Key Features of Budget 2016-17

ECONOMIC SURVEY 2015 HIGHLIGHTS

Revision of Syllabus for Group-I, Group-II and Group-IV

APPSC proposed and existing syllabus

Group I Syllabus       

Group II Syllabus
        
Group IV Syllabus

Highlights of Economic Survey 2015-16:

Indian economy would grow by between 7.0 per cent and 7.75 per cent in the 2016-17 fiscal year that starts on April 1.

Fiscal Deficit 

• 2016-17 expected to be challenging from fiscal point of view; time is right for a review of medium-term fiscal framework
• 2015-16 fiscal deficit, seen at 3.9 per cent of GDP, seems achievable
• Credibility and optimality argue for adhering to 3.5 per cent of GDP fiscal deficit target

Inflation 

• CPI inflation seen around 4.5 to 5 per cent in 2016-17
• Low inflation has taken hold, confidence in price stability has improved
• Expect RBI to meet 5 per cent inflation target by March 2017
• Prospect of lower oil prices over medium term likely to dampen inflationary expectations

Current Account Deficit 2016/17 current account deficit seen around 1-1.5 per cent of GDP

Currency 

• Rupee's value must be fair, avoid strengthening; fair value can be achieved through monetary relaxation
• India needs to prepare itself for a major currency readjustment in Asia in wake of a similar adjustment in China
• Rupee's gradual depreciation can be allowed if capital inflows are weak

Banking & Corporate Sector 

• Estimated capital requirement for banks around 1.8 trillion rupees by 2018-19
• Proposes to make 700 billion rupees available via budgetary allocations during current and succeeding years in banks
• Government could sell off certain non-financial companies to infuse capital in state-run banks
• Corporate, bank balance sheets remain stretched, affecting prospects for reviving private investments
• Underlying stressed assets in corporate sector must be sold or rehabilitated

Taxes 

• Tax revenue expected to be higher than budgeted levels in 2015-16
• Proposes widening tax net from 5.5 per cent of earning individuals to more than 20 per cent
• Favours review and phasing out of tax exemptions; easiest way to widen the tax base not to raise exemption thresholds

For more details on the Economic Survey 2015-16: Click here

HIGHLIGHTS OF RAILWAY BUDGET 2016-17

● Minister sees operating ratio of 92 percent in FY17 as against 90 percent in current year
● Rs 8,720 cr saving in 2015-16 budget in fuel cost like power
● The railways have ramped up capital expenditure to remove the huge backlog and provide for future needs; rate of capital expenditure has increased
● Investment proposed in 2016-17 at Rs 1.21 lakh crore, higher from Rs 1 lakh crore last year.
● Proposes to commission 2,800 km of new tracks in next year
● Outlay for railway electrification increased by 50 percent; 2,000 km route to be electrified next fiscal
● 2000 km rail route to be electrified in 2016-17
● Railways to get Rs 40,000 cr budgetary support from the government
● Railways to increase lower berth quota for senior citizens by 50 percent
● Ajmer, Amritsar, Gaya, Mathura, Nanded, Nashik, Puri, Tirupati, Varanasi, Nagapattinam and other pilgrim stations to be beautified
● Two elevated suburban railway corridors - Churchgate-Virar and CST-Panvel to be constructed in Mumbai; Ring railway covering 21 stations to be revived with state participation.
● India's first railway auto hub in Chennai to be inaugurated soon
● Logistics and warehouse parks to be created on PPP mode
● Station development and re-development, monetisation of land to raise rail revenue from non-freight sources
● Rs 30,000 crore is the loss on subsidising passenger fares, says Railway Minister
● Railways to shift to completely paperless contract system in 2016-17, says minister
● Bar-coded tickets to be introduced at select stations on pilot basis
● E-booking of tickets on concessional passes for journalists introduced
● Cleaning of coach on demand to be introduced; Disabled enabled toilet in 11 Class-A stations this year
● 33 percent reservation to women in reserved quota in Railways will be introduced
● Children menu to be introduced on pilot basis on trains
● North-South, East-West dedicated freight corridor proposed in Railway Budget for 2016-17
● Three direct services - fully air-conditioned Humsafer to travel at 130-km per hour
● Bar-coded tickets to be introduced at select stations on pilot basis
● Overnight double-decker train Uday Express to be introduced on busiest routes, carrying capacity to be 40 percent more
● Propose to start cancellation through 139. Bar-coded tickets will be issued on a pilot basis. This is aimed at reining in the menace of ticket less travel and also making travel hassle-free.
● 400 railway stations to be equipped with wifi, 100 this year
● 124 MPs have committed to contribute from MPLADS for passenger amenities.