(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
- 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
- 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
- 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
- Agricultural sector is expected to grow at 4.1 per cent this fiscal,
- 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
- 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
- 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
- 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
- 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
- Govt will amend the Multi-state Cooperative Act to protect the poor and
- Govt to double lending target under PM Mudra Yojana to Rs 2,44,000 crore
- 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
- 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
- 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