New Delhi: Highlights of Union Budget 2017

 

New Delhi, 01 Feb 2017: Finance Minister Arun Jaitley presented the Union Budget 2017, his fourth annual budget, today. Here are the highlights of this year’s budget:

• Income Tax rate cut to 5 pc for individuals having income between Rs 2.5 lakh to Rs 5 lakh

• 10 pc surcharge on individual income above Rs 50 lakh and upto Rs 1 cr to make up for Rs 15,000 cr loss of due to cut in personal I-T rate

• 15 pc surcharge on income above Rs 1 cr to continue

• Direct tax collection not commensurate with income and expenditure pattern

• Revenue deficit reduced to 2.1 pc from 2.3 pc for 2016-17

• Govt pegs fiscal deficit target at 3.2 per cent for 2017-18 and 3 per cent for next year.

• Monetary policy to be expansionary in major economies

• More steps will be taken to benefit farmers and the weaker sections; budget being presented during weak global economy

• Pace of remonetisation has picked up; demonetisation effects will not spill over to next year

• Functional autonomy of the railways to be maintained

• Demonetisation will help in transfer of resources from tax evaders to government

• Merger of Railways Budget with General Budget brings focus on a multi-modal approach for development of railways, highways and inland water transport

• Only transient impact on economy due to demonetisation; long term benefit include higher GDP growth and tax revenue

• GDP will be bigger, cleaner after demonetisation

• Effects of demonetisation not expected to spill over to the next year, says Finance Minister

• Effects of demonetisation not expected to spill over to the next year, says Finance Minister

• Govt took two tectonic policy initiatives - passage of GST Bill and demonetisation

• Demonetisation was a bold and decisive strike in a series of measures to arrive at a new norm of bigger, cleaner and real GDP

• Committed to double farm income in 5 yrs

• Plan, non-plan classification of expenditure done away with in the Budget for 2017-18 to give a holistic picture

• Mini labs by qualified local entrepreneurs to be set up for soil testing in all 648 krishi vigyan kendras in the country

• Budget presentation advanced to help begin implementation of schemes before onset of monsoon

• We will continue the process of economic reform for the benfit of poor

• Spend more in rural areas, infra, poverty alleviation, while maintaining fiscal prudence as guiding principle of Budget

• Our agenda for next year is to transform, energise and clean India

• World Bank expects GDP growth rate at 7.6 pc in FY18 and 7.8 pc in FY19

• Allocation under MNREGA increased to 48,000 crore from Rs 38,500 crore. This is highest ever allocation

• Rs 9,000 cr higher allocation for payment of sugarcane arrears

• Target of agriculture credit fixed at Rs 10 lakh cr in 2017-18

• Tax administration honouring the honest is one of the 10 pillars of Budget 2017-18

• National Testing agency to conduct all examinations in higher education, freeing CBSE and other agencies

• 133-km road per day constructred under Pradhan Mantri Gram Sadak Yojana as against 73-km in 2011-14

• Govt to set up dairy processing fund of Rs 8,000 crore over three years with initial corpus of Rs 2,000 crore

• 1 cr households to be brought out of poverty under Antodya Scheme

• Participation of women in MNREGA increased to 55 pc from 45 pc in past

• Modern law on contract farming will be drafted and circulated to states

• Dedicated micro-irrigation fund to be created with a corpus of Rs 5000 crore

• Market reforms will be undertaken, states will be asked to denotify perishables from Essential Commodities Act

• Space technology to be used for monitoring MNREGA implementation

• Sanitation coverage in villages has increased from 42 pc in Oct 2016 to 60 pc, a rise of 18 pc, says FM

• We propose to provide safe drinking water to 28,000 arsenic and fluoride affected habitations

• To construct one crore houses by 2019 for homeless. PM Awas Yojana allocation raised from Rs 15,000 cr to Rs 23,000 cr

• 100 pc electrification of villages to be completed by May 2018

• 27,000 cr on to be spend on PMGSY; 1 cr houses to be completed by 2017-18 for houseless

• PM Kaushal Kendras will be extended to 600 districts; 100 international skill centres to be opened to help people get jobs abroad

• The allocation for rural agri and allied sector in 2017-18 is record Rs 1,81,223 crore

• In higher education, we will undertake reforms in UGC, give autonomy to colleges and institutions

• A system of annual learning outcome in schools to be introduced; innovation fund for secondary education to be set up

• Two new AIIMS to be set up Jharkhand and Gujarat

• New rules regarding medical devices will be devised to reduce their cost

• 1.5 lakh health sub centres to be converted to Health Wellness Centres

• National Housing Bank will refinance indiviual loans worth Rs 20,000 crore in 2017-18

• Rs 500 cr allocated to set up Mahila Shakti Kendras; Allocation raised from Rs 1.56 lakh cr to Rs 1.84 lakh cr for women & child welfare.

• Capital and development expenditure pegged at Rs 1.31 lakh cr for railways in 2017-18 from Budget

• Allocation for SCs increased from Rs 38,833 cr to Rs 52,393 cr, a rise of 35 per cent

• 35 pc increase in allocation for SC to Rs 52,393 cr

• For senior citizens, Aadhaar based health cards will be issued

• Model Shops and Establishment Bill to open up additional opportunities for employment of women

• New metro rail policy to be unveiled

• Railway tariffs to be fixed on the basis of cost, social obligation and competition

• Service charge on e-tickets booked through IRCTC will be withdrawn

• Delhi and Jaipur to have solid waste management plants and five more to be set up later

• Government proposes Coach Mitra facility to redress grievances related to rail coaches

• 500 stations will be differently abled by providing lifts and esca ..

• 500 stations will be differently abled by providing lifts and escalators

• Unmanned railway level crossings to be eliminated by 2020

• Railway line of 3,500 km will be commissioned in 2017-18 as against 2,800 km in 2016-17

• Total allocation for rural, agri and allied sectors for 2017-18 is a record Rs 1,87,223 cr, up 24 per cent from last year

• Rs 1 lakh cr corpus for railway safety fund over five years

• A scheme for senior citizens to ensure 8 per cent guaranteed returns

• Dedicated micro-irrigation fund to be set up by NABARD to achieve mission of Per Drop, More Crop

• Digi Gaon will be launched to promote tele-medicine and education

• Crude oil strategic reserves to be set up in Odisha and Rajasthan apart from 3 already constructed

• Coverage of Fasal Bima Yojana to go up from 30 pc of cropped area to 40 pc in 2017-18 and 50 per cent next year

• For transport sector, including railways, road and shipping, government provides Rs 2.41 lakh crore

• Allocation of Rs 10,000 cr for Bharat Net project for providing high-speed broadband in FY18

• Allocation for national highways stepped up to Rs 64,000 cr from Rs 57,676 cr

• Budget allocation for highways stepped up to Rs 64,000 crore ..

• Dispute resolution in infrastructure projects in PPP mode will be institutionalised

• Rs 2,74,114 crore allocated for defence expenditure, excluding pension; This includes Rs 86,000 crore for defence capital

• Govt to further liberalise FDI policy

• Over 90 per cent of FDI proposls are now processed through automatic route

• FIPB will be abolished

• Trade Infrastructure Export Scheme to be launched in 2017-18; total allocation for infra at record Rs 3.96 lakh cr

• Second phase of solar power development to be taken up with an aim of generating 20,000 MW

• After demonetisation on Nov 8 last year, deposit of between Rs 2 lakh and Rs 80 lakh made in 1.09 cr bank accounts at an average of Rs 5.03 lakh till Dec 30

• More funds beyond Rs 10,000 cr for recapitalisation of banks will be provided if needed

• The shares of railway CPSCs like IRCTC and IRFC to be listed on various stock exchanges

• We are largely a tax non-compliant society

• New ETF with diverse stocks will be launched in 2017-18

• Of 76 lakh individuals who reported income of over Rs 5 lakh, 56 lakh are salaried

• Integrated public sector oil major to be created to match global giants

• Govt will amend the Multi-state Cooperative Act to protect the poor and gullible investors

• Urgent need to protect poor from chit fund schemes, draft bill placed in public domain

• Computer emergency response team to be set for cyber security of financial sector

• Govt to introduce two new schemes to promote BHIM App - referal bonus for users and cash back for traders

• Govt doubles distribution target under Mudra Yojana to Rs 2.44 lakh crore for 2017-18

• Over Rs 80 lakh deposits in 1.48 lakh cr at an average of Rs 3.31 cr per account

• Customs duty on LNG halved to 2.5 pc

• FPI to be exempt from indirect transfer provisions

• Political parties can receive donations in cheque, electronic mode; electoral bonds to be issued by RBI

• Maximum amount of cash donation a political party can receive will be Rs 2000 from any one source as part of effort to clean political funding

• Capital expenditure stepped up by 25.4 pc in FY18 over previous year

• Total expenditure in FY18 at Rs 21.47 lakh cr

• Duty exempted on various POS machines and iris readers to encourage digital payments

• Rs 7,200 cr revenue loss due to reduction in tax on smaller companies

• Govt mulling introduction of legal changes to confiscate assets of offenders, including economic offenders, who flee the country

• Govt to set up a web-based interactive platform for defence pensioners

• Head post offices to issue passports

• Govt considering option to amend Negotiable Instruments Act to ensure that holders of dishonoured cheques get payment

• FRBM review committee has recommended 60 pc debt to GDP ratio; 0.5 pc of GDP deviation from stipulated fiscal deficit targets

• Payment regulatory board to be set up in RBI to regulate electronic payments, replacing Board for Regulation and Supervision in Payments and Settlements System

• 3 yr period for long-term capital gains tax on immovalble property reduced to 2 years; base year indexation shifted from 1.4.1981 to 1.4.2001

• A proposal to receive all government receipts beyond a certain threshold through e-modes under consideration