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Live : Union Budget 2017 Highlights
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:
1.Farmers:
- 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:
- 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:
- 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
5.Infrastructure:
- 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
- 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:
- 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:
- 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:
- 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:
- 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 .
