Finance Minister Arun Jaitley is presenting the fourth budget by the Narendra Modi government the Union budget 2017-2018 in Lok Sabha currently. Let’s see the highlights of the budget as the budget is keenly watched by many because of the demonetisation move by Prime Minister Narendra Modi on November 8, 2016. This will also be the first time ever in history that the Railway Budget will not be presented separately and will be a part of the Union budget presented by Arun Jaitley.
Jaitley while announcing budget says “My aim while preparing the budget this year has been to spend more in rural areas, infrastructure and poverty alleviation and yet maintain fiscal prudence.” We have done away with planned and non planned allocation of resources to states”
So Let’s check out the updates:
Demonetization led to a 34.8% increase in personal income tax declarations. Tax Payers To Have A Look
- All tax payers (abover Rs 5 lakh) to get benefit of Rs 12,500 across the board.
- Jaitley reduces the rate for individual tax payers within income range of Rs 2.5 lakh to Rs 5 lakh to 5 per cent instead of the existing 10 per cent.
- Existing surcharge of 15% on people earning more than 1 crore will continue: Jailtley
- Surcharge of 10% for those whose annual income is Rs 50 lakh to Rs 1 crore: Jaitley
- Basic customs duty reduced from 5% to 2.5% on LNG terminals: Finance Minister
- Tax for small companies having a turnover of less than Rs 50 crore reduced to 20 per cent
- No transaction above Rs 3 lakh to be permitted in cash
Jaitley announces Rs 55000 crore for Railways in Budget 2017.
- Rs 1.3 lakh crore has been allotted for solar power, disabled friendly stations.
- Focus is on swachch railways, says Jaitley.
- Railways will integrate end to end transport solutions for selected commodities through partnership. By 2019, all coaches of Indian Railways will be fitted with bio-toilets.
- Railway tariffs to be fixed on the basis of cost, social obligation and competition; Railway related state-run companies like Ircon, IRCTC to be listed on stock exchanges, says Arun Jaitley
- By 2019, all coaches of Indian Railways will be fitted with Bio-toilets, says Jaitley
- Total capital and developmental expenditure Rs1.31 lakh crore for Railways in 2017-18 including Rs 55,000 crore to be provided by govt: Jaitley
Education & Hospitality
- Jaitley also announced the restructuring of University Grants Commission.On health, the government proposes to eliminate tuberculosis by 2025.
- Two new AIIMS Hospitals to be set up in Jharkhand and Gujarat
- Budget allocation for welfare of women and children under various ministries increased to Rs 1,84,632 cr.
Residence & Rural Development
- The government is looking to complete 1,00,00,000 houses by 2019
- 4000 crores allotted to train for market oriented training. At least 3.5 crore youth will be provided market-relevant training under Sankalp programme
- 100% village electrification will be achieved by May 1,2018
- Allocation for Pradhan Mantri Awaaz Yojana up from 15,000 cr to 23,000 cr.
- PMGSY roads work accelerated to 133 km roads/day in 2016-17 as against 73km/day during 2011-14, says Arun Jaitley
- Highest ever allocation for MNREGA at Rs 48,000 crore. Participation of women in MGNREGA up to 55%.
- A dedicated fund worth Rs 5,000 crore to be set up for micro-irrigation under Nabard
- With better monsoon, agriculture is expected to grow at 4.1%. Target for agricultural credit for 2017-18 is set at ten lakh crore, announces Arun Jaitley
- International Monetary Fund estimates that the world GDP will grow by 3.1% in 2016 and 3.4% in 2017.”
- As Government has ensured fiscal consolidation without cutting back on public investments, FII has increased from Rs 1.07 lakh crore to Rs 1.45 lakh crore. And with this move India has become the sixth largest manufacturing country in the world.
- By end of 2017-18, high speed broadband connectivity on optic fibres will be available in more than 1,50,000 gram panchayats: Jaitley
- Budget allocation for highways stepped up to Rs 64,000 crore in FY18 from Rs 57,676 crore. Allocation for national highways stepped up to Rs 64,000 cr from Rs 57,676 cr. Fiscal Deficit target for 2017-18 is 3.2%.
- Defence expenditure excluding pension at Rs 2.74 lakh crore, says FM Arun Jaitley
- Forex reserves to offer a cover for 12 months of imports, announces Arun Jaitley
- New law to confiscate properties/assets of economic offenders fleeing country
- Priority will be given to tribal, Dalit, women to setup greenfield enterprises, says Arun Jaitley
- Allocation for SCs increased from Rs 38,833 cr to Rs 52,393 cr, a rise of 35 per cent, Jaitley says.
- Transport sector allocated Rs 2.41 lakh crore and Bharat Net Project allocated Rs 10,000 crore
- The Foreign Investment Promotion Board has been abolished, Jaitley announced, adding that further liberalisation in the FDI policy would be taken in the next few days.
- Total investment for infrastructure in budget 2017 stands at a record Rs 3,96,135 cr, says Arun Jaitley.
After 1 hour 50 minutes presentation of the Budget 2017 concludes.