Budget 2017 by Arun Jaitley: Main Highlights

Budget 2017 by Arun Jaitley: Main Highlights

Finance Minister, Arun Jaitely presented the Union Budget 2017-18 in the Parliament here on Wednesday. This was the fourth Budget presented by the BJP- led NDA Government.

In his opening remarks, Finance Minister talked about the challenges ahead for the emerging economies. He called India a bright spot and termed it as an engine of global growth. He defines GST and Demonetization as two tectonic policy initiatives.

Talking about the Demonetization, he said that it was a bold and decisive measure and it has strong potential to generate long-term benefits. He assured that Demonetization will not spill over to the next year.

Here are the main highlights of the Budget 2017-18.

Farming Sector

  • Farmers are credit with sum of Rs. 10 lakh crore, with 60 days interest waiver
  • Soil testing: Government will set up Mini Labs in Krishi Vigyan Bhavan
  • Irrigation corpus increased from Rs. 20,000 to Rs. 40,000 crore.
  • Model law on contract farming will be circulated
  • Creation of dairy processing infrastructure
  • There will be increase in the funding of NABARD

Rural Sector

  • 40,000 crore has been allocated to MGNREGA. Space technology to be used for ensuring the working of MGNREGA
  • Over 1 crore households will be brought out of poverty with the help of mission Antyodya
  • Target is the 100% electrification of villages by 2018
  • The Government proposed to complete 1 crore houses for the homeless people

Poor and Underprivileged

  • Mahila Shakti Kendras are allocated Rs. 500 crore
  • A sum of Rs. 1,84,632 crore allocated for the welfare of women and children
  • 52,393 crore is allocated for Schedule Castes, 31,920 crore to Schedule Tribes and minority affairs is given Rs. 4195 crore
  • Government targeted to eliminate Tuberculosis by 2025 and leprosy by 2018
  • Affordable housing will be given infrastructural status
  • Two AIIMS to be set up in Jharkhand and Gujarat
  • Senior citizens will be given Aadhaar Card based smart cards to monitor their health
  • Structural transformation to take place in the regulatory framework for medical education

Youth Section

  • 100 India International Centers across the country to be set up
  • Steps will be taken to create 5000 PG seats per annum
  • Introduction of foreign language courses
  • Colleges will be identified on the basis of accreditation
  • A system will be introduced to measure annual learning outcome

Infrastructure and Railway Sector

  • 39,61,354 crore allocated for infrastructure
  • Railway sector is allocated a sum of Rs. 1,31,000 crore
  • All trains will have bio-toilet by 2019
  • No service charges will be levied if booking is done on IRCTS
  • There will be a Raksha coach for the safety of passengers
  • SMS based ‘clean my coach service’ to be introduced
  • 500 stations will be made differently-abled friendly
  • National Highways are allocated Rs. 64,000 crore
  • Transport sector is allocated Rs. 2 trillion
  • Bharat Net Programme allotted Rs. 10,000 crore

Energy and Defense Sector

  • A strategic policy for crude reserves will be set up
  • 1,26,000 crore allocated for energy production based investments
  • Trade-infra export scheme will be launched in 2017-18
  • Defense sector is allocated a sum of Rs. 2,74,114 Crore

Financial Sector

  • Foreign investment promotion board will be abolished
  • Resolution mechanism for financial firms
  • Computer emergency response team to be set up
  • Bill on resolution of financial firms to be introduced in this session Parliament
  • Pradhan Mantri Mudra Yojna lending target fixed at Rs. 2.44 lakh crore for 2017-18
  • Head post office will render the passport services
  • Easy online booking system for defense personnel

Fiscal Situation

  • Total expenditure is Rs. 21,47,000 crore
  • Planned and non-planned expenditure to be abolished; focus will be on capital expenditure
  • Revenue deficit is 1.9%
  • Fiscal Deficit of 2017-18 is 3.2% of GDP
  • 3,000 crore allotted for implementing the budget announcements
  • 3% fiscal deficit for three years is recommended with a deviation of 0.5% of GDP
  • Total resources transferred to state and Union Territories amounted Rs. 4.11 lakh crore

Taxation

  • Direct tax collection not commensurate with GDP of India
  • Personal Income tax rate is 5% for income bracket of Rs. 2.5-5 lakh. All other categories to get uniform benefit of Rs 12,500 per person
  • Surcharge will be levied on income bracket of Rs. 50 lakh to Rs. 1 crore
  • There will be simple one page form for taxable income up to Rs 5 lakh
  • No cash transaction above Rs 5 lakh
  • Cash donation by charitable trusts limited to Rs 2000 from Rs 10,000
  • A proposal to reduce tax for small companies with turnover of up to Rs 50 crore to 25%
  • A political party can receive donation of maximum Rs 2000 in cash
  • A proposal to reduce basic custom duty for LNG to 2.5% from 5%
  • Holding period of long-term capital gain lowered to two years

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