Budget 2016 : Questions with Solutions for Objective exams

What is Budget?  - Starts from here, basics about budget. 

The finance minster of NDA govt. Arun jaitley presents Union Budget 2015.  
we all know by getting a majority mandate in the lok sabha elections which result in single government rather than a collation govt.,  
this results as a Global Situation is Favorable to the Country as more and more Investors are
Showing Curiosity and Interest in India; 
the main Aim is to move Towards National Common interests. Market for Agricultural Commodities and Improve the Supply Chain.
Finance Minister Arun Jaitley lists 5 challenges in his Budget speech- 


  1. Agricultural incomes, 
  2. public investment in infrastructure, 
  3. manufacturing has declined and export remains stagnant, 
  4. fiscal discipline is needed, 
  5. meeting fiscal deficit

Highlights of Union Budget: 2015 -16:
  • Indian gold coin with Ashok Chakra will soon introduce.
  • PAN number quoting made compulsory for transactions for more than 1 Lakh
  • Increase exemption on health insurance premium to Rs 25,000 from current Rs 15,000
  • Benami Property Transaction Bill will help tackle black money transactions in real estate soon.
  • Rigorous imprisonment of 10 years under Black Money Law.
  • Budget estimates of expenditure:17 .77 lakh cr, of which Non Plan is 13.12 lakh cr, and Plan is 4.65 lakh cr
  • Another Rs 1,000 crore to Nirbhaya fund.
  • GAAR implementation deferred by 2 years to April 2017.


Taxation:
  • No change in personal Income Tax.
  • Additional 2% surcharge on people earning over Rs 1 cr; to fetch Rs 9,000 crore.
  • Service Tax rate hiked to 14%, from 12.36%.
  • Expects to implement goods and services tax by April 2016.
  • Wealth tax to abolished.
  • Rate of corporate tax to be reduced to 25% over next four years.
  • 100% exemption for contribution to Swachch Bharat, apart from CSR.
  • Total exemption of up to Rs. 4,44,200 can be achieved.


Fiscal/ Revenue  deficit
  • Current account deficit below 1.3 percent of GDP.
  • Fiscal deficit seen at 3.9 pct of GDP in 2015/16.
  • Remain committed to meeting medium term fiscal deficit target of 3 pct of GDP.
  • Revenue Deficit to be 2.8% in 2015-16.
  • Will meet the challenging fiscal target of 4.1 pct of GDP.


Growth
  • Aiming double digit growth rate, achievable soon.
  • GDP growth seen at between 8 % to 8.5 %.


Inflation
  • Expects consumer inflation to remain close to 5 percent by March, opening room for more monetary policy easing.
  • Monetary policy framework agreement with the RBI clearly states objective of keeping inflation below 6 percent.


Agriculture:
  • Rs. 25,000 crore for Rural Infrastructure Development Bank.
  • In order to improve soil health, the Agriculture Ministry's organic farming programme.
  • Rs. 5,300 crore for micro-irrigation watershed projects.
  • Farmers credit - targets of 8.5 lakh.


Infrastructure:
  • Rs. 70,000 crores to Infrastructure sector.
  • Tax-free bonds for projects in rail road and irrigation.
  • PPP model for infrastructure development to be revitalised and govt. to bear majority of the risk.
  • Second unit of Kudankulam nuclear power station to be commissioned in 2015/16.
  • Rs. 150 crore allocated for Research & Development.
  • NITI to be established and involvement of entrepreneurs, researchers to foster scientific innovations.
  • Govt. proposes to set up 5 ultra mega power projects, each of 4000 MW.


Education:
  • IIM for Jammu and Kashmir and Andhra Pradesh.
  • AIIMS in Jammu and Kashmir, Punjab, Tamil Nadu, Himachal Pradesh, Bihar and Assam.
  • IIT in Karnataka; Indian Institute of Mines in Dhanbad to be upgraded to IIT.
  • PG institute of Horticulture in Armtisar.
  • Kerala to have University of Disability Studies.
  • Centre of film production, animation and gaming to come up in Arunachal Pradesh.


Defence:
  • Rs. 2,46,726 crore for Defence.
  • Focus on Make in India for quick manufacturing of Defence equipment.


Welfare Schemes:
  • 50,000 toilets constructed under Swachh Bharath Abhiyan.
  • Housing for all by 2020.
  • Up-gradation 80,000 secondary schools.
  • DBT will be further be expanded from 1 crore to 10.3 crore.
  • New scheme for physical aids and assisted living devices for people aged over 80.
  • Govt to use Rs. 9000 crore unclaimed funds in PPF/EPF for Senior Citizens Fund.
  • Rs. 5,000 crore additional allocation for MGNREGA.
  • Nayi Manzil scheme - to enable minority youth to obtain school leaving certificate and gain better employment.
  • Pradhan Mantri Jeevan Jyoti Bima Yojana - Rs. 1 per day premium, Rs. 2 lakh coverage. Accident death risk - Rs 2 lakhs for a premium of Rs. 12 per year.
  • For the Atal Pension Yojna, govt. will contribute 50% of the premium limited to Rs. 1000 a year


Renewable Energy:
  • Rs. 75 crore for electric cars production.
  • Renewable energy target for 2022: 100K MW in solar; 60K MW in wind; 10K MW in biomass and 5K MW in small hydro.


Tourism
  • Development schemes for churches and convents in old Goa; Hampi, Elephanta caves, Forests of Rajasthan, Leh palace, Varanasi , Jallianwala Bagh, Qutb Shahi tombs at Hyderabad to be under the new tourism scheme.
  • Visa on Arrival for 150 countries
  • GDP growth will accelerate to 7.4%


Financial Sector
  • NBFCs registered with RBI above Rs. 5,000 crore to be considered financial institutions.
  • Development of Mudra Bank with corpus of Rs. 20,000 crore for micro-finance to help SC/ST entrepreneur


Policy reforms
  • Propose to create a universal social security system for all Indians.
  • Propose to merge commodities regulator with SEBI.
  • Allocates 346.99 billion rupees for rural employment guarantee scheme in 2015/16.
  • To bring a new bankruptcy code in 2015/16.
  • FM said: He will move to amend the RBI act this year, and provide for a monetary policy committee.
  • To set up public debt management agency.