New Delhi, February 29

PRICES

Finance Minister Arun Jaitley unveiled a Budget for the poor on Monday, announcing new rural aid schemes and skimping on a bank bailout, in a strategy shift that seeks to boost Prime Minister Narendra Modi’s ruling party in the ensuing state elections.Jaitley’s spending plan sought to cast Modi as a leader who cares after he came under sustained Opposition fire for being too close to business and spending too much time with foreign leaders.Presenting his third Budget, Jaitley said the government wanted to spread the benefits of growth more widely among India’s 1.3 billion people, but without increasing borrowing. “We have a shared responsibility to spend prudently and wisely for the people, especially for the poor and downtrodden,” the 63-year-old Finance Minister told lawmakers.The spending package for the 2016-17 fiscal year from April 1 mapped out by Jaitley marked a shift from an earlier focus on investing in infrastructure that had tried to kickstart private-sector investment, which still remains weak.Jaitley described his three priorities as strengthening India’s firewalls by ensuring macro-economic stability and prudent fiscal management; driving growth through domestic demand; and reforms to boost economic opportunity.Importantly, Jaitley said he would stick to the government’s existing fiscal deficit target for the coming year, at 3.5 per cent of GDP, down from 3.9 per cent in the fiscal year just ending. This lifted government bonds and the rupee as market fears that Jaitley would backslide on the deficit were not borne out.Reflecting tough fiscal constraints, the government will set aside Rs 250 billion to recapitalise state banks. That is less than expected by markets and below the needs identified by Finance Ministry adviser Arvind Subramanian in his pre-Budget report. “ Our public sector banks will be well-supported,” Jaitley said. The news hit banking stocks in trading on the  Mumbai stock exchange, although infrastructure firms rallied on Jaitley’s announcement on increased spending on infrastructure development. — ReutersRs 44,485 cr
Agriculture
The allocation has almost doubled. Government to reorient interventions in the farm and non-farm sectors to double the income of farmers by 2022Rs 87,765 cr
Rural Sector 
Of this, Rs 38,500 cr allocated for MGNREGA, the highest everRs 2.21 lakh cr
Infrastructure 
A slew of proposals includes abolishing permit raj and setting up a dispute redress system, aimed at removing bottlenecksQUOTESI want to assure the countrymen that this Budget is close to your dreams. To fulfil your dreams, this government has presented its commitment along with programmes. —Narendra Modi, Prime MinisterThe Budget addresses sectors that need highest priority and rural areas need most attention. There is a serious challenge, if not distress, in the rural sector. —Arun Jaitley, Finance MinisterDoubling farmers’ income in five years is impossible. There is no inclination, no way of telling the country how it will be achieved. —Manmohan Singh, Ex-PMDouble cess to hit consumersConsumers will have to pay a new agriculture cess on all taxable services and another one on purchase of cars and SUVs as the government plans to garner Rs 8,000 crore extra from them next fiscal. The new Krishi Kalyan cess will get Rs 5,000 crore from levy of 0.5 per cent tax on all taxable services like air travel and dining out. The cess, which will be effective from June 1, 2016, will help finance and promote initiatives to improve agriculture. Besides, infrastructure cess has been imposed at 1 per cent on small petrol, LPG, CNG cars, 2.5 per cent on diesel cars of certain capacity and 4 per cent on higher engine capacity vehicles. Rs 1 lakh health cover for allThe Centre will launch a new health protection scheme under which a cover up to Rs 1 lakh per family will be provided besides opening around 3,000 medical stores across the country to provide quality medicines at affordable prices.Medium shops to open all days The government has proposed allowing small and medium shops to open through the week to create more jobs, a move hailed by retail players. The government plans to circulate Model Shops and Establishments Bill which the states could adopt on a voluntary basis to boost the retail sector, the largest service sector employer.EPF deposits to be taxed The Budget seeks to impose a retirement tax at the time of final withdrawal on 60 pc of contributions made after April 1 to EPF and other schemes. At present, social security schemes run by retirement fund body EPFO are tax free.Govt to foot new workers’ PFTo boost creation of new jobs, the government has set aside Rs 1,000 crore to pay 8.33 pc of the Employee Provident Fund for all new employees for the first three years. The government will contribute the amount on behalf of employers.

Direct transfer of subsidy

Buoyed by success of DBT in LPG, the government has announced direct transfer of fertiliser subsidy to farmers on pilot basis in few districts but reduced the overall subsidy allocation to the sector. It pegged fertiliser subsidy at Rs 70,000 crore, lower than Rs 72,437.58 crore revised estimate for this financial year.Rs 50k relief for new home buyersFirst-time home buyers will get additional deduction of Rs 50,000 on interest for loan up to Rs 35 lakh. The cost of house should not be more than Rs 50 lakh. Rs 100 cr for GurpurbRs 100 crore each have been allocated to celebrate the birth centenaries of the Tenth Sikh Guru and Pandit Deendayal Upadhyay, leader of the Bharatiya Jana Sangh who was born in 1916. 

AADHAAR SET TO GET MO RE TEETH