks to be in line with Basel-III norms PSUs will invest through capital investment a total sum of Rs. 2,47,941 crores. Rs 4,000 cr set aside to increase flow of cheaper credit for affordable housing to the urban poor/EWS/LIG segment. Govt in favour of consolidation of PSU banks Govt considering giving greater autonomy to PSU banks while making them accountable The numbers Government expects Rs 9.77 lakh crore revenue crore from taxes Plan expenditure pegged at Rs 5.75 lakh crore and non-plan at Rs 12.19 lakh crore. Fiscal deficit target retained at 4.1 pc of GDP for current fiscal and 3.6 pc in FY 16 Disinvestment target fixed at Rs 58,425 crore Gross borrowings pegged at Rs 6 lakh crore Contours of GST to be finalised this fiscal; Govt to look into DTC proposal.
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