Finance Minister Finance Minister Arun Jaitley today (1st Feb) announced the Union Budget for 2017 which broadly focused on 10 themes
Arun Jaitley said Demonetization is expected to have an impact on the economy, it was a bold and decisive measure that will lead to higher GDP growth. But he assured that the effects of demonetization will not affect the next fiscal.
Agriculture sector
To feel secure against natural calamities, a sum of Rs. 10 lakh crore is allocated as credit to farmers, with 60 days interest waiver.
The Funds of NABARD will be increased to Rs. 40,000 crore.
In Krishi Vigyan Kendras government will be setting up mini labs for soil testing’s.
From Rs. 20,000 crore Irrigation corpuses increased to Rs. 40,000 crore.
Rural population
The government is targeting to bring 1 crore households out of poverty by the year 20 19.
During 2017-18, five lakh farm ponds will be taken up under the MGNREGA.
Over Rs 3 lakh crore will be spent for rural India.
MGNREGA to double farmers' income.
The Funds of NABARD will be increased to Rs. 40,000 crore.
In Krishi Vigyan Kendras government will be setting up mini labs for soil testing’s.
For Youth
The government will be introducing a system of measuring annual learning outcomes and come out with an innovation fund for secondary education.
Focus will be on 3,479 educationally-backward blocks.
Colleges will be identified based on accreditation
Poor and underprivilege health care
Rs. 500 crore allocated for Mahila Shakthi Kendras.Under a nationwide scheme for pregnant women, Rs. 6000 will be transferred to each person.
A sum of Rs. 1,84,632 crore allocated for women and children.
Affordable housing will be given infrastructure status.
Elimination of tuberculosis by 2025 targeted.
Two AIIMS will be set up in Jharkhand and Gujarat.
Allocation for Scheduled Castes is Rs. 52,393 crore
Infrastructure and railways
A total allocation of Rs. 39,61,354 crore has been made for infrastructure.
Total allocation for Railways is Rs. 1,31,000 crore.
No service charge on tickets booked through IRCTC.
By 2019 all trains will have bio-toilets.
Railways will offer competitive ticket booking facility.
High speed Internet to be allocated to 1,50,000 gram panchayats.
New Metro rail policy will be announced with new modes of financing.
Energy
A strategic policy for crude reserves will be set up.
Rs. 1.26,000 crore received as energy production based investments.
Trade infra export scheme will be launched 2017-18.
Financial Structure
FDI policy reforms - more than 90% of FDI inflows are now automated.
Shares of Railway PSE like IRCTC will be listed on stock exchanges.
Bill on the resolution of financial firms will be introduced in this session of Parliament.
The Foreign Investment Promotion Board will be abolished.
Pradhan Mantri Mudra Yojana lending target fixed at Rs 2.44 lakh crore for 2017-18.
Digital India - BHIM app will unleash a mobile phone revolution. The government will introduce two schemes to promote BHIM App - referral bonus for the users and cash back for the traders.
Fiscal Situation
Total expenditure is Rs. 21, 47,000 crore.
Plan, non-plan expenditure to be abolished; focus will be on capital expenditure, which will be 25.4 %.
Rs. 3,000 crore under the Department of Economic Affairs for implementing the Budget announcements.
The Net tax revenue of the year 2013-14 was Rs. 11.38 lakh crore.
Rs. 37,435 crore in the Expenditure for science and technology.
The total resources transferred to States and Union Territories is Rs 4.11 lakh crore.
Revenue deficit is 1.9 %
Funding of political parties
The maximum amount of cash donation for any political party will be Rs. 2,000 only from any one source.
Political parties will be entitled to receive donations by cheque or digital mode from donors.
Defence Sectors
The defence sector gets an allocation of Rs. 2.74,114 crore.
Tax Proposals
The India’s 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
Out of 76 lakh individual assessees declaring income more than Rs. 5 lakh, 56 lakh are salaried.
Only 1.72 lakh people showed income of more than Rs. 50 lakh a year.
Out of 76 lakh individual assessees declaring income more than Rs 5 lakh, 56 lakh are salaried.
The government proposes to 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.
Net revenue loss in direct tax could be Rs. 20,000 crore.
Personal income Tax
The existing rate of tax for individuals between income of Rs. 2.5- Rs 5 lakh per annum 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.
AMandeep
