Union Budget 2017 Highlights

Hi friends, Himbuds.com brings you the Union Budget 2017 Highlights in easily comprehend-able point-wise format. Please go through, to has an in-depth gist of Union Budget 2017.Union Budget 2017 Highlights

  • Income Tax rate cut to 5 pc for individuals having income between Rs 2.5 lakh to Rs 5 lakh
  • 10 pc surcharge on individual income above Rs 50 lakh and upto Rs 1 cr to make up for Rs 15,000 cr loss of due to cut in personal I-T rate
  • 15 pc surcharge on income above Rs 1 cr to continue
  • Of 3.7 cr individuals who filed tax returns in 2015-16, 99 lakh showed income below exemption limit
  • Revenue deficit reduced to 2.1 pc from 2.3 pc for 2016-17
  • Govt pegs fiscal deficit target at 3.2 per cent for 2017-18 and 3 per cent for next year.
  • Demonetisation will help in transfer of resources from tax evaders to government.
  • Merger of Railways Budget with General Budget brings focus on a multi-modal approach for development of railways, highways and inland water transport
  • Govt took two tectonic policy initiatives – passage of GST Bill and demonetisation
  • World Bank expects GDP growth rate at 7.6 pc in FY18 and 7.8 pc in FY19
  • Allocation under MNREGA increased to 48,000 crore from Rs 38,500 crore. This is highest ever allocation
  • Rs 9,000 cr higher allocation for payment of sugarcane arrears
  • Target of agriculture credit fixed at Rs 10 lakh cr in 2017-18
  • National Testing agency to conduct all examinations in higher education, freeing CBSE and other agencies
  • 133-km road per day constructred under Pradhan Mantri Gram Sadak Yojana as against 73-km in 2011-14
  • Govt to set up dairy processing fund of Rs 8,000 crore over three years with initial corpus of Rs 2,000 crore
  • 1 cr households to be brought out of poverty under Antodya Scheme
  • Participation of women in MNREGA increased to 55 pc from 45 pc in past
  • Modern law on contract farming will be drafted and circulated to states
  • Dedicated micro-irrigation fund to be created with a corpus of Rs 5000 crore
  • Market reforms will be undertaken, states will be asked to denotify perishables from Essential Commodities Act
  • Space technology to be used for monitoring MNREGA implementation
  • Sanitation coverage in villages has increased from 42 pc in Oct 2016 to 60 pc, a rise of 18 pc, says FM
  • We propose to provide safe drinking water to 28,000 arsenic and fluoride affected habitations
  • To construct one crore houses by 2019 for homeless. PM Awas Yojana allocation raised from Rs 15,000 cr to Rs 23,000 cr
  • 100 pc electrification of villages to be completed by May 2018
  • 27,000 cr on to be spend on PMGSY; 1 cr houses to be completed by 2017-18 for houseless
  • PM Kaushal Kendras will be extended to 600 districts; 100 international skill centres to be opened to help people get jobs abroad
  • The allocation for rural agri and allied sector in 2017-18 is record Rs 1,81,223 crore
  • In higher education, we will undertake reforms in UGC, give autonomy to colleges and institutions
  • A system of annual learning outcome in schools to be introduced; innovation fund for secondary education to be set up
  • Two new AIIMS to be set up Jharkhand and Gujarat
  • New rules regarding medical devices will be devised to reduce their cost
  • 1.5 lakh health sub centres to be converted to Health Wellness Centres
  • National Housing Bank will refinance indiviual loans worth Rs 20,000 crore in 2017-18
  • Rs 500 cr allocated to set up Mahila Shakti Kendras; Allocation raised from Rs 1.56 lakh cr to Rs 1.84 lakh cr for women & child welfare.
  • Capital and development expenditure pegged at Rs 1.31 lakh cr for railways in 2017-18 from Budget
  • Allocation for SCs increased from Rs 38,833 cr to Rs 52,393 cr, a rise of 35 per cent
  • 35 pc increase in allocation for SC to Rs 52,393 cr
  • For senior citizens, Aadhaar based health cards will be issued
  • Model Shops and Establishment Bill to open up additional opportunities for employment of women
  • Select airports in tier-II cities to be taken up for operations, development on PPP mode
  • New metro rail policy to be unveiled
  • Railway tariffs to be fixed on the basis of cost, social obligation and competition
  • Service charge on e-tickets booked through IRCTC will be withdrawn
  • Delhi and Jaipur to have solid waste management plants and five more to be set up later
  • Government proposes Coach Mitra facility to redress grievances related to rail coaches
  • 500 stations will be differently abled by providing lifts and escalators
  • Unmanned railway level crossings to be eliminated by 2020
  • Railway line of 3,500 km will be commissioned in 2017-18 as against 2,800 km in 2016-17
  • Total allocation for rural, agri and allied sectors for 2017-18 is a record Rs 1,87,223 cr, up 24 per cent from last year
  • Rs 1 lakh cr corpus for railway safety fund over five years
  • A scheme for senior citizens to ensure 8 per cent guaranteed returns
  • Dedicated micro-irrigation fund to be set up by NABARD to achieve mission of Per Drop, More Crop
  • Digi Gaon will be launched to promote tele-medicine and education
  • Crude oil strategic reserves to be set up in Odisha and Rajasthan apart from 3 already constructed
  • Coverage of Fasal Bima Yojana to go up from 30 pc of cropped area to 40 pc in 2017-18 and 50 per cent next year
  • For transport sector, including railways, road and shipping, government provides Rs 2.41 lakh crore
  • Allocation of Rs 10,000 cr for Bharat Net project for providing high-speed broadband in FY18
  • Allocation for national highways stepped up to Rs 64,000 cr from Rs 57,676 cr
  • Budget allocation for highways stepped up to Rs 64,000 crore in FY18 from Rs 57,676 crore
  • Dispute resolution in infrastructure projects in PPP mode will be institutionalised
  • Rs 2,74,114 crore allocated for defence expenditure, excluding pension; This includes Rs 86,000 crore for defence capital
  • Govt to further liberalise FDI policy
  • Over 90 per cent of FDI proposls are now processed through automatic route
  • FIPB will be abolished
  • Trade Infrastructure Export Scheme to be launched in 2017-18; total allocation for infra at record Rs 3.96 lakh cr
  • Second phase of solar power development to be taken up with an aim of generating 20,000 MW
  • After demonetisation on Nov 8 last year, deposit of between Rs 2 lakh and Rs 80 lakh made in 1.09 cr bank accounts at an average of Rs 5.03 lakh till Dec 30
  • More funds beyond Rs 10,000 cr for recapitalisation of banks will be provided if needed
  • The shares of railway CPSCs like IRCTC and IRFC to be listed on various stock exchanges
  • Of 76 lakh individuals who reported income of over Rs 5 lakh, 56 lakh are salaried
  • Integrated public sector oil major to be created to match global giants
  • Govt will amend the Multi-state Cooperative Act to protect the poor and gullible investors
  • Urgent need to protect poor from chit fund schemes, draft bill placed in public domain
  • Computer emergency response team to be set for cyber security of financial sector
  • Govt to introduce two new schemes to promote BHIM App – referal bonus for users and cash back for traders
  • Govt doubles distribution target under Mudra Yojana to Rs 2.44 lakh crore for 2017-18
  • Over Rs 80 lakh deposits in 1.48 lakh cr at an average of Rs 3.31 cr per account ..
  • Customs duty on LNG halved to 2.5 pc
  • FPI to be exempt from indirect transfer provisions
  • Political parties can receive donations in cheque, electronic mode; electoral bonds to be issued by RBI
  • Maximum amount of cash donation a political party can receive will be Rs 2000 from any one source as part of effort to clean political funding
  • Total expenditure in FY18 at Rs 21.47 lakh cr
  • Duty exempted on various POS machines and iris readers to encourage digital payments
  • Rs 7,200 cr revenue loss due to reduction in tax on smaller companies
  • Govt mulling introduction of legal changes to confiscate assets of offenders, including economic offenders, who flee the country
  • Govt to set up a web-based interactive platform for defence pensioners
  • Head post offices to issue passports
  • Govt considering option to amend Negotiable Instruments Act to ensure that holders of dishonoured cheques get payment
  • FRBM review committee has recommended 60 pc debt to GDP ratio; 0.5 pc of GDP deviation from stipulated fiscal deficit targets
  • Payment regulatory board to be set up in RBI to regulate electronic payments, replacing Board for Regulation and Supervision in Payments and Settlements System
  • 3 yr period for long-term capital gains tax on immovalble property reduced to 2 years; base year indexation shifted from 1.4.1981 to 1.4.2001
  • A proposal to receive all government receipts beyond a certain threshold through e-modes under consideration
  • GST implementation to bring more taxes to Centre and states
  • No transaction above Rs 3 lakh in cash will be allowed as suggested by SIT
  • Customs duty on LNG to be reduced from 5 pc to 2.5 pc
  • To make MSME companies more viable, govt proposes to reduce IT tax with annual turn over of Rs 50 core up to 25 per cent
  • I-T for smaller cos with turnover of upto Rs 50 cr up to 25 per cent
  • Not possible to remove MAT levied on advance tax for now; carry forward allowed for 15 yrs instead of 10 yrs
  • Relaxation in norms for Start Ups for getting tax exemption
  • Solar tempered glass used for manufacture of solar cells/panels exempted from customs duty
  • Import duty on aluminium ores and concentrates raised to 30 pc from nil presently
  • Actual revenue loss on tax proposals Rs 22,700 cr; gain from additional resource mobilisation is Rs 2,700 cr
  • Net revenue loss from direct tax proposals to be about Rs 20,000 cr
  • Excise duty on pan masala containing tobacco (Gutkha) raised to 12 pc from 10 pc
  • Excise duty on non-filter cigarettes of length not exceeding 65 mm raised to Rs 311 per thousand from Rs 215 per thousand

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Vishal Sharma blogs at HimBuds.com. A B.Tech (ECE) & MBA (Marketing + HR), born & brought up in Shimla, he is currently working with Govt. of India deputed in Shimla. Serving the society in whichever way possible is his passion. He wishes to set-up an NGO to provide free education to deprived children.


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