Jaitley said that in order to incentivize creation of new jobs in the formal sector, the Government will pay the Employee Pension Scheme contribution of 8.33% for all new employees enrolling in EPFO for the first three years of their employment. This will incentivize the employers to recruit unemployed persons and also to bring into the books the informal employees.
In the port sector, the Finance Minister said the Sagarmala Project has already been rolled out. The Government is planning to develop new greenfield ports. The work on National Waterways is also being expedited. He said Rs. 800 crore has been provided for these initiatives.
In the Civil Aviation Sector action plan is being drawn up to revive unserved and underserved airports. There are about 160 airports and air strips with the State Governments which can be revived at an indicative cost of Rs. 50 crore to Rs. 100 Crore each.
In the power sector, he said the Government is drawing up a comprehensive plan, spanning next 15 to 20 years to augment the investment in nuclear power generation.
To augment infrastructure spending further, the Government will permit mobilization of additional finances to the extent of Rs. 31,300 crore by NHAI, PFC, REC, IREDA, NABARD and Inland Water Authority through raising of Bonds.
Jaitley announced a number of financial sector reforms. A comprehensive Code on Resolution of Financial Firms will be introduced as a Bill in the Parliament during 2016-17. He said the RBI Act 1934 is being amended to provide statutory basis for a Monetary Policy Framework and a Monetary Policy Committee through the Finance Bill 2016. A Financial Data Management Centre will also be set up.
Jaitley announced that "Ek Bharat Shreshtha Bharat" programme will be launched to link States and Districts in an annual programme that connects people through exchanges in areas of language, trade, culture, travel and tourism.
On the fiscal situation in the country the Minister said the prudence lies in adhering to the fiscal targets. Consequently, he said, the fiscal deficit in RE 2015-16 and BE 2016-17 have been retained at 3.9% and 3.5% of GDP respectively. He added a redeeming feature of this year's Budget is that the Revenue Deficit target has been improved upon from 2.8% to 2.5% of GDP in RE 2015-16.
The total expenditure in the Budget for 2016-17 has been projected at Rs. 19.78 lakh crore, consisting of Rs. 5.50 lakh crore under Plan and Rs. 14.28 lakh crore under Non-Plan.
END
