image · Click here to download the complete set of The Budget for offline reading. (pdf format about MB). THE BUDGET SPEECH. By. YAB DATO' SRI MOHD NAJIB TUN HAJI ABDUL RAZAK. PRIME MINISTER AND MINISTER OF FINANCE. BUDGET SPEECH. Financial Year / Theme:Maintaining Infrastructure Investment and Promoting. Excellence in Public Service Delivery.
|Language:||English, Spanish, Hindi|
|Genre:||Health & Fitness|
|ePub File Size:||19.64 MB|
|PDF File Size:||11.57 MB|
|Distribution:||Free* [*Sign up for free]|
This year, we received around tips from fellow South Africans on the budget. Quite rightly, there are two main areas of concern. 1) Many. BUDGET SPEECH The tabling of Balanced Budget marks the beginning of a new fiscal season for the Assembly and British. Columbia. My use of. Backdrop to Budget /16 along with the Budget Speech. I am also For /, we expect GDP growth to go up to per cent.
Introduction My first budget as Chief Minister is a budget for Canberra. Canberrans know this is a great place to live and work — and are proud of the Territory we call home. This budget will ensure Canberra builds on our achievement as the world's most liveable city and remains a place all Canberrans can be proud of, with an economy in which we can all feel confidence. We are proud of our city's international reputation, proud of our excellent universities, and proud of the renewal that is breathing new life and opportunity into our town centres and suburbs. We are proud of our world-class schools and hospitals. We are proud of our leafy suburbs and the neighbourhood shops and parks.
And by the time they figured out the disaster the country was facing, the only way out was brutal cuts to programs Canadians count on. Ignoring the lessons of history, they would take the well-trod road to economic decline — a journey that will not end well. When our Government launched its stimulus program, we made a solemn promise to the Canadian people. A promise made, a promise kept.
Speaker, this budget is written in black ink.
This is the responsible way forward for Canada, which is why we will also introduce balanced budget legislation. Support for Canadian Families Now, Mr.
Speaker, I would like to talk about tax restraint. Our approach has been clear, and consistent: Take as little as possible, and give back as much as we can. It all starts right at the bedrock of our country: the family.
Raising a family is hard work, and unlike our opponents, we prefer to leave it to the experts: Mom and Dad. These measures will make life more affordable for all Canadian families with children. Helping families now is vital. But just as important is helping them plan for a secure future. One low-tax measure we are particularly proud of is the Tax-Free Savings Account. Who are these Canadians? They are the people you see in the coffee shop and at the rink and in your place of worship.
Some are saving money to download their first home, or to start their first business. Some are saving to put their children through college or university.
Others are putting away extra income to make their hard-earned retirement more comfortable and enjoyable. In fact, more than half the people currently maxing out their TFSA contributions are low and middle-income Canadians over the age of So, Mr. This is another promise made, and another promise kept.
Many Canadians with disabilities, as well as seniors, want to enjoy greater independence living in the comfort of their homes. To help, we will create a new and permanent Home Accessibility Tax Credit, which will support those who want to renovate their dwellings to make them safer, more accessible and more functional.
Our Government has a strong record of support for people with Autism Spectrum Disorders, and the people who love them. We will also implement changes to the Copyright Act to implement the Marrakesh Treaty, allowing the one million Canadians with visual impairments greater access to adapted books and other printed material. Support for Seniors We want older Canadians to enjoy the golden years that are their reward after decades of hard work and diligent saving.
Our Government has already greatly expanded the Guaranteed Income Supplement for very-low-income seniors. Today, I am pleased to announce that we will give seniors more choice when it comes to managing their retirement income, by reducing the minimum withdrawal requirements for Registered Retirement Income Funds.
Support for Caregivers For more and more Canadians, caring for family not only means making sure the kids get the best start possible in life.
This is why we are extending the Employment Insurance Compassionate Care Benefits period from the current six weeks to six months. Indeed, since the depth of the global recession, Canada has had one of the best job-creation records in the G How did we do this? We cut taxes, and slashed red tape. Now, it is no secret that small businesses are critical to the health of the Canadian economy.
That is why we have worked so hard to support them over the years, and continue to do so. This will be the largest tax rate cut for small businesses in more than 25 years. Small businesses across the country will be able to use these additional tax savings to fuel growth, invest in capital and hire more people. We do not. But we must give manufacturers the tools they need to create the products — and the jobs — of the future.
We are also launching the Automotive Supplier Innovation Program. Support for Workers and Students We will continue our collaboration with the provinces and territories in skills training.
We will also bring employers and educators together to make sure the skills of our graduates match the needs of our economy. For students who need to work to put themselves through school, the current in-study income limit of the Canada Student Loans program is a barrier. We will remove it. We will make permanent our Foreign Credential Recognition Loans program, which helps skilled newcomers cover the costs of having their qualifications recognized here.
And we will extend the Working While on Claim Employment Insurance pilot project, which gives unemployed Canadians the ability to accept some work — work that could lead to learning new skills or even full-time employment — while protecting their EI benefits.
Support for Science and Research Mr. Speaker, Canada is now attracting the best and brightest minds from around the globe in science, research and development. While all their work is about changing lives, some of it is about saving them. A case in point: The Canadian Institutes of Health Research has been searching for a solution to drug-resistant infections.
We will provide stable, multi-year funding for this important work. But building this great country is a project that never ends. Anyone who lives in or near our thriving and fast-growing cities knows the reality of traffic gridlock.
So I am pleased to announce the launch of a major new infrastructure program: the Public Transit Fund. This fund will result in more money for more transit projects by requiring a significant role for the private sector and by allowing for a more flexible payment approach.
It will also drive greater efficiency in the design and costing of transit projects. From the bounty of our seas to the abundance of the earth, these riches provide good, well-paying jobs for almost two million Canadians. And, Mr. We are proud of our record when it comes to the responsible development of our natural resources, and will continue to pursue the vast opportunities with which we are blessed.
At the same time, we will only proceed with projects that are safe for Canadians and safe for our environment. Speaker, we take this stewardship seriously. To build on this record of good stewardship, Economic Action Plan includes investments to enhance marine transportation safety in the Arctic as well as to strengthen environmental protection, spill prevention and response measures in Canadian waters. Protecting Canadians Now, Mr.
Speaker, I want to address the dangerous world we live in. We say this often, because it is true: Government has no greater responsibility than protecting the lives of its people.
Rushing into, or insisting on, a pre-set time-table for fiscal consolidation pro-cyclically would, in my opinion, not be pro-growth. With the economy improving, the pressure for accelerated fiscal consolidation too has decreased. Thus, for the next three years, my targets are: 3. The additional fiscal space will go towards funding infrastructure investment. Madam Speaker, I want to round up the discussion on the fiscal road map on an optimistic note.
While there is a compositional shift, the aggregate envelope for job creation, poverty elimination and building infrastructure is not disturbed; in fact it goes up this year, and every subsequent year, in the same proportion as the tax revenues of the Union, and the State Governments increase.
From this national perspective of public finances, not only is the path to fiscal consolidation on track, aggregate annual capital expenditure of the Governments, as a whole, can be expected to rise significantly, by more than 0. Madam Speaker, it may be noted that the budget reflects considerable scaling up of disinvestment figures.
This will include both disinvestment in loss making units, and some strategic disinvestment. Good Governance Madam, Speaker, this Government is committed in its resolve, as Indians, to regain our pre-eminence as a just and compassionate country. Well-intentioned schemes introduced in the past, have often been ill-targeted, riddled with leakages and delivered with inefficiency.
The same is true of subsidies. Subsidies are needed for the poor and those less well off. What we need is a well targeted system of subsidy delivery. We need to cut subsidy leakages, not subsidies themselves.
We are committed to the process of rationalizing subsidies based on this approach. We have embarked on that path. The direct transfer of benefits, started mostly in scholarship schemes, will be further expanded with a view to increasing the number of beneficiaries from the present 1 crore to I am sure, persons who are better-off, such as those in the top tax bracket, and those genuinely concerned for the welfare of the poor, such as members of this House, will give up their LPG subsidy voluntarily.
Agriculture Our commitment to farmers runs deep. We have already taken major steps to address the two major factors critical to agricultural production: soil and water. An ambitious Soil Health Card Scheme has been launched to improve soil fertility on a sustainable basis. I urge the States to chip in substantially in this vital sector. Farm credit underpins the efforts of our hard-working farmers.
We will ensure that no one who is poor is left without employment. While the farmer is no longer in the clutches of the local trader, his produce still does not command the best national price.
To increase the incomes of farmers, it is imperative that we create a National agricultural market, which will have the incidental benefit of moderating price rises. Funding the Unfunded Madam Speaker, our government firmly believes that development has to generate inclusive growth.
While large corporate and business entities have a role to play, this has to be complemented by informal sector enterprises which generate maximum employment.
There are some 5. These bottom-of-the-pyramid, hard-working entrepreneurs find it difficult, if not impossible, to access formal systems of credit. These measures will greatly increase the confidence of young, educated or skilled workers who would now be able to aspire to become first generation entrepreneurs; existing small businesses, too, will be able to expand their activities.
Just as we are banking the un-banked, we are also funding the un-funded. A significant part of the working capital requirement of a MSME arises due to long receivables realization cycles.
This should improve the liquidity in the MSME sector significantly. Bankruptcy law reform, that brings about legal certainty and speed, has been identified as a key priority for improving the ease of doing business. We will bring a comprehensive Bankruptcy Code in fiscal , that will meet global standards and provide necessary judicial capacity.
The Government is committed to increasing access of the people to the formal financial system. In this context, Government proposes to utilize the vast Postal network with nearly 1,54, points of presence spread across the villages of the country.
From Jan Dhan to Jan Suraksha Worryingly, as our young population ages, it is also going to be pension-less. Encouraged by the success of the Pradhan Mantri Jan Dhan Yojana, I propose to work towards creating a universal social security system for all Indians, specially the poor and the under-privileged.
Similarly, we will also launch the Atal Pension Yojana, which will provide a defined pension, depending on the contribution, and its period. I have proposed the creation of a Senior Citizen Welfare Fund, in the Finance Bill, for appropriation of these amounts to a corpus which will be used to subsidize the premiums of vulnerable groups such as old age pensioners, BPL card-holders, small and marginal farmers and others.
A detailed scheme would be issued in March. Madam Speaker, special regard needs to be paid to the population of senior citizens in the country which is now approximately A sizeable percentage of them also suffer from age related disabilities. Ours is a society that venerates its elders.
I, therefore, propose that a new scheme for providing Physical Aids and Assisted Living Devices for senior citizens, living below the poverty line. In sum, these social security schemes reflect our commitment to utilize the Jan Dhan platform, to ensure that no Indian citizen will have to worry about illness, accidents, or penury in old age. Being sensitive to the needs of the poor, under-privileged and the disadvantaged, my Government also remains committed to the ongoing welfare schemes for the SCs, STs and Women.
The allocation for the Ministry of Minority Affairs is being protected. Infrastructure Madam, it is no secret that the major slippage in the last decade has been on the infrastructure front. Our infrastructure does not match our growth ambitions. There is a pressing need to increase public investment. The infrastructure finance companies can then leverage this extra equity, many fold.
Thirdly, I also intend to permit tax free infrastructure bonds for the projects in the rail, road and irrigation sectors. Fourth, the PPP mode of infrastructure development has to be revisited, and revitalised. The major issue involved is rebalancing of risk. In infrastructure projects, the sovereign will have to bear a major part of the risk without, of course, absorbing it entirely.
The platform will also promote a network of world-class innovation hubs and Grand Challenges for India. We are now seeing a growing interest in start-ups. Experimenting in cutting edge technologies, creating value out of ideas and initiatives and converting them into scalable enterprises and businesses is at the core of our strategy for engaging our youth and for inclusive and sustainable growth of the country.
Concerns such as a more liberal system of raising global capital, incubation facilities in our Centres of Excellence, funding for seed capital and growth, and ease of Doing Business etc.
SETU will be a Techno-Financial, Incubation and Facilitation Programme to support all aspects of start-up businesses, and other self-employment activities, particularly in technology-driven areas. As the success of so-called minor ports has shown, ports can be an attractive investment possibility for the private sector.
Ports in the public sector need to both attract such investment as well as leverage the huge land resources lying unused with them. To enable us to do so, ports in public sector will be encouraged, to corporatize, and become companies under the Companies Act. Madam Speaker, investors spend a large amount of time and resources on getting the multiple permissions required. We aim towards ease of doing in India. I have myself launched the e-Biz Portal which integrates 14 regulatory permissions at one source.
Good States are embracing and joining this platform. However, if we really want to create jobs, we have to make India an investment destination which permits the start of a business in accordance with publically stated guidelines and criteria. I intend to appoint an Expert Committee for this purpose to examine the possibility and prepare a draft legislation where the need for multiple prior permissions can be replaced with a pre-existing regulatory mechanism.
All clearances and linkages will be in place before the project is awarded by a transparent auction system. The Government would also consider similar plug-and-play projects in other infrastructure projects such as roads, ports, rail lines, airports etc. I am happy to announce that the second unit of Kudankulam Nuclear Power Station will be commissioned in Madam Speaker, I hope to garner some additional resources during the year from tax buoyancy.
Financial Markets One vital factor in promoting investment in India, including in the infrastructure sector, is the deepening of the Indian Bond market, which we have to bring at the same level as our world class equity market.
I also propose to merge the Forwards Markets Commission with SEBI to strengthen regulation of commodity forward markets and reduce wild speculation. Capital Account Controls is a policy, rather than a regulatory, matter. I, therefore, propose to amend, through the Finance Bill, Section-6 of FEMA to clearly provide that control on capital flows as equity will be exercised by the Government, in consultation with the RBI. A properly functioning capital market also requires proper consumer protection.
I, therefore, also propose to create a Task Force to establish a sector-neutral Financial Redressal Agency that will address grievances against all financial service providers. I hope, sooner rather than later, to introduce the IFC in Parliament for consideration. Madam, Speaker, this is just the beginning. I have a vision of putting in place a direct tax regime which is internationally competitive on rates, is without exemptions, incentivises savings, and does not realize tax from intermediaries.
Such a direct tax regime would match the modernized indirect taxes regime we are putting in place by way of GST, and will bring both greater transparency and greater investments. Further, the low paid worker suffers deductions greater than the better paid workers, in percentage terms. We intend to bring amending legislation in this regard, after stakeholder consultation.
Monetising Gold India is one of the largest consumers of gold in the world and imports as much as tonnes of gold each year. Though stocks of gold in India are estimated to be over 20, tonnes, mostly this gold is neither traded, nor monetized. The new scheme will allow the depositors of gold to earn interest in their metal accounts and the jewelers to obtain loans in their metal account. The Bonds will carry a fixed rate of interest, and also be redeemable in cash in terms of the face value of the gold, at the time of redemption by the holder of the Bond.
Such an Indian Gold Coin would help reduce the demand for coins minted outside India and also help to recycle the gold available in the country. One way to curb the flow of black money is to discourage transactions in cash.
I, therefore, proposes to introduce soon several measures that will incentivize credit or debit card transactions, and disincentivise cash transactions. Investment Such alternate investment funds provide another vehicle for facilitating domestic investments. Keeping in view the need to increase investments from all sources, I propose to also allow foreign investments in Alternate Investment Funds. Safe India My Government is committed to safety and security of women. Tourism After the success of VISAS on arrival issued to travelers of 43 countries, I propose to increase the countries covered to , in stages.
Green India Madam, as environmental degradation hurts the poor more than others, we are committed to make our development process as green as possible. With regard to coal, there is a need to find a balance between taxing pollution, and the price of power. However, beginning this year, I intend to start on that journey too. Madam, Speaker, we are putting the scam, scandal and corruption Raj behind us.
Malfeasance in public procurement can perhaps be contained by having a procurement law and an institutional structure consistent with the UNCITRAL model.
I believe, Parliament needs to take a view soon on whether we need a procurement law, and if so, what shape it should take. On the other hand, disputes arising in public contracts take long to resolve, and the process is very costly too. My Government proposes to introduce a Public Contracts Resolution of Disputes Bill to streamline the institutional arrangements for resolution of such disputes. There is also a need, I feel, to tackle the lack of common approach and philosophy in the regulatory arrangements prevailing even within the different sectors of infrastructure.
Our Government, therefore, also proposes to introduce a regulatory reform law that will bring about a cogency of approach across various sectors of infrastructure. Skill India Our young people have to be both educated and employable for the jobs of the 21st Century. The Mission will consolidate skill initiatives spread across several Ministries and allow us to standardize procedures and outcomes across our 31 Sector Skill Councils.
This is the year when we will be entering the th birth anniversary of Shri Deen Dayalji Upadhyay. The intention of the Government is to celebrate the anniversary of this great nationalist, in a befitting manner. A th Birthday Celebration Committee will be announced soon, and adequate resources provided for the celebration.
With a view to enable all poor and middle class students to pursue higher education of their choice without any constraint of funds, I propose to set up a fully IT based Student Financial Aid Authority to administer and monitor Scholarship as well Educational Loan Schemes, through the Pradhan Mantri Vidya Lakshmi Karyakram. We will ensure that no student misses out on higher education for lack of funds. In order to improve the Governance of Public Sector banks, the Government intends to set up an autonomous bank Board Bureau.
The Bureau will search and select heads of Public Sector banks and help them in developing differentiated strategies and capital raising plans through innovative financial methods and instruments. This would be an interim step towards establishing a holding and investment Company for Banks. Digital India Madam, Speaker, I would like to inform the House we are making good progress towards making Digital India. Andhra Pradesh is the first State to have opted for this manner of implementation.
As Members are aware, in making their recommendations, the Finance Commission has not distinguished between special category and other states. Moreover, both Bihar and West Bengal are going to be amongst the biggest beneficiaries of the recommendations of the Finance Commission. Yet, the Eastern States have to be given an opportunity to grow even faster.
I, therefore, propose to give similar special assistance to Bihar and West Bengal as has been provided by the Government of India in the case of Government of Andhra Pradesh. As regards Andhra Pradesh and Telengana, the Government is committed to comply with all the legal commitments made to these States at the time of reorganization. In spite of the large increase in devolution to states, which implies reduced fiscal space for the Centre in the same proportion we are committed to the welfare of the poor and the neo-middle class.
Keeping this in mind, adequate provision is being made for the schemes for the poor and the dis-advantaged. The significant sums that will be spent by the States on these programmes will ensure a quantum leap in expenditures in these areas. I urge states to utilize their enhanced resources effectively in these areas. However, as the pace of expenditure picks up, I will provide them additional funds.
Defence of every square inch of our mother land comes before anything else. So far, we have been over dependent on imports, with its attendant unwelcome spin-offs.
Our Government has already permitted FDI in defence so that the Indian-controlled entities also become manufacturers of defence equipments, not only for us, but for export. We are thus pursuing the Make in India policy to achieve greater self-sufficiency in the area of defence equipment, including aircraft. Members of this august House would have noted that we have been both transparent and quick in making defence equipment related download decisions, thus keeping our defence forces ready for any eventuality.
This year too, I have provided adequately for the needs of the armed forces. The proposal has languished for years. I am glad to announce that the first phase of GIFT will soon become a reality. Appropriate regulations will be issued in March. For the quick resolution of commercial disputes, the Government proposes to set up exclusive commercial divisions in various courts in India based on the recommendations of the rd Report of the Law Commission.
The Government proposes to introduce a Bill in the parliament after consulting stakeholders in this regard. Madam Speaker, the Government will, during this session, also place before the Parliament the required Bills, to convert Ordinances issued by the Government into Acts of Parliament. Budget Estimates I now turn to the Budget Estimates for Budget The requirements for expenditure on Defence, Internal Security and other necessary expenditures are adequately provided.
With the above estimates, fiscal deficit will be 3. I now turn to my tax proposals. Taxation is an instrument of social and economic engineering. Tax collections help the Government to provide education, healthcare, housing and other basic facilities to the people to improve their quality of life and to address the problems of poverty, unemployment and slow development.
To achieve these objectives, it has been our endeavour in the last nine months to foster a stable taxation policy and non-adversarial tax administration. A very important dimension to our tax administration is the fight against the scourge of black money. A number of measures have already been taken in this direction. I propose to do much more. We need to revive growth and investment to ensure that more jobs are created for our youth and benefits of development reach millions of our poor.
We need an enabling tax policy for this. GST is expected to play a transformative role in the way our economy functions. It will add buoyancy to our economy by developing a common Indian market and reducing the cascading effect on the cost of goods and services.
We are moving in various fronts to implement GST from the next year. We need to match this transformative piece of legislation in indirect taxation with transformative measures in direct taxation. We lose out on both counts, i.
A regime of exemptions has led to pressure groups, litigation and loss of revenue. It also gives room for avoidable discretion. This will lead to higher level of investment, higher growth and more jobs. This process of reduction has to be necessarily accompanied by rationalisation and removal of various kinds of tax exemptions and incentives for corporate taxpayers, which incidentally account for a large number of tax disputes.