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Highlights of the Budget 2017-18
Union Budget 2017-18 presented with focus on rural areas, affordable housing, digital economy and bringing transparency in political funding

 

Railway budget incorporated in the General Budget to bring focus on multi-modal approach to transportation sector


Income tax rate halved for small tax payers with income up to Rs 5 lakhs


“We are largely a tax non-compliant society” says FM


New Delhi: February 1,2017
Highlights of the Budget 2017-18

 

Public Finances

  • Fiscal deficit pegged at 3.2 percent of GDP
  • Revenue Deficit target at 1.9% of GDP
  • Total expenditure for 2017-18 at Rs 21,47,000 crore,
  • The net tax revenue grew by 17% in 2015-16
  • Total resource transfer to States and UTs with legislature at Rs 4.11 lakh crore up from Rs 3.6 lakh crore in BE 16-17
  • Plan, non-plan classification of expenditure done away with in the Budget for 2017-18 to give a holistic picture


Taxation

  • We are largely a tax non-compliant society & the burden of tax-evaders falls on honest taxpayers Only 1.72 lakh people show income above Rs 50 lakh: FM
  • 1.5 crore people show income between Rs 2.5-5 lakh; 52 lakh people between between Rs 5-10 lakh; 24 lakh above Rs 10 lakh
  • Existing rate of taxation of those with income between 2.5 lakh to 5 lakh to be reduced from 10% to 5%:
  • All taxpayers above 5 lakh rupees to get benefit of 12,500 rupees across the board:
  • Surcharge of 10% for those whose annual income is Rs 50 lakh to 1 crore
  • Time period of revising tax return to be reduced to 12 months
  • A single one-page form for filing IT returns for taxable income up to 5 lakh rupees
  • Long-term capital gains tax on immovable property to apply after 2 years, instead of 3 years now
  • No transaction over Rs 3 lakh will be allowed in cash
  • Tax rate for companies with an annual turnover up to 50 crores to be reduced to 25%, to strengthen MSME sector:

 

Infrastructure

  • Total allocation for infrastructure stands at a record level Rs 3,96,135 crore in 2017-18
  • Allocation for national highways stepped up to Rs 64,000 cr from Rs 57,676 cr
  • Rs 2000 Cr announced for coastal road connectivity - essentially to enhance connectivity to ports & coastal villages
  • Rs27,000 crore on to be spend on Pradhan Mantri Gram Sadak Yojana;



Railways

  • Railways to focus on 4 major areas 1. Passenger safety 2. Capital and development work 3. Cleanliness 4. Financial and accounting reforms
  • Railways plan size for 2017-18 pegged at Rs. 1,31,000 crore
  • Railway line of 3,500 km will be commissioned in 2017-18 as against 2,800 km in 2016-17
  • For rail passenger safety, a fund of 1 lakh crores will be allocated over the next 5 years
  • 500 stations will be made differently abled friendly with lifts and escalator
  • Government proposes Coach Mitra facility to redress grievances related to rail coaches
  • Indian Railways plans to feed about 7000 stations with solar power in the next few years
  • Service charge on e-tickets booked through IRCTC will be withdrawn
  • Railway tariffs to be fixed on the basis of cost, social obligation and competition;
  • State run companies like IRCON and IRCTC to be listed in markets

Defence

  • Defence allocation of Rs 2.74 lakh crore

Agriculture

  • Total allocation for rural, agricultural & allied sectors for 2017-18 a record 1,87,223 cr, up by 24%:
  • Allocation under MNREGA increased to 48,000 crore from Rs 38,500 crore
  • Rs 9,000 cr higher allocation for payment of sugarcane arrears
  • Govt to set up dairy processing fund of Rs 8,000 crore over three years with initial corpus of Rs 2,000 crore
  • Modern law on contract farming will be drafted and circulated to states
  • Dedicated micro-irrigation fund to be set up by NABARD to achieve mission of Per Drop, More Crop
  • Coverage of Fasal Bima Yojana to go up from 30 pc of cropped area to 40 pc in 2017-18 and 50 per cent next year
     

Housing
 

  • To construct one crore houses by 2019 for homeless.
  • PM Awas Yojana allocation raised from Rs 15,000 cr to Rs 23,000 cr

Trade & Commerce

  • Trade Infrastructure Export Scheme to be launched in 2017-18
  • Basic customs duty on LNG to be reduced from 5% to 2.5%
     

Ease of doing business

  • Foreign Investment Promotion Board (FIPB) will be abolished. 90% of FDI coming through automatic route.

Digital India

  • AadharPay, a merchant version of Aadhaar-enabled payment system to be launched shortly for those without debit cards, mobile phones
  • Allocation of Rs 10,000 cr for Bharat Net project for providing high-speed broadband in FY18
  • By end of FY 2017-18 high speed broadband connectivity on optic fibres will be available in more than 1,50,000 gram panchayats
  • Digi Gaon initiative will be launched to provide tele-medicine, education & skills through digital technology:

Skill Development & Empowerment

  • 600 districts to get Pradhan Mantri Kaushal Kendra (PMKK) for skilling youth for opportunities
  • “SANKALP” for Livelihood Promotion Programme to be Launched at a cost of Rs. 4000 Crores
  • Mahila Shakti Kendras to be set up at village level, in 14 lakh ICDS centres, with an allocation of Rs. 500 crore
  • Pradhan Mantri Mudra Yojana lending target has been doubled at Rs 2.44 lakh crore for 2017-18
     

Political funding

  • Max. amount of cash donation a political party can receive to be 2000 rupees from any one source
  • Political parties will be entitled to receive donation by cheque or in digital mode, from their donors
  • Amendment to RBI Act proposed to enable electoral bonds

Tourism

  • 5 special tourism zones,anchored on SPV, to be set up; Incredible India 2.0 campaign to be launched across the world
     

HRD

  • National Testing Agency to be established to conduct all entrance exams for higher education:
  • Innovation Fund for secondary education to be created
  • Two new AIIMS to be set up Jharkhand and Gujarat
  • “SWAYAM” Platform will be launched to leverage Information Technology. this will enable students to virtually attend the courses taught by the best faculty; access high quality reading resources, participate in discussion forums; take tests and earn academic grades. Access to SWAYAM would be widened by linkage with DTH channels, dedicated to education.


Welfare

  • For senior citizens, Aadhaar based health cards will be issued
  • Allocation for welfare of women and children increased from Rs 1,56,528 crores in BE 2016-17 to Rs 1,84,632 crores in 2017-18

     

 

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