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Budget 2016: A balancing act
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Bikky Khosla | 01 Mar, 2016
Finance Minister Arun Jaitley presented his third Union Budget on Monday. Over the last few weeks, there was a lot of talk on the major concerns facing the economy and how a fine balance could be struck between fiscal consolidation and much-needed public spending. It was a tough task indeed, but the Budget 2016 seems to make a good deal of effort to hit the right note. The fiscal deficit target is retained, but the development agenda is not compromised. It lacks out-of-box measures, but comes with some major reform promises. There are obviously some turn offs, but overall the arithmetic seems commendable, particularly considering the additional fiscal burden likely to be added due to 7th Pay Commission award and implementation of OROP.
A key feature of the Budget is its thrust on strengthening the agricultural and rural India. Several measures proposed -- including allocation of Rs 35,984 crore for agriculture and farmers' welfare, Rs 86,500 crore for irrigation for five years, Rs 15,000 crore interest subvention for agricultural loans, Rs 5,500 crore for crop insurance, Rs 38500 crore for MNREGA, Rs 8500 crore for rural electrification -- show this shift of focus, which, I think, will help boost farm sector growth and rural demand that have been hit by two consecutive droughts. Also, employment creation, socio-economic progress and long-term economic growth will also get a big push by these measures in the long run.
The Budget gives a much-needed push also to the infrastructure sector. Jaitley announced Rs 2.21 lakh crore for the sector. Of the total, a sum of Rs 55,000 crore is allocated for roads and highways, which will be further topped up by additional Rs 15,000 crore to be raised by NHAI through bonds. The total investment in the road sector including PMGSY allocation would be 97,000 crore. It is also encouraging to see the Budget's emphasis on affordable housing. For the public sector banking sector, a sum of Rs.25,000 crore is allocated towards their recapitalization, but I think the amount is woefully inadequate, considering severity of the NPA problem. In addition, the Budget promises financial reforms, but no concrete measures are proposed for addressing the sector's woes.
As far as the MSME sector is concerned, the Budget has come with several welcome measures, including increase in the turnover limit of tax for MSMEs from Rs 1 crore to Rs 2 crore, increase in disbursement target under PM MUDRA Yojana to Rs.1,80,000, three-year tax holiday and one-day registration of start-ups, lowering of Corporate IT rate for companies not exceeding Rs. 5 crore turnover, allocation of Rs. 1,700 crore for setting up 1500 multi-skill development centres, etc. These measures are encouraging, but they alone may not be enough for the sector. A lot more could have been done. A big miss, for example, is lack of proposals to make listing and exit simpler for the sector. The Budget lacks a clear-sighted approach to transform the sector.
I invite your opinions.
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Multi- Skill Development Centres
mahendra Kapadia | Sat Mar 19 07:01:10 2016
Would like to know more about scope for these centres, and how SIDBI can assist in setting up these. My interest in setting up such centres in Mumbai, Maharashtra, Gujarat areas.
Budget
suresh kezekethara | Fri Mar 4 06:55:51 2016
Dear all hope for the best.in this budget will see how it will help full the People or (Ministries) since 70 years we are on the waiting list.....
Budget
P.S.Biradar | Fri Mar 4 05:24:58 2016
First time in Indian History, this Govt. has given top priority to Agricultural Sector. But at the same time, whether this will be implemented 100%. Also, it is neglected completely towards Industrial Sector. Due to hike in Car's price, Automobile Sector is affected like any thing. Most of the Automobile Industries at the verge of closure due to low in demand. Now, most of the young generation is not ready to work on fields. Everybody wants white jobs. So, making improvements in Agriculture Sector is of no use. Govt. will provide the facilities like Road, Electricity & Water. But who are going to utilise these facilities. If you survey, 90% of young generation have not seen their fields. They are all dependent on Labours which is not available at less rate. I have observed personally that now a days, labour is also very costlier. Most of the people are not ready to work regularly. So, we have to get the work done on available work force at a higher rate. So, we have to educate the people and motivate them to work in their fields regularly. Govt. can provide the money, but they won't use it properly. Present working system is also not good. Since the most of people in Rural areas are uneducated, they fall prey to Political people to get the funds allotted by Govt. where it leads to corruption. Overall, unless we improve our system, we cannot improve the life of Farmers.
Budget 2016
Ajay Goyal | Fri Mar 4 02:59:34 2016
Why is Agricultural income not included as taxable income..... The "poor/small farmer" (90%...???) will have an income less than the minimum taxable income..... but croroepati "farmers" will find another HUGE LOOPHOLE closed.... forever.... Such a step would also justify why the GOI must provide for the rural sector. At present, they are "by law" not required to pay ANY TAXES...but get numerous benefits.... once EVERYONE IS REAUIRED TO PAY TAXES then they are justified to get "something in return"....
Budget
R K Bhatia | Thu Mar 3 12:34:32 2016
A big point missed by budget is setting up fast track courts to address Non payment to MSMEs related disputes. This point can give life to many stalled Units. Govt should take immediate measure to do this.
CUSTOMS DUTY FOR RAW CASHEW NUTS
BILU | Thu Mar 3 11:10:47 2016
IMPORT OF RAW CASHEW NUTS HAVE BEEN IMPOSSED WITH A DUTY OF 9.36% WHICH IS DETRIMENTAL FOR THE SURVIVAL OF THE INDUSTRY.
THE FINANCE MINISTRY HAVE FAILED TO UNDERSTAND THAT THERE IS A STRONG DOMESTIC MARKET FOR CASHEW KERNELS HERE IN INDIA.THE MENTIONED QUANTITY BALANCE OF "4KG OF RAW CASHEW IS PERMITTED FOR DUTY FREE IMPORT FOR EXPORT OF 1KG CASHEW KERNEL" IS IMPOSSIBLE AS ONLY AROUND 11KG-14KG EXPORTABLE GRADES CAN BE PROCESSED FROM 80KG RCN.SO WHERE DO THE OTHER GRADES GO.THATS WHERE THE DOMESTIC MARKET COMES IN.
Indian Budget 2016-2017
Ajay Unnithan | Thu Mar 3 09:50:29 2016
This Year Budget best of the best in Indian History Al the level Budget is Balancing , Help of Indian Economy , Best Wishes
ONE OF THE BEST BUDGET IN THE PRESENT TIME
CA SORABH BANSAL | Thu Mar 3 07:18:27 2016
AFTER A LOT OF SQUANDERING OF MONEY BY THE LATE UPA GOVERNMENT OF SUBSIDY OF OIL PETROL / CNG / SPECTRUM AND COAL THE BEST BUDGET WHERE THE FISCAL DEFICIT IS ALSO UNDER CONTROL AND THE INFLATION WOULD BE ALSO UNDER CONTROL
Budget 2016 - A balancing Act
A.V. Chandran | Thu Mar 3 05:08:37 2016
âAn analysis shows that cumulative gross NPAs of 24 listed public sector banks stood at
Rs 3,93,035 crore as on December 31, 2015." A key feature of the Budget is its thrust on strengthening the agricultural and rural India having population of this sector alone is more than 80 Crores ie more than 60% of the total population of our country hence at least 50% of the total budget outlay could be available for the very sector whereas budget allocation is about 7% of the total budget and NPA stands 21% of the total budget outlay. In view of this agriculture sector stands neglected and it needs reasonable support for a healthy nation building at least 50% of budget outlay could be made available.
Standard Ration process stands not encouraged hence it needs induction in the budget in view of more than 70% of the population is looking for essential commodities duly controlled by Government at reasonable price.
The other points not covered is Pravasi and their welfare measures. Similar to Corporate process having foreign exchange earning has full support and encouragement whereas contribution of foreign exchange earning by virtue of manpower stands neglected hence this area needs reasonable provision in the budget and it could deeply be examined enabling to support budget reasonably.
The other neglected area is for Education. It needs at least 10% total budget outlay enabling to support development of education.
Medical care for poor Senior citizen is a must but neglected.
INCREASE EMPLOYMENT
Suresh Mirchandani | Thu Mar 3 03:15:18 2016
A simple measure to increase (virtually double the level of employment) in the MSME sector is t raise the threshold of the max labour in any plant/office be raised from from the existing 20nos to 100nos.
This will allow the MSME to increase their productivity without having to qualify for PF etc which they cannot afford or pay costly / ill informed consultants to do so for them
Budget 2016
Pasha Khader Noormuhammad/9003748782 | Thu Mar 3 01:20:32 2016
Sir/Madam
Regards 1 cleanliness of India,see that every individual understands to keep our country clean
2 IT(Income-Tax) very important source of revenue to Government/Country,i could see even a vada,bonda small traders make a minimum Rs 500 to Rs 1000 a day let them all pay minimum Rs 1500 per annum as ITlet IT executives go from door to door and do such entry
all middle income business /traders join with Auditors and in alliance with IT executives and submit only false writtens and get their IT paid very very less compare to their income we are to change
most of the Government scheme like solarpv only corporates are dominating and to that extends NTPC/NVVN like government dept join hands in stipulating conditions akin to corporates to become eligible,why EMD/SECURITY ask for open offer from any participants and do not decide on cheap rates ,decide on technological benefit and ask SECURITY DEPOSIT after award of conract which makes real sense
People are having larger properties undeclared making revenue by way of rent they are to be noticed visiting individual premises and fix IT accordingly
Government owned industries like,BHEL/STEEL PLANTS and others should earn profit otherwise change it to private parties with assured returns,as public money is used for such establishments
see that all Government Hospital equip with advanced tech see that best treatment is available with lowest cost or FREE to eligible citizens
Tehcnical experts are side lined to be encouraged not corp
Budget-2016
S R RAMA SUBBAIAH | Thu Mar 3 00:53:45 2016
Yes; under the given circumstances, FM Jaitley has done remarkably well with clarity on the required priorities. Gone are those years of half-hearted announcements of mere populist schemes to commemorate a single unworthy family! PM Modi is a visionary & a task-master eager to transform India into prosperity on a time-bound system and his team is certainly rising to his standards.
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