Here are the key highlights of Union Budget 2017-18:
- The overall approach while making the Budget was to spend more in rural areas, infrastructure and poverty alleviation with fiscal prudence.
- The Budget contains 3 major reforms:
– First, advancing the Budget date to February 1
– Merger of the Rail Budget with Union Budget, thereby bringing Railways to the centre stage
– Has done away with plan and non-plan expenditure - Based on the objective to transform, energise and clean India
- With better Monsoon, Agriculture is expected to grow at 4.1% in current year
- Issuance of soil health cards have gathered momentum, will set up a mini lab in Krishi Vigyan Kendras (KVKs)
- A dairy processing infrastructure fund will be created by NABARD
- 1 crore households to be lifted from poverty
- 2 new Strategic Oil Reserves to be set up in Odisha and Rajasthan
- Additional 10 lakh new Point-of-Sale terminals to be issued
- Payment Regulatory Board to be set up under Central Reserve Bank
For Youth
- For youth, the Budget proposed to introduce a system of measuring annual learning; Science to be given focus
- To complete 1,00,00,000 houses by 2019 for houseless and those living in kaccha houses
- We propose to establish National Testing Agency for entrance exams for higher education. It’ll free CBSE, AICTE etc:
- 3.5 crore youth to be trained under the livelihood promotion programme Sankalp
- 5000 additional medical PG seats to be allotted in 2017
- Two new AIIMS for Jharkhand and Gujarat
The Poor and the Privileged
- Aim to make 50,000 Gram Panchayat free from poverty
- For the benefit of women and children, allocation across all schemes stepped up from 1,56,528 cr to 1,84,632 cr
- The government is planning to complete 1,00,00,000 houses by 2019 for houseless and those living in kaccha houses
- Mission Antyodaya to bring 1 crore households out of poverty and to make 50,000 Gram Panchayats poverty-free
- During 2017-18, another 5 lakh ponds will be constructed for drought-proofing
- Proposal to double the lending target of Pradhan Mantri Mudra Yojana and set it up at Rs 2.44 lakh crore for 2017-18
- DigiGov for education, healthcare, and skills to the villages. Smart Villages in the making
Senior Citizen
- Aadhar based smart cards to be issued for senior citizens, says FM
- The Government will launch a new health protection scheme which will provide health cover up to Rs 1 lakh per family. For senior citizens of age 60 years and above belonging to this category, an additional top-up package up to Rs 30,000 will be provided
- Pension schemes offer financial protection to senior citizens. The FM proposes to make withdrawal up to 40% of the corpus at the time of retirement tax exempt in the case of National Pension Scheme
Railways
- Rail safety fund with corpus of Rs 100,000 crore will be created over the period of 5 years
- 500 stations to be differently-abled friendly with lifts and escalators
- Railways to implement end to end transport solution for selected commodities
- Modernisation of corridors. 500 stations to be made handicapped friendly. Coach Mitra-complaints
- 1,000 Mw solar capacity to be set up under mission for railways
- Dedicated trains for tourism and pilgrimage
- Service booking tax on online railway ticket booking through IRCTC to go. Online bookings up from 58% to 68%
- By 2019, all coaches of Indian Railways will be fitted with Bio-toilets
- A new metro rail policy will be announced which will open up new jobs for our youth
- Railways will integrate end to end transport solutions for selected commodities through partnership
- Launch of Tejas Express – New product offering for premium customers
- Encourage employment for SC/ST through horticulture and tree plantation at side of tracks
- Railway related state-run companies like IRCON and IRCTC to be listed on stock exchanges
- Unmanned railway level crossings to be eliminated by 2020
- Railway related state-run companies like IRCON, IRCTC to be listed on stock exchanges
Telecom
- Telecom sector is an important sector for us. Allotting Rs 10,000 crore for BharatNet
Digitalisation
- Promotion of Digital Economy an integral part of strategy to clean up system and weed out corruption
- 125 lakh people have adopted the BHIM app. Two more schemes are being brought to encourage people to use the app.
- Aadhar enabled payment system to be launched soon; Banks have targeted to introduce additional 10 lakh Point-of-Sale terminals by March 2017
- Relief to the middle class, promote digital economy, encouraging affordable housing planned
Tax Proposals
- Fiscal deficit target 3.2%, committed to 3.0% following year
- Due to demonetisation, advance tax on personal Income tax increased by 34.8%
- 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 sans 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, now to pay 25%—a reduction of 5%
- Not to remove Minimum Alternative Tax in 2017-18; Propose to allow a carry forward of MAT for a period of 15 years as against 10 years now
- No transactions above Rs 3 lakh
- Proposes to reduce basic customs duty on LNG from 5% to 2.5% in 2017-18
Political Parties
- Maximum cash donation that any party can receive will be Rs 2,000 from one source
- Political parties will be entitled to receive donations by cheque or in the digital mode from their donors
- Every political party will have to file their returns
Income Tax
- Proposes to reduce existing rate of taxation of those with income between 2.5 lakh to 5 lakh from 10% to 5%
- Surcharge of 10% for those whose annual income is Rs 50 lakh to 1 crore
- All other categories in subsequent brackets get Rs 12,500 benefit per person
- No tax for people upto income of 4.5 lakh
Others - Head post offices to be used as front offices of passport service
- Chandigarh and eight districts of Haryana have been declared kerosene-free
- Have increased allocation for scientific ministry to Rs 37,435 cr in 2017-18
- GST Council finalised its recommendations; implementation of GST likely to bring more taxes to Centre, States
Be Peaceful !!!