|Trivandrum/Delhi: The 2017 Union Budget, presented by Finance Minister Arun Jaitley broadly focused on a few 10 like the farming sector, rural population, the youth, the poor, infrastructure, financial sector, fiscal management and tax administration.
Following are the highlights :-
A sum of Rs. 10 lakh crore is allocated as credit to farmers, with 60 days interest waiver.
NABARD fund will be increased to Rs. 40,000 crore.
A dedicated micro irrigation fund will be set up for NABARD with Rs 5,000 crore initial corpus.
Dairy processing infrastructure fund wlll be initially created with a corpus of Rs. 2000 crore.
- The government targets to bring 1 crore households out of poverty by 2019.
- Over Rs 3 lakh crore will be spent for rural India. MGNREGA to double farmers' income.
- The government proposes to complete 1 crore houses for those without homes.
- The country to achieve 100% rural electrification by March 2018.
- Swachh Bharat -sanitation coverage has gone up from 42% in Oct 2013 to 60% now.
- Focus will be on 3,479 educationally-backward blocks.
- Skill India mission was launched to maximise potential. Will set up 100 India International centres across the country.
- Will take steps to create 5000 PG seats per annum.
- Rs. 500 crore allocated for Mahila Shakthi Kendras.
- Under a nationwide scheme for pregnant women, Rs. 6000 will be transferred to each person.
- A sum of Rs. 1,84,632 crore allocated for women and children.
- Affordable housing will be given infrastructure status.
- Reduce lending rates for housing.
- Elimination of tuberculosis by 2025 targeted.
- Two AIIMS will be set up in Jharkhand and Gujarat.
- Will undertake structural transformation of the regulator framework for medical education.
- Allocation for Scheduled Castes is Rs.52,393 crore
- Aadhaar-based smartcards will be issued to senior citizens to monitor health.
- High speed Internet to be allocated to 1,50,000 gram panchayats.
Infrastructure and railways
- A total allocation of Rs. 39,61,354 crore has been made for infrastructure.
- Total allocation for Railways is Rs. 1,31,000 crore.
- No service charge on tickets booked through IRCTC.
- A corpus of Rs. 1 lakh crore for five years (for passenger safety).Unmanned level crossings will be eliminated by 2020.
- SMS-based ''clean my coach service'' is put in place.
- Coach mitra facility will be introduced to register all coach related complaints.
- By 2019 all trains will have bio-toilets.
- Five-hundred stations will be made differently-abled friendly.
- Railways will offer competitive ticket booking facility.Rs. 64,000 crore allocated for highways.
- New Metro rail policy.
- FDI policy reforms - more than 90% of FDI inflows are now automated.
- Shares of Railway PSE like IRCTC will be listed on stock exchanges.
- Foreign Investment Promotion Board will be abolished.
- Pradhan Mantri Mudra Yojana lending target fixed at Rs 2.44 lakh crore for 2017-18.
- BHIM app to unleash mobile phone revolution.
- Head post office as the central office for rendering passport service.
- Easy online booking system for Army and other defence personnel.
- The maximum amount of cash donation for a political party will be Rs. 2,000 from any one source.
- Political parties will be entitled to receive donations by cheque or digital mode from donors.
- Electoral bonds to be introduced. A donor can purchase these bonds from banks or post offices. They can be redeemed only by registered political parties.
- Total expenditure is Rs. 21,47,000 crore.
- Plan, non-plan expenditure to be abolished; focus will be on capital expenditure, which will be 25.4 %.
- Rs.3,000 crore under the Department of Economic Affairs for implementing the Budget announcements.
- Expenditure for science and technology is Rs. 37,435 crore.
- Total resources transferred to States and Union Territories is Rs 4.11 lakh crore.
- Recommended 3% fiscal deficit for three years with a deviation of 0.5% of the GDP.
- Revenue deficit is 1.9 %. Fiscal deficit of 2017-18 pegged at 3.2% of the GDP. Will remain committed to achieving 3% in the next year.
- The defence sector gets an allocation of Rs.2.74,114 crore.
Personal income tax
- Out of 13.14 lakh registered companies, only 5.97 lakh firms have filed returns for 2016-17.
- Individuals numbering 1.95 crore showed an income between Rs.2.5 lakh to Rs. 5 lakh.
- Out of 76 lakh individual assessees declaring income more than Rs. 5 lakh, 56 lakh are salaried.
- Only 1.72 lakh people showed income of more than Rs. 50 lakh a year.
- Between November 8 to December 30, deposits ranging from Rs. 2 lakh and Rs. 80 lakh were made in 1.09 crore accounts.
- Net tax revenue of 2013-14 was Rs. 11.38 lakh crore.
- Out of 76 lakh individual assessees declaring income more than Rs.5 lakh, 56 lakh are salaried.
- 1.95 crore individuals showed income between Rs.2.5 lakh to Rs. 5 lakh.
- Holding period for long term capital gain lowered to two years
- Proposal to have a carry-forward of MAT for 15 years.
- 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. 96% of companies to get this benefit.
- The government proposes to reduce basic customs duty for LNG to 2.5% from 5%.
- No transaction above Rs.3 lakh is permitted in cash.
- The limit of cash donation by charitable trusts is reduced to Rs 2,000 from Rs 10,000.
- Net revenue loss in direct tax could be Rs. 20,000 crore.
- Existing rate of tax for individuals between Rs.2.5- Rs 5 lakh is reduced to 5% from 10%.
- All other categories of tax payers in subsequent brackets will get a benefit of Rs 12,500.
- Simple one page return for people with an annual income of Rs. 5 lakh other than business income.
- People filing I-T returns for the first time will not come under any government scrutiny.
- 10% surcharge on individual income above Rs. 50 lakh and up to Rs 1 crore to make up for Rs 15,000 crore loss due to cut in personal I-T rate.
- 15% surcharge on individual income above Rs. 1 crore to remain.