Understanding the Business Impact of Union Budget 2016
The Finance Minister presented the Union Budget 2016 proposals with an agenda to ‘Transform India’. Read Deloitte India's brief highlights of the key budget proposals impacting the industry sectors.
- Energy & Resources
- Infrastructure & Public Sector
- Financial Services
- Life Sciences & Health Care
Energy & Resources
The budget is on expected lines for the Energy & Resources sector. The fifth pillar of the budget theme is about Infrastructure (including energy & resources) and investments. The budget confirms the Government policy to revive the investments in these sector by addressing the root problems impacting these sector. On the tax front, the roadmap for phasing out of exemptions/deductions has been laid down now with specific sunset dates.
Infrastructure & Public Sector
Largely, the budget is on expected lines for the Infrastructure sector and confirms the Government policy to revive investments in this sector by addressing the root problems. At the same time, certain positive highlights are allowing investment linked tax incentives for infrastructure facility and restoring service tax exemptions with retrospective effect on construction of port and airport.
Though the focus of the budget has been on agriculture, rural economy and development of the infrastructure sector, the expenditure on such activities should boost the ‘Make in India’ initiative of the Government. Also, the Government has rationalized indirect taxes to give more thrust to domestic manufacturing.
The budget announced a couple of Financial Services reforms that inter-alia includes allocation of Rs. 25,000 crore towards recapitalisation of public sector banks and giving a pass-through status of Securitization trust for tax purposes to clean up NPAs. Further, many amendments have been proposed related to Business Trust, AIF, IFSC, among others.
Life Sciences & Health Care
Government has considered ‘Social Sector including Healthcare’ as one of the pillars in the transformation process; there have been some good announcements made with regard to welfare and health services. Deloitte has prepared brief highlights of the key budget proposals impacting the Life Sciences & Health Care sector.
The Finance Minister, in his budget speech, described the agenda to ‘Transform India’ based on nine distinctive pillars. The first of the pillars is ‘Agriculture and farmer’s welfare’ and there have been substantial announcements made with regard to establishing a robust system for advancement of agriculture. These announcements touch upon several niche areas to give a platform to the farmers to progress on the growth trajectory. This reinforces the fact that agriculture is the backbone of the Indian economy.
Besides Agriculture, other proposals impacting the consumers have been announced. This report summarises the proposals that affect the consumer business industry.