BUDGET 2017-18 HIGHLIGHTS: TAX CUTS, LIMITS ON POLITICAL FUNDING IN ARUN JAITLEY’S BUDGET

BUDGET 2017-18 HIGHLIGHTS: TAX CUTS, LIMITS ON POLITICAL FUNDING IN ARUN JAITLEY’S BUDGET

This year, the Finance Minister presented a budget of Rs 21,47,000 crore which is 8.6% higher than Rs 19,78,060, the last year’s financial roll out.

The fiscal road-map Budget 2017 for the year 2017-18 was presented by Finance Minister Arun Jaitley on Feb 1st in Parliament. This year, the Finance Minister presented a budget of Rs 21,47,000 crore which is 8.6% higher than Rs 19,78,060, the last year’s financial roll out. Last year, the allocation of budget for the economic year 2016-17 was 10.8% higher than Rs 17,65,436 crore which was presented for the fiscal year 2015-16.

The Budget is based on 10 themes. These are:

1.      Double farm income in five years;

2.      Rural infrastructure;

3.      Youth skills and jobs;

4.      Social security, health, housing;

5.      Efficient and better living standards;

6.      Growth and stability;

7.      Digital economy;

8.      Public service through people’s participation;

9.      Prudent fiscal management;

10.  Tax Administration: Honouring the honest

The budget was prepared while keeping a focus on rural areas, infrastructure and poverty alleviation, yet maintain best standards of fiscal prudence. As per the budget 2017, the government will spend more on these sectors.

Let’s look at the highlights of the Budget 2017:

• Total allocation: Rs 21,47,000 crore;
•  Rs 2.74 lakh crore to Defence excluding pension;
• Rs 8,000 crore to be allocated to dairy processing infrastructure fund which will be set up under NABARD;
• Setup of mini labs by qualified local entrepreneurs in all 648 Krishi Vigyan Kendras Mini;
• Rs 10 lakh crore set as agricultural loans to farmers in 2017-18;
• Rs 48,000 crore to MNREGA which is 23% higher than Rs 37,000 which was allocated to MNREGA last year;
• 1 crore house by 2019;
• Rs 23,000 crore allocation to PM Ayas Yojana which is was Rs 15,000 crore in last budget;
• 100% village electrification by May 1, 2018;
• Pipe to water supply to open-defecation villages;
• Initial corpus of Rs 5,000 crore to micro-irrigation fund which will b set up by NABARD to achieve goal of ‘Per Drop More Crop’;
• Rs 187,223 crore to Rural, Agricultural and allied sectors which is 24% higher than last year’s allocation to the sector;
• Colleges will be given autonomous status;
• Science will be given focus;
• For Youth, introduction of a system of measuring annual learning;
• 5,000 PG seats for medical sciences;
• 2 Medical sciences centres in Jharkhand and Gujarat;
• Rs 38,800 to Rs 52,000 allocation to Scheduled Castes;
• For senior citizens, Aadhaar cards to have healt condition;
• Rs 64,000 crore to highways which is 9.8% increase from last year’s Rs 57,676 crore;
• Rs 2.41 lakh crore to Transport; Rs 10,000 crore to Bharat Net Project;
• Rs 10,000 crore to re-capitalisation of banks;
• Capital gains tax to be exempted for persons holding land from which land was pooled for creation of state capital of Andhra Pradesh;
• Rs 37,435 crore to scientific ministry;
• Advance tax on personal Income tax increased by 34.8%;
• 5% reduction on Income tax for small companies with an annual turn over of Rs 50 crore;
• Basic customs reduced from 5% to 2.5% on LNG terminals;
• Minimum Alternative Tax removed;
• 2.5% reduction on basic customs duty on LNG;
• Rs 2000 limit on cash donations to charities;
• No cash transaction above Rs 3 lakh;
• Reduction on rate of taxation to those with income between 2.5 lakh to 5 lakh from 10% to 5%;
• 15% surcharge on incomes above Rs 1 crore to continue;
• 10% surcharge for those with annual income of Rs 50 lakh to 1 crore;

Railways:

• Rs 100,000 crore to rail safety fund which will be created in next five years;
• Bio-toilets in Indian Railway coaches; 3,500 railway lines will be commissioned;
• No service charges on railway e-tickets;
• More jobs for youth.

Apart from this, Foreign Investment Promotion Board will be out in 2017 for an easier FDI regime. Arun Jaitley also said that Mission Antyodaya will be launched to bring one crore households out of poverty and to make 50,000 Gram Panchayats poverty-free. 20 lakh Aadhaar-based swipe machines will be put up by the year 2020.

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