INTRODUCTION : Growth of Economy accelerated to 7.6% in 2015-16
CHALLENGES IN 2016-17 : Risks of further global slowdown and turbulence.
ROADMAP & PRIORITIES : ‘Transform India’ to have a significant impact on economy and lives of
people
AGRICULTURE AND FARMERS’ WELFARE : Allocation for Agriculture and Farmers’ welfare is Rs.
35,984 crore
RURAL SECTOR : Allocation for rural sector – Rs.87,765 crore.
SOCIAL SECTOR INCLUDING HEALTH CARE : Allocation for social sector including education and
health care – Rs.1,51,581 crore.
EDUCATION, SKILLS AND JOB CREATION : 62 new Navodaya Vidyalayas will be opened
SKILL DEVELOPMENT : Allocation for skill development – Rs. 1804. crore.
JOB CREATION : GoI will pay contribution of 8.33% for of all new employees enrolling in EPFO
for the first three years of their employment. Budget provision of Rs. 1000 crore for this
scheme
INFRASTRUCTURE AND INVESTMENT : Total investment in the road sector, including PMGSY
allocation, would be Rs. 97,000 crore during 2016-17.
FINANCIAL SECTOR REFORMS : A comprehensive Code on Resolution of Financial Firms to be
introduced.
GOVERNANCE AND EASE OF DOING BUSINESS : A Task Force has been constituted for rationalisation
of human resources in various Ministries
FISCAL DISCIPLINE : Fiscal deficit in RE 2015-16 and BE 2016-17 retained at 3.9% and 3.5%
RELIEF TO SMALL TAX PAYERS : Raise the ceiling of tax rebate under section 87A fromRs. 2000 to
Rs. 5000 to lessen tax burden on individuals with income upto Rs.5 laks
BOOST EMPLOYMENT AND GROWTH : Increase the turnover limit under Presumptive taxation scheme
under section 44AD of the Income Tax Act to Rs. 2 crores to bring big relief to a large number
of assessees in the MSME category.
MAKE IN INDIA : Changes in customs and excise duty rates on certain inputs to reduce costs and
improve competitiveness of domestic industry
MOVING TOWARDS A PENSIONED SOCIETY : Withdrawal up to 40% of the corpus at the time of
retirement to be tax exempt in the case of National Pension Scheme (NPS).
PROMOTING AFFORDABLE HOUSING : 100% deduction for profits to an undertaking in housing project
for flats upto 30 sq. metres in four metro cities and 60 sq. metres in other cities
RESOURCE MOBILIZATION FOR AGRICULTURE, RURAL ECONOMY AND CLEAN ENVIRONMENT : Additional tax at
the rate of 10% of gross amount of dividend will be payable by the recipients receiving
dividend in excess of Rs.10 lakh per annum
PROVIDING CERTAINITY IN TAXATION : Committed to providing a stable and predictable taxation
regime and reduce black money.
SIMPLIFICATION AND RATIONALIZATION OF TAXES : 13 cesses, levied by various Ministries in which
revenue collection is less than ` 50 crore in a year to be abolished.
TECHNOLOGY FOR ACCOUNTABILITY : Expansion in the scope of e-assessments to all assessees in 7
mega cities in the coming years.
