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Highlights Of Union Budget 2017-18
What's in it for the common man? Yentha looks at the highlights.
On Feb 01, 2017

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 :-

Agriculture sector


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.

Rural sector

  • 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.

Youth
  • 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.


Poor/Women/Health

  • 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.

 

Financial sector
  • 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.
Fiscal situation
  • 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.

Tax proposals
  • 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.
Personal income tax
  • 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.
 
 
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