Finance Minister Arun Jaitley on Wednesday announced the Union Budget 2017-18.
This is the fourth budget presented by Jaitley and the first since the demonetisation of high value currency notes. With this budget the Finance Minister will aim to ease some of the pain caused by the noteban and its subsequent cash crunch.
It is also the first time the budget is being presented on February 1, instead of the conventional end of the month.
Another historic feature of this year’s budget is that instead of a separate Rail Budget presented by the Railways Minister, allocations for the railways will be presented as part of the General Budget by the Finance Minister himself.
While former Union Minister and MP E Ahamed’s death had raised doubts about the presentation of the budget today, the Cabinet allowed the presentation to be announced as planned. Parliament is typically adjourned for a day after a sitting member dies.
FM’s chief economic adviser, Arvind Subramanian, on Tuesday advised slashing personal income tax and accelerating cuts in corporate tax rates, while cautioning against pursuing debt-fueled fiscal expansion.
# Finance Minister starts presentation amid uproar from opposition.
# The government is now seen as a trusted custodian of public money, I express gratitude to people for their strong support.
# Our government was elected amidst huge expectations of people, the underlying theme of expectations being good governance.
# We have moved from a discretionary administration to a policy-based administration.
# The focus will be on energizing our youth, to reap benefits of growth & employment.
# International Monetary Fund estimates that the world GDP will grow by 3.1% in 2016 and 3.4% in 2017.
# 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.
# Impact of demonetisation not expected to spill over next year.
# Demonetisation helps transfer resources from the tax evaders to the government, which will use these for development schemes.
# The advanced economies are expected to increase their growth from 1.6%-1.9% and emerging economies from 4.1% – 4.5%.
# I am reminded of what our father of the nation Mahatma Gandhi said ‘a right cause never fails’.
# The CPI inflation declined from 6% to 3% and expected to remain within RBI band.
# The current account deficit declined from 1% to 0.3%. India has become 6th largest manufacturing country.
# GST Bill will spur economic growth.
# Demonetisation will lead to higher tax revenue. There is early evidence of bank lending rates coming down.
# We will double farmer income in 5 years, boost social security and housing security for the poor.
# Adequate credit will be available for the farmers, credit will be given to boost tractor sale.
# Model law for contract farming to be adopted.
# Target of agricultural loans to farmers set at record Rs 10 lakh crore in 2017-18.
# Participation of women in MNREGA has increased to 55%.
# 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.
# Dairy processing infrastructure fund to be set up for Rs. 2,000 crore.
# Budget allocation to MNREGA increased to a record Rs 48,000 crore for 2017-18, from Rs 37,000 crore in 2016-17.
# Total allocation for rural, agricultural and allied sectors for 2017-18 is Rs 1,87,223 crore, which is 24% higher than last year.
# Allocation for Scheduled Castes raised to Rs. 55,393 crore.
# Sanitation coverage in rural areas have gone up from 42 % in Oct 2014 to about 60% now.
# As Swami Vivekananda said ‘education which does not help the common mass of people to equip themselves is it worth of the name?
# 100% village electrification will be achieved by May 1, 2018.
# For youth, we will to introduce a system of measuring annual learning. Science will be given focus.
# To complete 1,00,00,000 houses by 2019 for houseless and those living in kaccha houses.
# Open defecation free villages are now being given priority for pipe to water supply.
# Safe drinking water to cover 28,000 arsenic & fluoride affected habitations in the next four years.
# For senior citizens, Aadhar cards giving their health condition will be introduced.
# Good institutions to have greater administration & academic autonomy.
# Two new All India Institute of Medical Sciences(AIIMS) to be set up in Jharkhand and Gujarat.
# 100 India International Skill Centres to be set up.
# Propose establishment of national testing agency to conduct entrance exams.
# Steps will be taken to launch dedicated trains for pilgrimage and tourism.
# Rail safety fund with corpus of Rs 100,000 crore will be created over a period of 5 years.
# Unmanned railway crossings to be eliminated by 2020.
# Railway lines of 3,500 km to be commissioned in 2017-2018.
# At least 25 stations to be redeveloped in 2017-18, with focus on ‘Swachh Railways’
# 500 stations to be made differently abled-friendly by providing lifts, escalators.
# All railway coaches will have bio-toilets by 2019.
# All service taxes for bookings via IRCTC to be withdrawn.
# New Metro Rail policy to be framed.
# The infrastructure allocation in Union Budget 2017 is at a record Rs 3,96,135 crore.
# Transport sector allocated Rs 2.41 lakh crore and Bharat Net Project allocated Rs 10,000 crore.
# Allocation for highways raised to Rs. 64,000 crore.
# Rs 2000 crore allocated for coastal road connectivity to enhance connectivity to ports & coastal villages.
# Airport Operation Management for tier-II airports via PPP.
# Airport Authority Act to be amended to monetise airport land.
# Solar power plant with 20,000 MW capacity to be set up.
# Strategic crude oil reserves to be set up in Odisha, Rajasthan.
# The Foreign Investment Promotion Board has been abolished to ease foreign investment.
# 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.
# During 2017-18, 5 lakh ponds will be constructed for drought-proofing.
# Railway related state-run companies like IRCON and IRCTC to be listed on stock exchanges.
# 3.5 crore youth will be trained under ‘Sankalp Program’ launched by the government.
# Propose to double the lending target of ‘Pradhan Matri Mudra Yojana’ and set it up at Rs 2.44 lakh crore for 2017-18.
# Chandigarh and eight districts of Haryana have been declared Kerosene free.
# Government considering introduction of new law to confiscate assets of offenders who escape the country.
# Aadhaar enabled payment system to be launched soon.
# Banks have targeted to introduce additional 10 lakh Point-of-Sale terminals by March 2017.
# BHIM app will unleash power of mobiles for digital payments.
# 20 lakh Aadhaar-based swipe machines by 2020.
# Web-based pension distribution system for defence pensioners.
# 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.
# Total resources being transferred to the states & union territories with legislature is Rs 4.11 lakh crore.
# Fiscal Deficit target for 2017-18 is 3.2%.
# Revenue deficit pegged at 1.9%.
# Have increased allocation for scientific ministry to Rs 37,435 cr in 2017-18.
# FRBM review committee recommended 3% fiscal deficit for next 3 years.
# We are largely a tax non compliant society, when too many people evade taxes burden falls on those who are honest.
# We are committed to make our taxation rate reasonable, our tax administration more fair & expand the tax base of the country.
# Out of 3.7 crore people who filed tax returns in 2015-16, only 24 lakh showed income above Rs 10 lakh.
# Due to demonitisation rate of growth in advance tax on personal Income tax increased by 34.8% in last 3 quarters of this financial year.
# The net tax revenue grew by 17% in 2015-16.
# Promotion of digital economy an integral part of strategy to clean up system and weed out corruption & black money.
# There is an urgent need to protect the poor from chit fund schemes, draft bill placed in public domain.
# Plan to extend basket of financial instruments to which the capital gains can be invested without payment of tax.
# Capital gains tax to be exempted, for persons holding land from which land was pooled for creation of state capital of Telangana.
# Income tax for small companies with an annual turnover of 50 crore or less reduced to 25% from 30%.
# Minimum Alternative Tax to carry forward for a period of 15 years as against 10 years.
# Propose to reduce basic customs duty on LNG from 5% to 2.5% in 2017-18.
# 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 continue to receive most funds through anonymous donations.
# Maximum cash donation any party can receive will be Rs 2000 from one source.
# Political parties will be entitled to receive donations by cheque or in the digital mode from their donors.
# An amendment being proposed to RBI Act to enable the issuance of electoral bonds for political funding.
# Rate of taxation for people with income between 2.5 lakh to 5 lakh reduced from 10% to 5%.
# Surcharge of 10% for those whose annual income is Rs 50 lakh to 1 crore.
# 15% surcharge on incomes above Rs 1 crore to continue.
# GST to bring in more taxes to state and centre.
# FM Jaitley concludes his budget speech.
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