(Report) Highlights of Union Budget 2017-18

(Reports) Highlights of Union Budget 2017-18

Finance minister Arun Jaitley presented the Union Budget 2017-18 in the Lok Sabha on 01-02-2017.

In the year 2017, for the first time,in indian history that the Railways Budget is part of the General Budget.

Here are the highlights of budget 2017-18

• India stands out as a bright spot amid world economic gloom .
• Those earning between ₹2.5 lakh and ₹5 lakh a year will now have to pay income tax at the rate of 5% instead of the earlier 10%, according to Finance Minister Arun Jaitley’s Budget 2017-18 proposal.
• Mr. Jaitley also announced that all the other categories of tax payers in the subsequent slabs will also get a uniform benefit of ₹12,500 per person.
• He said the existing rebate for those earning ₹5 lakh or less will now be reduced to ₹2,500 and available only to those earning an income of up to ₹3.5 lakh.
• The Finance Minister has also proposed to levy a surcharge of 10% of tax payable on those whose annual taxable income is between ₹50 lakh and ₹1 crore.
• The existing surcharge of 15% of tax on people earning more than ₹1 crore will continue.
• 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.
• Merger of Railways Budget with General Budget brings focus on a multi-modal approach for development of railways, highways and inland water transport
• Agricultural sector is expected to grow at 4.1 per cent this fiscal, says Jaitley
• Plan, non-plan classification of expenditure done away with in the Budget for 2017-18 to give a holistic picture Our agenda for next year is to transform, energise and clean India
• 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
• 133-km road per day constructred under Pradhan Mantri Gram Sadak Yojana as against 73-km in 2011-14
• National Testing agency to conduct all examinations in higher education, freeing CBSE and other agencies
• Govt to set up dairy processing fund of Rs 8,000 crore over three years with initial corpus of Rs 2,000 crore
• Participation of women in MNREGA increased to 55 pc from 45 pc in past
• Dedicated micro-irrigation fund to be created with a corpus of Rs 5000 crore
• 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

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• 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
• Two new AIIMS to be set up Jharkhand and Gujarat
• In higher education, we will undertake reforms in UGC, give autonomy to colleges and institutions
• 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
• IMF estimates world GDP will grow by 3.4 per cent in 2017 .
• 36 per cent increase in FDI flow; forex reserves at USD 361 billion in January enough to cover 12 months needs.
• 1 crore households to be brought out of poverty under Antodya Scheme
• Model Shops and Establishment Bill to open up additional opportunities for employment of women
• For senior citizens, Aadhaar based health cards will be issued.
• 35 per cent increase in allocation for SC to Rs 52,393 crore
• Allocation for SCs increased from Rs 38,833 cr to Rs 52,393 crore, a rise of 35 per cent
• Railway line of 3,500 km will be commissioned in 2017-18 as against 2,800 km in 2016-17
• A scheme for senior citizens to ensure 8 per cent guaranteed returns
• Rs 1 lakh cr corpus for railway safety fund over five years
• Unmanned railway level crossings to be eliminated by 2020
• Government proposes Coach Mitra facility to redress grievances related to rail coaches
• Select airports in tier-II cities to be taken up for operations, development on PPP mode
• Service charge on e-tickets booked through IRCTC will be withdrawn
• Railway tariffs to be fixed on the basis of cost, social obligation and competition.
• Crude oil strategic reserves to be set up in Odisha and Rajasthan apart from 3 already constructed
• For transport sector, including railways, road and shipping, government provides Rs 2.41 lakh crore.
• Allocation of Rs 10,000 crore for Bharat Net project for providing high-speed broadband in FY18
• 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
• Digi Gaon will be launched to promote tele-medicine and education
• Second phase of solar power development to be taken up with an aim of generating 20,000 MW
• Trade Infrastructure Export Scheme to be launched in 2017-18; total allocation for infra at record Rs 3.96 lakh crore.
• FIPB will be abolished.
• Rs 2,74,114 crore allocated for defence expenditure, excluding pension; This includes Rs 86,000 crore for defence capital.
• Computer emergency response team to be set for cyber security of financial sector.
• Govt will amend the Multi-state Cooperative Act to protect the poor and gullible investors
• Govt to double lending target under PM Mudra Yojana to Rs 2,44,000 crore for 2017-18
• Govt doubles distribution target under Mudra Yojana to Rs 2.44 lakh crore for 2017-18
• 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
• FRBM review committee has recommended 60 per cent debt to GDP ratio; 0.5 per cent of GDP deviation from stipulated fiscal deficit targets
• Head post offices to issue passports
• Total expenditure in FY18 at Rs 21.47 lakh croreDuty exempted on various POS machines and iris readers to encourage digital payments.
• Capital expenditure stepped up by 25.4 per cent in FY18 over previous year.
• 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.
• Political parties can receive donations in cheque, electronic mode; electoral bonds to be issued by RBI
• FPI to be exempt from indirect transfer provisions
• Customs duty on LNG halved to 2.5 per cent
• Revenue deficit reduced to 2.1 per cent from 2.3 per cent for 2016-17
• Direct tax collection not commensurate with income and expenditure pattern
• Of 3.7 cr individuals who filed tax returns in 2015-16, 99 lakh showed income below exemption limit.
• For senior citizens, Aadhar cards giving their health condition will be introduced .

Online Coaching for UPSC, IAS Exam General Studies Paper-1

Printed Study Material for IAS Pre General Studies (Paper-1)

IAS Mains General Studies Study Kit