BUDGET 2017-18
Highlights in English
1. CPI inflation has fallen, current account deficit has reduced, FDI flows have increased while forex reserves have increased. The government is continuing on path of fiscal consolidation
2. FII has increased from Rs 1.07 lakh crore to Rs 1.45 lakh crore.
3. India has become the sixth largest manufacturing country in the world, up from the ninth position earlier.
4. CPI inflation is expected to remain within RBI’s mandated range of 2 to 6 percent. International Monetary Fund estimates that the world GDP will grow by 3.1% in 2016 and 3.4% in 2017
5. India’s Current Account Deficit decreased frm about 1% of GDP last yr to 0.3% of GDP in 1st half of 216-17.
6. Surplus liquidity in banking system created by demonetisation will lower borrowing cost and increase access to credit.
7. In this Budget, govt has done away with the distinction between plan and non-plan expenditure.
8. Target for agricultural credit for 2017-18 is set at ten lakh crore
9. NABARD will receive for 63,000 functional PACs. Done in 3 years at an estimated cost of Rs 1,900 cr.
10. A long term irrigation fund at NABARD will be created with a Rs 40,000 crore corpus
11. Fasal Bima Yojana –coverage will be increased to 40% in 2017-18, 50% in 2018-19
12. National agriculture markets to be expanded to 585 markets
13. Dairy processing infra fund will be created with corpus Of Rs 8,000 crore in three years
14. Govt had allotted MGNREGS Rs 38,500 crore last year but spent Rs 47,000 crore. Next year, they are targetting spends of Rs 48,000 crore."
15. Sanitation in rural areas has gone up from 42% in October 2014 (launch of Swachh Bharat) to 60% now.
16. Dedicated micro-irrigation fund to be created with a corpus of Rs 5000 crore,
17. Rs 9,000 cr higher allocation for payment of sugarcane arrears
18. Total allocation for rural, agricultural and allied sectors for 2017-18 at record Rs 1.87 crore, it is up by 24%,
19. Allocation for Pradhan Mantri Awaaz Yojana up from 15,000 cr to 23,000 cr
20. 100% village electrification will be achieved by May 1,2018 under the Deen Dayal Scheme.
21. SANKALP – 4000 crores allotted to train for market oriented training. At least 3.5 crore youth will be provided market-relevant training under Sankalp programme
22. The government is looking to complete 1,00,00,000 houses by 2019 for houseless and those living in kaccha houses under Antodya Scheme,
23. Affordable housing will be given infra status." This means the real estate sector will get cheaper funding for affordable housing.
Budget allocation for welfare of women and children under various ministries increased to Rs 1,84,632 cr.
24. 1.5 lakh health sub-centres will be transformed to health wellness centres
25. The government proposes to eliminate tuberculosis by 2025.
26. Two new AIIMS Hospitals to be set up in Jharkhand and Gujarat
27. Total spend on Railways will Rs 1.31 lakh crore in FY18.
28. Steps will be taken to launch dedicated trains for pilgrimage and tourism
29. Rail safety fund with a corpus of Rs 100,000 crore to be created over a period of 5 years
30. Good news for all those who book tickets on 30. IRCTC. You will no longer have to pay service charge
31. A new metro rail policy will be announced, this will open up new jobs for youth:
32. At least 25 stations re-development contracts will be awarded in 2017-18. 500 stations will be made disabled-friendly.
33. By 2019, all coaches of Indian Railways will be fitted with bio-toilets.
34. Two-hour-long Railway Budget compressed into a 6-minute part
35. Total investment for infrastructure in budget 2017 stands at a record Rs 3,96,135 cr.
36. The Foreign Investment Promotion Board has been abolished and a new framework will be created.
37. An expert panel will be created to look to integrate spot and derivatives commodities market.
Allocation to electronics manufacturers schemes like MSIPS increased to all time high of Rs 745 crores with 250 proposals received
38. Transport sector allocated Rs 2.41 lakh crore and Bharat Net Project allocated Rs 10,000 crore
39. Railway companies such as IRCON and IRCTC will be listed.
40. Bank recapitalisation for FY18 continues to stay at Rs 10,000 crore as originally outlined (allocate more funds to recapitalise PSU banks if needed)
41. Allocation for SCs increased from Rs 38,833 cr to Rs 52,393 cr, a rise of 35 per cent,
42. Priority will be given to tribal, Dalit, women to setup greenfield enterprises.
43. Action plan to eliminate Kala Azar and Filariasis by 2017, Leprosy by 2018, Measles by 2020 and Tuberculosis by 2025
44. 125 lakh people adopted the BHIM app so far; merchant version of Aadhaar-enabled payment will be launched shortly for those without debit cards, mobile phones
45. Govt is targetting Rs 2,500 crore digital transactions across platforms like UPI
- Govt will launch 2 new schemes to promote BHIM app
- To take steps to promote digital payments at petrol pumps, hospitals
- AadhaarPay will be launched shortly
46. By 2017-18, another 5 lakh ponds will be constructed, for drought-proofing,
47. Propose to double the lending target of Pradhan Matri Mudra Yojana and set it up at Rs 2.44 lakh crore for 2017-18
48. Govt will strengthen the legislative framework to freeze assets of such persons."
49. Railway tariffs to be fixed on the basis of cost, social obligation and competition;
50. Chandigarh and eight districts of Haryana have been declared Kerosene free
51. Select airports in tier-II cities to be taken up for operations, development on PPP mode
52. New law to confiscate properties/assets of economic offenders fleeing country
53. Forex reserves to offer a cover for 12 months of imports
54. Total resources being transferred to the states & union territories with legislature is Rs 4.11 lakh crore
55. Budget allocation for highways stepped up to Rs 64,000 crore in FY18 from Rs 57,676 crore
56. Allocation for national highways stepped up to Rs 64,000 cr from Rs 57,676 cr.
57. Fiscal Deficit target for 2017-18 is 3.2%.
58. Revenue deficit has been thghtiened to 2.1% instead of 2.3%
59. Total expenditure of budget 2017-18 has been placed at Rs 21.47 lakh crore,
60. Taxes (We will come up with more details on this shortly this are a few highlights)
61. Predominance of cash in our economy makes it easy for people to avoid taxes, we are largely a tax non compliance society, when too many people evade taxes burden falls on those who are honest
62. 3.7 crore individuals filed tax returns, 99 lakh of them below taxable limit. Number of people with more than 50 lakh income is 1.26 lakh,
63. Of 76 lakh individuals who reported income of over Rs 5 lakh, 56 lakh are salaried
64. Coastal roads of 2,000 kms to accelerate development of Coastal Economic Zones
65. The rate of growth in advance tax in personal income tax domains has increased by 34.81%
66. Deposits between Rs 2-80 lakh made in 1.09 cr accounts post demonetisation
67. Due to demonetisation advance tax on personal income tax increased by 34.8%
68. The net tax revenue grew by 17% in 2015-16
69. Government will reduce holding period for long-term capital gains tax on immovable property from three years to two years. This will result in lower taxes for those selling property at a profit
70. Capital gains tax to be exempted, for persons holding land from which land was pooled for creation of state capital of Telangana,
71. To allow MAT carryforward for a period of 15 years instead of 10 years.
72. Small and Medium enterprises (MSME) to be encouraged. Income tax reduced to 25% from 30% about 96 percent of all MSMEs will be benefited from this move
73. In order to promote Make in India, govt propose to tweak custom duties for imported products as outlined in the Budget document this will also take care of inverted duties to an extent.
74. Basic customs duty on LNG to be reduced from 5% to 2.5%,
75. No cash transcations above Rs 3 lakh
76. Maximum cash donation to political parties from one source cut to Rs 2,000 from Rs 20,000 earlier from any one source.
77. Political parties will be entitled to recieve donations by cheque or digital mode
78. Tax rate for slab 2.5 to 5 Lakhs reduced to 5 per cent from 10 currently
79. For those in 20 percent (Rs 5 lakh-Rs 10 lakh) and 30 percent (Rs 10 lakh plus), there is a Rs 12,500 rebate.
The total cost of the two measures for the government will be Rs 15,500 crore
80. To compensate for this, those earning Rs 50 lakh a year will pay a 10 percent surcharge
81. One page tax filing form for taxable income under Rs 5 lakh
82. Indirect taxes, says no major changes in existing tax structure have been proposed because of rollout of GST.
