India unveils budget to help rural poor, rein in deficit

Krishi Kalyan cess: The Budget brought in a new 0.5 per cent Krishi Kalyan Cess on all taxable services to fund agriculture, which means a whole lot of things like your phone bills and restaurant bills will get slightly more expensive. While the tax surcharge on high income group was hiked to 15 percent from 12 percent, the tax rebate for small tax payers was enhanced by INR 3,000.

“Recapitalization of banks also to be done during next fiscal year”, he said, as much concern have emerged over the quantum of exposure of Indian scheduled banks in terms of gross non-productive assets, re-cast loans and write-offs, which amounts to Rs.9.5 lakh crore.

The Prime Minister pushed for more and more use of modern technology and equipment along with traditional wisdom of farming to boost the agriculture sector, not only to meet the domestic needs but also cater to the demands from overseas. I would like to outline three specific initiatives that I think will go a long way in creating an educated, healthier and stronger India: The government’s aim to double income of farmers in five years; new initiatives to increase irrigation access, and its objective to skill 1-crore youth in the next three years.

In his 2015-16 budget speech, Arun Jaitley had earmarked Rs 2, 46,727 crore for defence sector.

Jaitley emphasised that the Budget will give an impetus to economic reforms by increased spending on infrastructure, increasing rural income and ensure overall development of the country.

Entrepreneurship Education and Training through massive online courses.

“Similarly, 10 of the 25 non-functional air strips with the Airports Authority of India will also be developed”, said Jaitley.

In order to help poor and economically weak families, “the government will launch a new health protection scheme which will provide health cover up to Rs 1 lakh per family”.

As cars turn more expensive, OEMs will take a hit in FY2016-17With the new taxes, which come into effect from April 1, 2016, virtually all passenger cars will turn more expensive, from the Tata Nano priced at Rs 240,000 (on-road, New Delhi) through to the Rolls-Royce Phantom which costs a whopping Rs 7.50 crore (on-road New Delhi).

“It was for the first time we felt that Jaitley was keen to understand the crisis in farmlands”, one RSS official said.

Indian Prime Minister Narendra Modi stuck with a plan to narrow the budget deficit in the next fiscal year even while providing relief for farmers, heeding a warning from the nation’s central bank Governor Raghuram Rajan that any deviation risked jeopardizing India’s world-beating economic growth.

Jaitley also announced measures to promote affordable housing.

Jaitley said that government will reorient its intervention in the farm and non-farm sectors to shift focus beyond the country’s food security to farmers’ income security.

But rising rural distress after back-to-back droughts and a recent heavy election defeat in a largely agricultural state have upset that calculus.