Economic Survey is an annual

commentary on the state of the

economy of India which is put together
by Finance Ministry of India.

provides an opportunity for the

government of India to spell out its
economic agenda
 GDP growth rate in India is seen in range of 7 to 7.75 per cent in
2016-17

Fiscal deficit of 3.9 pc achievable

Inflation rate pegged at 4.5 to 5 %

Current account deficit seen around 1-1.5% of GDP

survey was prepared by the finance ministrys chief

economic adviser Arvind Subramanian
 India haven of stability amidst gloomy global landscape.

Crude oil prices to be about USD 35 a barrel next fiscal, as against USD 45
this year.

Low inflation takes hold, price stability has increased.

Pay Commission implementation not to destabilize prices.

Challenging external environment to cast shadow on economic policies.

Subsidy bill to be below 2% of GDP next fiscal.

 Suggests revival of domestic demand as foreign capital
outflow likely.
Sees good performance by industrial, infrastructure,
corporate sectors due to recent reform.
More investment in health, education; focus on
agriculture.
Government tax revenues to be higher than budgeted.
Exports slowdown to continue; pick up in next fiscal.
India should resist protectionist measures in trade.
Suggests reform package for fertilizer sector.
 GDP growth next fiscal to be between 7-7.75%
Current account deficit at 1-1.5%, forex
reserves at USD 351.5 bn in mid-Feb.
PSU banks capital need at Rs 1.8 lakh crore by
FY19.
3.9% fiscal deficit target achievable this year,
coming year to be challenging.
 Proposes widening of tax net from 5.5% of
earning individuals to more than 20%
Services sector growth in 2015-16 seen at
9.2%
Projects retail inflation at 4.5-5% for 2016-17.
Growth this fiscal to be 7.6%, long-term
potential at 8-10% if exports grow rapidly.
 budget
Rs 97,000 crore for the roads sector in his Budget for the
next fiscal.

Rural Sadak Yojana allocation at Rs 19,000 cr for FY17

representing 60% of central funding, rest 40% to come from
states, taking total allocation to Rs 27,000 cr; 100 km road
construction per day currently to be stepped up

additional deduction of Rs 50,000 on interest component of

home loan EMI for first-time buyers in cases where the
property is valued up to Rs 50 lakh and the sanctioned loan
does not cross Rs 35 lakh -
 The Budget allocation for the health ministry
went up from Rs 33,765 crore in 2015-16 to Rs
38,892
allowing 100 per cent deduction of profits for
three out of five years for start-ups set up
during April 2016 to March 2019
 four-month compliance window for domestic
taxpayers for undisclosed income from any asset
and clearing up past transgression by paying tax
at 30 per cent, a surcharge at 7.5 per cent, a
penalty at 7.5 per cent, which is total of 45 per
cent of undisclosed income.

To double income of farmers by 2022, sets aside

Rs 35,984 crore for the purpose; to bring 28.5
lakh hectare under irrigation at a cost of Rs
17,000 crore
 Rs 38,500 cr allocated for MGNREGA, highest
amount ever under the scheme

Rs 25,000 crore allocated for recapitalisation

of PSU Banks

Fiscal deficit to be retained at 3.9% of GDP;

FY17 fiscal deficit target at 3.5%
 Relief to small tax payer earning less than
5,00,000 p.a., additional relief u/s 87A from Rs
2,000 to Rs 5,000

Relief to those living in rented houses and not

getting HRA from employers to go up from Rs
24,000 to Rs 60,000
 Taxation 1 per cent service charge on purchase of
luxury cars over Rs. 10 lakh and in-cash purchase of
goods and services over Rs. 2 lakh. Companies with
revenue less than 5 crore rupees will be taxed at 29%
plus surcharge. 0.5 per cent Krishi Kalyan Cess to be
levied on all services. Infrastructure cess to be levied.
1% excise imposed on articles of jewellery, excluding
silver. 1% Pollution cess of on small petrol, CNG and
LPG cars; 2.5% on diesel cars of certain specifications
and on higher-end models 4% cess.
 Personal Finance No changes have been made to
existing income tax slabs 1,000 crore rupees will
be allocated for Employees Provident Fund (EPF)
scheme. Government will pay 8.33% EPF
contribution for all new employees for first three
years Exemption of 50,000 rupees for housing
loans up to 35 lakh rupees, provided cost of
house is not above 50 lakh rupees. 15% surcharge
on income above Rs. 1 crore
 Social Allocation of Rs. 38,500 crore for MGNREGA for
2016-17 Allocation of Rs.9,500 crores for Swacch
Bharat Abhiyan. LPG connections will be provided
under the name of women members of family. Rs 2000
crore will be allocated for 5 years for BPL families.
Government to launch new initiative to provide
cooking gas to BPL families with state support. Grants
of 2.87 lakh crore rupees to gram panchayats and
municipalitie. Under Shyama Prasad Mukherji Rurban
Mission 300 urban clusters to be set up
 Health New health protection scheme will be
launched for health cover upto 1 lakh per family.
Additional healthcare cover of Rs 30,000 will be
provided to senior citizens under it. National
Dialysis Service Programme will be launched at all
district hospitals with funds through PPP mode.
PM Jan Aushadhi Yojana will be strengthened and
300 generic drug store to be opened
 Investments and infrastructure 65 eligible habitats will be
connected via 2.23 lakh kms of road. Current construction pace is
100 kms/day. Allocation of Rs. 27,000 crore on roadways and Rs.
55,000 crore for roads and highways. Total allocation of Rs 97,000
crore for road construction under PMGSY. Shops to be given option
to remain open 24*7 across markets. On east and west coasts, new
greenfield ports will be developed. Underserved airports will be
revived. For regional connectivity centre to partner with States to
revive small airports. 100 per cent FDI in food processing and
marketing of food products produced and marketed in India.
Department of Disinvestment to be renamed as Department of
Investment and Public Asset Management. Government to amend
Motor Vehicle Act in passenger vehicle segment to allow
innovation. 100 per cent tax exemption for startups for 3 years.
 PRADHAN MANTRI FASAL BIMA
YOJANA
Insurance scheme would be administered
under ministry of agriculture and farmer`s
welfare.
National agriculture insurance scheme,(1999)
due to draw backs could not produce desired
results.
Under new scheme premium rate 2% for
kharif and 1.5% for rabi crops.
 5 premium for horticulture crops.

Remaining share equally shared by central

and respective state governments.

Would be functional from kharif 2016 season.

No upper limit on government subsidy .

 Agriculture Total allocation of Rs 35984 crore for agriculture
and farmer welfare. 5 lakh hectares of land will be brought
under irrigation. 5 lakh acres will be brought under organic
farming over a three year period. Allocation of 60,000 crore
rupees for recharging of ground water to focus on drought
hit areas cluster development for water conservation.
20,000 crore rupees Dedicated Irrigation Fund in NABARD.
Under the PM Fasal Bima Yojna, nominal premium and
highest ever compensation in case of crop loss.
Read more at:
http://currentaffairs.gktoday.in/month/current-affairs-
february-2016
 Banking Allocation of Rs 25,000 crore towards
recapitalisation of public sector banks. Banking
Board Bureau will be operationalised. Govt to
increase ATMs, micro-ATMs in post offices in rural
areas in next three years General Insurance
companies will be listed in the stock exchange
Under MUDRA, target of disbursement increased
to 1,80,000 crore.
 Technologically advanced. Mobile phones
would be used to capture and upload data.

Hail storm, innundation, unseasonal rains,

landslides would be covered.

Payment in case of no sowing due to bad

weather
 14 days after crop cutting and subsequent
damage by climatic reasons will be covered.

Launched in sherpur village of sihor district of

mp.
 Sikkim has become Indias first fully organic
state
 In Bi-Monthly Monetary Policy RBI left the key repo rate
unchanged at 6.75%.

Reserve Bank kept its growth projections for Indian

economy unchanged at 7.4 per cent .

Finance Minister of West Bengal Amit Mitra was named the

chairman of the Empowered Committee of State Finance
Ministers on Goods and Services Tax (GST)

Mitra will succeed Kerala Finance Minister K M Mani who

had to resign in November 2015 over corruption charges
 TERI appointed Ashok Chawla, former Finance
Secretary to the Government of India
The Executive Board of the International
Monetary Fund (IMF) on 19 February 2016
selected Christine Lagarde to serve as IMF
Managing Director for a second five-year term
starting on 5 July 2016.
 Tamil Nadu Cadre IPS officer Archana
Ramasundram was appointed as the Director
General of the Sashastra Seema Bal (SSB)