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Union budget 2017 2018

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Union budget 2017 2018

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Union budget 2017 2018

  1. 1. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com UNION BUDGET 2017-2018 By Parvathi.V Accounts Department
  2. 2. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com HIGHLIGHTS In the last two and half years administration has moved from discretionary, favouritism based to transparency based Inflation brought under control. CPI-based inflation declined from 6% in July 2016 to 3.4% in December, 2016 Economy has moved on a high growth path. India’s Current Account Deficit declined from about 1% of GDP last year to 0.3% of GDP in the first half of 2016-17. FDI grew 36% in 2016-17 over 2015-16, despite 5% reduction in global FDI inflows. Foreign exchange reserves have reached 361 billion US Dollars as on 20th January, 2017 War against black money launched Government continued on path of fiscal consolidation, without compromising on public investment. International Monetary Fund forecasts, India to be one of the fastest growing major economies in 2017
  3. 3. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com TRANSFORMATIONAL REFORMS IN LAST YEAR Passage of the Constitution Amendment Bill for GST and the progress for its introduction Demonetisation of high denomination bank notes Enactment of the Insolvency and Bankruptcy Code; Amendment to the RBI Act for inflation targeting; "The preamble in the RBI Act, as amended by the Finance Act, 2016, now provides that the primary objective of the monetary policy is to maintain price stability, while keeping in mind the objective of growth, and to meet the challenge of an increasingly complex economy,” Enactment of the Aadhar bill for disbursement of financial subsidies and benefits.
  4. 4. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Demonetization • Demonetisation is expected to have a transient impact on the economy. • It will have a great impact on the economy and lives of people . • Demonetisation is a bold and decisive measure that will lead to higher GDP growth. • The effects of demonetisation will not spillover to the next fiscal.
  5. 5. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Key Features of Budget 2017-2018 • The 2017 Union Budget, presented by Finance Minister Arun Jaitley on Wednesday1st February , was broadly focused on 10 themes — a. Farming sector b. Rural population c. Youth d. Poor and underprivileged health care, e. Infrastructure f. The financial sector for stronger institutions, g. Speedy accountability h. Public services i. Prudent fiscal management j. Tax administration for the honest.
  6. 6. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Agriculture sector • Sowing farmers should feel secure against natural calamities. • A sum of Rs. 10 lakh crore is allocated as credit to farmers, with 60 days interest waiver. • NABARD fund will be increased to Rs. 40,000 crore. • Coverage under Fasal Bima Yojana scheme will be increased from 30% of cropped area in 2016-17 to 40% in 2017-18 and 50% in 2018-19 for which a budget provision of 9000 crore has been made • Government will set up mini labs in Krishi Vigyan Kendras for soil testing. • A dedicated micro irrigation fund will be set up for NABARD with Rs 5,000 crore initial corpus.
  7. 7. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Agriculture sector • Irrigation corpus increased from Rs 20,000 crore to Rs 40,000 crore. • Issuance of soil cards has gained momentum. • Dedicated Micro Irrigation Fund in NABARD to achieve per drop more crop with an initial corpus of 5,000 crores • Coverage of National Agricultural Market (e-NAM) to be expanded from 250 markets to 585 APMCs. Assistance up to ` 75 lakhs will be provided to every NAM • A model law on contract farming to be prepared and circulated among the States for adoption • Dairy Processing and Infrastructure Development Fund to be set up in NABARD with a corpus of 2000 crores and will be increased to 8000 crores over 3 years
  8. 8. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Rural population • The government targets to bring 1 crore households out of poverty by 2019. • During 2017-18, five lakh farm ponds will be taken up under the MGNREGA. • Over Rs 3 lakh crore will be spent for rural India. MGNREGA to double farmers' income. • Will take steps to ensure participation of women in MGNREGA up to 55%. • Space technology will be used in a big way to ensure MGNREGA works. • The government proposes to complete 1 crore houses for those without homes. • Will allocate Rs. 19,000 crore for Pradhan Mantri Gram Sadak Yojana in 2017-18. • The country well on way to achieve 100% rural electrification by March 2018. • Swachh Bharat mission has made tremendous progress; sanitation coverage has gone up from 42% in Oct 13 to 60% now. •
  9. 9. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Youth • To introduce a system of measuring annual learning outcomes in schools • Innovation Fund for Secondary Education proposed to encourage local innovation for ensuring universal access, gender parity and quality improvement to be introduced in 3479 educationally backward districts. • Colleges will be identified based on accreditation. • Pradhan Mantri Kaushal Kendras to be extended to more than 600 districts across the country. 100 India International Skills Centres will be established across the country.
  10. 10. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Youth • Skill Acquisition and Knowledge Awareness for Livelihood Promotion programme (SANKALP) to be launched at a cost of ` 4000 crores. SANKALP will provide market relevant training to 3.5 crore youth • Next phase of Skill Strengthening for Industrial Value Enhancement (STRIVE) will also be launched in 2017-18 at a cost of ` 2,200 crores • A scheme for creating employment in the leather and footwear industries along the lines in Textiles Sector to be launched. • Incredible India 2.0 Campaign will be launched across the world to promote tourism and employment.
  11. 11. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com POOR AND THE UNDERPRIVILEGED • Mahila Shakti Kendra will be set up with an allocation of ` 500 crores in 14 lakh ICDS Anganwadi Centres. This will provide one stop convergent support services for empowering rural women with opportunities for skill development, employment, digital literacy, health and nutrition • Under Maternity Benefit Scheme ` 6,000 each will be transferred directly to the bank accounts of pregnant women who undergo institutional delivery and vaccinate their children • Affordable housing to be given infrastructure status • National Housing Bank will refinance individual housing loans of about ` 20,000 crore in 2017-18 • Government has prepared an action plan to eliminate Filariasis by 2017, Leprosy by 2018, Measles by 2020 and Tuberculosis by 2025 is also targeted • Health sub centres, numbering 1.5 lakh, willl be transformed into health wellness centres. 
  12. 12. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com POOR AND THE UNDERPRIVILEGED To create additional 5,000 Post Graduate seats per annum to ensure adequate availability of specialist doctors to strengthen Secondary and Tertiary levels of health care. Two new All India Institutes of Medical Sciences to be set up in Jharkhand and Gujarat Propose to amend the Drugs and Cosmetics Rules to ensure availability of drugs at reasonable prices and promote use of generic medicines The allocation for Scheduled Castes has been increased by 35% compared To 2016-17. The allocation for Scheduled Tribes has been increased to 31,920 crores and for Minority Affairs to ` 4,195 crores For senior citizens, Aadhar based Smart Cards containing their health details will be introduced
  13. 13. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com INFRASTRUCTURE • In the road sector, Budget allocation for highways increased from 57,976 crores in 2016-17 to ` 64,900 crores in 2017-18 • 2,000 kms of coastal connectivity roads have been identified for construction and development • By the end of 2017-18, high speed broadband connectivity on optical fibre will be available in more than 1,50,000 gram panchayats, under • BharatNet. A DigiGaon initiative will be launched to provide • tele-medicine, education and skills through digital technology • For creating an eco-system to make India a global hub for electronics • manufacturing a provision of `745 crores in 2017-18 in incentive • schemes like M-SIPS and EDF. • A new and restructured Central scheme with a focus on export • infrastructure, namely, Trade Infrastructure for Export Scheme (TIES) will • be launched in 2017-18
  14. 14. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Financial sector • FDI policy reforms - more than 90% of FDI inflows are now automated. • Bill on resolution of financial firms will be introduced in this session of Parliament. • Foreign Investment Promotion Board will be abolished. • Revised mechanism to ensure time-bound listing of CPSEs. • Computer emergency response team for financial sector will be formed. • Pradhan Mantri Mudra Yojana lending target fixed at Rs 2.44 lakh crore for 2017-18. • Digital India - BHIM app will unleash mobile phone revolution. The government will introduce two schemes to promote BHIM App - referral bonus for the users and cash back for the traders. • Negotiable Instruments Act might be amended. • DBT to LPG consumers , Chandigarh is kerosene-free, 84 government schemes are on the DBT platform. • Head post office as the central office for rendering passport service. • Easy online booking system for Army and other defence personnel.
  15. 15. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com • PUBLIC SERVICE The Government e-market place which is now functional for procurement of goods and services. • To utilise the Head Post Offices as front offices for rendering passport services. • To rationalise the number of tribunals and merge tribunals wherever appropriate. • Commemorate both Champaran and Khordha revolts appropriately. • Energy sector • A strategic policy for crude reserves will be set up. • Rs. 1.26,000 crore received as energy production based investments. • Trade infra export scheme will be launched 2017-18.
  16. 16. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Funding of political parties The maximum amount of cash donation for a political party will be Rs. 2,000 from any one source. Political parties will be entitled to receive donations by cheque or digital mode from donors. An amendment is being proposed to the RBI Act to enable issuance of electoral bonds .A donor can purchase these bonds from banks or post offices through cheque or digital transactions. They can be redeemed only by registered political parties. Defence sector The defence sector gets an allocation of Rs. 2.74,114 crore.
  17. 17. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Tax Proposals • India’s tax to GDP ratio is not favourable. • Out of 13.14 Lakh registered companies, only 5.97 Lakh firms have filed returns for 2016-17. • Proportion of direct tax to indirect tax is not optimal. • Individuals numbering 1.95 crore showed an income between Rs. 2.5 Lakh to Rs. 5 Lakh. • Out of 76 lakh individual assesses declaring income more than Rs. 5 Lakh, 56 Lakh are salaried. • Only 1.72 lakh people showed income of more than Rs. 50 lakh a year. • Between November 8 to December 30, deposits ranging from Rs. 2 Lakh and Rs. 80 Lakh were made in 1.09 crore accounts. • The limit of cash donation by charitable trusts is reduced to Rs 2,000 from Rs 10,000. • Net revenue loss in direct tax could be Rs. 20,000 crore.
  18. 18. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com .Existing rate of tax for individuals between Rs. 2.5- Rs 5 lakh is reduced to 5% from 10%. All other categories of tax payers in subsequent will get a benefit of Rs 12,500. Simple one page return for people with an annual income of Rs. 5 lakh other than business income. People filing I-T returns for the first time will not come under any government scrutiny. Ten % surcharge on individual income above Rs. 50 lakh and up to Rs 1 crore 15 surcharge on individual income above Rs. 1 crore Personal income tax
  19. 19. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Fiscal Situation • Total expenditure is Rs. 21, 47,000 crore. • Plan, non-plan expenditure to be abolished; focus will be on capital expenditure, which will be 25.4 %. • Rs. 3,000 crore under the Department of Economic Affairs for implementing the Budget announcements. • Expenditure for science and technology is Rs. 37,435 crore. • Total resources transferred to States and Union Territories is Rs 4.11 lakh crore. • Recommended 3% fiscal deficit for three years with a deviation of 0.5% of the GDP. • Revenue deficit is 1.9 % • Fiscal deficit of 2017-18 pegged at 3.2% of the GDP. Will remain committed to achieving 3% in the next year

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