#NewDelhi : Finance Minister Mr Arun Jaitley unveiled a budget for the poor on Monday, announcing new rural aid schemes and skimping on a bank bailout, in a strategy shift that seeks to boost his ruling party in coming state elections.#Arunjaitley reiterated a forecast that India would grow by 7.6% in the fiscal year that is drawing to a close.
Here are the highlights of Jaitley’s budget for the fiscal year that begins on April 1.
FISCAL DEFICIT
* Fiscal deficit seen at 3.9% of GDP in 2015/16
* Fiscal deficit seen at 3.5% of GDP in 2016/17
* Plan expenditure seen at Rs 5.5 trillion in 2016/17
* Proposes to set up panel to review fiscal responsibility management act
RURAL ECONOMY
* Rural jobs programme allocated Rs 385 billion ($5.61 billion) in 2016/17
* Farmer welfare budget to total Rs 359.84 billion
* Rural road development to get Rs 190 billion
* Target of agriculture credit at Rs 9 trillion
* Interest subvention towards farm loans at Rs 150 billion
POLICY REFORMS
* Bankruptcy code for financial firms to be introduced in parliament in 2016/17
* RBI act is being amended for implementing monetary policy framework
* To list general insurances companies on stock exchanges
BANKING REFORMS
* Government to infuse 250 billion rupees capital into state-run banks in 2016/17; will find resources for additional capital for banks if required
TAXATION
* Will not resort to retrospective taxation in future; one time tax dispute resolution proposed for retrospective taxation
* To rationalise corporate tax for new manufacturing companies
* To implement general anti avoidance tax rule from April 1, 2017
* Security transaction tax on options raised to 0.05%
* Proposes to levy infrastructure cess of 1-4% on certain models of cars
* Raises factory gate tax on various tobacco products by 10-15%
* Proposes limited compliance window on undeclared income of domestic tax payers
* Proposes new dispute resolution scheme to resolve tax disputes
* Proposes to abolish 13 different levies
BORROWING
* Gross market borrowing seen at 6 trln rupees for 2016/17
INFRASTRUCTURE
* Allocates 2.21 trillion rupees for infrastructure development for 2016/17
* Allocation for roads and highways development at Rs 550 billion
* Capital expenditure on roads and rail development at Rs 2.18 trillion
INVESTMENT
* 100% foreign direct investment to be allowed in food processing industry
* Promises further reforms in foreign direct investment policy in insurance, pension, asset recast companies
DIVESTMENT
* To encourage central public enterprises to divest own assets for raising resources for new projects
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