Annual Budget

2016

Objective
To share information about current
budget & Its possible Implication.

Snapshot

Sector wise allocation

Inflow-Outflow

Tax Collection

Inflation

Current scenario

Global growth is Stagnant

Failure of 2 rainy season
Constant resistance in parliament
Dollar is appreciating.
Lot of scheme announced in a year.
Individual tax burden at 15 k
(central)

Unique Feature of this

budget
Longest budget of the history.
Made lot of small changes &
amendment in structure.
Result will be long term.
3rd budget with similar track.

Some Changes
Coal Cess doubled
Customer duty hiked by 2.5 % on cap
goods (domestic industry)
Banks will be given 25000 cr (due to slow
down)
Capital expenditure of 12% of GDP
Dividend above 10 lack at 10%
14 different cess to be eliminated
PPP will be revamped
Dispute Redressal for PPP will be fast.

Rural Development

Electrification of all village by 2018

38500 cr for MANREGA
88,000 cr for rural devlopment
2.87 lack cr grant for rural govt body
5500 cr crop policy
Agri credit at 9 lac cr (all time high)
Rural roads at 19 k cr
87 k cr in 5 yr for irrigation

For individual

HRA increased
Service tax increased by 0.50%
EPF Vs NPS
VDS to be introduced (at current
price) 45% tax, 1 lac cr to be added
50 k one time deduction for new
home.
3% extra tax on super rich (now
45%)

Social side
3000 new generic store
Famil insurance of 1 lac to be
launched soon
Hosing for all started working on it.
1800 cr for skill india (Kaushal vikas
yojna) 83 skills
2000 cr digital india support.

Industry

97,000 on roads
2,21,000 cr on overall infra
Car tax (1% infra cess, 1% above 10 lac)
Duty on ATF increased
Excise on branded apparel over 1000 MRP is hiked by
2% *
1% tax on cash transaction of 2 lack
100% FDI in food Marketing (production in India)
Service tax exemption on building affordable home.
100% deduction on profit if build affordable home in 3
yrs ***
Retail store allowed to open 7 days

Industry
Presemptive Tax limit 2 cr,
professional 50 lack**
Startup incentive 21 cr at 29% ****
Depreciation at 40%
Global patent to be taxed at 10%.
6% on internet revenue (5000 cr
Google + fb)

Positive Facts
Fiscal deficit is near to 3.8%
7000 cr of subsidy saved with jan
dhan initiative
Govt. borrowing seems to be 10 to
12% lower.
Capital expenditure is in control