Highlights of Indian Union Budget 2017

Posted on February 1, 2017

Finance minister Arun Jaitley presented the Union Budget 2017 in Parliament on Wednesday. Key highlights were finance Minister Arun Jaitley’s budget speech, including new income tax rules, actions on black money and push towards a digital economy. Here are the highlights for the 2017/2018 Union Budget:

FARMING:

Government commits to double farmers income in 5 Years.
The target for agriculture credit is fixed to Rs.10 Lakhs per person.
Improvement of soil health card will be issued and will set up labs for KRISHI VIGYAN KENDRA.
FASAL BIMA YOJAN will increase to 40 % from 30%.
Dedicated micro-irrigation funds will be set up by NABARD to achieve the ‘per drop more crop’
Initial corps will be of Rs.5000 Crores of the corpus.

Financial Market:

Foreign Investment Promotion Board (FIPB) to vanish.
Resolution mechanics for financial firms.
Cyber-Security, Emergency response team to be set up.
New Exchange Trade Funds (ETF) to be launched.
Integrated public sector to be created for oil companies.
Commodities market to take place. Panel study for the legal framework to spot and derivative markets.
Over 1600 new enterprises have been set for Standup India.

TAX ADMINISTRATIONS:

34% increase in disclosure of personal income tax
No cash Transactions above Rs 3 Lakhs should be made.
Data received will increase TAX net.
Only Rs 2000 donations for political parties. The transaction must be made only by cheque and Digital Transaction, no cash.
Limit of cash donation for charitable trusts cut to Rs2,000.
Personal Income reduced to 5% for Rs: 2.5- 5 lakhs. All other categories get benefits of Rs12, 500 per person.
GST: Preparation on IT sectors is initiated.
FPI category 1 and 2 investors exempted from indirect transfer provisions
Corporate tax rate: MSMEs’ rate (annual turnover less than Rs50crore) reduced to 25%
LNG: Reduce customs duty to 2.5%
MAT to carry-forward for next 15 years.

Public Services:

Can utilize head post office as passport office.
New laws for confiscating assets of economic defaulters.
The introduction of the new two-tier exam system.
Defense system to be developed.
Pension distribution for Defense people to be established.

FISCAL Management:

Total budget sanctioned is Rs 21 Trillion.
Rs 3000 Crore to implement various budget announcement.
Defense Expenditure Rs 2.74 Trillion
Fiscal deficit for FY18 pegged at 3.2% of GDP
Revenue deficit for FY18 at 1.9%

Digital Economy:

India adapt massive digital economy.
Government to launch cash back schemes for Merchants in BHIM app.
More focus on Ruler and Semi-urban areas.
To strengthen financial inclusion fund
To create payment regulatory board at RBI.

Infrastructure:

Rs 1.31 Trillion for railway safety and development.
Safety Corpus to for railways to be set by 2020.
3,500 KMS of new railway line be commissioned.
Railways to offer competitive ticket booking facility; service charge will be withdrawn for tickets booked on IRCTC
To launch dedicated tourism/pilgrimage trains.
Total allocation to transport sector at Rs2 trillion
Telecom sector: Allocation to Bharat Net program at Rs10,000 crore
Digi-gau initiative to be launched to make India global hub for the electronics manufacturer.
Total allocation for infrastructure: Rs3.96 trillion

Poor and Unprivileged:

MAHILA KENDRA gets Rs 500 Crore corpus.
84 trillion for various schemes for women and children.
Housing for poor with better infrastructure.
New AIIMS in Jharkhand and Gujarat.
Allocation to SCs increased to Rs52, 393 crores; STs given Rs31, 920 crores, minority affairs allocated Rs4,195 crore.
Aadhar Cards of senior citizens will be linked to health smart cards.
Legislative reforms to simplify and amalgamate existing labor laws.
Free medical camps for ruler areas.
5 Crore youth will be trained under SANKALP program launched by the government. Post Budget Reaction from Indian CEO and Startups

Highlights of Indian Union Budget 2017