Economics Finance India

Budget 2017 Highlights and Live update

Live Update:

Spring is a season of optimism’ says FM Jaitley as his opening words.

The government is now seen as a trusted custodian of public money, I express gratitude to people for their strong support

focus will be on energising youth to reap benefits of growth and employment

We have moved from a discretionary administration to a policy-based administration

We are moving from informal to formal economy & the Government is now seen as a trusted custodian of public money

Three big challenges: Oil prices, Fed policy, global protectionism

India’s Current Account Deficit decreased from about 1% of GDP last year to 0.3% of GDP in first half of 216-17

Forex reserves comfortably cover for 12 months of imports

Merger of railway budget with Union Budget is a historic move

India has become the 6th largest manufacturing company

FM lays out 10 themes of the Budget as below:

Farmers
Rural population
Youth
Poor and the underprivileged
Infrastructure
Financial sector
Digital economy
Public services — effective governance
Prudent fiscal management
Tax administration “honoring the honest”

Our agenda for 2017-18 is transform, energise and clean India, i.e tech India

Budget contains three major reforms: Budget advanced for early start of fiscal expending; merging of Rail Budget to main Budget; Done away with plan and non-plan expenditure

Target for agriculture credit raised to Rs 10,000 crore

Agriculture is expected to grow at 4.1% in current year

Fasal Bima Yojana Coverage Will Be Increased To 40%

50,000 gram panchayats to be made poverty free by 2019

Dairy processing infrastructure fund to be set up under NABARD, with fund of Rs 8,000 crore:FM

Assistance of upto Rs 75 lakh for cleaning and packaging of farmer produce

Raises credit to farmers to 10 lakh crore

Pradhan Mantri Gram Sadak Yojna roads work accelerated to 133 km roads per day in 2016-17 as against 73 km per day during 2011-14

We have to complete 1,00,00,000 houses by 2019 for the houseless and those living in kaccha houses

PM scheme for housing has been raised from Rs 15,000 crore to Rs 23,000 crore in current year

Railways:

Our focus will be on Swacchha Railways: Jaitley

Aadhar based smart card for senior citizens: Scheme for senior citizens to give them assured income and health benefits

500 stations will be made disabled-friendly

Jaitley proposes to set up a 1 trillion rupee fund for rail safety.

A new metro rail policy will be announced, this will open up new jobs for our youth: FM

By 2019, all coaches of Indian Railways will be fitted with bio-toilets, says Jaitley

FM: We are taking forward solar power projects for 20,000MW

Service charges on e-tickets booked from IRCTC website will be withdrawn: Arun Jaitley

To achieve 100% rural electrification by March 2018. Affordable housing to be given Infrastructure status 

IRCTC, IRFC, IRCON to be listed in stock exchanges.

Total capital and developmental expenditure Rs1.31 lakh crore for Railways in 2017-18 including Rs 55,000 crore to be provided by govt

Rs 500 crore allocated to set up Mahila Shakti Kendras; Allocation raised from Rs 1.56 lakh crore to Rs 1.84 lakh crore for women & child welfare (for Womens and Child)

Govt doubles lending target to Rs 2.44 lakh crore

Banks to introduce additional 10 lakh PoS by March 2017

Govt will launch two new schemes to promote the use of Bhim

For senior citizens, Aadhaar based health cards will be issued

Capital and development expenditure pegged at Rs 1.31 lakh crore for railways in 2017-18 from Budget

introducing centralised defence travel system, where travel ticket can be booked by soldiers: FM

Rs 10,000 crore for recapitalisation of banks

A scheme for senior citizens to ensure 8 per cent guaranteed returns

Fiscal deficit target for 2018-19 pegged at 3% of GDP

FM pushes for setting up of separate Response Team for Cyber attacks on the financial sector

Over 90 per cent of FDI proposls are now processed through automatic route

Arun Jaitley raises defence budget by 10 per cent to Rs 2,74,000 crore

NET TAX REVENUE GREW AT 17% FOR CONTINUOUS TWO YEARS

34.8% INCREASE IN ADVANCE TAX

Tax objectives

CURB BLACK MONEY
DIGITAL ECONOMY
AFFORDABLE HOUSING

Carpet area of 30sq. mtr and 60sq. mtr will  be counted for affordable housing scheme instead of earlier built up area

Carry forward of MAT credit to 15 years from 10 years

Small Companies with Turnover upto 50 crore will have tax rate of 25% accounting to approx 96% companies

3 year period for long-term capital gains tax on immovable property reduced to 2 years; base year indexation shifted from 1.4.1981 to 1.4.2001

Presumptive tax rate for Turnover upto 2 crore reduced to 6% from 8%

No cash transaction above Rs 3 lakh will be allowed: Jaitley

Maximum cash donation only Rs 2000 for political parties

No major change in service tax and Excise ad GST is awaited to replace the same

Surcharge of 10% on income between Rs 50 to 1 crore

A single one-page form for filing IT returns for taxable income up to Rs 5 lakh

Reduces income tax rate from 10% to 5% for tax slab of Rs 250,000 to Rs 500,000.There additional existing Rs.2000 credit for the Income below 5 lacs.

Existing surcharge of 15% on people earning more than 1 crore will continue

All tax payers (including above Rs 5 lakh) to get benefit of Rs 12,500.

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