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"If the world slows down we will slow down as well," the government's chief economic adviser, Arvind Subramanian, told a news conference.The BJP performed poorly in elections in the eastern state of Bihar last year and faces polls in other major farming states West Bengal and Uttar Pradesh, due this year and next.2 billion) on the country's vast agriculture sector.Investors are looking for concrete initiatives to make it easier to do business and are also expecting an announcement on how to break the impasse over Modi's flagship Goods and Services Tax (GST) which has stalled in an intensely polarised parliament. "Our Public Sector Banks will have to be strong and competitive.Jaitley said the government would increase spending on the National Rural Employment Guarantee Scheme, which guarantees 100 days of employment on public works each year for any household that requests it..Stalled reforms:The ruling Bharatiya Janata Party (BJP) faces crucial state elections this year and next, when the plight of farmers suffering from falling crop prices and several years of drought will play a major role.This month the Jats, traditionally a farming caste, sparked riots in northern India to press their demands for better access to government jobs and education.5 percent of GDP in 2016-2017.

He also added that the process of transformation of IDBI Bank has already started.Union Finance Minister Arun Jaitley pledged to spend nearly Rs 36,000 crore to double the income of struggling farmers and also boost a rural employment scheme as he unveiled his annual budget on Monday under pressure to balance the much-needed spending with fiscal prudence. The ceiling of rebate u/s 87A raised to Rs 5,000 from Rs 2,000.India is now the world's fastest-growing major economy, but years of drought and a failure to create jobs for a burgeoning young population has left millions of rural Indians struggling and led to deadly protests in recent weeks.7 billion) in this budget," he added.

The Bank Board Bureau will be operationalised during 2016-17 and a roadmap for consolidation of Public Sector Banks will be spelt out," he said.Prime Minister Narendra Modi has made it a priority to boost India's economic growth, but investors have raised concerns about the pace of change and his right-wing government's third budget has been described as "make or break".21 lakh crore outlay, saying enhanced allocations coupled with reforms and steps will remove obstacles impeding the sector's growth. The budget will likely set aside billions of dollars for a proposed 23 percent pay rise for millions of civil servants and retired ones recommended by a pay commission.Despite a major push to boost manufacturing, farming remains by far the biggest employer in India and the sector is struggling after two years of weak monsoon rains.

It needs to perform well in those elections in order to push stalled economic reforms through the national parliament, where it lacks a majority. (Photo: Video grab)Presenting Budget for 2016-17 in Parliament, Jaitley said infrastructure is one of the strong pillars of economy and "exemplary" and "proactive" steps by government to remove hurdles resulted in India awarding highest ever road contracts in 2015 as well as highest ever sales of motor vehicles which are clearly "signs of growth"..Jaitely also allocated a major share to infrastructure that includes Rs 2.6 billion rupees (.Union Finance Minister Arun Jaitley (Photo: PTI)Union Finance Minister Arun Jaitley (Photo: PTI)"I have weighed the policy options and decided that prudence lies in adhering to fiscal deficit targets," he said.But feeble global demand has caused its exports to shrink for 14 months in a row and private investment remains weak.House rent deduction slab has also been raised from Rs 20,000 to Rs 60,000.Jaitley also hiked the surcharge by 3 per cent on earnings above Rs 1 crore,levied a pollution cess on petrol, diesel cars and SUVs and offered a one-time compliance window for domestic black money holders slapping a tax and penalty of 45 per centConsolidating public sector banks:Government will also unveil a roadmap for the consolidation of public sector banks (PSBs) which are expected to get an infusion of Rs 25,000 crore next fiscal, Arun Jaitley said today. They say they are struggling to make a living in farming.No change in tax slabs, but relief to those who earn below Rs 5 lakh a year. to give back to our farmers a sense of income security," Jaitley told Parliament as he presented his third budget.lok sabhaMembers of the Lok Sabha in Parliament during the Union Custom Blade Signs Budget presentation.75 percent in the next financial year, marking little change from this year's levels.Jaitley said a unified agricultural market would be launched on April 14 and soil health cards will be provided to all 14 crore farmers by March 2017.

That includes a major hike in spending on a rural employment scheme introduced under the last government and a pledge to ensure all the country's villages have electricity within two years.He also allocated Rs 15,000 crore for interest subvention on the farm credit, Rs 5,500 crore for the new crop insurance scheme and Rs 500 crore to boost pulses output.Economists had predicted the government would relax its commitment to rigorous fiscal discipline in order to boost spending.But Jaitley said it would stick to its ambitious target to cut the fiscal deficit to 3.For the tax payer:While there has been no change in personal Income Tax slabs, some relief has been given to those who earn below Rs 5 lakh a year.Pay hikes:The finance ministry had promised the 2016-17 budget would be "growth-oriented" in the face of a global climate that appears significantly more challenging than last year. First-time home buyers will get an additional deduction of Rs 50,000 on interest for loan up to Rs 35 lakh.The initiative would increase the income of farmers over the next five years through a series of measures including boosting a crop insurance scheme, increasing access to markets and a massive injection of funding to village councils.India is seen as a relative bright spot in the world economy, after a slowdown in China, collapsing commodity prices and recession in other big emerging markets sent stock indexes tumbling."For rural development as a whole I have allocated 877.Besides, the government may consider bringing down its stake in state-owed IDBI Bank to below 50 per cent.0 percent and 7