Everything Important About – Union Budget 2017-18 [PDF]





Hello and welcome to exampundit. The 2017 Union Budget, presented by Finance Minister Arun
Jaitley on Wednesday, was broadly focused on 10 themes —

  1. Rural Infrastructure
  2. Education, skill and Employment
  3. Infrastructure
  4. Financial sector growth of institutions
  5. Digital Economy
  6. Public service delivery
  7. Prudence fiscal management
  8. Tax administration – Honouring
    the Honest
  9. Indian farming sector
  10. Growth and stability

Following are the highlights of Mr. Jaitley’s Budget speech:
Demonetisation
  • Demonetisation is expected to have a transient impact on the
    economy.
  • It will have a great impact on the economy and lives of
    people .
  • Demonetisation is a bold and decisive measure that will lead
    to higher GDP growth.
  • The effects of demonetisation will not spillover to the next
    fiscal.

Agriculture
sector
  • Sowing farmers should feel secure against natural
    calamities.
  • A sum of Rs. 10 lakh crore is allocated as credit to
    farmers, with 60 days interest waiver.
  • NABARD fund will be increased to Rs. 40,000 crore.
  • Government will set up mini labs in Krishi Vigyan Kendras
    for soil testing.
  • A dedicated micro irrigation fund will be set up for NABARD
    with Rs 5,000 crore initial corpus.
  • Irrigation corpus increased from Rs 20,000 crore to Rs
    40,000 crore.
  • Dairy processing infrastructure fund will be initially
    created with a corpus of Rs. 2000 crore.
  • Issuance of soil cards has gained momentum.
  • A model law on contract farming will be prepared and shared
    with the States.

Rural
population
  • The government targets to bring 1 crore households out of
    poverty by 2019.
  • During 2017-18, five lakh farm ponds will be be taken up
    under the MGNREGA.
  • Over Rs 3 lakh crore will be spent for rural India. MGNREGA
    to double farmers’ income.
  • Will take steps to ensure participation of women in MGNREGA
    up to 55%.
  • Space technology will be used in a big way to ensure MGNREGA
    works.
  • The government proposes to complete 1 crore houses for those
    without homes.
  • Will allocate Rs. 19,000 crore for Pradhan Mantri Gram Sadak
    Yojana in 2017-18.
  • The country well on way to achieve 100% rural
    electrification by March 2018.
  • Swachh Bharat mission has made tremendous progress;
    sanitation coverage has gone up from 42% in Oct 13 to 60% now.

For youth
  • Will introduce a system of measuring annual learning outcomes
    and come out with an innovation fund for secondary education.
  • Focus will be on 3,479 educationally-backward blocks.
  • Colleges will be identified based on accreditation.
  • Skill India mission was launched to maximise potential. Will
    set up 100 India International centres across the country.
  • Courses on foreign languages will be introduced.
  • Will take steps to create 5000 PG seats per annum.

For the
poor and underprivileged health care
  • Rs. 500 crore allocated for Mahila Shakthi Kendras.
  • Under a nationwide scheme for pregnant women, Rs. 6000 will
    be transferred to each person.
  • A sum of Rs. 1,84,632 
    crore allocated for women and children.
  • Affordable housing will be given infrastructure status.
  • Owing to surplus liquidity, banks have started reducing
    lending rates for housing.
  • Elimination of tuberculosis by 2025 targeted.
  • Health sub centres, numbering 1.5 lakh, willl be transformed
    into health wellness centres.
  • Two AIIMS will be set up in Jharkhand and Gujarat.
  • Will undertake structural transformation of the regulator
    framework for medical education.
  • Allocation for Scheduled Castes  is Rs. 52,393 
    crore
  • Aadhaar-based smartcards will be issued to senior citizens
    to monitor health.

Infrastructure
and railways
  • A total allocation of Rs. 39,61,354 crore has been made for
    infrastructure.
  • Total allocation for Railways is Rs. 1,31,000 crore.
  • No service charge on tickets booked through IRCTC.
  • Raksha coach with a corpus of Rs. 1 lakh crore for five
    years (for passenger safety).
  • Unmanned level crossings will be eliminated by 2020.
  • 3,500 km of railway lines to be commissioned this year up
    from 2,800 km last year.
  • SMS-based ”clean my coach service” is put in place.
  • Coach mitra facility will be introduced to register all
    coach related complaints.
  • By 2019 all trains will have bio-toilets.
  • Five-hundred stations will be made differently-abled
    friendly.
  • Railways to partner with logistics players for front-end and
    back-end solutions for select commodities.
  • Railways will offer competitive ticket booking facility.
  • Rs. 64,000 crore allocated for highways.
  • High speed Internet to be allocated to 1,50,000 gram
    panchayats.
  • New Metro rail policy will be announced with new modes of
    financing.


Energy
sector
  • A strategic policy for crude reserves will be set up.
  • Rs. 1.26,000 crore received as energy production based
    investments.
  • Trade infra export scheme will be launched 2017-18.

Financial
sector
  • FDI policy reforms – more than 90% of FDI inflows are now
    automated.
  • Shares of Railway PSE like IRCTC will be listed on stock
    exchanges.
  • Bill on resolution of financial firms will be introduced in
    this session of Parliament.
  • Foreign Investment Promotion Board will be abolished.
  • Revised mechanism to ensure time-bound listing of CPSEs.
  • Computer emergency response team for financial sector will
    be formed.
  • Pradhan Mantri Mudra Yojana lending target fixed at Rs 2.44
    lakh crore for 2017-18.
  • Digital India – BHIM app will unleash mobile phone
    revolution. The government will introduce two schemes to promote BHIM App –
    referral bonus for the users and cash back for the traders.
  • Negotiable Instruments Act might be amended.
  • DBT to LPG consumers , Chandigarh is kerosene-free, 84
    government schemes are on the DBT platform.
  • Head post office as the central office for rendering
    passport service.
  • Easy online booking system for Army and other defence
    personnel.
  • For big-time offences – including economic offenders fleeing
    India, the government will introduce legislative change or introduce law to
    confiscate the assets of these people within the country.

Fiscal
situation
  • Total expenditure is Rs. 21, 47,000 crore.
  • Plan, non-plan expenditure to be abolished; focus will be on
    capital expenditure, which will be 25.4 %.
  • Rs. 3,000 crore under the Department  of Economic Affairs for implementing the
    Budget announcements.
  • Expenditure for science and technology is Rs. 37,435 crore.
  • Total resources transferred to States and Union Territories
    is Rs 4.11 lakh crore.
  • Recommended 3% fiscal deficit for three years with a
    deviation of 0.5% of the GDP.
  • Revenue deficit is 1.9 %
  • Fiscal deficit of 2017-18 pegged at 3.2% of the GDP. Will
    remain committed to achieving 3% in the next year.

Funding of
political parties
  • The maximum amount of cash donation for a political party
    will be Rs. 2,000 from any one source.
  • Political parties will be entitled to receive donations by
    cheque or digital mode from donors.
  • An amendment is being proposed to the RBI Act to enable
    issuance of electoral bonds .A donor can purchase these bonds from banks or
    post offices through cheque or digital transactions. They can be redeemed only
    by registered political parties.

Defence
sector
  • The defence sector gets an allocation of Rs. 2.74,114 crore.

Tax
proposals
  • India’s tax to GDP ratio is not favourable.
  • Out of 13.14 lakh registered companies, only 5.97 lakh firms
    have filed returns for 2016-17.
  • Proportion of direct tax to indirect tax is not optimal.
  • Individuals numbering 1.95 crore showed an income between
    Rs. 2.5 lakh to Rs. 5 lakh.
  • Out of 76 lakh individual assessees declaring income more
    than Rs. 5 lakh, 56 lakh are salaried.
  • Only 1.72 lakh people showed income of more than Rs. 50 lakh
    a year.
  • Between November 8 to December 30, deposits ranging from Rs.
    2 lakh and Rs. 80 lakh were made in 1.09 crore accounts.
  • Net tax revenue of 2013-14 was Rs. 11.38 lakh crore.
  • Out of 76 lakh individual assessees declaring income more
    than Rs 5 lakh, 56 lakh are salaried.
  • 1.95 crore individuals showed income between Rs. 2.5 lakh to
    Rs. 5 lakh.
  • Rate of growth of advance tax in Personal I-T is 34.8% in
    the last three quarters of this financial year.
  • Holding period for long term capital gain lowered to two
    years
  • Proposal to have a carry-forward of MAT for 15 years.
  • Capital gains tax to be exempted for persons holding land
    from which land was pooled for creation of the state capital of Andhra Pradesh.
  • Under the corporate tax, in order to make MSME companies
    more viable, there is a proposal to reduce tax for small companies with a
    turnover of up to Rs 50 crore to 25%. About 67 lakh companies fall in this
    category. Ninety-six % of companies to get this benefit.
  • The government proposes to reduce basic customs duty for LNG
    to 2.5% from 5%.
  • The Income Tax Act to be amended  to ensure that no transaction above Rs 3 lakh
    is permitted in cash.
  • The limit of cash donation by charitable trusts is reduced
    to Rs 2,000 from Rs 10,000.
  • Net revenue loss in direct tax could be Rs. 20,000 crore.

Personal
income tax
  • Existing rate of tax for individuals between Rs.  2.5- Rs 5 lakh is reduced to 5% from 10%.
  • All other categories of tax payers in subsequent brackets
    will get a benefit of Rs 12,500.
  • Simple one page return for people with an annual income of
    Rs. 5 lakh other than business income.
  • People filing I-T returns for the first time will not come
    under any government scrutiny.
  • Ten % surcharge on individual income above Rs. 50 lakh and
    up to Rs 1 crore to make up for Rs 15,000 crore loss due to cut in personal I-T
    rate. 15 surcharge on individual income above Rs. 1 crore to remain.

Get the PDF from here – DOWNLOAD NOW

Source: The Hindu

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