Bill passed: The Lok Sabha approved the Finance Bill 2016.
FY17 Budget proposals, including a monetary policy committee to set interest rates in tune with an inflation-targeting approach acquired by the Reserve Bank of India.
- Finance minister Arun Jaitley secured the Lok sabha’s agreement for the Bill retaining the contentious 1% excise duty on non-silver jewellery, though only jewellers with more than `12 crore annual turnover will have to pay the duty.
Amendments to the bill: Including for the rollback of a proposal to tax part of Employees’ Provident Fund (EPF) withdrawals.
- Give assistance to small taxpayers and reduce tax litigation.
- A series of measures against black money resulted in mainstreaming of `71,000 crore of undisclosed assets.
Six Member committee:
This bill guided by a six-member committee that would set interest rates through a majority vote, followed by major central banks in the world.
- The committee would constitute of three external members appointed by the government.
- Three members from RBI, including its governor who would have a casting (extra) vote in the event of a tie.
- By now, the RBI governor is the sole authority to decide on monetary policy.
Features of the Bill:
- The Bill gives the central bank a mandate to target inflation
- The Bill, which mainly incorporates tax proposals
Arun Jaitley Speech:
- He said that Economy which had been being expanded on strength of public investment, highest FDI and urban demand, can grow faster if rural demand is added.
- He also said that India remains the fastest being grown major economy in the world.
India’s economical and weather survey:
- India’s weather office has predicted an above-average rainfall in the country this year.
- India’s economy grew by 6% in FY16 and the Economic Survey projected it to grow by 7-7.5% in the current fiscal.
Jaitley retained the proposal to make 40% of the National Pension System (NPS) withdrawal tax-free.