Union Budget
Dear Visitors, here we are providing highlights of Union Budget 2017 – 18. Finance minister Arun Jaitley presented the Union Budget 2017.
Finance Minister 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.
Demonetization
·
Demonetization is expected to have a
transient impact on the economy.
·
It will have a great impact on the
economy and lives of people .
·
Demonetization is a bold and decisive
measure that will lead to higher GDP growth.
·
The effects of demonetization 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
wlll 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, innovation fund for secondary education.
·
There will be a focus 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 health care
·
Rs. 500 cr 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.
Read: Pradhan Mantri Mudra Yojana Scheme
Infrastructure;
railways
·
A total allocation of Rs. 39,61,354
crore
·
Total allocation for Railways — Rs.
1,31,000 crore
·
No Service charge while booking
tickets with IRCTC
·
Raksha coach with a corpus of Rs. 1
lakh cr fore five years (for passenger safety)
·
Unmanned level crossings 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
started
·
Coach mitra facility - to register all
coach related complaints
·
2019 - bio toilets for all trains
·
500 stations to 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
·
2,000 km for coastal connectivity of
roads -
·
Rs. 64,000 crore allocation for
highways.
·
Allocation of high speed Internet
1,50,000 gram panchayats
·
New Metro rail policy to be announced
with new modes of financing
Energy
sector
·
A strategic policy for crude reserves
will be set up
·
Rs. 1.26,000 cr for energy
production-based investments received
·
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 would
be listed on stock exchanges.
·
Bill on resolution of financial firms
to be introduced in this session of parliament.
·
Decided to abolish FIPB in 2017-18.
·
Foreign Investment Promotion Board to
be abolished.
·
Revised mechanism to ensure time bound
listing of CPSEs
·
Computer emergency response team for
financial sector to be formed.
·
Pradhan Mantri Mudra Yojana lending
target at Rs 2.44 lakh crore for 2017-18
·
Digital India - Bhim app will unleash
mobile phone revolution - two new schemes to promote the app.
·
Govt to introduce two new schemes to
promote BHIM App - referral bonus for users and cash back for traders: FM.
·
Negotiable Instruments Act might be
amended.
·
DBT to LPG consumers , Chandigarh is
kerosene free, 84 govt schemes are on the DBT platform.
·
Head post office as the central office
for rendering passport services
·
Easy online booking system for Army,
defence personnel
·
For big-time offences - including
economic offenders fleeing India, the govt. will introduce a legislative change
or new law to confiscate the assets of these people within the country
Fiscal
situation
·
Total expenditure - Rs. 21, 47,000
crore
·
Abolition on plan, non-plan
expenditure, focus on capital expenditure ( Capital expenditure will be 25.4
per cent)
·
Rs. 3,000 crore under Dept of Economic
Affairs for implementing Budget announcements.
·
Defence expenditure, excluding
pension, at Rs 2,74,114 crore
·
Expenditure in science and technology
— Rs. 37,435 crore
·
Total resources transferred to States
and UTs is Rs 4.11 lakh crore
·
Recommended 3% fiscal deficit for
three years with deviation of 0.5% of GDP.
·
Revenue deficit - 1.9 %
·
Pegged fiscal deficit of 2017-18 at
3.2% of GDP and remain committed to achieving 3% in the next year.
On funding
of political parties
·
Maximum amount of cash donation for
political parties will be Rs 2,000 from any one source from Rs 20,000
·
Political parties will be entitled to
receive donations by cheque or digital mode from donors.
·
Amendment is being proposed to RBI Act
to enable issuance of electoral bonds that government will scheme. Donor can
purchase these bonds from banks or post office via cheque or digital
transactions. They can be redeemed only by registered political parties.
Tax
proposals
·
India’s tax to GDP ratio is not
favourable.
·
Out of 13.14 lakh registered
companies, only 5.97 lakh companies have filed returns for 2016-17.
·
Proportion of direct tax to indirect
tax is not optimal.
·
1.95 crore individuals showed 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 Nov 8 to Dec 30: Deposits
between Rs 2 lakh and Rs 80 lakh was 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 last three quarters of this financial year.
·
Holding period for long term capital
gain lowered to 2 years
·
Propose to have 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 state capital
of Telangana.
·
Corporate tax: In order to make MSME
companies more viable, propose to reduce tax for small companies of turnover of
up to Rs 50 crore to 25%. About 67 lakh companies fall in this category. 96% of
companies to get this benefit.
·
Propose to reduce basic customs duty
for LNG to 2.5% from 5%
·
SIT on black money suggested no cash
transactions of more than Rs 3 lakh. Govt has accepted this proposal.
·
Income Tax Act to be amended. No transaction above Rs 3 lakh to be
permitted in cash.
·
Limit of cash donation by charitable
trust 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 reduced to 5%
from 10%
·
All other categories of tax payers in
subsequent brackets will get benefit of Rs 12,500.
·
Simple one page return for people with
annual income of Rs. 5 lakh other than business income.
·
People filing I-T returns for the
first time will not come under govt. scrutiny.
·
10% 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.
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