Current Affairs Feb Week IV UPSC Notes | EduRev

UPSC : Current Affairs Feb Week IV UPSC Notes | EduRev

 Page 1


 
 
Abhimanu 
Weekly current affairs Series 
 
 
 
 
 
Week: IV, Feb 2016 
 
 
 
 
 
Abhimanu’s IAS Study Group 
Chandigarh 
 
Page 2


 
 
Abhimanu 
Weekly current affairs Series 
 
 
 
 
 
Week: IV, Feb 2016 
 
 
 
 
 
Abhimanu’s IAS Study Group 
Chandigarh 
 
 
 
 
NATIONAL ECONOMIC AFFAIRS 
Budget 2016-17 
INTRODUCTION 
? Growth of Economy accelerated to 7.6% in 2015-16. 
? India hailed as a ‘bright spot’ amidst a slowing global economy by IMF. 
? Foreign exchange reserves touched highest ever level of about 350 billion US dollars. 
CHALLENGES IN 2016-17 
? Risks of further global slowdown and turbulence. 
? Additional fiscal burden due to 7th Central Pay Commission recommendations and OROP. 
ROADMAP&PRIORITIES 
? 'Transform India' to have a significant impact on economy and lives of people. 
? Government to focus on– a) ensuring macro-economic stability and prudent fiscal management. B) boosting 
on domestic demand c) continuing with the pace of economic reforms and policy initiatives to change the lives 
of our people for the better. 
? Focus on enhancing expenditure in priority areas of - farm and rural sector, social sector, infrastructure sector 
employment generation and recapitalisation of the banks. 
? Focus on Vulnerable sections through: Pradhan Mantri Fasal Bima Yojana, New health insurance scheme to 
protect against hospitalisation expenditure, facility of cooking gas connection for BPL families 
? Continue with the ongoing reform programme and ensure passage of the Goods and Service Tax bill and 
Insolvency and Bankruptcy law 
AGRICULTURE AND FARMERS’ WELFARE 
? Allocation for Agriculture and Farmers’ welfare is `35,984 crore 
? ‘Pradhan Mantri Krishi Sinchai Yojana’ to be implemented in mission mode. 28.5 lakh hectares will be brought 
under irrigation. 
? Implementation of 89 irrigation projects under AIBP, which are languishingfor a long time, will be fast tracked 
? A dedicated Long Term Irrigation Fund will be created in NABARD with an initial corpus of about ` 20,000 crore 
? Programme for sustainable management of ground water resources with an estimated cost of ` 6,000 crore 
will be implemented through multilateral funding 
? 5 lakh farm ponds and dug wells in rain fed areas and 10 lakh compost pits for production of organic manure 
will be taken up under MGNREGA 
? Soil Health Card scheme will cover all 14 crore farm holdings by March 2017. 
? 2,000 model retail outlets of Fertilizer companies will be provided with soil and seed testing facilities during 
the next three years 
? Promote organic farming through ‘Parmparagat Krishi Vikas Yojana’ and 'Organic Value Chain Development in 
North East Region'. 
? Unified Agricultural Marketing ePlatform to provide a common emarket platform for wholesale markets 
? Allocation under Pradhan Mantri Gram Sadak Yojana increased to ` 19,000 crore. Will connect remaining 
65,000 eligible habitations by 2019. 
Page 3


 
 
Abhimanu 
Weekly current affairs Series 
 
 
 
 
 
Week: IV, Feb 2016 
 
 
 
 
 
Abhimanu’s IAS Study Group 
Chandigarh 
 
 
 
 
NATIONAL ECONOMIC AFFAIRS 
Budget 2016-17 
INTRODUCTION 
? Growth of Economy accelerated to 7.6% in 2015-16. 
? India hailed as a ‘bright spot’ amidst a slowing global economy by IMF. 
? Foreign exchange reserves touched highest ever level of about 350 billion US dollars. 
CHALLENGES IN 2016-17 
? Risks of further global slowdown and turbulence. 
? Additional fiscal burden due to 7th Central Pay Commission recommendations and OROP. 
ROADMAP&PRIORITIES 
? 'Transform India' to have a significant impact on economy and lives of people. 
? Government to focus on– a) ensuring macro-economic stability and prudent fiscal management. B) boosting 
on domestic demand c) continuing with the pace of economic reforms and policy initiatives to change the lives 
of our people for the better. 
? Focus on enhancing expenditure in priority areas of - farm and rural sector, social sector, infrastructure sector 
employment generation and recapitalisation of the banks. 
? Focus on Vulnerable sections through: Pradhan Mantri Fasal Bima Yojana, New health insurance scheme to 
protect against hospitalisation expenditure, facility of cooking gas connection for BPL families 
? Continue with the ongoing reform programme and ensure passage of the Goods and Service Tax bill and 
Insolvency and Bankruptcy law 
AGRICULTURE AND FARMERS’ WELFARE 
? Allocation for Agriculture and Farmers’ welfare is `35,984 crore 
? ‘Pradhan Mantri Krishi Sinchai Yojana’ to be implemented in mission mode. 28.5 lakh hectares will be brought 
under irrigation. 
? Implementation of 89 irrigation projects under AIBP, which are languishingfor a long time, will be fast tracked 
? A dedicated Long Term Irrigation Fund will be created in NABARD with an initial corpus of about ` 20,000 crore 
? Programme for sustainable management of ground water resources with an estimated cost of ` 6,000 crore 
will be implemented through multilateral funding 
? 5 lakh farm ponds and dug wells in rain fed areas and 10 lakh compost pits for production of organic manure 
will be taken up under MGNREGA 
? Soil Health Card scheme will cover all 14 crore farm holdings by March 2017. 
? 2,000 model retail outlets of Fertilizer companies will be provided with soil and seed testing facilities during 
the next three years 
? Promote organic farming through ‘Parmparagat Krishi Vikas Yojana’ and 'Organic Value Chain Development in 
North East Region'. 
? Unified Agricultural Marketing ePlatform to provide a common emarket platform for wholesale markets 
? Allocation under Pradhan Mantri Gram Sadak Yojana increased to ` 19,000 crore. Will connect remaining 
65,000 eligible habitations by 2019. 
 
 
? To reduce the burden of loan repayment on farmers, a provision of ` 15,000 crore has been made in the BE 
2016-17 towards interest subvention. 
? Allocation under Prime Minister Fasal Bima Yojana`5,500 crore. 
? ` 850 crore for four dairying projects - ‘Pashudhan Sanjivani’, ‘Nakul Swasthya Patra’, ‘E-Pashudhan Haat’ and 
National Genomic Centre for indigenous breeds 
RURAL SECTOR 
? Allocation for rural sector-`87,765 crore. 
? ` 2.87 lakh crore will be given as Grant in Aid to Gram Panchayats and Municipalities as per the 
recommendations of the 14th Finance Commission 
? Every block under drought and rural distress will be taken up as an intensive Block under theDeen Dayal 
AntyodayaMission 
? A sum of`38,500 crore allocated for MGNREGS. 
? 300 Rurban Clusters will be developed under the Shyama Prasad 
SOCIAL SECTOR INCLUDING HEALTH CARE 
? Allocation for social sector including education and health care – `1,51,581 crore. 
? ` 2,000 crore allocated for initial cost of providing LPG connections to BPL families. 
? New health protection scheme will provide health cover up to ` One lakh per family. For senior citizens an 
additional top-up package up to` 30,000 will be provided. 
? 3,000 Stores under Prime Minister’s Jan Aushadhi Yojana will be opened during 2016-17. 
? ‘National Dialysis Services Programme’ to be started under National Health Mission through PPP mode 
? “Stand Up India Scheme” to facilitate at least two projects per bank branch. This will benefit at least 2.5 lakh 
entrepreneurs. 
? National Scheduled Caste and Scheduled Tribe Hub to be set up in partnership with industry associations 
? Allocation of ` 100 crore each for celebrating the Birth Centenary of Pandit Deen Dayal Upadhyay and the 
350th Birth Anniversary of Guru Gobind Singh. 
INFRASTRUCTURE AND INVESTMENT 
? Total investment in the road sector, including PMGSY allocation, would be`97,000 crore during 2016-17. 
? India’s highest ever kilometres of new highways were awarded in 2015. To approve nearly 10,000 kmsof 
National Highways in 2016-17. 
? Allocation of ` 55,000 crore in the Budget for Roads. Additional ` 15,000 crore to be raised by NHAI through 
bonds. 
? Total outlay for infrastructure-`2,21,246crore. 
? Amendments to be made in Motor Vehicles Act to open up the road transport sector in the passenger 
segment 
? Action plan for revival of unserved and underserved airports to be drawn up in partnership with State 
Governments. 
? To provide calibrated marketing freedom in order to incentivise gas production from deep-water, ultra deep-
water and high pressure-high temperature areas ? Comprehensive plan, spanning next 15 to 20 years, to 
augment the investment in nuclear power generation to be drawn up. 
FISCAL DISCIPLINE 
? Fiscal deficit in RE 2015-16 and BE 2016-17 retained at3.9% and 3.5%. 
? Revenue Deficit target from 2.8% to 2.5% in RE 2015-16 ? Total expenditure projected at` 19.78 lakh crore 
? Plan expenditure pegged at ` 5.50 lakh crore under Plan, increase of 15.3% 
? Non-Plan expenditure kept at`14.28 lakh crores 
? Special emphasis to sectors such as agriculture, irrigation, social sector including health, women and child 
development, welfare of Scheduled Castes and Scheduled Tribes, minorities, infrastructure. 
? Mobilisation of additional finances to the extent of ` 31,300 crore by NHAI, PFC, REC, IREDA, NABARD and 
Inland Water Authority by raising Bonds. 
Page 4


 
 
Abhimanu 
Weekly current affairs Series 
 
 
 
 
 
Week: IV, Feb 2016 
 
 
 
 
 
Abhimanu’s IAS Study Group 
Chandigarh 
 
 
 
 
NATIONAL ECONOMIC AFFAIRS 
Budget 2016-17 
INTRODUCTION 
? Growth of Economy accelerated to 7.6% in 2015-16. 
? India hailed as a ‘bright spot’ amidst a slowing global economy by IMF. 
? Foreign exchange reserves touched highest ever level of about 350 billion US dollars. 
CHALLENGES IN 2016-17 
? Risks of further global slowdown and turbulence. 
? Additional fiscal burden due to 7th Central Pay Commission recommendations and OROP. 
ROADMAP&PRIORITIES 
? 'Transform India' to have a significant impact on economy and lives of people. 
? Government to focus on– a) ensuring macro-economic stability and prudent fiscal management. B) boosting 
on domestic demand c) continuing with the pace of economic reforms and policy initiatives to change the lives 
of our people for the better. 
? Focus on enhancing expenditure in priority areas of - farm and rural sector, social sector, infrastructure sector 
employment generation and recapitalisation of the banks. 
? Focus on Vulnerable sections through: Pradhan Mantri Fasal Bima Yojana, New health insurance scheme to 
protect against hospitalisation expenditure, facility of cooking gas connection for BPL families 
? Continue with the ongoing reform programme and ensure passage of the Goods and Service Tax bill and 
Insolvency and Bankruptcy law 
AGRICULTURE AND FARMERS’ WELFARE 
? Allocation for Agriculture and Farmers’ welfare is `35,984 crore 
? ‘Pradhan Mantri Krishi Sinchai Yojana’ to be implemented in mission mode. 28.5 lakh hectares will be brought 
under irrigation. 
? Implementation of 89 irrigation projects under AIBP, which are languishingfor a long time, will be fast tracked 
? A dedicated Long Term Irrigation Fund will be created in NABARD with an initial corpus of about ` 20,000 crore 
? Programme for sustainable management of ground water resources with an estimated cost of ` 6,000 crore 
will be implemented through multilateral funding 
? 5 lakh farm ponds and dug wells in rain fed areas and 10 lakh compost pits for production of organic manure 
will be taken up under MGNREGA 
? Soil Health Card scheme will cover all 14 crore farm holdings by March 2017. 
? 2,000 model retail outlets of Fertilizer companies will be provided with soil and seed testing facilities during 
the next three years 
? Promote organic farming through ‘Parmparagat Krishi Vikas Yojana’ and 'Organic Value Chain Development in 
North East Region'. 
? Unified Agricultural Marketing ePlatform to provide a common emarket platform for wholesale markets 
? Allocation under Pradhan Mantri Gram Sadak Yojana increased to ` 19,000 crore. Will connect remaining 
65,000 eligible habitations by 2019. 
 
 
? To reduce the burden of loan repayment on farmers, a provision of ` 15,000 crore has been made in the BE 
2016-17 towards interest subvention. 
? Allocation under Prime Minister Fasal Bima Yojana`5,500 crore. 
? ` 850 crore for four dairying projects - ‘Pashudhan Sanjivani’, ‘Nakul Swasthya Patra’, ‘E-Pashudhan Haat’ and 
National Genomic Centre for indigenous breeds 
RURAL SECTOR 
? Allocation for rural sector-`87,765 crore. 
? ` 2.87 lakh crore will be given as Grant in Aid to Gram Panchayats and Municipalities as per the 
recommendations of the 14th Finance Commission 
? Every block under drought and rural distress will be taken up as an intensive Block under theDeen Dayal 
AntyodayaMission 
? A sum of`38,500 crore allocated for MGNREGS. 
? 300 Rurban Clusters will be developed under the Shyama Prasad 
SOCIAL SECTOR INCLUDING HEALTH CARE 
? Allocation for social sector including education and health care – `1,51,581 crore. 
? ` 2,000 crore allocated for initial cost of providing LPG connections to BPL families. 
? New health protection scheme will provide health cover up to ` One lakh per family. For senior citizens an 
additional top-up package up to` 30,000 will be provided. 
? 3,000 Stores under Prime Minister’s Jan Aushadhi Yojana will be opened during 2016-17. 
? ‘National Dialysis Services Programme’ to be started under National Health Mission through PPP mode 
? “Stand Up India Scheme” to facilitate at least two projects per bank branch. This will benefit at least 2.5 lakh 
entrepreneurs. 
? National Scheduled Caste and Scheduled Tribe Hub to be set up in partnership with industry associations 
? Allocation of ` 100 crore each for celebrating the Birth Centenary of Pandit Deen Dayal Upadhyay and the 
350th Birth Anniversary of Guru Gobind Singh. 
INFRASTRUCTURE AND INVESTMENT 
? Total investment in the road sector, including PMGSY allocation, would be`97,000 crore during 2016-17. 
? India’s highest ever kilometres of new highways were awarded in 2015. To approve nearly 10,000 kmsof 
National Highways in 2016-17. 
? Allocation of ` 55,000 crore in the Budget for Roads. Additional ` 15,000 crore to be raised by NHAI through 
bonds. 
? Total outlay for infrastructure-`2,21,246crore. 
? Amendments to be made in Motor Vehicles Act to open up the road transport sector in the passenger 
segment 
? Action plan for revival of unserved and underserved airports to be drawn up in partnership with State 
Governments. 
? To provide calibrated marketing freedom in order to incentivise gas production from deep-water, ultra deep-
water and high pressure-high temperature areas ? Comprehensive plan, spanning next 15 to 20 years, to 
augment the investment in nuclear power generation to be drawn up. 
FISCAL DISCIPLINE 
? Fiscal deficit in RE 2015-16 and BE 2016-17 retained at3.9% and 3.5%. 
? Revenue Deficit target from 2.8% to 2.5% in RE 2015-16 ? Total expenditure projected at` 19.78 lakh crore 
? Plan expenditure pegged at ` 5.50 lakh crore under Plan, increase of 15.3% 
? Non-Plan expenditure kept at`14.28 lakh crores 
? Special emphasis to sectors such as agriculture, irrigation, social sector including health, women and child 
development, welfare of Scheduled Castes and Scheduled Tribes, minorities, infrastructure. 
? Mobilisation of additional finances to the extent of ` 31,300 crore by NHAI, PFC, REC, IREDA, NABARD and 
Inland Water Authority by raising Bonds. 
 
 
 
? Plan / Non-Plan classification to be done away with from 2017-18. 
RELIEF TO SMALL TAX PAYERS 
? Raise the ceiling of tax rebate under section 87A from `2000 to `5000 to lessen tax burden on individuals with 
incomeupto`5 laks. 
? Increase the limit of deduction of rent paid under section 80GG from `24000 per annum to `60000, to provide 
relief to those who live in rented houses. 
BOOST EMPLOYMENT AND GROWTH 
? Increase the turnover limit under Presumptive taxation scheme under section 44AD of the Income Tax Act to ` 
2 crores to bring big relief to a large number of assesses in the MSME category. 
? Extend the presumptive taxation scheme with profit deemed to be 50%, to professionals with gross receipts 
up to `50 lakh. 
? Phasing out deduction under Income Tax: a) Accelerated depreciation wherever provided in IT Act will be 
limited to maximum 40% from 1.4.2017 b) Benefit of deductions for Research would be limited to 150% from 
1.4.2017 and 100% from 1.4.2020 c) Benefit of section 10AA to new SEZ units will be available to those units 
which commence activity before 31.3.2020. d) The weighted deduction under section 35CCD for skill 
development will continue up to 1.4.2020 
? Corporate Taxrate proposals: a) New manufacturing companies incorporated on or after 1.3.2016 to be given 
an option to be taxed at 25% + surcharge and cess provided they do not claim profit linked or investment 
linked deductions and do not avail of investment allowance and accelerated depreciation.b) Lower the 
corporate tax rate for the next financial year for relatively small enterprises i.e companies with turnover not 
exceeding ` 5 crore (in the financial year ending March 2015), to 29% plus surcharge and cess. ? 100% 
deduction of profits for 3 out of 5 years for startups setup during April,2016 to March,2019. MAT will apply in 
such cases. 
? 10% rate of tax on income from worldwide exploitation of patents developed and registered in India by a 
resident. 
? Complete pass through of income-tax to securitization trusts including trusts of ARCs. Securitisation trusts 
required to deduct tax at source. 
? Period for getting benefit of long term capital gain regime in case of unlisted companies is proposed to be 
reduced from three to two years. 
? Non-banking financial companies shall be eligible for deduction to the extent of 5% of its income in respect of 
provision for bad and doubtful debts. 
? Determination of residency of foreign company on the basis of Place of Effective Management (POEM) is 
proposed to be deferred by one year. 
? Commitment to implement General Anti Avoidance Rules (GAAR) from 1.4.2017. 
? Exemption of service tax on services provided under Deen Dayal Upadhyay Grameen Kaushalya Yojana and 
services provided by Assessing Bodies empanelled by Ministry of Skill Development & Entrepreneurship. 
? Exemption of Service tax on general insurance services provided under ‘Niramaya’ Health Insurance Scheme 
launched by National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and 
Multiple Disability. 
? Basic custom and excise duty on refrigerated containers reduced to 5% and 6%. 
TECHNOLOGY FOR ACCOUNTABILITY 
? Expansion in the scope of e-assessments to all assessees in 7 mega cities in the coming years. 
? Interest at the rate of 9% p.a against normal rate of 6% p.a for delay in giving effect to Appellate order beyond 
ninety days. 
? ‘e-Sahyog’ to be expanded to reduce compliance cost, especially for small taxpayers. 
Page 5


 
 
Abhimanu 
Weekly current affairs Series 
 
 
 
 
 
Week: IV, Feb 2016 
 
 
 
 
 
Abhimanu’s IAS Study Group 
Chandigarh 
 
 
 
 
NATIONAL ECONOMIC AFFAIRS 
Budget 2016-17 
INTRODUCTION 
? Growth of Economy accelerated to 7.6% in 2015-16. 
? India hailed as a ‘bright spot’ amidst a slowing global economy by IMF. 
? Foreign exchange reserves touched highest ever level of about 350 billion US dollars. 
CHALLENGES IN 2016-17 
? Risks of further global slowdown and turbulence. 
? Additional fiscal burden due to 7th Central Pay Commission recommendations and OROP. 
ROADMAP&PRIORITIES 
? 'Transform India' to have a significant impact on economy and lives of people. 
? Government to focus on– a) ensuring macro-economic stability and prudent fiscal management. B) boosting 
on domestic demand c) continuing with the pace of economic reforms and policy initiatives to change the lives 
of our people for the better. 
? Focus on enhancing expenditure in priority areas of - farm and rural sector, social sector, infrastructure sector 
employment generation and recapitalisation of the banks. 
? Focus on Vulnerable sections through: Pradhan Mantri Fasal Bima Yojana, New health insurance scheme to 
protect against hospitalisation expenditure, facility of cooking gas connection for BPL families 
? Continue with the ongoing reform programme and ensure passage of the Goods and Service Tax bill and 
Insolvency and Bankruptcy law 
AGRICULTURE AND FARMERS’ WELFARE 
? Allocation for Agriculture and Farmers’ welfare is `35,984 crore 
? ‘Pradhan Mantri Krishi Sinchai Yojana’ to be implemented in mission mode. 28.5 lakh hectares will be brought 
under irrigation. 
? Implementation of 89 irrigation projects under AIBP, which are languishingfor a long time, will be fast tracked 
? A dedicated Long Term Irrigation Fund will be created in NABARD with an initial corpus of about ` 20,000 crore 
? Programme for sustainable management of ground water resources with an estimated cost of ` 6,000 crore 
will be implemented through multilateral funding 
? 5 lakh farm ponds and dug wells in rain fed areas and 10 lakh compost pits for production of organic manure 
will be taken up under MGNREGA 
? Soil Health Card scheme will cover all 14 crore farm holdings by March 2017. 
? 2,000 model retail outlets of Fertilizer companies will be provided with soil and seed testing facilities during 
the next three years 
? Promote organic farming through ‘Parmparagat Krishi Vikas Yojana’ and 'Organic Value Chain Development in 
North East Region'. 
? Unified Agricultural Marketing ePlatform to provide a common emarket platform for wholesale markets 
? Allocation under Pradhan Mantri Gram Sadak Yojana increased to ` 19,000 crore. Will connect remaining 
65,000 eligible habitations by 2019. 
 
 
? To reduce the burden of loan repayment on farmers, a provision of ` 15,000 crore has been made in the BE 
2016-17 towards interest subvention. 
? Allocation under Prime Minister Fasal Bima Yojana`5,500 crore. 
? ` 850 crore for four dairying projects - ‘Pashudhan Sanjivani’, ‘Nakul Swasthya Patra’, ‘E-Pashudhan Haat’ and 
National Genomic Centre for indigenous breeds 
RURAL SECTOR 
? Allocation for rural sector-`87,765 crore. 
? ` 2.87 lakh crore will be given as Grant in Aid to Gram Panchayats and Municipalities as per the 
recommendations of the 14th Finance Commission 
? Every block under drought and rural distress will be taken up as an intensive Block under theDeen Dayal 
AntyodayaMission 
? A sum of`38,500 crore allocated for MGNREGS. 
? 300 Rurban Clusters will be developed under the Shyama Prasad 
SOCIAL SECTOR INCLUDING HEALTH CARE 
? Allocation for social sector including education and health care – `1,51,581 crore. 
? ` 2,000 crore allocated for initial cost of providing LPG connections to BPL families. 
? New health protection scheme will provide health cover up to ` One lakh per family. For senior citizens an 
additional top-up package up to` 30,000 will be provided. 
? 3,000 Stores under Prime Minister’s Jan Aushadhi Yojana will be opened during 2016-17. 
? ‘National Dialysis Services Programme’ to be started under National Health Mission through PPP mode 
? “Stand Up India Scheme” to facilitate at least two projects per bank branch. This will benefit at least 2.5 lakh 
entrepreneurs. 
? National Scheduled Caste and Scheduled Tribe Hub to be set up in partnership with industry associations 
? Allocation of ` 100 crore each for celebrating the Birth Centenary of Pandit Deen Dayal Upadhyay and the 
350th Birth Anniversary of Guru Gobind Singh. 
INFRASTRUCTURE AND INVESTMENT 
? Total investment in the road sector, including PMGSY allocation, would be`97,000 crore during 2016-17. 
? India’s highest ever kilometres of new highways were awarded in 2015. To approve nearly 10,000 kmsof 
National Highways in 2016-17. 
? Allocation of ` 55,000 crore in the Budget for Roads. Additional ` 15,000 crore to be raised by NHAI through 
bonds. 
? Total outlay for infrastructure-`2,21,246crore. 
? Amendments to be made in Motor Vehicles Act to open up the road transport sector in the passenger 
segment 
? Action plan for revival of unserved and underserved airports to be drawn up in partnership with State 
Governments. 
? To provide calibrated marketing freedom in order to incentivise gas production from deep-water, ultra deep-
water and high pressure-high temperature areas ? Comprehensive plan, spanning next 15 to 20 years, to 
augment the investment in nuclear power generation to be drawn up. 
FISCAL DISCIPLINE 
? Fiscal deficit in RE 2015-16 and BE 2016-17 retained at3.9% and 3.5%. 
? Revenue Deficit target from 2.8% to 2.5% in RE 2015-16 ? Total expenditure projected at` 19.78 lakh crore 
? Plan expenditure pegged at ` 5.50 lakh crore under Plan, increase of 15.3% 
? Non-Plan expenditure kept at`14.28 lakh crores 
? Special emphasis to sectors such as agriculture, irrigation, social sector including health, women and child 
development, welfare of Scheduled Castes and Scheduled Tribes, minorities, infrastructure. 
? Mobilisation of additional finances to the extent of ` 31,300 crore by NHAI, PFC, REC, IREDA, NABARD and 
Inland Water Authority by raising Bonds. 
 
 
 
? Plan / Non-Plan classification to be done away with from 2017-18. 
RELIEF TO SMALL TAX PAYERS 
? Raise the ceiling of tax rebate under section 87A from `2000 to `5000 to lessen tax burden on individuals with 
incomeupto`5 laks. 
? Increase the limit of deduction of rent paid under section 80GG from `24000 per annum to `60000, to provide 
relief to those who live in rented houses. 
BOOST EMPLOYMENT AND GROWTH 
? Increase the turnover limit under Presumptive taxation scheme under section 44AD of the Income Tax Act to ` 
2 crores to bring big relief to a large number of assesses in the MSME category. 
? Extend the presumptive taxation scheme with profit deemed to be 50%, to professionals with gross receipts 
up to `50 lakh. 
? Phasing out deduction under Income Tax: a) Accelerated depreciation wherever provided in IT Act will be 
limited to maximum 40% from 1.4.2017 b) Benefit of deductions for Research would be limited to 150% from 
1.4.2017 and 100% from 1.4.2020 c) Benefit of section 10AA to new SEZ units will be available to those units 
which commence activity before 31.3.2020. d) The weighted deduction under section 35CCD for skill 
development will continue up to 1.4.2020 
? Corporate Taxrate proposals: a) New manufacturing companies incorporated on or after 1.3.2016 to be given 
an option to be taxed at 25% + surcharge and cess provided they do not claim profit linked or investment 
linked deductions and do not avail of investment allowance and accelerated depreciation.b) Lower the 
corporate tax rate for the next financial year for relatively small enterprises i.e companies with turnover not 
exceeding ` 5 crore (in the financial year ending March 2015), to 29% plus surcharge and cess. ? 100% 
deduction of profits for 3 out of 5 years for startups setup during April,2016 to March,2019. MAT will apply in 
such cases. 
? 10% rate of tax on income from worldwide exploitation of patents developed and registered in India by a 
resident. 
? Complete pass through of income-tax to securitization trusts including trusts of ARCs. Securitisation trusts 
required to deduct tax at source. 
? Period for getting benefit of long term capital gain regime in case of unlisted companies is proposed to be 
reduced from three to two years. 
? Non-banking financial companies shall be eligible for deduction to the extent of 5% of its income in respect of 
provision for bad and doubtful debts. 
? Determination of residency of foreign company on the basis of Place of Effective Management (POEM) is 
proposed to be deferred by one year. 
? Commitment to implement General Anti Avoidance Rules (GAAR) from 1.4.2017. 
? Exemption of service tax on services provided under Deen Dayal Upadhyay Grameen Kaushalya Yojana and 
services provided by Assessing Bodies empanelled by Ministry of Skill Development & Entrepreneurship. 
? Exemption of Service tax on general insurance services provided under ‘Niramaya’ Health Insurance Scheme 
launched by National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and 
Multiple Disability. 
? Basic custom and excise duty on refrigerated containers reduced to 5% and 6%. 
TECHNOLOGY FOR ACCOUNTABILITY 
? Expansion in the scope of e-assessments to all assessees in 7 mega cities in the coming years. 
? Interest at the rate of 9% p.a against normal rate of 6% p.a for delay in giving effect to Appellate order beyond 
ninety days. 
? ‘e-Sahyog’ to be expanded to reduce compliance cost, especially for small taxpayers. 
 
 
 
Railway Budget , 2016-17 
Railway Minister Suresh Prabhu on 25 February 2016 presented the Railway Budget 2016-17 in the Lok Sabha. In 
his second Rail Budget, Prabhu outlined a capital plan of 121000 crore rupees in 2016-17. A saving of 8720 crore 
rupees for Budget estimates of 2015-16 will be effected in 2016. 
Theme of the Budget is Overcoming challenges – Reorganize, Restructure Rejuvenate Indian Railways: ‘Chalo, 
Milkar Kuch Naya Karen’. 
Railway Budget of 2016-17 is based on three pillars and they are Nav Arjan (New Revenues), Nav Manak (New 
Norms) and New Sanrachna (New Structures). 
Nav Arjan (New Revenues) 
It exploits new sources of revenue so that every asset, tangible or non-tangible gets optimally monetized. 
New Manak (New Norms) 
A Zero Budgeting approach to the financials of the ensuring year, improvement in efficiency yardsticks and 
procurement practices to bring them in line with international best practices 
Nav Sanrachna (New Structures) 
Need to re-imagine the conventional ways of solving issues like co-operation, collaboration and communication, 
creativity and communication to the hallmark of decision-making and actions 
Highlights: 
?  To ease the worries of common man, this year’s Rail Budget 2016-17 comes up with no hike in passenger fare. 
?  Setting aside Rs 50 cr to fund startups by railway employee. 
? 2 month internships in Railways for 100 students across Engineering & MBA. 
? To introduce National Rail Plan to harmonise network & set up a new R&D organization. 
? Drones to be used for remote monitoring physical monitoring of ongoing projects. 
? 100 terrabytes of data created annually. These to be analysed systematically 
? 33% sub-quota for women under all reserved categories. 
? Increase the advertising revenue by more than four times this year. 
? To give special focus to exploring advertising potentials at big stations. 
? In-principal nod for MUTP(Mumbai Urban Transport Project) projects received.  
? Container sector will be open to all traffic barring coal & select ores 
? India's first rail auto hub to come up in Chennai. 
? To inaugurate dedicated rail auto hub in Chennai & explore the possibility of leasing out general purpose 
wagons. 
? Railways to increase share of non-tariff revenues from the current level of 5% 
? To publish Rail Bandhu magazine in all regional languages. 
? Rail side logistic parks and warehouses proposed for capacity building of terminals 
? All new Railway stations to be built as per Accessible India guidelines. 
? IRCTC will make available local cuisine of choice, hygienic food. 
? "Coolies" will be called as "Sahayak". 
? New policy of multi-purpose stalls at station to provide multiple services like milk and medicines. 
? Local cuisine of choice will be made available to passengers 
? Third party audit on catering, and there will be reservation for SC/ST and for women in catering. 
? Introduce Antyodaya Express, superfast train for long routes 
?  Introduced Sarthi Seva in Konkan Railways for help to senior citizens 
? 'Clean my coach' service through sms on pan-india basis 
Read More
Offer running on EduRev: Apply code STAYHOME200 to get INR 200 off on our premium plan EduRev Infinity!

Related Searches

Extra Questions

,

Exam

,

practice quizzes

,

Semester Notes

,

Viva Questions

,

Sample Paper

,

Current Affairs Feb Week IV UPSC Notes | EduRev

,

MCQs

,

Free

,

Current Affairs Feb Week IV UPSC Notes | EduRev

,

study material

,

Objective type Questions

,

shortcuts and tricks

,

Important questions

,

video lectures

,

mock tests for examination

,

pdf

,

Previous Year Questions with Solutions

,

past year papers

,

Current Affairs Feb Week IV UPSC Notes | EduRev

,

ppt

,

Summary

;