Finance minister Arun Jaitley presented the Union Budget 2017-18 in the Lok Sabha on 1-02-17. Here are the highlights of the Union Budget.
Jaitley divided his budget proposal into 10 distinct themes: Farmers; rural population; energizing youth; poor and underprivileged; infrastructure; financial sector; digital economy; public service; prudent fiscal management; and tax administration.
- India stands out as a bright spot amid world economic gloom.
- Our focus will be on energising youth to reap benefits of growth and employment.
- IMF estimates world GDP will grow by 3.4 per cent in 2017.
- Oil prices, rising dollar and volatile commodity prices seen as risks to Indian economy.
- India is seen as engine of global growth, have witnessed historic reform in last one year.
- Demonetisation is a bold and decisive measure, for many decades tax evasion was a way of life for many.
- Note ban is expected to have only a transient impact on economy.
- I am reminded of what our father of the nation Mahatma Gandhi said: “A right cause never fails”.
- Farmer credit fixed at record level of Rs10 trillion; will ensure adequate flow to underserved areas.
- Soil health cards: Govt to set up mini-labs in Krishi Vigyan Kendras
- Long-term irrigation fund in Nabard—corpus at Rs40,000 crore
- Model law on contract farming to be circulated
- Dairy processing infra fund with corpus of Rs8,000 crore
- Dedicated micro-irrigation fund with Rs5,000 crore corpus
- Mission Antyodaya to bring 1 crore households of poverty
- MGNREGA: Rs48,000 crore has been allocated; participation of women now at 55%; using space technology in a big way
- Prime Minister Gram Sadak Yojana: Rs19,000 crore allocated; along with states, Rs27,000 crore will be spent in FY18
- Pradhan Mantri Awas Yojana: Rs23,000 crore allocated
- 100% village electrification by May 2018
- Rural livelihood mission: Rs4,500 crore allocated
- Mason training to be provided for 5 lakh people
- Panchayat Raj: Human resource reform programme to be launched
- Rs1,87,223 crore allocated for rural programmes
- Education: System of measuring annual learning outcomes, emphasis on science
- Innovation fund for secondary education
- Reforms in UGC: Colleges to be identified based on ranking and given more autonomy
- Propose to leverage information technology with launch of SWAYAM platform for virtual learning
- National testing agency to be established for all entrance exams, freeing up CBSE, AICTE and other bodies
- 100 Indian international skill centres to be established with courses in foreign languages
- Rs4,000 crore allocated to launch skill acquisition and knowledge awareness
- Special scheme for creating employment in leather/footwear sector
- Tourism: Five special zones to be set up
POOR AND UNPRIVILEGED:
- Women: Mahila Shakti Kendras with Rs500 crore corpus
- Stepped up allocation to Rs1.84 trillion for various schemes for women and children
- Affordable housing to be given infrastructure status
- Action plan to eliminate leprosy by 2018, TB by 2025, reduce IMR to 29 in 2019
- To create additional PG medical seats per annum
- Two new AIIMS in Jharkhand and Gujarat
- New rules to be introduced for medical devices
- Labour rights: Legislative reforms to simplify and amalgamate existing labour laws
- Allocation to SCs increased to Rs52,393 crore; STs given Rs31,920 crore, minority affairs allocated Rs4,195 crore
- Senior citizens: Aadhaar-based smart cards with health details to be provided
- Total capex and development expenditure of railways pegged at Rs1.31 trillion
- Railways: Passenger safety—Safety fund corpus set up; unmanned level crossings to be eliminated by 2020
- Railway lines of 3,500km to be commissioned
- To launch dedicated tourism/pilgrimage trains
- 500 stations to be made differently-abled friendly
- Cleanliness in railways: To introduce Coach Mitra facility; By 2019, biotoilets for all coaches
- Railways to offer competitive ticket-booking facility; service charge withdrawn for tickets booked on IRCTC
- New metro rail policy to be announced
- Roads sector: Allocation for national highways at Rs64,000 crore
- Airports Authority of India Act to be amended to enable monetization of land resources
- Total allocation to transport sector at Rs2 trillion
- Telecom sector: Allocation to Bharat Net programme at Rs10,000 crore
- Digi-gau initiative to be launched
- To make India global hub for electronics manufacture
- Export infra: New restructured central scheme to be launched
- Total allocation for infrastructure: Rs3.96 trillion
- Foreign Investment Promotion Board (FIPB) to be abolished
- Commodities market: panel to study legal framework for spot and derivative markets
- Resolution mechanism for financial firms
- Cyber-security: Computer emergency response team to be set up
- Listing of PSEs will foster public accountability; revised mechanism for time-bound
- To create integrated public sector oil major
- New ETF to be launched
- Pradhan Mantri Mudra Yojana: Lending target at Rs2.44 trillion
- Stand-up India scheme: over 16,000 new enterprises have been set up
- India at cusp of massive digital revolution
- Govt to launch two new schemes to promote BHIM app, including cashback scheme for merchants
- Aadhaar Pay to be launched for people who don’t have mobile phones
- Focus on rural and semi-urban areas
- To strengthen financial inclusion fund
- Panel on digital payments has recommended structural reforms
- To create payment regulatory board at RBI
- To use head post-office for passport services
- Defence: centralized defence travel system developed
- Defence: Centralized pension distribution system to be established
- Govt recruitment: To introduce two-tier exam system
- Govt looks to introduce laws to confiscate assets of economic defaulters
- High-level panel chaired by PM to commemorate Mahatma Gandhi’s 150th birth anvi.
- Total budget expenditure: Rs21 trillion
- Rs3,000 crore to implement various budget announcements
- Defence expenditure excluding pensions: Rs2.74 trillion
- Consolidated outcome budget for all ministries being created
- Fiscal deficit for FY18 pegged at 3.2% of GDP
- Revenue deficit for FY18 at 1.9%
- Direct tax collection not commensurate with income/expenditure pattern of India
- We are largely a tax non-compliant society; predominance of cash in society enables tax evasion
- After demonetization, data received will increase tax net
- Black money: No cash transactions above Rs3 lakh
- Transparency in political funding: Parties continue to receive anonymous donations; propose system of cleaning up
- Political funding: Maximum amount of cash donation that can be received is Rs2,000; political parties can receive donations by cheques or digitally; amendment proposed to RBI Act to issue electoral bonds; every party has to file returns within specified time
- Personal income tax: Rate reduced to 5% for income bracket of Rs2.5-5 lakh; All other categories to get uniform benefit of Rs12,500 per person; to levy surcharge on income bracket Rs50 lakh-Rs1 crore
- Personal income tax: To have simple one-page form for taxable income up to Rs5 lakh
- GST: preparedness of IT system on schedule
- Not many changes to excise duties since GST will be implemented soon
- FPI category 1 and 2 investors exempted from indirect transfer provisions
- Time period of revising tax returns reduced to 12 months
- Real estate: to make changes in capital gains tax
- Concessional withholding rate will be extended to 30 June 2020, rupee-denominated masala bonds to be included
- MAT not to be abolished at present; to allow carry-forward for 15 years
- Corporate tax rate: MSMEs’ rate (annual turnover less than Rs50crore) reduced to 25%
- LNG: Reduce customs duty to 2.5%
- Limit of cash donation for charitable trusts cut to Rs2,000.
It is said when my goal is in sight, the winds favour me and I fly. There is no other day more appropriate than this: FM Jaitley