Recently, the finance minister of our country, Mr. Arun Jaitley presented the union budget for the year 2016-17 in the Parliament. After ‘Make in India’ and ‘Digital India’, the main agenda of the government is to ‘Transform India’. They key budget proposals are all set to impact various industry sectors and B2B investment.
Here’s a look at how different sectors have benefited from the budget.
Agriculture & Rural sector
- Allocation for agriculture is Rs. 35, 984 crore.
- Allocation under Pradhan Mantri Gram Sadak Yojana increased to Rs. 19,000 crore.
- Allocation for rural sector is Rs. 87,765 crore.
- A sum of Rs. 38,500 crore allocated for MGNREGS.
- 100 per cent village electrification by May 1, 2018.
- Agricultural credit target of Rs. 9 lakh crore. Government to allocate Rs 5,500 crore for crop insurance scheme.
- Paramparagat Krishi Vikas Yojana to bring 5 lakh acres under organic farming
Infrastructure & Public sector
The budget 2016 is on expected lines for the infrastructure sector.
- The Government plans to revive investment in this sector by analysing and addressing the root problems.
- At the same time, certain positive highlights are allowing tax incentives for infrastructure facility
- Restoring service tax exemptions with retrospective effect on construction of port and airport.
The main focus of the budget has been on agriculture, rural economy and development of the infrastructure sector. The government wishes to invest on these sectors to boost the ‘Make in India’ initiative.
- The Government has rationalized indirect taxes to give more thrust to domestic manufacturing.
The union 2016 budget announced a couple of financial services reforms.
- Allocation of Rs. 25,000 crore towards recapitalisation of public sector banks
- Pass-through status of securitization trust for tax purposes to clean up NPAs (Non-performing assets)
- Amendments have been proposed related to business trust, AIF, IFSC and many others.
- The agenda of the budget is to transform India by addressing 9 pillars. The first pillar is ‘Agriculture and Farmer’s Welfare’.
- Establishing a robust system for advancement of agriculture
- Allocation for social sector including education and health care is Rs. 1,51,581 crore.
- A new health protection scheme for health cover up to Rs. 1 lakh per family. Senior citizens will get additional healthcare cover of Rs. 30,000.
- 3,000 stores to be set up for generic drugs.
- 9,000 crore for Swachch Bharat Abhiyan.
- National dialysis service programme under PPP model. LPG connection for women members of rural homes.
Besides the above sectors, the 2016 union budget will also have an impact on the education and jobs sector, healthcare and technology, media and telecom.