Busy Budget: Snapshot of the 2016 proposals - (29 Feb 2016)
MANU/PIBU/0259/2016
Miscellaneous
The Central Government's Budget for 2016-2017 is out and has faced great scrutiny in the public spotlight. Being a large proposal, the devil is in the details and here are some that you may have missed:
Fiscal Deficit: Whereas the government has proposed several new pension programs and benefits for the underprivileged, the fiscal deficit for the Budget 2016-2017 has been kept hovering in the three to four per cent range.
Programmes for the underprivileged: Emphasis is placed on farmer welfare, poor households and those with uncertain employment. Not just disbursements under as insurance premiums, health protection, gas connections and compensation in case of loss, initiatives are aimed at education and vocational training.
Right, Aadhaar and Benefits: Government subsidy and assistance are all well and good, but face the usual problem of dissemination, especially since the Supreme Court stepped in to make the Aadhaar card optional for availing government benefits. Hence, the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Bill, 2016 to revive the floundering initiative. Whether the Aadhaar number has the same wide purpose as the maligned 'card' remains to be seen.
Financial sector reform: A comprehensive Code on Resolution of Financial Firms will be introduced as a Bill in the Parliament during 2016-17. He said the RBI Act 1934 is being amended to provide statutory basis for a Monetary Policy Framework and a Monetary Policy Committee through the Finance Bill 2016. A Financial Data Management Centre will also be set up.
Simplified taxation: Having accepted many of the first batch of recommendations of the Tax Administration Reform Committee released in January 2016, proposals are now afoot to reduce the multiplicity of taxes levied by different Ministries in which revenue collection is less than Rs. 50 crore a year. TDS provisions are also likely to be made uniform for residents and non-residents.
Reliefs for small tax payers: The ceiling of tax rebate under Section 87A of the Income Tax Act, 1961 has been proposed to be raised to Rs. 5,000 from Rs. 2,000 for individuals with income less than Rs. 5 lakhs. Over two crore tax payers would get a relief of Rs. 3,000. Limit of deduction of house rent paid under section 80GG has also been raised to Rs. 60,000 from the existing Rs. 24,000 per annum to give relief to employees who live in rented houses.
Other measures are aimed at providing affordable housing, reducing inflationary spikes, and mobilisation of industrial resources, including labour and capital. In consonance with its 'Make in India' initiatives, the government proposes further boosts to start ups, in addition to recent regulatory easing.
Relevant : Fiscal Deficit at 3.5 percent in BE 2016-17 MANU/PIBU/0263/2016
Simplification and Rationalization of Taxation MANU/PIBU/0261/2016
Limit of Deduction of Rent Increased MANU/PIBU/0266/2016
Resource Mobilization for agriculture, rural economy and clean environment MANU/PIBU/0265/2016
Measures towards pensioned society MANU/PIBU/0274/2016
Targeted disbursement of subsidies MANU/PIBU/0257/2016
Reforms in FDI Policy in the Areas of Insurance and Pensions MANU/PIBU/0272/2016
Employment generation and boosting start ups MANU/PIBU/0273/2016
Price Stabilisation Fund MANU/PIBU/0275/2016
Tags : BUDGET 2016-2017 EMPLOYMENT PENSION WELFARE
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