The Union Budget 2017 was focused on different issues such as Farming, Rural, Youth, Healthcare, Poor, Infrastructure, Financial Sector, Public Services, Tax Administrations etc.
Here are the highlights of the Union Budget 2017:
1. A sum of Rs. 10 lakh crore is allocated as credit to farmers (with 60 days interest waiver).
2. NABARD Fund increased to Rs. 40,000 Crore
3.A dedicated micro irrigation fund will be set up for NABARD with Rs. 5000 Crore initial corpus.
4.Government will set up mini labs in Krishi Vigyan Kendras for soil testing.
5.Irrigation corpus increased from Rs. 20,000 crore to Rs. 40,000 crore.
6. Dairy processing infra fund with corpus of Rs. 8,000 crore.
7. A model law on contract farming will be prepared and shared with the states.
1. Mission Antyodaya to bring 1 crore households of poverty by 2019.
2. MGNREGA: Rs.48,000 crore has been allocated. Participation of women now at 55%. Using space technology in a big way.
3. Over Rs. 3 lakh crore spend for rural India. MGNREGA to double farmer’s income
4. Propose to complete 1 crore houses
5. Allocating Rs. 19,000 crore for Pradhan Mantri Gram Sadak Yojana; Rs27,000 crore will be spent in by 2018
6. Propose to achieving 100% rural electrification by March 2018.
1.Introduction of a system of measuring annual learning outcomes and innovation fund for secondary education.
2.There will be a focus on 3,479 educationally-backward blocks.
3.Colleges will be identified based on accreditation.
4.Propose to leverage information technology with launch of SWAYAM platform for virtual learning.
5.100 Indian international skill centers to be established with courses in foreign languages.
6.Courses on foreign languages to be introduced.
7.Special scheme for creating employment in leather/footwear sector
8. Steps to create 5000 PG seats per year
POOR & HEALTH SECTOR
1. Women: Mahila Shakthi Kendras – Rs. 500 crore allocated.
2. Nationwide scheme for pregnant women – Rs. 6000 each will be transferred.
3. For women and Kids – Rs. 1,84,632 crore allocation investment
4. Affordable housing to be given infrastructure status.
5. Surplus liquidity – banks have already started reducing lending rates for housing
6. Elimination of tuberculosis (T.B.) by 2025 targeted.
7. Rs.1.5 lakh health sub centers to be transformed into health wellness center.
8. Two new AIIMS in Jharkhand and Gujarat.
9. Structural transformation of regulatory framework for medical education in India
10. Allocation to SCs increased to Rs. 52,393 crore; STs given Rs. 31,920 crore, minority affairs allocated Rs. 4,195 crore
11. Senior citizens: Aadhaar-based smart cards with health details to be provided
1. A total allocation of Rs. 39,61,354 crore
2. Total allocation for Railways — Rs. 1,31,000 crore
3. To make India global hub for electronics manufacturer
4. Export infra: New restructured central scheme to be launched
5. No Service charge while booking tickets with IRCTC
6. Raksha coach with a corpus of Rs. 1 lakh crore five years (for passenger safety)
7. Unmanned level crossings eliminated by 2020
8. 3,500 km of railway lines to be commissioned this year up from 2,800 km last year.
9. SMS based clean my coach service started
10. Coach mitra facility – to register all coach related complaints
11. 2019 – bio toilets for all trains
12. Telecom sector: Allocation to Bharat Net programmer at Rs.10,000 crore
13. 500 stations to be made differently-able friendly
14. Railways to partner with logistics players for front end and back end solutions for select commodities.
15. Railways will offer competitive ticket booking facility
16. 2,000 km for coastal connectivity of roads
17. Rs. 64,000 crore allocation for highways.
18. Allocation of high speed Internet 1,50,000 gram panchayats
19. New Metro rail policy to be announced with new modes of financing
1. A strategic policy for crude reserves will be set up
2. Rs. 1,26,000 crore for energy production-based investments received
3. Trade infra export scheme will be launched 2017-18
1. India at cusp of massive digital revolution
2. Govt to launch two new schemes to promote BHIM app, including cashback scheme for merchants
3. Aadhaar Pay to be launched for people who don’t have mobile phones
4. Focus on rural and semi-urban areas
5. To strengthen financial inclusion fund
6. Panel on digital payments has recommended structural reforms
7. To create payment regulatory board at RBI
1. To use head post-office for passport services
2. Defence: Centralized defence travel system developed
3. Defence: Centralized pension distribution system to be established
4. Govt recruitment: To introduce two-tier exam system
5. Govt looks to introduce laws to confiscate assets of economic defaulters
6. High-level panel chaired by PM to commemorate Mahatma Gandhi’s 150th birth anniversary
1. FDI policy reforms – Now more than 90% of FDI inflows automated.
2. Shares of Railway PSE like IRCTC would be listed on stock exchanges.
3. Financial firms Bill on resolution introduced in this session of parliament.
4. Decided to abolish FIPB in 2017-18.
5. Foreign Investment Promotion Board abolished.
6. Revised mechanism to ensure time bound listing of CPSEs
7. Cyber-security: Computer emergency response team set up
8. Pradhan Mantri Mudra Yojana lending target at Rs 2.44 lakh crore for 2017-18
9. Negotiable Instruments Act might be amended.
10. DBT to LPG consumers, Chandigarh is kerosene free, 84 govt schemes are on the DBT platform.
11. Head post office as the central office for rendering passport services
1. Total expenditure – Rs. 21, 47,000 crore
2. Capital expenditure will be 25.4 percent
3. Rs. 3,000 crore under Dept of Economic Affairs for implementing Budget announcements.
4. Defense expenditure (excluding pension) Rs 2,74,114 crore
5. Expenditure in science and technology — Rs. 37,435 crore
6. Total resources transferred to States and UTs is Rs 4.11 lakh crore
7. Recommended 3% fiscal deficit for three years with deviation of 0.5% of GDP.
8. Revenue deficit – 1.9 %
9. Pegged fiscal deficit of 2017-18 at 3.2% of GDP and remain committed to achieving 3% in the next year.
POLITICAL PARTIES FUNDING
1. Maximum amount of cash donation for political parties reduced to Rs. 2000 from 20000
2. Political parties entitled to receive donations by cheque or digital mode from donors.
3. Amendment is being proposed to RBI Act to enable issuance of electoral bonds.
4. Donor can purchase these bonds from banks or post office via cheque or digital transactions.
1. India’s tax to GDP ratio is not favorable.
2. Out of 13.14 lakh registered companies, only 5.97 lakh companies have filed returns for 2016-17.
3. Proportion of direct tax to indirect tax is not optimal.
4. 1.95 crore individuals showed income between Rs 2.5 lakh to Rs 5 lakh.
5. Out of 76 lakh individual assessees declaring income more than Rs 5 lakh, 56 lakh are salaried.
6. Only 1.72 lakh people showed income of more than Rs 50 lakh a year.
7. Between Nov 8 to Dec 30: Deposits between Rs 2 lakh and Rs 80 lakh was made in 1.09 crore accounts.
8. Net tax revenue of 2013-14 was Rs 11.38 lakh crore.
9. Out of 76 lakh individual assessees declaring income more than Rs 5 lakh, 56 lakh are salaried.
10. 1.95 crore individuals showed income between Rs 2.5 lakh to Rs 5 lakh.
11. Rate of growth of advance tax in Personal I-T is 34.8% in last three quarters of this financial year.
12. Holding period for long term capital gain lowered to 2 years
13. Propose to have carry-forward of MAT for 15 years.
14. Capital gain tax exempted to person holding land from which was pooled for creation of state capital of Telangana.
15. Corporate tax: Propose to reduce tax 25% for small companies turnover up to Rs. 50 crore.
16. Propose to reduce basic customs duty for LNG to 2.5% from 5%
17. SIT on black money suggested no cash transactions of more than Rs 3 lakh.
18. Cash transaction above Rs 3 lakh not permitted.
19. Limit of cash donation by charitable trust reduced to Rs 2,000 from Rs 10,000.
20. Net revenue loss in direct tax could be Rs. 20,000 crore.
21. GST: preparedness of IT system on schedule
22. No any changes in excise duties since GST will be implemented soon
PERSONAL INCOME TAX
1. Income Tax Rate reduced to 5% for income slab Rs. 2.5 to 5 lakh.
2. Simple one page return for people with annual income upto Rs. 5 lakh (other than business income).
3. People filing I-T returns for the first time will not come under govt scrutiny.
4. 10% surcharge on individual income above Rs. 50 lakh to Rs 1 crore. 15 % surcharge on individual income above Rs. 1 crore.