Budget 2016 deals with reality of Indian economy, says Arun Jaitley

New Delhi: While deciding to stick to to fiscal deficit roadmap, Union finance minister unveiled a new policy for sale of PSUs to raise additional resources as well as tried to address lingering tax issues with one-time settlement offers.

While the revenue loss on direct taxes will be Rs 1,060 crore, his indirect tax proposal will mobilise an additional Rs 20,670 crore. Net revenue gain will be Rs 19,610 crore.

Asked about comments that the Budget was left-of-centre, Jaitley said, “It is neither left nor right but deals with the reality of Indian economy. It addresses sectors which need highest priority.”

“There is a serious challenge, if not distress, in the rural sector and we have given priority to the social sector and infrastructure,” he said.

Read: Budget 2016: Arun Jaitley gives PF shocker

Ahead of  Assembly elections in five states, Jaitley focused on plans for agriculture and farmers welfare providing Rs 35,984 crore on this alone. A massive Rs 87,765 crore has been allocated for rural sector while Rs 2,000 crore will be provided for giving concessional LPG connections to BPL families.

As much as Rs 2.87 lakh-crore will be given as grants in aid to panchayats and municipalities while allocation for social sector including education and healthcare has been pegged at Rs 1.51 lakh-crore.

A total outlay of Rs 2.21 lakh crore has been made for infrastructure, of which Rs 97,000 crore will be in the road sector including on rural roads.