Union Budget 2017-18: Key announcements from Finance Minister Arun Jaitley’s budget presentation
Finance Minister Arun Jaitley presented the Union Budget 2017-18 amid uproar from opposition of Wednesday.
Here are the key announcements made during FM Jaitley’s budget presentation:
# Budget focused on energizing our youth, to reap benefits of growth & employment. We will spend more but keep fiscal position in mind.
# We are moving from informal to formal economy & the Government is now seen as a trusted custodian of public money.
# India’s Current Account Deficit decreased from about 1% of GDP last year to 0.3% of GDP in first half of 2016-17. We have now become 6th largest manufacturing country.
# Demonetisation was a bold and decisive strike in a series of measures to arrive at a new normal of bigger, cleaner & real GDP. It will lower borrowing cost and increase access to credit. Its impact will not spill over next year.
# Target of agricultural loans to farmers set at record Rs 10 lakh crore in 2017-18.
# Dedicated micro-irrigation fund will be set up by NABARD to achieve goal of ‘Per Drop More Crop’, initial corpus will be Rs 5000 crore’.
# Total allocation for rural, agricultural and allied sectors for 2017-18 is Rs 1,87,223 crore, which is 24% higher than last year.
# 100% village electrification will be achieved by May 1, 2018. Over 1,00,00,000 houses to be built by 2019 for houseless and those living in kaccha houses.
# Two new All India Institute of Medical Sciences(AIIMS) to be set up in Jharkhand and Gujarat.
# Railway lines of 3,500 km to be commissioned in 2017-2018. Over 500 stations to be made differently abled-friendly by providing lifts, escalators.
# Railway related state-run companies like IRCON and IRCTC to be listed on stock exchanges. All service taxes for bookings via IRCTC to be withdrawn.
# The infrastructure allocation in Union Budget 2017 is at a record Rs 3,96,135 crore. Transport sector allocated Rs 2.41 lakh crore, Bharat Net Project allocated Rs 10,000 crore and allocation for highways raised to Rs. 64,000 crore.
# Action plan to eliminate Kala Azar & Filariasis by 2017, Leprosy by 2018, Measles by 2020 & Tuberculosis by 2025.
# Mission Antyodaya to bring 1 crore households out of poverty and to make 50,000 Gram Panchayats poverty-free.
# Banks have targeted to introduce additional 10 lakh Point-of-Sale terminals by March 2017. 20 lakh Aadhaar-based swipe machines by 2020.
# Total expenditure of budget 2017-18 has been placed at Rs 21.47 lakh crore. Defence expenditure excluding pension at Rs 2.74 lakh crore.
# Fiscal Deficit target for 2017-18 is 3.2% while Revenue deficit pegged at 1.9%
# India a tax non-compliant society. Out of 3.7 crore people who filed tax returns in 2015-16, only 24 lakh showed income above Rs 10 lakh.
# Net tax revenue grew by 17% in 2015-16. Due to demonitisation advance tax on personal Income tax increased by 34.8%.
# Income tax for small companies with an annual turnover of 50 crore or less reduced to 25% from 30%. No cash transaction for amount over Rs 3 lakh, per SIT’s recommendation.
# Long-term capital gains tax on immovable property to apply after 2 years, instead of 3 years.
# Political parties can’t receive cash donations of over Rs 2000 from one source. Have option to receive donations by cheque or in the digital mode.
# Rate of taxation for people with income between 2.5 lakh to 5 lakh reduced from 10% to 5%. Surcharge of 10% for those with income between Rs 50 lakh to 1 crore, 15% if income over Rs 1 crore.
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