2016: A look back

Gaurav ChoudhuryMoneycontrol

The year may well be remembered for “demonetisation,” but other key policies were launched as well

January

• PM Narendra Modi launches new policy initiative “Start-up India” cheered by top executives of some storied tech start-ups

• Govt announces the launch of “Income Disclosure Scheme”, a four-month window from June 1 to September 30 for tax dodgers to come clean and disclose hidden assets or face action

• The government rolls back the controversial budget proposal to tax employees’ provident fund (EPF) withdrawals, caving in to mounting opposition by labour unions, the salaried class and rival political parties.

• The RBI cuts the repo rate to a 5-year low of 6.5 percent

• India cements world’s fastest growing economy status; data shows GDP grew 7.6% in 2015-16, ahead of China’s 6.9%

• The government accepts 7^th Seventh Pay Commission recommendations, approving a big jump in salaries and pensions, benefitting 10 million people
• Raghuram Rajan announces his decision to step down as RBI governor and return to academia after his three-year term ends in September
• The government eases foreign direct investment (FDI) norms for several sectors including defence, food products, aviation and retail

• India’s reforms programme initiated in 1991 completes 25 years

• Parliament amends the Constitution for a nationwide goods and services tax (GST)

• Government appoints Urjit Patel as the new RBI governor
• Thousands avail `Income Disclosure Scheme (IDS)’ disclosing assets worth over Rs 65,000 crore
• Union Cabinet approves plan to do away with the 92-year old practice of a separate Railway Budget. Rail budget merged with Union Budget from 2017-18. Budget presentation advanced by a month to February 1 from 2017

• The RBI cuts its key lending—the repo rate—by 25 basis points to 6.25 percent. This was the first policy supervised by the newly set up six-member Monetary Policy Committee (MPC)

• PM Narendra Modi announces “demonetisation” of old Rs 500 and Rs 1000 notes from midnight of November 8
• The government offers a new window for tax dodgers to come clean, allowing them to declare hidden wealth by paying an effective tax of 50 percent and depositing 25 percent of undisclosed income in a welfare programme—the 'Pradhan Mantri Garib Kalyan Deposit Scheme, 2016'.
• States and Centre agree on a four-tiered GST rate structure

• GST council clears two key supplementary legislations                      
• 50-day window to deposit old notes ends; currency supply in banks still not normal