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Live : Union Budget 2017 Highlights

Updated on: 09 Aug, 2023 11:46 AM

Here is the Live : Updates of Union Budget 2017-18 by Arun Jaitley-
Why Budget 2017 different-
Budget date has been advanced to enable the Parliament to avoid a vote-on-account and have one Finance Bill for the year 2017-18.
FM Propose to present Budget under 10 district themes

Ten Distinct themes-

Live Updates:


  • Target for agriculture credit fixed at Rs 10 lakh crore this year
  • Agriculture expected to grow at 4.1% in the current year
  • Farmers will benefit from 60-day interest waiver announced
  • Fasal Bima Yojana coverage will be increased to 40%
  • Issuance of soil health cards has gathered momentum
  • Govt committed to double farmer income in five years
  • Will ensure flow of adequate credit to under privileged areas,
  • To up crop insurance coverage to 50%
  • Sowing farmers should feel secure against natural calamities
  • Will take steps to make sure farmers get better prices for harvest
  • 5000 cr worth dedicated micro irrigation fund to be set up by NABARD
  • Will support NABARD to digitise 63,000 primary agri co-ops
  • Long term irrigation fund set up in NABARD, additional corpus Rs 20,000 cr
  • Dairy processing infra fund will be created w/corpus of Rs 8,000 crore in 3 yrs
  • Coverage of national agriculture market will be expanded
  • Will bring 1 crore households out of poverty by 2019
  • Propose to integrate farmers to the agro-processing units
  • Modern law on contract farming to be prepared
  • Dairy processing fund initial corpus at Rs 2,000 crore

2. Rural Population:

Rural Population
  • Pace of construction of roads has increased to Rs 133 km/day in 2017
  • To up crop insurance coverage to 50% in FY19
  • Propose to finish 1 crore houses by 2019 for those living in kachcha houses
  • Increased allocation to Rs 23,000 crore for PM Awas Yojan
  • Pradhan Mantri Gram Sadak Yojana construction at 133 km per day now from 73 km per day.
  • Pace Of Construction Of Roads Has Increased To Rs 133 Km/Day In 2017
  • Rs 4,800 crore allocated under Deen Dayal Upadhyaya Gram Jyoti Yojana

3. Youth:

  • Innovation fund for secondary education to be created
  • On our way to achieve 100% Village electrification by 1st May 2018
  • Sanitation coverage in rural areas risen to 60% from 42%.
  • Will Achieve 100% Rural Electrification By May 1, 2018
  • Will undertake reforms in UGC to improve higher education
  • 19000 cr allotted for PM Rural road plan in FY18
  • Allocation for rural, agri & allied ind at Rs 1.87 lakh crore, up 24% YoY,
  • Total allocation for rural sector up by 24% AT 1,83000 cr,
  • Dairy Processing Infra Fund Will Be Created W/Corpus Of Rs 8,000 Cr In 3 Yrs
  • Propose to set up national testing agency for entrance exam for higher education
  • Will set up 100 India-international skill centres
  • 5 special tourism zones to be set up in partnership with states
  • Govt to set up 100 India-International skill centers

4.Poor & Under privileged:

Poor & Under privileged
  • Mahila Shakti Kendra will be set up at village level; allocation Rs 500 crore
  • Mahila Shakti Kendras will aim for Woman Empowerment
  • Have hiked allocation for women skill development to Rs 1.84 lakh crore in FY18
  • Affordable housing to be given infra status,
  • Bank lending rates for housing loans coming down in wake of demonetisation,
  • Will encourage reputed hospitals to start courses
  • 1.5 lakh health sub-centres to be transformed to health wellness centres,
  • Propose to amend drug rules to ensure drugs available at reasonable prices
  • Govt committed to take structural reform in medical education, practice,
  • Will take legislative reforms to simplify labour laws in India
  • Govt committed to ensuring conducive labour environment
  • New rules regarding medical devices will be formulated; will attract investment in sector, will reduce cost of the devices,
  • Allocation to scheduled castes upped to Rs 52,393 crore
  • Outcome based monetary measures to SC, ST by NITI Aayog
  • Aadhaar based smart cards containing their health details to be introduced for senior citizens


  • Total capital development outlay for Railway at 1.3 lk cr
  • Propose to invest Rs 1.31 lakh crore in railways in 2017-18
  • Rail Sanraksha Fund will be created with corpus of 1lac crore for rail safety,
  • Centre to fund 55k cr out of 1.31 lk cr railway infra budget,
  • Atleast 25 stations re-development contracts will be awarded in 2017-18
  • Unmanned level crossing in railways will be eliminated by 2020
  • To commission 3,500 km of railway tracks in 2018
  • Railway Throughput to be enhanced by 10%
  • Propose to feed 7000 solar railway station in medium term
  • Railways to implement end-to-end solutions for some commodities
  • Service charges on e-tickets booked via IRCTC to be withdrawn
  • New Metro Rail policy to be announced; will open up new job possibilities
  • National Highway allocation at Rs 64,000 crore
  • Cash less reservation have improved to 68% from 58%
  • AAI Act to be amended to enable monetisation of land
  • New rules for pricing medical devices should benefit common man
  • 2000 km of coastal roads have been identified for development
  • Bharat Net allocation at Rs 10,000 crore,
  • Set-up new crude oil reserves,
  • Transport sector allocated Rs 2.41 lakh cr
  • To take up second phase of solar power development for additional 20,000 mw
  • Recent spectrum auctions have removed spectrum scarcity
  • Under Bharat Net, Optic fibre cable has been laid out In 1,55,000 km
  • Proposals for electronics manufacturing received in last 2 yrs for Rs 1.26 lakh crore.
  • 5 special tourism zones to be set up in partnership with states

6.Financial Sector

Financial Sector
  • New FDI policy under consideration
  • Govt hiked allocation for women skill development to Rs 1.84 lakh cr in FY18
  • Govt proposes to finish 1 cr houses by 2019 for those living in kachcha houses,
  • FIPB to be abolished, roadmap in the next few months
  • FIPB to be abolished, roadmap in the next few months
  • Announce a new trade infrastructure export scheme
  • Expert panel to help integrate spot & derivative commodity market
  • Atleast 25 stations re-development contracts will be awarded in 2017-18,
  • Listing of CPSE will increase accountability
  • National highway allocation at Rs 64,000 cr
  • Propose to create integrated PSU oil major
  • Govt to take up second phase of solar power development for additional 20,000 MW
  • Rs 10,000 cr allocated for recapitalisation of PSU banks
  • IRCTC, IRCON & IRFC to be listed on stock exchanges
  • Re-financing of housing loans to give impetus to real estate sector
  • Will continue use of ETFs for divestment
  • Addl Allocation for recap Of PSU Banks Will Be Made If Needed
  • Double lending target of banks to Rs 2.44 lakh crore
  • Propose revised mechanism for time-bound listing of PSUs

7.Digital Economy:

Digital Economy
  • Shift to digital platforms will benefit the common man
  • AadhaarPay will be launched shortly
  • Govt will launch 2 new schemes to promote BHIM App,
  • Targeting 2,500 crore digital transactions across platforms like UPI,
  • Propose aim of Rs 2.44 lakh cr under Mudra scheme
  • To take steps to promote digital payments at petrol pumps & hospitals,
  • Panel on digital payment recommended reform in digital pay systems
  • Propose to create a payment regulatory board at RBI,
  • Amend Negotiable Instruments Act to protect payees of dishonoured cheques,
  • Propose to create an integrated oil major,
  • Web-based pension distribution system for defence to be established

8.Public Service:

Public Service
  • Considering new law to confiscate assets of economic offenders
  • To rationalise number of tribunals
  • Allocation of capital expenditure up 25% YoY
  • Total resources to be transferred to states & UTs estimated at Rs 4.11 Lk Cr
  • Govt to set-up new crude oil reserves

9.Prudent Fiscal Management:

Prudent Fiscal Management
  • Defence expenditure excluding pension at Rs 2.74 lakh cr
  • Transport sector allocated Rs 2.41 lakh cr
  • FRBM Review Committee recommends debt to GDP ratio of 60% by 2023
  • Govt proposes to create integrated PSU oil major
  • FRBM panel recommended fiscal deficit at 3% for next 3 years,
  • Govt allocated Rs 3.96 lakh cr for infrastructure, announces a new trade infrastructure export scheme
  • Govt doubles lending target of banks to Rs 2.44 lakh c
  • Peg FY19 fiscal deficit at 3%
  • Govt allocated Rs 10,000 cr for recapitalisation of PSU banks
  • Net borrowing limited to Rs 3.48 lk cr
  • Tax-to-GDP ratio very low in India
  • Rev deficit at 2.1%
  • Govt raises allocation for MNREGA from Rs 38500 cr in FY17 to Rs 48000 cr in FY18
  • Peg fiscal deficit for 2017-18 at 3.2%, in-line with market expectations
  • Govt targetting Rs 2,500 cr digital transactions across platforms like UPI
  • FY18 revenue deficit pegged at 1.9% of GDP
  • Govt to take steps to promote digital payments at petrol pumps, hospitals,
  • India largely a tax non-compliant society
  • Govt to set up dairy processing fund
  • New Metro Rail Policy to be announced; will open up new job possibilities,

10. Tax Administration:

Tax Administration
  • No of people showing income above Rs 50lk annually is only 1.72 lk people,
  • Post demonetisation deposits between Rs 2-80 lakh made in 1.09 crore accounts
  • Post demonetisation deposits above Rs 80 lakh in Rs 1.48 lakh accounts, says FM
  • Net tax revenue growth was 17% for last 2 years,
  • Thrust of tax proposals will be to stimulate growth
  • Instead of build-up area, carpet area will be counted for affordable housing
  • Propose to make changes in capital gains tax for housing
  • Holding period for land & building will be reduced to 2 yrs from 3 yrs
  • Profit linked-deductions for start-ups reduced to 3 years out of 7 years
  • Not practical to remove MAT
  • Propose carry-forward of MAT to 15 years from 10 years
  • To reduce corporate tax to 25% for companies with a turnover upto Rs 50 cr
  • Basic customs duty on LNG cut to 2.5% from 5%,
  • To cut presumptive turnover threshold for companies w/turnover up to Rs 2 cr to 6%
  • No transaction over Rs 3 lakh will be permitted in cash
  • Exempt CVD, SAD on miniature POS & m-POS machines
  • Propose transparency in political party funding,
  • Maximum cash donation receivable by political party from one source at Rs 2,000
  • Propose to amend RBI Act for issue of electoral bonds for political funding
  • Political parties will need to file income tax returns
  • To exempt some FPIs from indirect transfer provisions,
  • CBDT circular becomes null & void for FPIs
  • For quick refund of tax returns time-frame reduced to 12 months
  • Govt trying to bring more people into tax net,
  • Reduce existing tax rate for income of Rs 2.5-5 lakhs to 5% from 10%
  • 50% saving in income tax if 1 person is earning up to Rs 5 lakh,
  • Tax foregone from deduction in tax rate at Rs 15,500 cr,
  • To levy surcharge of 10% on income between Rs 50 lakh-1 crore
  • Substantial progress in ushering in GST regime
  • GST council has finalised recommendations on all issues based on consensus,
  • CBEC will continue to strive to implement GST
  • GST implementation to bring more taxes to states & centre
  • Not proposing many changes to indirect taxes given GST roll-out plan
  • Greater accountability on tax officers for errors of commission & omission
  • Due to exemptions Net revenue loss in direct tax could be Rs 20,000 cr .

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CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.