2. âBudget Highlights In Various Sectorsâ
â˘Divided his budget proposal into 10 distinct themes: Farmers; rural
population; energizing youth; poor and underprivileged; infrastructure;
financial sector; digital economy; public service; prudent fiscal
management; and tax administration.
OPENING REMARKS:
â˘Massive war against black money has been launched
â˘We will focus on energizing youth to reap benefits of growth
â˘World economy faces considerable uncertainty: FM
â˘Three major challenges for emerging economies: US Federal Reserveâs
stance, uncertainty over commodity prices, especially crude prices and
signs of increasing retreat from globalization as protectionist fears build
up
3. â˘India stands out as a bright spot
2/1/2017â˘Govt has continued with steady path of fiscal consolidation:
FM
â˘We are seen as an engine of global growth: FM
⢠There are two tectonic policy initiatives: GST implementation and
demonetization
â˘Demonetization was the continuation of series of measures taken in
last two years and was a bold and decisive measure
â˘Demonetization seeks to create a new normal where GDP would be
cleaner and bigger
â˘Drop in economic activity due to remonetization is expected to have
only a transient effect
â˘Demonetization has strong potential to generate long-term benefits
4. â˘Demonetization helps to transfer resources from tax evaders to govt
â˘Firmly believe demonetization and GST will have epoch-making impact
â˘Pace of remonetization will soon reach comfortable levels; effect of
demonetization not expected to spill over into next year
â˘Surplus liquidity in banking system will raise access to credit, leading
to multiplier effect on economic activity: FM
â˘Overall approach in budget to spend more in rural areas
â˘Budget 2017-18 contains 3 major reforms: advancement of date of
presentation, merger of railway budget with general budget, abolition
of Plan and non-Plan expenditure
5. FARMERS:
â˘Farmer credit fixed at record level of Rs10 trillion; will ensure
adequate flow to underserved areas
â˘Soil health cards: Govt to set up mini-labs in Krishi Vigyan Kendras
â˘Long-term irrigation fund in Nabardâcorpus at Rs40,000 crore
â˘Model law on contract farming to be circulated
â˘Dairy processing infra fund with corpus of Rs8,000 crore
â˘Dedicated micro-irrigation fund with Rs5,000 crore corpus
RURAL POPULATION:
â˘Mission Antyodaya to bring 1 crore households of poverty
â˘MGNREGA: Rs48,000 crore has been allocated; participation of
6. women now at 55%; using space technology in a big way
â˘Prime Minister Gram Sadak Yojana: Rs19,000 crore allocated; along
with states, Rs27,000 crore will be spent in FY18
â˘Pradhan Mantri Awas Yojana: Rs23,000 crore allocated
â˘100% village electrification by May 2018
â˘Rural livelihood mission: Rs4,500 crore allocated
â˘Mason training to be provided for 5 lakh people
â˘Panchayat Raj: Human resource reform programme to be launched
â˘Rs1,87,223 crore allocated for rural programmes
YOUTH:
â˘Education: System of measuring annual learning outcomes, emphasis
7. on science
â˘Innovation fund for secondary education
â˘Reforms in UGC: Colleges to be identified based on ranking and given
more autonomy
â˘Propose to leverage information technology with launch of SWAYAM
platform for virtual learning
â˘National testing agency to be established for all entrance exams,
freeing up CBSE, AICTE and other bodies
â˘100 Indian international skill centres to be established with courses in
foreign languages
â˘Rs4,000 crore allocated to launch skill acquisition and knowledge
awareness
â˘Special scheme for creating employment in leather/footwear sector
8. â˘Tourism: Five special zones to be set up
Budget 2017: Jaitley reduces income tax rates for individuals,
companies
POOR AND UNPRIVILEGED:
â˘Women: Mahila Shakti Kendras with Rs500 crore corpus
â˘Stepped up allocation to Rs1.84 trillion for various schemes for
women and children
â˘Affordable housing to be given infrastructure status
â˘Action plan to eliminate leprosy by 2018, TB by 2025, reduce IMR to
29 in 2019
â˘To create additional PG medical seats per annum
â˘Two new AIIMS in Jharkhand and Gujarat
9. â˘New rules to be introduced for medical devices
â˘Labour rights: Legislative reforms to simplify and amalgamate existing
labour laws
â˘Allocation to SCs increased to Rs52,393 crore; STs given Rs31,920
crore, minority affairs allocated Rs4,195 crore
â˘Senior citizens: Aadhaar-based smart cards with health details to be
provided
INFRASTRUCTURE:
â˘Total capex and development expenditure of railways pegged at
Rs1.31 trillion
â˘Railways: Passenger safetyâSafety fund corpus set up; unmanned
level crossings to be eliminated by 2020
â˘Railway lines of 3,500km to be commissioned
10. â˘To launch dedicated tourism/pilgrimage trains
â˘500 stations to be made differently-abled friendly
â˘Cleanliness in railways: To introduce Coach Mitra facility; By 2019,
biotoilets for all coaches
â˘Railways to offer competitive ticket-booking facility; service charge
withdrawn for tickets booked on IRCTC
â˘New metro rail policy to be announced
â˘Roads sector: Allocation for national highways at Rs64,000 crore
â˘Airports Authority of India Act to be amended to enable monetization
of land resources
â˘Total allocation to transport sector at Rs2 trillion
â˘Telecom sector: Allocation to Bharat Net programme at Rs10,000
crore
11. â˘Digi-gau initiative to be launched
â˘To make India global hub for electronics manufacture
â˘Export infra: New restructured central scheme to be launched
â˘Total allocation for infrastructure: Rs3.96 trillion
FINANCIAL SECTOR:
â˘Foreign Investment Promotion Board (FIPB) to be abolished
â˘Commodities market: panel to study legal framework for spot and
derivative markets
â˘Resolution mechanism for financial firms
â˘Cyber-security: Computer emergency response team to be set up
12. ⢠Listing of PSEs will foster public accountability; revised mechanism for
time-bound listing
â˘To create integrated public sector oil major
â˘New ETF to be launched
â˘Pradhan Mantri Mudra Yojana: Lending target at Rs2.44 trillion
â˘Stand-up India scheme: over 16,000 new enterprises have been set up
DIGITAL ECONOMY:
â˘India at cusp of massive digital revolution
â˘Govt to launch two new schemes to promote BHIM app, including
cashback scheme for merchants
â˘Aadhaar Pay to be launched for people who donât have mobile phones
13. â˘Focus on rural and semi-urban areas
â˘To strengthen financial inclusion fund
â˘Panel on digital payments has recommended structural reforms
â˘To create payment regulatory board at RBI
PUBLIC SERVICES:
â˘To use head post-office for passport services
â˘Defence: centralized defence travel system developed
â˘Defence: Centralized pension distribution system to be established
â˘Govt recruitment: To introduce two-tier exam system
â˘Govt looks to introduce laws to confiscate assets of economic
defaulters
14. â˘High-level panel chaired by PM to commemorate Mahatma Gandhiâs
150th birth anniversary
FISCAL MANAGEMENT:
â˘Total budget expenditure: Rs21 trillion
â˘Rs3,000 crore to implement various budget announcements
â˘Defence expenditure excluding pensions: Rs2.74 trillion
â˘Consolidated outcome budget for all ministries being created
â˘Fiscal deficit for FY18 pegged at 3.2% of GDP
â˘Revenue deficit for FY18 at 1.9%
TAX ADMINISTRATION:
15. â˘Direct tax collection not commensurate with income/expenditure
pattern of India
â˘We are largely a tax non-compliant society; predominance of cash in
society enables tax evasion
â˘After demonetization, data received will increase tax net
â˘Black money: No cash transactions above Rs3 lakh
â˘Transparency in political funding: Parties continue to receive
anonymous donations; propose system of cleaning up
â˘Political funding: Maximum amount of cash donation that can be
received is Rs2,000; political parties can receive donations by cheques
or digitally; amendment proposed to RBI Act to issue electoral bonds;
every party has to file returns within specified time
â˘Personal income tax: Rate reduced to 5% for income bracket of Rs2.5-
5 lakh; All other categories to get uniform benefit of Rs12,500 per
person; to levy surcharge on income bracket Rs50 lakh-Rs1 crore
16. â˘Personal income tax: To have simple one-page form for taxable
income up to Rs5 lakh
â˘GST: preparedness of IT system on schedule
â˘Not many changes to excise duties since GST will be implemented
soon
â˘FPI category 1 and 2 investors exempted from indirect transfer
provisions
â˘Time period of revising tax returns reduced to 12 months
â˘Real estate: to make changes in capital gains tax
â˘Concessional withholding rate will be extended to 30 June 2020,
rupee-denominated masala bonds to be included
â˘MAT not to be abolished at present; to allow carry-forward for 15
years
17. â˘Corporate tax rate: MSMEsâ rate (annual turnover less than Rs50crore)
reduced to 25%
â˘LNG: Reduce customs duty to 2.5%
â˘Limit of cash donation for charitable trusts cut to Rs2,000