Citizens' Issues
Budget will accomplish 'housing for all' dream: PM Modi
New Delhi : Prime Minister Narendra Modi on Monday hailed his Finance Minister Arun Jaitley for the poor-friendly general budget that will also fulfil their dream of owning a house.
 
"Ask a common man, ask a poor man. They have a dream to own a house… and the government can help them fulfil that dream," Modi said in his post-budget comments which were televised on national TV. 
 
Modi said the government in its budget has laid emphasis on "strengthening the houses sector and give a house to poor" in India.
 
"Through this budget, the housing sector will be strengthened and this will boost our dream of 'Housing for All'."
 
In his budget speech in the Lok Sabha, Jaitley said the government will provide assistance to those looking to purchase their first homes.
 
The finance minister announced deduction for additional interest of Rs.50,000 per annum for loans up to Rs.35 lakh sanctioned in 2016-17 for first time home buyers, where house cost does not exceed Rs.50 lakh.
 
The government also proposed to provide relief to millions of families living in rented houses in the country. "Deduction for rent paid will be raised from Rs 20,000 to Rs 60,000 to benefit those living in rented houses," Jaitley said.
 
Modi also said that the general budget was focused on the development of agriculture, farmers, women and rural areas.
 
"The budget clearly calls for electrifying all villages thus giving an impetus to rural infrastructure," he said in his comments.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

User

COMMENTS

Nanda Patel

12 months ago

1. poor does not pay tax. (so except subsidy there are no benefits, as one is not in the tax net at all)

2. by the governments definition of "poor". No bank is going to lend them any money (*earn bellow 32Rs/day or 10000 Rs/Year may be double that money as the numbers are from 2007 and still no bank is going to lend them). The income parity is just unfortunate in India.


This budget will benefit the lower middle class( mostly government employees)


*"Not poor if you earn Rs.32 a day: Planning Commission"(http://indiatoday.intoday.in/story/plann...

Fiscal deficit targets kept at 3.9 percent this year, 3.5 in 2017
New Delhi : Declaring that prudence lies in adhering to fiscal targets, Finance Minister Arun Jaitley on Monday retained the "much awaited figure" of fiscal deficit for the current financial year at 3.9 percent of GDP, and at 3.5 percent for 2016-17.
 
Presenting the union budget for the next fiscal in parliament. Jaitley said he had decided that prudence lies in adhering to fiscal targets, but while doing so he has also ensured that the development agenda is not compromised.
 
The finance minister said the estimate of revenue deficit for this fiscal has come down to 2.5 percent from the previous estimates.
 
The government has targeted reducing the fiscal deficit to 3.9 percent of the gross domestic product (GDP) in the current financial year, compared with four percent last year, and reduce it further to 3.5 percent in 2016-17.
 
The fiscal deficit for 2014-15 touched 4.1 percent of the gross domestic product.
 
The revised estimate (RE) of gross tax collections for this fiscal are around Rs.14.60 lakh crore, as against the budget estimate (BE) of nearly Rs.14.50 lakh crore. The budget estimate for the next fiscal on this count has been pegged at Rs.16.30 lakh crore.
 
The government's fiscal deficit target of 3.9 percent for the current fiscal "seems achievable", the 2015-16 Economic Survey said last week.
 
"Significant increase in revenue receipts, led by buoyant indirect tax collection, higher level of capital expenditure on the plan side, lower subsidies and enhanced untied resources transferred to the states following the acceptance of the recommendations of the 14th Finance Commission" were the basis of the government's optimism on this count.
 
"The coming year is expected to be a challenging one from the fiscal point of view because of challenges posed by a lower-than-projected nominal GDP growth," said the survey, which was presented in parliament on Friday.
 
"The chances of India's growth rate in 2016-17 increasing significantly beyond 2015-16 levels are not very high, due to likelihood of persistence of global slowdown," it said.
 
"The implementation of the Pay Commission recommendations and the 'One Rank One Pay' scheme will put additional burden on expenditure," it added.
 
Moody's Investors Service said earlier this month that India's fiscal position will remain weaker than other emerging economies in the near term even if fiscal consolidation continued on course.
 
"Even if the budgetary consolidation continues, India's fiscal metrics will remain weaker than rating peers in the near term, because of the relatively high levels of deficits and debts of India's state and central governments," Moody's said in a report.
 
"The importance of the upcoming budget lies in its message on the government's fiscal consolidation plans," the American agency said.
 
"But at around 63.8 percent of GDP, India's government debt ratio remains high compared with a median of 49.5 percent for Baa3-rated peers. Without continued fiscal consolidation, India's government finances will continue to compare poorly with the peers," it added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

User

Jaitley announces amnesty scheme on black money
New Delhi : Union Finance Minister Arun Jaitley on Monday announced a new amnesty scheme for those holding unaccounted money and assets to come clean by paying 45 percent of such wealth.
 
The government offers a compliance window to domestic tax payers to declare their past transgressions and come clean by paying 45 percent of the undisclosed income and assets (tax 30 percent, surcharge 7.5 percent and penalty 7.5 percent), Jaitley said while presenting the 2016-17 general budget in parliament.
 
"We plan to open the window under this Income Disclosure Scheme from June 1 to September 30, 2016, with an option to pay the due amount within two months of the declaration," the finance minister said.
 
Regarding the income shown in these declarations, there will be no scrutiny or enquiry under the Income Tax Act or the Wealth Tax Act and the declarants will have immunity from prosecution, Jaitley said.
 
Immunity from Benami Transaction (Prohibition) Act, 1988 is also proposed, subject to certain conditions.
 
The minister said after offering an opportunity to declare the concealed income, the government will focus all its resources on bringing people with black money to book.
 
"This shows that the government has launched a two-pronged attack on domestic black money - one by curbing the generation of black money, and second, by asking domestic tax evader to come clean by disclosing their undisclosed income and assets," Suraj Nangia, partner, Nangia & Co., told IANS.
 
He said the government is tackling the menace of domestic black money by effecting changes in rules to discourage cash transactions, compulsory reporting of Permanent Account Number and others.
 
The new amnesty scheme is yet another constructive step to kill the menace of domestic black money, Nangia added.
 
The 7.5 percent surcharge on the undisclosed income will be called Krishi Kalyan surcharge, which will be used for agriculture and rural economy.
 
Last October, the government said it had received 638 declarations regarding undisclosed foreign assets amounting to Rs.3,770 crore under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (the Act). 
 
Thirty percent tax and as much penalty was to be paid by December 31, 2015. The compliance window that opened on July 1, 2015, closed on September 30, 2015.
 
The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (the Act) has been enacted to deal with the menace of black money stashed abroad. 
 
The Act also provided for a compliance window for a limited period to people who have undisclosed foreign assets which they had not disclosed for the purposes of income tax so far.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

User

COMMENTS

Subramani P K

12 months ago

Unless drastic steps are taken just like raid by high level anti corruption agencies,arrest of the culprits, confiscate the unaccounted wealth and stringent punishment bringing out black money is a very difficult task. Without fear or favour immediate action should be taken to organize raids by ED, IT & other agencies as done in the case of Karthi chithambaram.

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)