The 2017 Union Budget, introduced by Finance Minister Arun Jaitley on Wednesday, was comprehensively centered on 10 topics — the agricultural part, the rural populace, the young, poor people and underprivileged medicinal services, infrastructure, the monetary area for more grounded establishments, fast accountability, public administrations, and judicious financial administration and tax organization.
Following are the features of Mr. Jaitley’s financial Budget speech:
Agricultural sector
According to Finance Minister, Sowing agriculturists should feel secure against regular disasters.An aggregate of Rs. 10 lakh crore is apportioned as the credit to agriculturists, with 60 days interest waiver. NABARD fund will be expanded to Rs. 40,000 crore. The government will set up small-scale labs in Krishi Vigyan Kendras for soil testing. A committed smaller scale water system store will be set up for NABARD with Rs 5,000 crore preliminary corpus.Irrigation corpus expanded from Rs 20,000 crore to Rs 40,000 crore. He declared that Dairy processing Infrastructure fund will be at first created with a corpus of Rs. 2000 crore. Issuance of soil cards has picked up power and a model law on contract cultivating will be prepared and shared with the States.
Rural population
The government focuses to carry 1 crore family units out of poverty next to 2019. Throughout 2017-18, 5 lakh farm ponds will be taken up under the MGNREGA. Over Rs 3 lakh crore will be spent for country India MGNREGA to double the income of agriculturists and guarantee the involvement of women in MGNREGA up to 55%. Space innovation will be utilized as a part of a major method to guarantee MGNREGA works. The government proposes to finish 1 crore houses for those without homes and will allot Rs. 19,000 crore for Pradhan Mantri Gram Sadak Yojana in 2017-18. The nation well on approach to accomplish 100% provincial charge by March 2018. He said, Swachh Bharat mission has gained enormous ground; sanitation scope has gone up from 42% on Oct 13 to 60% at this point.
Demonetisation
Finance Minister said that Demonetisation is required to transiently affect the economy, as It will greatly affect the economy and lives of individuals. And Demonetisation is an intense and unequivocal measure that will prompt higher GDP development.
For poor people
Finance Minister declared Rs. 500 crore will be designated for Mahila Shakthi Kendras. Under an across the nation plot for pregnant women, Rs. 6000 will be transferred to every individual. An aggregate of Rs. 1, 84,632 crore allotted for women and kids. Affordable housing will be given infrastructure status. Owing to surplus liquidity, banks have begun diminishing loaning rates for housing. Elimination of tuberculosis by 2025 focused on. Health sub-centers, numbering 1.5 lakh, will be changed into health wellness centers. Two AIIMS will be set up in Jharkhand and Gujarat. The money will be allocated for Scheduled Castes is Rs. 52,393 crore.Aadhaar-based smartcards will be issued to senior citizens to monitor health.
Financial sector
FDI policy reforms – over 90% of FDI inflows are currently robotized. Shares of Railway PSE like IRCTC will be recorded on stock trades. Bill on the determination of budgetary firms will be presented in this session of Parliament. Foreign Investment Promotion Board will be abrogated. a revised system to guarantee the time-bound posting of CPSEs. Computer crisis r response group for financial sector will be framed.Pradhan Mantri Mudra Yojana loaning target settled at Rs 2.44 lakh crore for 2017-18. According to Finance Minister, Digital India – BHIM application will release cell phone unrest. The administration will notify two schemes with progress BHIM App – referral reward for the clients and money back to the brokers. And Negotiable Instruments Act may be altered. DBT to LPG customers, Chandigarh is lamp fuel free, 84 government plans are on the DBT stage. Head mail station as the focal office for rendering visa benefit and easy online booking system for Army and other defense workforce.
For youth
The government will focus on the arrangement of estimating yearly educational outcomes and turn out with advancement in funds for secondary education. Finance Minister said that Mainly Focusing on 3,479 educationally backward blocks Colleges will be distinguished in view of documentation. Skill India mission was propelled to amplify potential. Will set up 100 India International centers the nation over. Courses on foreign languages will be presented and Also Government will find a way to make 5000 PG seats per annum.
Energy Sector
Finance Minister said that A key approach for crude reserves will be set up. Rs. 1.26,000 crore got as energy production oriented investments and Trade infra export plan will be propelled 2017-18.
Infrastructure and railways
The total allocation for Railways is Rs. 1, 31,000 crore and A aggregate designation of Rs. 39, 61,354 crore has been made for infrastructure. No service charge on tickets booked through IRCTC. Raksha coach with a corpus of Rs. 1 lakh crore for a long time .3, 500 km of railroad lines to be charged for the current year up from 2,800 km a year ago. SMS-based ”clean my coach service is set up. Coach Mitra system will be acquainted with enrolling all coach related conflicts. By 2019 all trains will have bio-toilets. Five-hundred stations will be made in an unexpected way abled friendly. Railways will tender spirited ticket booking system and Rs. 64,000 crore allotted for highways.High speed Internet to be allotted to 1,50,000 gram panchayats. New Metro rail approach will be declared with new methods of financing.
Monetary circumstance
- Total use is Rs. 21, 47,000 crore.
- The fiscal deficit of 2017-18 pegged at 3.2% of the GDP. Will stay dedicated to achieving 3% in the next year.
- Costs for science and technology are Rs. 37,435 crore.
- Entire resources transferred to States and Union Territories is Rs 4.11 lakh crore.
- Plan, non-plan expenditure to be abolished; focus will be on capital expenditure, which will be 25.4 %.
- 3,000 crore below the Department of Economic Affairs for executing the Budget declarations.
- Suggested 3% fiscal shortage for three years with a digression of 0.5% of the GDP.
- Income deficit is 1.9 %
Personal income tax
- Citizens filing I-T returns for the initial time will not come under any government inquiry.
- 10 % surcharge on individual revenue over Rs. 50 lakh and up to Rs 1 crore to make up for Rs 15,000 crore losses due to cut in personal I-T rate. 15 surcharge on individual revenue above Rs. 1 crore to stay.
- All other sorts of taxpayers in succeeding brackets will get an advantage of Rs 12,500.
- Simple one-page return for citizens with a yearly profit of Rs. 5 lakh other than business revenue.
- An obtainable rate of tax for individuals between Rs. 5- Rs 5 lakh is reduced to 5% from 10%.
Tax proposals
- India’s tax to GDP ratio is not constructive.
- Only 1.72 lakh people explained income of more than Rs. 50 lakh a year.
- Among November 8 to December 30, deposits varying from Rs. 2 lakh and Rs. 80 lakh was made in 1.09 crore accounts.
- Net tax revenue of 2013-14 was Rs. 11.38 lakh crore.
- Out of 13.14 lakh listed companies, only 5.97 lakh firm have filed returns f 2016-17.
- Quantity of direct taxation to indirect tax is not most favorable.
- Individuals numbering 1.95 crores illustrated an income between Rs. 2.5 lakh to Rs. 5 lakh.
- Out of 76 lakh individual assessees announcing income more than Rs. 5 lakh, 56 lakh are remunerated.
- Out of 76 lakh person assessees announcing revenue more than Rs 5 lakh, 56 lakh are salaried.
- 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 into this category. Ninety-six % of companies to get this benefit.
- The government proposes to reduce basic customs duty for LNG to 2.5% from 5%.
- 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.
- Proposal to have a carry-forward of MAT for 15 years.
- Capital gains tax to be exempted for persons holding land from which land was pooled for the creation of the state capital of Andhra Pradesh.
- 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
- The Income Tax Act to be amended to ensure that no transaction above Rs 3 lakh is permitted in cash.
Financial support for political parties
- The utmost amount of cash contribution for a political party will be Rs. 2,000 from any one source.
- Political parties will be allowed to get donations by cheque or digital form from donors.
- A modification is being planned to the RBI Act to enable issuance of electoral bonds.A contributor can buy these bonds from banks or post offices throughout cheque or digital transactions. They can be converted only by registered political parties.