The much awaited Union Budget 2016 is out and has received mixed reactions: appreciation and criticism alike. It has received mixed responses from different sectors, including business and the social sector.
The Budget 2016 has proposed plans in line with the developmental priorities of the nation; efforts are visible in the budget for the development of rural economy which is apparent from the 17000 Cr. Rs have been allotted to irrigation projects alongside Rs. 35984 Cr for agriculture sector and the various programs and missions such as those to be undertaken NABARD, the Gram Sadak Yojna, Swachh Bharat Abhiyan and more.
It is being deemed as a pragmatic budget that is in lieu with the government’s policies and plans. The budget will ensure that ‘Transform India’ shall have a significant impact on economy and lives of people and the nation shall benefit from the same. Especially in the face of the global economic slowdown we’ve been fighting against along with the ever growing fiscal burden.
To quote the Budget, the main priorities have been the rural sector, agricultural sector, infrastructure, social sector and recapitalization of Banks. The expenditure planned for rural sector, social sector and infrastructure shall prove to beneficial for employment generation too.
One of the nine pillars for a good Budget is Ease of Doing Business and this budget plans on introducing a Task Force that will be constituted for rationalization of human resources in various Ministries. Apart from that Amendments are to be made in the Companies Act to improve enabling environment for start-ups. A major focus has been on start-ups this year so as to facilitate their growth and create more employment and output.
There haven’t been any major tax reforms though the small tax payers are provided additional relief. For the tax payers under the bracket of 5 lakhs, there is raise in the ceiling of tax rebate under section 87A from `2000 to `5000 to lessen tax burden on such individuals.
One of the new policies highlighted in the budget has been the housing policy. Not only has the limit of deduction of rent paid under section 80GG been increased, from`24000 per annum to`60000, to provide relief to those who live in rented houses. Additionally there has been an emphasis on affordable housing especially for those who are buying their first house and no service tax for building their houses up to 60 sq. kms.
So far, India, despite going through a series of radical changes, has managed to break the trend of significant economies as it hasn’t succumbed to structural pressure. As China’s major slowdown comes into play, it shall have an effect on the economy. But, India has a lot to gain from sustained performance. And the new Budget promises the same.