On 1st Feb 2017, Union Finance Minister Arun Jaitley presented the most awaited Union Budget 2017-18 in the parliament. It was the fourth budget of Modi Government.
Talking about the significance of this budget we can say that the budget is enormously influential as it has been announced after two major steps taken by PM Modi. The first one is the surprising demonetization move and the second one is the elimination of the Planning Commission.
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Top ten themes for the budget announced by Mr. Arun Jaitley, the Union Finance Minister are as follows:
Emphasis on development of Farmers
Upliftment of rural population
Schemes to keep the youth engaged
Poor and underprivileged health care
Infrastructural push for the rural and urban population
Gigantic changes to the financial sector for stronger institutions
Enhancing Digital economy for speedy accountability
Prudent fiscal management
Tax administration for the honest
The Union Budget 2017-18 was visibly driven towards stimulating the growth of the private sector, education, housing, and various agricultural schemes. For future research and developmental activities, the Budget was allocated for defense and digital equipment.
Mr. Anun Jaitley also talked about the amendment of laws to punish tax offenders.
Let’s have a look on the important highlights of the Union Budget 2017-18 and the financial plans set by finance minister for all the economic sectors of our country. Read the points given below:
Union Budget 2017-18: Demonetization
Demonetization will impact the economy for the least time period.
It will affect the economy and people of the country in a positive way.
It will help in higher GDP Growth.
The effects of demonetization will not be continued till next fiscal.
Union Budget 2017-18: Agriculture Sector
Securities should be done against natural calamities.
10 lakh crore is allocated as a credit to farmers, with 60 days’ interest waiver.
NABARD fund will be increased to Rs. 40,000 crore.
Minilabs in Krishi Vigyan Kendras for soil testing will be set up.
Irrigation corpus increased to Rs. 40,000 crore.
Dairy processing infrastructure fund will be initiated as Rs. 2000 crore.
Issuance of soil cards will be increased.
A model law on contract farming will be prepared.
Union Budget 2017-18: Rural Population
Over Rs 3 lakh crore will be spent for rural India.
Targets to bring 1 crore households out of poverty by 2019.
5 lakh farm ponds will be taken up under the MGNREGA.
Proposed to encourage participation of women in MGNREGA up to 55%.
Space technology will be used in a big way to ensure MGNREGA works.
Complete 1 crore houses for those without homes.
19,000 crore will be allocated for Pradhan Mantri Gram Sadak Yojana (PMGSY) in 2017-18.
Achieve 100% rural electrification by March 2018.
Swachh Bharat Mission: Sanitation coverage has gone up to 60%.
Union Budget 2017-18: Schemes for Youth
Introduce a system of measuring annual learning outcomes.
Innovation fund for secondary education.
Special Focus on 3,479 educationally backward blocks.
Colleges will be identified based on accreditation.
Set up 100 India International centres across the country.
To introduce courses on foreign languages.
To create 5000 PG seats per annum.
Union Budget 2017-18: Poor and Underprivilege Heath Care
500 crore allocated for Mahila Shakthi Kendras.
6000 will be transferred to pregnant women.
1,84,632 crore allocated for women and children.
Infrastructure status to affordable housing.
Reducing lending rates (as given by banks) for housing.
Elimination of tuberculosis by 2025.
5 lakh Health subcenters to be transformed into health wellness center.
Two AIIMS will be set up in Jharkhand and Gujarat.
Structural transformation of the regulatory framework for medical education.
52,393 crore allocated for Scheduled Castes.
To issue Aadhaar-based smart cards to senior citizens for monitoring their health.
Union Budget 2017-18: Infrastructure and Railways
39,61,354 crore allocated for infrastructure.
1,31,000 crore allocated for Railways.
No service charge on tickets booked through IRCTC.
Raksha coach with a corpus of Rs. 1 lakh crore for five years.
Unmanned level crossings will be eliminated by 2020.
3,500 km of railway lines to be commissioned. Last year it was proposed for 2,800 KM.
SMS-based ”clean my coach service”.
Coach Mitra facility will be introduced to register all coach related complaints.
All trains will have bio-toilets by 2019.
Five-hundred stations will be made differently-abled friendly.
Railways to partner with logistics players for front-end and back-end solutions for select commodities.
Railways will offer competitive ticket booking facility.
64,000 crore allocated for highways. High-speed Internet to be allocated to 1,50,000 gram panchayats.
New Metro rail policy will be announced. New Modes of financing will be taken care of.
Union Budget 2017-18: Defence and Energy Sector
2.74,114 crore allocated for the Defence sector.
1.26,000 crore received as energy production based investments.
A strategic policy for crude reserves will be set up.
Trade infra export scheme will be launched 2017-18.
Union Budget 2017-18: Financial Sector
More than 90% of FDI inflows are now automated.
Shares of IRCTC will be listed on stock exchanges.
Foreign Investment Promotion Board will be abolished.
Computer emergency response team for financial sector will be formed.
Pradhan Mantri Mudra Yojana lending target fixed at Rs 2.44 lakh crore for 2017-18.
BHIM app will unleash mobile phone revolution. New schemes to be introduced to encourage its use.
Negotiable Instruments Act might be amended.
Head post office as the central office for rendering passport service.
Easy online booking system for Army and other defence personnel.
Union Budget 2017-18: Fiscal Situation
Total expenditure is Rs. 21,47,000 crore.
Plan, non-plan expenditure to be abolished.
The focus will be on capital expenditure, which will be 25.4 %.
3,000 crore for implementing the Budget announcements.
Expenditure for science and technology is Rs. 37,435 crore.
Total resources transferred to States and Union Territories is Rs 4.11 lakh crore.
3% fiscal deficit for three years with a deviation of 0.5% of the GDP.
Revenue deficit is 1.9 %
The fiscal deficit of 2017-18 pegged at 3.2% of the GDP.
Union Budget 2017-18: Funding of Political Parties
The maximum amount of cash donation for a political party will be Rs. 2,000 from any one source.
Donations will be received via cheque or digital mode from donors.
Amendment of RBI Act to enable issuance of electoral bonds.
The donor can purchase these bonds from banks or post offices through cheque or digital transactions.
They can be redeemed only by registered political parties.
Union Budget 2017-18: Tax Proposals
Tax to GDP ratio is not favorable.
Out of 13.14 lakh registered companies, only 5.97 lakh firms have filed returns for 2016-17.
The proportion of direct tax to indirect tax is not optimal.
Individuals numbering 1.95 crores showed an income between Rs. 2.5 lakh to Rs. 5 lakh.
Out of 76 lakhs individual assesses declaring income more than Rs. 5 lakh, 56 lakhs are salaried.
Only 1.72 lakh people showed income of more than Rs. 50 lakh a year.
Between November 8 to December 30, deposits ranging from Rs. 2 lakh and Rs. 80 lakh were made in 1.09 crore accounts.
Net tax revenue of 2013-14 was Rs. 11.38 lakh crore.
Out of 76 lakhs individual assesses declaring income more than Rs 5 lakh, 56 lakh are salaried.
95 crore individuals showed income between Rs. 2.5 lakh to Rs. 5 lakh.
The rate of growth of advance tax in Personal I-T is 34.8%.
The holding period for long-term capital gain lowered to two years.
Proposal to have a carry-forward of MAT for 15 years.
Reduce tax for small companies with a turnover of up to Rs 50 crore to 25%.
Reduce basic customs duty for LNG to 2.5% from 5%.
The Income Tax Act to be amended to ensure that no transaction above Rs 3 lakh is permitted in cash.
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.
Union Budget 2017-18: Personal Income Tax
Existing rate of tax for individuals between Rs. 2.5- Rs 5 lakh is reduced to 5% from 10%.
All other categories of taxpayers in subsequent brackets will get a benefit of Rs 12,500.
Simple one-page return for people with an annual income of Rs. 5 lakh other than business income.
People filing I-T returns for the first time will not come under any government scrutiny.
10% surcharge on individual income above Rs. 50 lakh and up to Rs 1 crore.
15 % surcharge on individual income above Rs. 1 crore.
Individual Tax Payers
Up to Rs 2,50,000
Rs 2,50,001 to Rs 5,00,000
Rs 5,00,001 – 10,00,000
More than Rs 10,00,000
Senior Citizens Who Are 60 Years Old and Above but Less Than 80 Years
Up to Rs 3,00,000
Rs 3,00,001 to Rs 5,00,000
Rs 5,00,001 to Rs 10,00,000
More than Rs 10,00,000
Senior Citizens Who Are 80 Years Old and Above
Up to Rs 5,00,000
Rs 5,00,001 to Rs 10,00,000
More than Rs 10,00,000
Read about the previous Union Budget : Union Budget 2016-17
Top Reaction of Ministers on the Fiscal Plan of Union Budget 2017-18
“This budget is yet again devoted to the well-being of the villages, farmers and the poor. The budget reflects commitment to eliminate corruption and Black Money”
- Narendra Modi, Prime Minister
“Budget 2017 for Rail is next step in long-term plan laid out for Transformation, revitalization of Railways, modernization, upgradation is key”
- Suresh Prabhu, Railway Minister
“We were expecting fireworks but got a damp squib instead. It doesn’t have any vision and lacks idea. The Budget includes nothing for farmers or on creation of new jobs”
- Rahul Gandhi, Congress VP
“The budget is rhetorical, but in actually creating jobs there is precious little. Railways got a cursory mention”
- Manish Tiwari, Congress
“What is the need to present the Budget every year? Were all announcements of last year’s budget fulfilled?”
- Uddhav Thackeray, Shiv Sena
“Consider it mix budget. Industry hoped lot more for promotion of investment bt I think FM did whatever was possible”
- DS Rawat, Gen Secy
“Budget 2017 is a transformative one; It’s a step towards cleaning the whole political system, we welcome it”
- Union Minister Ananth Kumar
“Political parties mein kala dhan nahi aaega, imaandar log politics mein aaenge”
- Union Minister Nitin Gadkari
Funny #Budget2017 Twitter trolls? Here are the 10 best ever
Budget 2017-18 is a #BudgetForBetterIndia. It lays out a roadmap for India's development & positively impacts every section of society. pic.twitter.com/DJ4MMeH3HQ
— Narendra Modi (@narendramodi) February 1, 2017
Rahul Gandhi after listening to Arun Jaitely for an hour. #Budget2017 pic.twitter.com/8EZk5z3Xjk
— The Viral Fever (@TheViralFever) February 1, 2017
Congress must be wondering if they can declare the budget as anti-poor right now, or should they wait till the speech is over.
— Ramesh Srivats (@rameshsrivats) February 1, 2017
Pic1: Arun Jaitley rest of the year.
Pic2: During Budget. #Budget2017 pic.twitter.com/ZbC5fbUtSj
— Chika Pikaa Rikaa (@Simply_neev) February 1, 2017
Dont shy away from expressing your opinions on #Budget2017. If Abu Azmi can be an expert on Women Safety, we can surely be experts on budget
— Sagar (@sagarcasm) February 1, 2017
The budget is transformative:
It transforms taxes into election campaigns.
Everyone into economists.
And CAs into Gods.#Budget2017
— Sorabh Pant (@hankypanty) February 1, 2017
Guys, if you are stressed after the budget, go and watch Rahul Gandhi speaking. It will make you feel lighter.
— Rahul Raj (@bhak_sala) February 1, 2017
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