The Union Budget 2018 document highlights that the Indian economy has grown 7.5% annually for the past 3 years. The budget sets the GDP growth target for 2018-19 at 7.4% and targets a fiscal deficit of 3.3% of GDP. It allocates increased funds to key sectors like infrastructure, agriculture, healthcare, and education. It also provides tax benefits to small businesses and senior citizens, aims to expand rural development and social programs, and allocates additional funds for initiatives like rural electrification, sanitation, and digital connectivity across India.

1. Union Budget 2018
Highlights

2. Indian Economy
 Indian economy has achieved average
growth of 7.5% in last 3 years.
 Current Indian economy is of 2500 billion
US$.
 Fiscal Deficit of 2017-18 was 3.5% of
GDP which is now targeted at 3.3% for
the coming Fiscal Year.

3. Indian Economy
 GDP for the year 2018-19 targeted at
7.4%.
 Growth rate expected at the rate of 8% to
15% in various sectors.

4. 4.8
4.5
4.1
3.9 3.8
3.5
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Fiscal Deficit
In the coming year the expected Fiscal Deficit is 3.3% of GDP.

5. Highlights of
Budget
2018

6. MSME
 Rs.3794 crores allocated for credit support to
the upcoming startups and MSME.
 Mudra Loan disbursement targeted at Rs.3 Lakh
Crore for the Financial Year 2018-19.
 MSME with the turnover up to Rs.250 crore
will have the corporate
tax slab @ 25%.

7. Agriculture
 MSP for Kharif crops to be 1.5 times cost
of production.
 Rs.10,000 crores allocated for fisheries
and aquaculture.
 Rs.1400 crores allocated for food
processing sectors.

8. Agriculture
 An agriculture – market and infrastructure
fund with a corpus of Rs.2000 crores to be
set up for developing & upgrading the
agriculture market infrastructure in 22,000
rural agriculture markets.

9. Agriculture
 100% tax deduction for 5 years for
companies registered as farmer producer
companies having a turnover of Rs.100
crore and above.
 Budget spending on agriculture and rural
livelihood programmes is Rs.2.36 trillion.

10. Infrastructure
 Highway construction targeted 9000 km
by the Fiscal Year end 2018-19.
 Rs.2.04 lakh crores fund allotment is
proposed for the development of Smart
Cities.
 Extra expenditure of Rs.5.97 lakh crores
proposed for infrastructure.

11. Infrastructure
 Capital Outlay on Road and Highways
up by 24% to 30,000 crores.
 FasTag Toll Collection

12. Health Sector
 ‘National Health Protection Scheme’
targeting 10 crore BPL Families where Rs.5
lakh insurance will be given to each family.
 Setting 24 new government medical
colleges.
 National Health Protection Scheme to offer
health insurance upto Rs. 5 lakh per family
per year.

13. Personal Income Tax & Others
 No change in personal income tax
structure.
 Government will pay 12% of wages to the
EPF contribution on behalf of new
employee in all section for the next three
years.
 EPF Act will be emendate to reduce
contribution of women from 12% to 8%.

14. Personal Income Tax & Others
 Standard Deduction of Rs.40,000 for
salaried employees. However benefit of
transport allowance of Rs 19,200 and
Medical Reimbursement of Rs.15,000
under Section 17(2) are being withdrawn.

15. Senior Citizens
 Sr. citizen income from interest: Non TDS
limit increase from Rs.10,000 to Rs.50,000.
 80-D limits for senior citizen increases.
from Rs.30,000 to Rs.50,000 (mediclaim).

16. Education & Social Security
 Rs.1.38 trillion is to be spent on health
education and social protection
programmes.
 Rs.1290 crore allocated for the National
Bamboo Mission.
 Education cess is being increased from 3%
to 4 % & to be known as Education and
Health cess.

17. Other Announcements
 Target of new Capital infusion in PSU
Banks is Rs 80,000 crore through
Bonds.
 LTCG on equity: 10% (for profit above
Rs.1 lakh)

18. Other Announcements.
 8 crore poor women will be given free gas
connections through ‘Ujjwala scheme’.
 Allocation of Rs.1000 crores for Revitalising
of Infrastructure & Systems of Education.
 Allocation of Rs.7,148 crore to textile sector.
 Help for affordable homes: 51 lakhs in a
rural & 37 lakh
in urban areas.

19. Other Announcement
 High speed internet to be allocated to
1,50,000 gram panchayats.
 Budget doubled the allocation of digital
India program to Rs.373 crore in 2019.
 20 Million New Toilets under Swachh Bharat
Mission

20. Thank you