Union Budget 2016 : Jaitley Proposes Digital Literacy Scheme For Rural India

This is the third ever budget presented by Arun Jaitley in the Lok Sabha, where major financial decisions and budgetary allocations were made for different programmes. The decision to implement a 1% tax at source on purchase of luxury cars worth more than R10 lakh and purchase of goods and services in cash exceeding Rs 2 lakh could impact the sales of premium products.

Jaitley said the government would increase spending on the National Rural Employment Guarantee Scheme, which guarantees 100 days of employment on public works each year for any household that requests it.

FM listed “nine pillars” including tax reforms, promoting ease of doing business and ensuring fiscal discipline, that will transform India.

Some of the measures announced in the Budget 2016-17 is set to boost e-governance programs across the state and center.

PHD Chamber President Mahesh Gupta said the Budget’s focus on rural India would go a long way to generate demand in the economy and give a push to overall growth and development of the country.

“About 7 crore people use road transport and we want to increase their numbers to 15 crore and to meet the target we will need to enhance the services in transport sector”, said Gadkari. With this, individuals having income up to Rs. 5 lakh will get a relief of Rs. 3000 in their tax liability. Cars will be getting costlier as pollution cess of 1 per cent will be levied on small petrol, CNG and LPG cars. A 2.5% infra cess will be imposed on diesel cars.

Announcing relief to small tax payers Shri Jaitley proposed to raise the ceiling of tax rebate U/s. 87A from Rs. 2000 to Rs.5000.

With rural infrastructure and tackling agrarian distress taking precedence, it is clear that the Narendra Modi government is going all out to remove the allegation of “suit-boot ki sarkar”, more so following the drubbing Bharatiya Janata Party-led National Democratic Alliance received in Bihar Assembly elections.

But Jaitley said it would stick to its ambitious target to cut the fiscal deficit to 3.5 percent of GDP in 2016-2017.

Further, the Finance Bill, 2016 proposes to broaden and liberalize the scope of the employment generation incentive available under section 80JJAA of the Income Tax Act.

“We are grateful to our farmers for being the backbone of the country’s food security”, Jaitley told parliament as he unveiled the budget.

Lauding the initiatives taken in this year’s budget, Mr Advani said, “All this shows that the Prime Minister and the Finance Minister have adopted an approach that promises to make India stronger and more prosperous, while making “Antyodaya” the central theme of economic growth”.