{"id":645,"date":"2017-02-01T22:01:22","date_gmt":"2017-02-01T16:31:22","guid":{"rendered":"http:\/\/financialfunda.com\/?p=645"},"modified":"2023-01-24T22:06:00","modified_gmt":"2023-01-24T16:36:00","slug":"highlights-of-union-budget-2017-18","status":"publish","type":"post","link":"https:\/\/cacube.in\/?p=645","title":{"rendered":"Highlights of Union Budget 2017-18"},"content":{"rendered":"

Key Highlights of Union Budget 2017-18<\/h2>\n

Today on Date 1st<\/sup> February 2017, Finance Minister, Mr. Arun Jaitley presented Union Budget 2017 in parliament.\u00a0 Opening remarks of budget speech were:<\/p>\n

    \n
  1. Massive war against black money has been launched.<\/li>\n
  2. Government now seen as a trusted custodian of public money.<\/li>\n
  3. We will focus on energizing youth to reap benefits of growth.<\/li>\n
  4. World economy faces considerable uncertainty.<\/li>\n
  5. Three major challenges for emerging economies: US Federal Reserve\u2019s stance, uncertainty over commodity prices, especially crude prices and signs of increasing retreat from globalization as protectionist fears build up.<\/li>\n
  6. India stands out as a bright spot.<\/li>\n
  7. Govt has continued with steady path of fiscal consolidation.<\/li>\n
  8. We are seen as an engine of global growth.<\/li>\n
  9. There are two tectonic policy initiatives: GST implementation and demonetization.<\/li>\n
  10. Demonetization was the continuation of series of measures taken in last two years and was a bold and decisive measure.<\/li>\n
  11. Drop in economic activity due to demonetization is expected to have only a transient effect.<\/li>\n
  12. Demonetization has strong potential to generate long-term benefits.<\/li>\n
  13. Demonetization helps to transfer resources from tax evaders to govt.<\/li>\n
  14. Firmly believe demonetization and GST will have epoch-making impact.<\/li>\n
  15. Pace of remonetization will soon reach comfortable levels; effect of demonetization not expected to spill over into next year.<\/li>\n
  16. Surplus liquidity in banking system will raise access to credit, leading to multiplier effect on economic activity: FM<\/li>\n
  17. Overall approach in budget to spend more in rural areas.<\/li>\n
  18. Budget 2017-18 contains 3 major reforms: advancement of date of presentation, merger of railway budget with general budget, abolition of Plan and non-Plan expenditure.<\/li>\n<\/ol>\n

    Mr. Jaitley divided his budget proposals into 10 themes:<\/p>\n

      \n
    1. Farmers<\/li>\n
    2. Rural population<\/li>\n
    3. Energizing youth<\/li>\n
    4. Poor and underprivileged<\/li>\n
    5. Infrastructure<\/li>\n
    6. Financial sector<\/li>\n
    7. Digital economy<\/li>\n
    8. Public service<\/li>\n
    9. Prudent fiscal management<\/li>\n
    10. Tax administration.<\/li>\n<\/ol>\n

       <\/p>\n

      FARMERS:<\/p>\n

        \n
      1. A record sum of Rs. 10 lakh crore is allocated as credit to farmers, with 60 days interest waiver.<\/li>\n
      2. Govt to set up mini-labs in Krishi Vigyan Kendras for soil testing.<\/li>\n
      3. Long-term irrigation fund in Nabard allocated Rs40,000 crore.<\/li>\n
      4. Model law on contract farming to be circulated.<\/li>\n
      5. Dairy processing infra fund with corpus of Rs8,000 crore.<\/li>\n
      6. Dedicated micro-irrigation fund with Rs5,000 crore.<\/li>\n<\/ol>\n

        RURAL POPULATION:<\/p>\n

          \n
        1. Mission Antyodaya to bring 1 crore households out of poverty by 2019.<\/li>\n
        2. MGNREGA: Rs48,000 crore has been allocated; participation of women now at 55%; using space technology in a big way.<\/li>\n
        3. Prime Minister Gram Sadak Yojana: Rs19,000 crore allocated; along with states, Rs27,000 crore will be spent in FY18.<\/li>\n
        4. Pradhan Mantri Awas Yojana: Rs23,000 crore allocated.<\/li>\n
        5. 100% village electrification by May 2018.<\/li>\n
        6. Rural livelihood mission: Rs4,500 crore allocated.<\/li>\n
        7. Mason training to be provided for 5 lakh people.<\/li>\n
        8. Panchayat Raj: Human resource reform programme to be launched.<\/li>\n
        9. Rs1,87,223 crore allocated for rural programmes.<\/li>\n<\/ol>\n

          YOUTH:<\/p>\n

            \n
          1. Education: System of measuring annual learning outcomes, emphasis on science.<\/li>\n
          2. Innovation fund for secondary education.<\/li>\n
          3. Reforms in UGC: Colleges to be identified based on ranking and given more autonomy.<\/li>\n
          4. Propose to leverage information technology with launch of SWAYAM platform for virtual learning.<\/li>\n
          5. National testing agency to be established for all entrance exams, freeing up CBSE, AICTE and other bodies.<\/li>\n
          6. 100 Indian international skill centres to be established with courses in foreign languages.<\/li>\n
          7. Rs4,000 crore allocated to launch skill acquisition and knowledge awareness.<\/li>\n
          8. Will take steps to create 5000 PG seats per annum.<\/li>\n
          9. Special scheme for creating employment in leather\/footwear sector.<\/li>\n
          10. Tourism: Five special zones to be set up.<\/li>\n<\/ol>\n

            POOR AND UNPRIVILEGED:<\/p>\n

              \n
            1. Mahila Shakti Kendras with Rs500 crore corpus.<\/li>\n
            2. Stepped up allocation to Rs1.84 trillion for various schemes for women and children.<\/li>\n
            3. Affordable housing to be given infrastructure status.<\/li>\n
            4. Action plan to eliminate leprosy by 2018, TB by 2025, reduce IMR to 29 in 2019.<\/li>\n
            5. To create additional PG medical seats per annum.<\/li>\n
            6. Two new AIIMS in Jharkhand and Gujarat.<\/li>\n
            7. New rules to be introduced for medical devices.<\/li>\n
            8. Labour rights: Legislative reforms to simplify and amalgamate existing labour laws.<\/li>\n
            9. Allocation to SCs increased to Rs52,393 crore; STs given Rs31,920 crore, minority affairs allocated Rs4,195 crore.<\/li>\n
            10. Senior citizens: Aadhaar-based smart cards with health details to be provided.<\/li>\n<\/ol>\n

              INFRASTRUCTURE:<\/p>\n

                \n
              1. Total capex and development expenditure of railways pegged at Rs1.31 Lakh Crore.<\/li>\n
              2. Railways: Passenger safety\u2014Safety fund corpus set up; unmanned level crossings to be eliminated by 2020.<\/li>\n
              3. Railway lines of 3,500km to be commissioned.<\/li>\n
              4. To launch dedicated tourism\/pilgrimage trains.<\/li>\n
              5. SMS-based ”clean my coach service” is put in place.<\/li>\n
              6. High speed Internet to be allocated to 1,50,000 gram panchayats.<\/li>\n
              7. 500 stations to be made differently-abled friendly.<\/li>\n
              8. Cleanliness in railways: To introduce Coach Mitra facility; By 2019, biotoilets for all coaches.<\/li>\n
              9. Railways to offer competitive ticket-booking facility; service charge withdrawn for tickets booked on IRCTC.<\/li>\n
              10. New metro rail policy to be announced.<\/li>\n
              11. Roads sector: Allocation for national highways at Rs64,000 crore<\/li>\n
              12. Airports Authority of India Act to be amended to enable monetization of land resources.<\/li>\n
              13. Total allocation to transport sector at Rs2 Lakh Crore.<\/li>\n
              14. Telecom sector: Allocation to Bharat Net programme at Rs10,000 crore.<\/li>\n
              15. To make India global hub for electronics manufacture.<\/li>\n
              16. Export infra: New restructured central scheme to be launched.<\/li>\n
              17. Total allocation for infrastructure: Rs3.96 Lakh Crore.<\/li>\n<\/ol>\n

                FINANCIAL SECTOR:<\/p>\n

                  \n
                1. Foreign Investment Promotion Board (FIPB) to be abolished.<\/li>\n
                2. Commodities market: panel to study legal framework for spot and derivative markets.<\/li>\n
                3. Resolution mechanism for financial firms.<\/li>\n
                4. Cyber-security: Computer emergency response team to be set up.<\/li>\n
                5. Listing of PSEs will foster public accountability; revised mechanism for time-bound listing.<\/li>\n
                6. To create integrated public sector oil major.<\/li>\n
                7. New ETF to be launched<\/li>\n
                8. Pradhan Mantri Mudra Yojana: Lending target at Rs2.44 Lakh Crore.<\/li>\n
                9. Stand-up India scheme: over 16,000 new enterprises have been set up<\/li>\n<\/ol>\n

                  DIGITAL ECONOMY:<\/p>\n

                    \n
                  1. Govt to launch two new schemes to promote BHIM app, including cashback scheme for merchants.<\/li>\n
                  2. Aadhaar Pay to be launched for people who don\u2019t have mobile phones.<\/li>\n
                  3. To strengthen financial inclusion fund.<\/li>\n
                  4. Panel on digital payments has recommended structural reforms.<\/li>\n
                  5. To create payment regulatory board at RBI.<\/li>\n<\/ol>\n

                     <\/p>\n

                    PUBLIC SERVICES:<\/p>\n

                      \n
                    1. To use head post-office for passport services.<\/li>\n
                    2. Centralized defence travel system developed<\/li>\n
                    3. Centralized pension distribution system to be established.<\/li>\n
                    4. To introduce two-tier exam system for Govt. recruitment.<\/li>\n
                    5. Govt looks to introduce laws to confiscate assets of economic defaulters.<\/li>\n
                    6. High-level panel chaired by PM to commemorate Mahatma Gandhi\u2019s 150th birth anniversary.<\/li>\n<\/ol>\n

                       <\/p>\n

                      FISCAL MANAGEMENT:<\/p>\n

                        \n
                      1. Total budget expenditure: Rs21 Lakh Crore.<\/li>\n
                      2. Rs3,000 crore to implement various budget announcements.<\/li>\n
                      3. Defence expenditure excluding pensions: Rs2.74 Lakh Crore.<\/li>\n
                      4. Consolidated outcome budget for all ministries being created.<\/li>\n
                      5. Fiscal deficit for FY18 pegged at 3.2% of GDP.<\/li>\n
                      6. Revenue deficit for FY18 at 1.9%.<\/li>\n<\/ol>\n

                        TAX ADMINISTRATION:<\/p>\n

                          \n
                        1. India\u2019s tax to GDP ratio is not favourable.<\/li>\n
                        2. Out of 13.14 lakh registered companies, only 5.97 lakh firms have filed returns for 2016-17.<\/li>\n
                        3. Proportion of direct tax to indirect tax is not optimal.<\/li>\n
                        4. Individuals numbering 1.95 crore showed an income between Rs. 2.5 lakh to Rs. 5 lakh.<\/li>\n
                        5. Out of 76 lakh individual assessees declaring income more than Rs. 5 lakh, 56 lakh are salaried.<\/li>\n
                        6. Only 1.72 lakh people showed income of more than Rs. 50 lakh a year.<\/li>\n
                        7. Between November 8 to December 30, deposits ranging from Rs. 2 lakh and Rs. 80 lakh were made in 1.09 crore accounts.<\/li>\n
                        8. Direct tax collection not commensurate with income\/expenditure pattern of India.<\/li>\n
                        9. We are largely a tax non-compliant society; predominance of cash in society enables tax evasion<\/li>\n
                        10. After demonetization, data received will increase tax net.<\/li>\n
                        11. No transaction above Rs 3 lakh is permitted in cash.<\/li>\n
                        12. The holding period for capital gains<\/b> on sale of immovable property\u2014land and building\u2014to qualify as long term capital gains<\/b> (LTCG) is proposed to be reduced to 2 years from 3 years in the Union Budget<\/b>. Currently, capital gains<\/b> on land and building qualify as long term capital gain<\/b> if holding period is minimum 3 years.<\/li>\n
                        13. Transparency in political funding: Parties continue to receive anonymous donations; propose system of cleaning up.<\/li>\n
                        14. Maximum amount of cash donation that can be received by Political parties is Rs2,000.<\/li>\n
                        15. RBI to issue electoral bonds.<\/li>\n
                        16. Personal income tax: Rate reduced to 5% for income bracket of Rs2.5-5 lakh; All other categories to get uniform benefit of Rs12,500 per person; to levy surcharge 10% on income bracket Rs50 lakh-Rs1 crore<\/li>\n
                        17. Rebate U\/s 87A is reduced to Rs. 2500\/- for income group upto Rs. 3.5 Lakh.<\/li>\n
                        18. To have simple one-page ITR form for taxable income up to Rs5 lakh<\/li>\n
                        19. Not many changes to excise duties since GST will be implemented soon.<\/li>\n
                        20. Time period of revising tax returns reduced to 12 months<\/li>\n
                        21. Concessional withholding rate will be extended to 30 June 2020, rupee-denominated masala bonds to be included<\/li>\n
                        22. MAT not to be abolished at present; to allow carry-forward for 15 years.<\/li>\n
                        23. 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.<\/li>\n
                        24. The government proposes to reduce basic customs duty for LNG to 2.5% from 5%.<\/li>\n
                        25. Limit of cash donation for charitable trusts cut to Rs2,000.<\/li>\n<\/ol>\n

                           <\/p>\n

                           <\/p>\n

                           <\/p>\n","protected":false},"excerpt":{"rendered":"

                          Key Highlights of Union Budget 2017-18 Today on Date 1st February 2017, Finance Minister, Mr. Arun Jaitley presented Union Budget 2017 in parliament.\u00a0 Opening remarks of budget speech were: Massive war against black money has been launched. Government now seen as a trusted custodian of public money. We will focus on energizing youth to reap […]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[1,277,5],"tags":[94],"class_list":["post-645","post","type-post","status-publish","format-standard","hentry","category-banking-investment","category-income-tax-updates-for-fy-2017-18-ay-2018-19","category-finance-taxation","tag-budget"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9X28M-ap","_links":{"self":[{"href":"https:\/\/cacube.in\/index.php?rest_route=\/wp\/v2\/posts\/645","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cacube.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cacube.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cacube.in\/index.php?rest_route=\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/cacube.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=645"}],"version-history":[{"count":1,"href":"https:\/\/cacube.in\/index.php?rest_route=\/wp\/v2\/posts\/645\/revisions"}],"predecessor-version":[{"id":1855,"href":"https:\/\/cacube.in\/index.php?rest_route=\/wp\/v2\/posts\/645\/revisions\/1855"}],"wp:attachment":[{"href":"https:\/\/cacube.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=645"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cacube.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=645"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cacube.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=645"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}