Union Budget 2017 - 18 Highlights

  • Union Budget 2017-18 - Finance Minister Arun Jaitley presented Union Budget 2017-18 in Lok Sabha. It was Third full year Budget of NDA government and Fourth budget of Arun Jaitley. Main Points are -
    1. Budget 2017-18 contains 3 major reforms -
      1. Presentation of Budget advanced to 1st February to enable Ministries to operationalise all activities from commencement of financial year.
      2. Merger of Railways Budget with General Budget to bring Railways to centre stage of Government’s Fiscal Policy.
      3. Removal of plan and nonplan classification of expenditure to facilitate a holistic view of allocations for sectors and ministries.
    2. Agenda for 2017-18 is Transform, Energise and Clean India (TEC India).
    3. 2017 Budget focused on 10 themes - farming sector, rural population, youth, poor and underprivileged health care, financial sector for stronger institutions, infrastructure, speedy accountability, prudent fiscal management, public services and tax administration.
    4. Total resources being transferred to States and UTs is 4.11 lakh crores.
    5. Net market borrowing of Government restricted to 3.48 lakh crores, lower than 4.25 lakh crores of previous year.
    6. Expenditures (Total 2147000 Crores)
      1. Plan and Non Plan Expenditure have been abolised.
      2. Capital expenditure in 2017 - 18 is set at at Rs 3.09 lakh crores, 25.4 % up from previous year.
    7. Revenue Deficit - 1.9 % of GDP), Definition - (Revenue Expenditure - Revenue Receipts).
    8. Fiscal Deficit -
      1. 3.2 % of GDP (FRBM Committee has recommended 3% fiscal deficit for the next three years.)
      2. Definition - (Total Expenditure - (Revenue Receipts + Recoveries of Loans + Other Receipts))
    9. Transfer of Resources to States and UTs - 410509 Crores
    10. North East Staes - 43244 Crores
    11. Centrally Sponsored Schemes Allocation - 278433 Crores
      1. Mahatma Gandhi National Rural Employment Guarantee Scheme - 48500 Crores. Women participation in MGNREGA has increased to 55% from less than 48%.
      2. Pradhan Mantri Awaas Yojana ( Gramin) - 23,000 Crores
      3. Prime Minister Gram Sadak Yojana - 19,000 crores.
      4. BharatNet - 10000 Crores
      5. Defence capital outlay - 87000 Crores
      6. MRTS and Metro Projects - 18000 Crores
      7. Recapitalization of Public Sector Banks - 10000 Crores
      8. Integrated Power Development Scheme - 5821 Crores
      9. Deen Dayal Upadhyaya Gram Jyoti Yojna - 4814 Crores
      10. National Infrastructure Investment Fund - 1000 Crores
      11. Namami Gange- National Ganga Plan - 2250 Crores
      12. Sagarmala - 600 Crores
      13. LPG connection to poor households - 2500 Crores
      14. Subscription to Share Captial of National Bank for Agricultural and Rural Development (NABARD) - 3500 Crores
      15. Pradhan Mantri Krishi Sinchai Yojana - 7377 Crores
      16. Swachh Bharat Mission - 16248 Crores
      17. National Health Mission - 27131 Crores
      18. National Education Mission - 29555 Crores
      19. Integrated Child Development Services - 20755 Crores
      20. National Livelihood Mission - Ajeevika - 4849 Crores
      21. Urban Rejuvenation Mission : AMRUT - Atal Mission for Rejuvenation and Urban Transformation & Smart Cities Mission - 9000 Crores
      22. Shyama Prasad Mukherjee Rurban Mission (Department of Rural Development) - 1100 Crores
      23. Pension schemes - 15400 Crores
      24. Pradhan Mantri Kaushal Vikas Yojana - 2924 Crores
      25. Pradhan Mantri Fasal Bima Yojana - 9000 Crores
      26. National Health Protection Scheme - erstwhile RSSY (Department of Health and Family Welfare) - 1000 Crores
      27. DIGITAL INDIA Programme - 700 Crores
      28. National Social Assistance Programme - 9500 Crores
      29. Green Revolution - 13741 Crores (Krishonnati + Rashtriya Krishi Vikas Yojna) Crores
      30. Mid-day Meal - 10000 Crores
      31. White Revolution - 1633 Crores
      32. Blue Revolution - 400 Crores
      33. Modernisation of Police Forces - 2000 Crores
      34. Defence Capital Outlay - 86000 Crores
    12. Subsidies - 240338 Crores
    13. Defence Expenditure - 2.74 lakh crores
    14. Expenditure for science and technology is Rs. 37,435 crores.
    15. Taxation -
      1. Time period for revising a tax return is being reduced to 12 months.
      2. No Income tax on Income upto 2.5 Lakh.
      3. Existing rate of taxation for individual assesses between income of 2.5 lakhs to 5 lakhs reduced to 5% from present rate of 10%.
      4. Surcharge of 10% of tax payable on categories of individuals whose annual taxable income is between 50 lakhs and 1 crore.
      5. Proposed a fee for delayed filing of income tax return. If income tax return is furnished after due date but on or before December 31 of assessment year, there will be a fine of Rs 5,000. In other cases, there will be an imposition of a fine of Rs 10,000. However, if total income iis under 5 lakh, fee amount shall not exceed Rs 1,000.
    16. Agriculture and Farmers' Welfare -
      1. Government will set up mini labs in Krishi Vigyan Kendras for soil testing.
      2. Agriculture credit target is 10 Lakh Crore for 2017-18
      3. In the year 2017-18, agriculture is expected to grow at 4.1 per cent.
      4. Corpus of Long Term Irrigation Fund in NABARD to be increased to 40,000 crores
      5. To ensure flow of credit to small farmers, Government will support NABARD for computerisation and integration of 63,000 functional Primary Agriculture Credit Societies with Core Banking System of District Central Cooperative Banks. This will be done in 3 years at estimated cost of ` 1,900 crores.
      6. Micro Irrigation Fund to be created in NABARD to achieve ‘per drop more crop’ with initial corpus of 5,000 crores.
      7. Dairy Processing and Infrastructure Development Fund to be set up in NABARD with a corpus of 2000 crores and will be increased to 8000 crores over 3 years.
      8. Coverage under Fasal Bima Yojana scheme will be increased from 30% of cropped area in 2016-17 to 40% in 2017-18 and 50% in 2018-19 for which a budget provision of 9000 crore has been made.
    17. Rural Sector
      1. Over Rs 3 lakh crore will be spent for rural India. Government’s Mission Antyodaya targets to bring 1 crore households out of poverty by 2019.
      2. 100% rural electrification will be archived by May 2018.
      3. Total allocation for rural, agricultural and allied sectors for 2017-18 is 1,87,223 crores, 24% up from Last year.
      4. 50000 Gram Panchayats will be poverty-free by 2019.
    18. Education, Skills and Job Creation
      1. SWAYAM platform to be launched with at least 350 online courses. This would enable students to virtually attend courses taught by the best faculty.
      2. National Testing Agency to be set-up to conduct all entrance examinations for higher education institutions.
      3. Pradhan Mantri Kaushal Kendras to be extended to more than 600 districts and 100 India International Skills Centres to be established.
      4. Skill Acquisition and Knowledge Awareness for Livelihood Promotion programme (SANKALP) to be launched at a cost of 4000 crores. SANKALP will provide market relevant training to 3.5 crore youth.
      5. Next phase of Skill Strengthening for Industrial Value Enhancement (STRIVE) will be launched in 2017-18 at a cost of 2,200 crores.
      6. For purpose of carry forward of losses in respect of start-ups, condition of continuous holding of 51% of voting rights has been relaxed subject to condition that holding of the original promoter continues. Profit (linked deduction) exemption available to the start-ups for 3 years out of 5 years is changed to 3 years out of 7 years.
      7. MAT credit is allowed to be carried forward up to a period of 15 years instead of 10 years presently. To make MSME companies more viable, income tax for companies with annual turnover upto 50 crore is reduced to 25%.
      8. Allowable provision for Non-Performing Asset of Banks increased from 7.5% to 8.5% and Basic customs duty on LNG reduced from 5% to 2.5%.
      9. 100 Indian international skill centres will established with courses in foreign languages. 4,000 crore allocated to launch skill acquisition and knowledge awareness.
    19. Transport and Infrastructure -
      1. For Infrastructure sector as a whole, 391000 crores have been allotted in 2017-18, 241347 crores allotted for transportation sector.
      2. Railways -
        1. For 2017-18, total capital and development expenditure of Railways is pegged at 1,31,000 crores.
        2. For passenger safety, Rashtriya Rail Sanraksha Kosh will be created with corpus of 1 lakh crores over 5 years.
        3. Railway lines of 3,500 kms will be commissioned in 2017-18. Min 25 stations will be awarded for station redevelopment.
        4. 500 stations to be made differently-abled friendly.
        5. Introduction of Coach Mitra facility and By 2019, biotoilets for all coaches.
      3. Roads -
        1. Budget allocation for highways increased to 64,900 crores.
        2. 2,000 kms of coastal connectivity roads will be constructed and developed.
        3. Pace Of Construction Of Roads Has Increased To Rs 133 Km/Day In 2017.
      4. High speed broadband connectivity on optical fibre to be available in over than 1,50,000 gram panchayats under BharatNet with investment of 10000 Crores. DigiGaon initiative will be launched to provide tele-medicine, education and skills through digital technology. Government aims to bring high-speed broadband connectivity to every village by 2018.
      5. Strategic crude oil reserves will be set up at 2 more locations - Chandikhole in Odisha and Bikaner in Rajasthan. It will take our strategic reserve capacity to 15.33 MMT. Strategic policy for crude reserves will be set up. Rs. 1.26,000 crore received as energy production based investments.
      6. Second phase of Solar Park development to be taken up for additional 20,000 MW capacity.
      7. For creating an eco-system to make India a global hub for electronics manufacturing, provision of 745 crores in 2017-18 in incentive schemes like M-SIPS and EDF.
      8. A new and restructured Central scheme with a focus on export infrastructure - Trade Infrastructure for Export Scheme (TIES) will be launched in 2017 - 18.
      9. Panel will be constituted to study legal framework for spot and derivative markets.
      10. Computer emergency response team (CERT) to be set up for Cyber-security.
      11. 2 new All India Institutes of Medical Sciences (AIIMS) in Jharkhand and Gujarat as part of increasing healthcare in country.
    20. Financial Reforms
      1. Foreign Investment Promotion Board to be abolished in 2017-18.
      2. Allocation of 10000 crore for recapitalisation of Public Sector Banks.
      3. Lending target under Pradhan Mantri Mudra Yojana to be set at 2.44 lakh crores. Priority will be given to Dalits, Tribals, Backward Classes and Women.
      4. A Mission will be set up with target of 2,500 crore digital transactions for 2017-18 through UPI, USSD, Aadhar Pay, IMPS and debit cards.
      5. Proposed to create a Payments Regulatory Board in RBI by replacing existing Board for Regulation and Supervision of Payment and Settlement Systems.
      6. No transaction above 3 lakh would be permitted in cash subject to certain exceptions.
      7. Threshold for audit of business entities who opt for presumptive income scheme increased from 1 Crore to 2 crores. Threshold for maintenance of books for individuals and HUF increased from turnover of 10 lakhs to 25 lakhs.
    21. BPL, Women and Underprivileged
      1. Mahila Shakti Kendra will be set up with allocation of 500 crores in 14 lakh ICDS Anganwadi Centres.
      2. Under Maternity Benefit Scheme, 6,000 each will be transferred directly to the bank accounts of pregnant women who undergo institutional delivery and vaccinate their children.
      3. Spending on women related schemes rose 18% to 113,326 crores.
      4. Welare of Children - 71345 Crores
      5. Gender Budget - 113326 Crores
      6. National Housing Bank will refinance individual housing loans of about 20,000 crore in 2017-18
      7. Government plans to eliminate Kala-Azar and Filariasis by 2017, Leprosy by 2018, Measles by 2020 and Tuberculosis by 2025.
      8. 2 Two new All India Institutes of Medical Sciences to be set up in Jharkhand and Gujarat.
      9. Allocation for Scheduled Castes increased by 35% to 52393 Crores. Allocation for Scheduled Tribes increased to 31,920 crores and for Minority Affairs to 4,195 crores.
    22. Other Reforms -
      1. Maximum amount of cash donation, a political party can receive, will be 2000 from one person.
      2. Head post-office to be used for passport services.
      3. Limit of cash donation for charitable trusts reduced to Rs. 2,000.