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UNIVERSITY OF PETROLEUM & ENERGY STUDIES


College of Management and Economics Studies, Dehradun

IMPACT OF UNION BUDGET 2016-17


(Synopsis)

GEETIKA ARORA
500035783

R128214015

Submitted under the guidance of: Dr. Vipul Sharma

This dissertation synopsis is submitted in partial fulfilment of the degree of


B.B.A (FINANCIAL SERVICES & MARKETING)
TABLE OF CONTENTS

Executive summary

Introduction

Challenges in 2016-2017

Overview of the Union Budget

Research methodology

Objectives of the study

Impact of The budget

Conclusion

Annexure
Executive Summary

The Research Project Impact of Union budget 2016-2017 on various sectors


concentrates on the Union Budget presented by Arun Jaitley on 29th February 2016 and
the impact of it on various sectors. The sectors covered in this particular project are as
follows:

Social Sector (including healthcare)

Financial sector reforms

Make in india

It contains all the various numerical and percentages changes in various sectors as well as
the part of the budget allocated to the sectors. Detailed changes and reforms to be
expected in the particular sectors have also been given in project.

All the details regarding where a rupee comes from and where will it allocated have also
been shown.
INTRODUCTION

2016aUnion budget of India is the annual financial statement of India for the fiscal year
2016 - 2017. It was presented on 29th February, 2016 by the Finance Minister of
India, Mr . Arun Jaitley. Printing of the budget documents began with a
traditional Halwa ceremony on 19 February 2016. For Budget 20l6-2017, the government
invited suggestions from citizens through Twitter for the first time, even conducting a
series of polls to gauge public priorities as well as expectations from the Budget

Growth of Economy accelerated to 7.6% in 2015-16.

India seen as a bright spot among a slowing global economy by IMF.

Vigorous growth achieved in spite of very unfavorable global conditions

and two consecutive years shortfall by 13%

Foreign exchange reserves reached highest level ever of about 350


billion dollars.

CHALLENGES IN 2016-17
Risks of more global slowdown as well as turbulence.

Additional burden (fiscal) due to 7th Central Pay Commission


Recommendations as well as OROP.
Overview of the Budget

'Transform India' to have a significant impact on economy and lives of people.

Government to focus on
ensuring macro-economic stability and prudent fiscal management.
boosting on domestic demand
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 hospitalization 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

Undertake important reforms by:


giving a statutory backing to AADHAR platform to ensure benefits reach the
deserving.
freeing the transport sector from constraints and restrictions
incentivising gas discovery and exploration by providing calibrated marketing
freedom
enactment of a comprehensive law to deal with resolution of financial firms
provide legal framework for dispute resolution and re-negotiations in PPP projects
and public utility contracts
undertake important banking sector reforms and public listing of general
insurance companies undertake significant changes in FDI policy.
RESEARCH METHODOLOGY

Achieving accuracy in any research requires a deep study regarding the subject. The
prime objective of the project is to give financial statements regarding the Budget
2016-2017 as well as comparing it with Budget 2015-2016

The research methodology adopted is basically based on secondary data via which the
most recent and accurate piece of Government issued numbers as well as percentages
could be collected.

Type of Research Methodology

Thereotical research:The research was done by analyzing the Union budget as stated by
Mr. .Arun Jaitley

Comparitive research: Union budget 2016-17 vs Union Budget union budget 2015-2016

Quantitative research: This type of research methods requires quantifiable data


involving numerical and statistical explanations. Quantitative Research is used to
quantify the problem by way of generating numerical data or data that can be transformed
into usable statistics

DATA COLLECTION METHOD

There two type of method of data collection

Primary data(Observation method)


Secondary data
Analysis of Data Collection

In order to present the report with a pragmatic approach along with the theoretical aspect
Secondary data will be used and analysed in this research.

OBJECTIVES OF THE STUDY

The Union Budget is presented in the public so as to inform the public of the estimation
of revenue and expenditure which would be incurred by the government in the following
financial year. Union Budget is an elaborative study backed by experts.

It is important so as to know whether growth and development is taking place, and


in which particular sectors.

A estimation regarding the numbers associated with the Part of the budget for the
particular sector can also be known.

It enables a comparison with previous Union Budgets which shows the percentage
change, may it be positive or negative, to showcase the highlighted sectors

It informs people about the working of the government and estimations of funds
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SOCIAL SECTOR INCLUDING HEALTH CARE

Allocation for social sector including education and health care `1,51,581 crore.

rs2,000 crore allocated for initial cost of providing LPG connections to BPL families.

New health protection scheme will provide health cover up to rsOne lakh per family.
For senior citizens an additional top-up package up to rs30,000 will be provided.

3,000 Stores under Prime Ministers 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 rs100 crore each for celebrating the Birth Centenary of Pandit Deen Dayal
Upadhyay and the 350th Birth Anniversary of Guru Gobind Singh.

FINANCIAL SECTOR REFORMS

A comprehensive Code on Resolution of Financial Firms to be introduced.

Statutory basis for a Monetary Policy framework and a Monetary Policy Committee
through the Finance Bill 2016.

A Financial Data Management Centre to be set up.

RBI to facilitate retail participation in Government securities.


New derivative products will be developed by SEBI in the Commodity Derivatives
market.

Amendments in the SARFAESI Act 2002 to enable the sponsor of an ARC to hold up to
100% stake in the ARC and permit non institutional investors to invest in Securitization
Receipts.

Comprehensive Central Legislation to be bought to deal with the menace of illicit


deposit taking schemes.

Increasing members and benches of the Securities Appellate Tribunal.

Allocation of rs25,000 crore towards recapitalisation of Public Sector Banks.

Target of amount sanctioned under Pradhan Mantri Mudra Yojana increased to


rs1,80,000 crore.

General Insurance Companies owned by the Government to be listed in the stock


exchanges.

MAKE IN INDIA

Changes in customs and excise duty rates on certain inputs to reduce costs and improve
competitiveness of domestic industry in sectors like Information technology hardware,
capital goods, defence production, textiles, mineral fuels & mineral oils, chemicals &
petrochemicals,
paper, paperboard & newsprint, Maintenance repair and overhauling [MRO] of aircrafts
and ship repair.
CONCLUSION

Union Budget 2016 has struck a fine balance between fiscal prudence and providing
growth boost to the economy. The Budget is turning more towards rural consumption,
which in light of consecutive unfortunate monsoons steps will strengthen the India
consumption story which is reliant on rural consumption. As expected, the Budget has
laid emphasis on infrastructure specially roads, it is also about higher taxation for the
elite class and effective utilization of the same proceeds towards the growth and
development story of India.

References

Online References:

1. indiabudget.nic.in

2. http://forbesindia.com/article/budget-2016/union-budget-2016-highlights/
42499/1

Offline References:

1. Forbes magazine- Article on impact of Union Budget presented by Arun


Jaitley

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