Finance minister Arun Jaitley presented the Union Budget 2017 in Parliament today.Here are the key highlights of his budget speech:
•Jaitley divided his budget proposal into 10 distinct themes: Farmers; rural population; energizing youth; poor and underprivileged; infrastructure; financial sector; digital economy; public service; prudent fiscal management; and tax administration.
FARMERS:
•Farmer credit fixed at record level of Rs10 trillion; will ensure adequate flow to underserved areas
•Soil health cards: Govt to set up mini-labs in Krishi Vigyan Kendras
•Long-term irrigation fund in Nabard—corpus at Rs40,000 crore
•Dairy processing infra fund with corpus of Rs8,000 crore
•Dedicated micro-irrigation fund with Rs 5,000 crore corpus
RURAL POPULATION:
•Mission Antyodaya to bring 1 crore households of poverty
•MGNREGA: Rs48,000 crore has been allocated; participation of women now at 55%; using space technology in a big way
•Prime Minister Gram Sadak Yojana: Rs19,000 crore allocated; along with states, Rs27,000 crore will be spent in FY18
•Pradhan Mantri Awas Yojana: Rs23,000 crore allocated
•100% village electrification by May 2018
•Rural livelihood mission: Rs4,500 crore allocated
•Mason training to be provided for 5 lakh people
•Panchayat Raj: Human resource reform programme to be launched
•Rs1,87,223 crore allocated for rural programmes
YOUTH:
•Education: System of measuring annual learning outcomes, emphasis on science
•Innovation fund for secondary education
•Reforms in UGC: Colleges to be identified based on ranking and given more autonomy
•Propose to leverage information technology with launch of SWAYAM platform for virtual learning
•National testing agency to be established for all entrance exams, freeing up CBSE, AICTE and other bodies
•100 Indian international skill centres to be established with courses in foreign languages
•Rs4,000 crore allocated to launch skill acquisition and knowledge awareness
•Special scheme for creating employment in leather/footwear sector
•Tourism: Five special zones to be set up
POOR AND UNPRIVILEGED:
•Women: Mahila Shakti Kendras with Rs500 crore corpus
•Stepped up allocation to Rs1.84 trillion for various schemes for women and children
•Affordable housing to be given infrastructure status
•Action plan to eliminate leprosy by 2018, TB by 2025, reduce IMR to 29 in 2019
•To create additional PG medical seats per annum
•Two new AIIMS in Jharkhand and Gujarat
•Labour rights: Legislative reforms to simplify and amalgamate existing labour laws
•Allocation to SCs increased to Rs52,393 crore; STs given Rs31,920 crore, minority affairs allocated Rs4,195 crore
•Senior citizens: Aadhaar-based smart cards with health details to be provided
INFRASTRUCTURE:
•Total capex and development expenditure of railways pegged at Rs1.31 trillion
•Railways: Passenger safety—Safety fund corpus set up; unmanned level crossings to be eliminated by 2020
•Railway lines of 3,500km to be commissioned
•To launch dedicated tourism/pilgrimage trains
•500 stations to be made differently-abled friendly
•Cleanliness in railways: To introduce Coach Mitra facility; By 2019, biotoilets for all coaches
•Railways to offer competitive ticket-booking facility; service charge withdrawn for tickets booked on IRCTC
•New metro rail policy to be announced
•Roads sector: Allocation for national highways at Rs 64,000 crore
•Airports Authority of India Act to be amended to enable monetization of land resources
•Total allocation to transport sector at Rs2 trillion
•Telecom sector: Allocation to Bharat Net programme at Rs10,000 crore
•Digi-gau initiative to be launched
•To make India global hub for electronics manufacture
•Export infra: New restructured central scheme to be launched
•Total allocation for infrastructure: Rs3.96 trillion
FINANCIAL SECTOR:
•Foreign Investment Promotion Board (FIPB) to be abolished
•Commodities market: panel to study legal framework for spot and derivative markets
•Resolution mechanism for financial firms
•Cyber-security: Computer emergency response team to be set up
•To create integrated public sector oil major
•New ETF to be launched
•Pradhan Mantri Mudra Yojana: Lending target at Rs2.44 trillion
•Stand-up India scheme: over 16,000 new enterprises have been set up
DIGITAL ECONOMY:
•Govt to launch two new schemes to promote BHIM app, including cashback scheme for merchants and referral scheme to users
•Aadhaar Pay to be launched for people who don’t have mobile phones
•Focus on rural and semi-urban areas
•Panel on digital payments has recommended structural reforms
•To create payment regulatory board at RBI
PUBLIC SERVICES:
•To use head post-office for passport services
•Defence: centralized defence travel system developed
•Defence: Centralized pension distribution system to be established
•Govt recruitment: To introduce two-tier exam system
•High-level panel chaired by PM to commemorate Mahatma Gandhi’s 150th birth anniversary
FISCAL MANAGEMENT:
•Total budget expenditure: Rs 21 trillion
•Rs3,000 crore to implement various budget announcements
•Defence expenditure excluding pensions: Rs2.74 trillion
•Consolidated outcome budget for all ministries being created
•Fiscal deficit for FY18 pegged at 3.2% of GDP
•Revenue deficit for FY18 at 1.9%
TAX ADMINISTRATION:
•Black money: No cash transactions above Rs3 lakh
•Transparency in political funding: Parties continue to receive anonymous donations; propose system of cleaning up
•Political funding: Maximum amount of cash donation that can be received is Rs2,000; political parties can receive donations by cheques or digitally; amendment proposed to RBI Act to issue electoral bonds; every party has to file returns within specified time
•Personal income tax: Rate reduced to 5% for income bracket of Rs2.5-5 lakh; All other categories to get uniform benefit of Rs12,500 per person; to levy surcharge on income bracket Rs50 lakh-Rs1 crore
•Personal income tax: To have simple one-page form for taxable income up to Rs5 lakh
•GST: preparedness of IT system on schedule
•Not many changes to excise duties since GST will be implemented soon
•Real estate: to make changes in capital gains tax
•Corporate tax rate: MSMEs’ rate (annual turnover less than Rs50crore) reduced to 25%
•LNG: Reduce customs duty to 2.5%
•Limit of cash donation for charitable trusts cut to Rs2,000.
CLOSING REMARKS:
•It is said when my goal is in sight, the winds favour me and I fly. There is no other day more appropriate than this: FM Jaitley
•Jaitley divided his budget proposal into 10 distinct themes: Farmers; rural population; energizing youth; poor and underprivileged; infrastructure; financial sector; digital economy; public service; prudent fiscal management; and tax administration.
FARMERS:
•Farmer credit fixed at record level of Rs10 trillion; will ensure adequate flow to underserved areas
•Soil health cards: Govt to set up mini-labs in Krishi Vigyan Kendras
•Long-term irrigation fund in Nabard—corpus at Rs40,000 crore
•Dairy processing infra fund with corpus of Rs8,000 crore
•Dedicated micro-irrigation fund with Rs 5,000 crore corpus
RURAL POPULATION:
•Mission Antyodaya to bring 1 crore households of poverty
•MGNREGA: Rs48,000 crore has been allocated; participation of women now at 55%; using space technology in a big way
•Prime Minister Gram Sadak Yojana: Rs19,000 crore allocated; along with states, Rs27,000 crore will be spent in FY18
•Pradhan Mantri Awas Yojana: Rs23,000 crore allocated
•100% village electrification by May 2018
•Rural livelihood mission: Rs4,500 crore allocated
•Mason training to be provided for 5 lakh people
•Panchayat Raj: Human resource reform programme to be launched
•Rs1,87,223 crore allocated for rural programmes
YOUTH:
•Education: System of measuring annual learning outcomes, emphasis on science
•Innovation fund for secondary education
•Reforms in UGC: Colleges to be identified based on ranking and given more autonomy
•Propose to leverage information technology with launch of SWAYAM platform for virtual learning
•National testing agency to be established for all entrance exams, freeing up CBSE, AICTE and other bodies
•100 Indian international skill centres to be established with courses in foreign languages
•Rs4,000 crore allocated to launch skill acquisition and knowledge awareness
•Special scheme for creating employment in leather/footwear sector
•Tourism: Five special zones to be set up
POOR AND UNPRIVILEGED:
•Women: Mahila Shakti Kendras with Rs500 crore corpus
•Stepped up allocation to Rs1.84 trillion for various schemes for women and children
•Affordable housing to be given infrastructure status
•Action plan to eliminate leprosy by 2018, TB by 2025, reduce IMR to 29 in 2019
•To create additional PG medical seats per annum
•Two new AIIMS in Jharkhand and Gujarat
•Labour rights: Legislative reforms to simplify and amalgamate existing labour laws
•Allocation to SCs increased to Rs52,393 crore; STs given Rs31,920 crore, minority affairs allocated Rs4,195 crore
•Senior citizens: Aadhaar-based smart cards with health details to be provided
INFRASTRUCTURE:
•Total capex and development expenditure of railways pegged at Rs1.31 trillion
•Railways: Passenger safety—Safety fund corpus set up; unmanned level crossings to be eliminated by 2020
•Railway lines of 3,500km to be commissioned
•To launch dedicated tourism/pilgrimage trains
•500 stations to be made differently-abled friendly
•Cleanliness in railways: To introduce Coach Mitra facility; By 2019, biotoilets for all coaches
•Railways to offer competitive ticket-booking facility; service charge withdrawn for tickets booked on IRCTC
•New metro rail policy to be announced
•Roads sector: Allocation for national highways at Rs 64,000 crore
•Airports Authority of India Act to be amended to enable monetization of land resources
•Total allocation to transport sector at Rs2 trillion
•Telecom sector: Allocation to Bharat Net programme at Rs10,000 crore
•Digi-gau initiative to be launched
•To make India global hub for electronics manufacture
•Export infra: New restructured central scheme to be launched
•Total allocation for infrastructure: Rs3.96 trillion
FINANCIAL SECTOR:
•Foreign Investment Promotion Board (FIPB) to be abolished
•Commodities market: panel to study legal framework for spot and derivative markets
•Resolution mechanism for financial firms
•Cyber-security: Computer emergency response team to be set up
•To create integrated public sector oil major
•New ETF to be launched
•Pradhan Mantri Mudra Yojana: Lending target at Rs2.44 trillion
•Stand-up India scheme: over 16,000 new enterprises have been set up
DIGITAL ECONOMY:
•Govt to launch two new schemes to promote BHIM app, including cashback scheme for merchants and referral scheme to users
•Aadhaar Pay to be launched for people who don’t have mobile phones
•Focus on rural and semi-urban areas
•Panel on digital payments has recommended structural reforms
•To create payment regulatory board at RBI
PUBLIC SERVICES:
•To use head post-office for passport services
•Defence: centralized defence travel system developed
•Defence: Centralized pension distribution system to be established
•Govt recruitment: To introduce two-tier exam system
•High-level panel chaired by PM to commemorate Mahatma Gandhi’s 150th birth anniversary
FISCAL MANAGEMENT:
•Total budget expenditure: Rs 21 trillion
•Rs3,000 crore to implement various budget announcements
•Defence expenditure excluding pensions: Rs2.74 trillion
•Consolidated outcome budget for all ministries being created
•Fiscal deficit for FY18 pegged at 3.2% of GDP
•Revenue deficit for FY18 at 1.9%
TAX ADMINISTRATION:
•Black money: No cash transactions above Rs3 lakh
•Transparency in political funding: Parties continue to receive anonymous donations; propose system of cleaning up
•Political funding: Maximum amount of cash donation that can be received is Rs2,000; political parties can receive donations by cheques or digitally; amendment proposed to RBI Act to issue electoral bonds; every party has to file returns within specified time
•Personal income tax: Rate reduced to 5% for income bracket of Rs2.5-5 lakh; All other categories to get uniform benefit of Rs12,500 per person; to levy surcharge on income bracket Rs50 lakh-Rs1 crore
•Personal income tax: To have simple one-page form for taxable income up to Rs5 lakh
•GST: preparedness of IT system on schedule
•Not many changes to excise duties since GST will be implemented soon
•Real estate: to make changes in capital gains tax
•Corporate tax rate: MSMEs’ rate (annual turnover less than Rs50crore) reduced to 25%
•LNG: Reduce customs duty to 2.5%
•Limit of cash donation for charitable trusts cut to Rs2,000.
CLOSING REMARKS:
•It is said when my goal is in sight, the winds favour me and I fly. There is no other day more appropriate than this: FM Jaitley
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