The document provides an overview of the key aspects of the Indian Union Budget for 2017-18 that was presented on February 1, 2017. Some of the major points covered include: - The budget size was ₹21.47 lakh crore with a focus on transforming governance, energizing various sections of society, and eliminating corruption. - Key reforms included merging the Railway and Union budgets and removing the distinction between plan and non-plan expenditure. - The fiscal deficit target was set at 3.2% of GDP for 2017-18, down from 3.5% in the previous budget estimates. - Expenditure priorities included agriculture, rural development, infrastructure, education, healthcare

2.  Budget is statement of the estimates of the receipts nd
expenditure during the period of a financial year.
 The govt. budget is basically an annual exercise relating
to revenue nd expenditure policy of the govt. By
managing the various components of budgetary
components of budgetary revenue nd expenditure, the
govt. tries to achieve economic stability along with faster
rate of GDP.

3.  According to Tayler, “Budget is a financial plan of govt.
for a definite period”.
 According to Rene Stourm, “A budget is a document
containing a preliminary approved plan of public revenues
nd expenditure”.

4. Components of budget refers to structure of the budget

5.  Revenue Budget: It deals with the revenue aspect of the government budget. It
explains how revenue is generated or collected by the government and how it is
allocated among various expenditure heads. Revenue budget has two parts:
i. Revenue Receipts
ii. Revenue Expenditures
 Capital Budget: it deals with the capital aspect of the government budget and it
consists of:
i. Capital Receipts
ii. Capital Expenditures

6. Budget Receipts refer to the estimated money receipts of the government from all
sources during a given fiscal year. Budget receipts may be further classified as:
i. Revenue Receipts
ii. Capital Receipts
Other Receipts
Recovery Of
Loans

7. Revenue receipts refer to those receipts which neither create any liability
nor cause any reduction in the assets of the government. They are regular
and recurring in nature and government receives them in its normal
course of activities.
A receipts Is revenue receipt, if it satisfies the following two essential
conditions:
 The receipts must not create a liability for the government.
 The receipts must not cause decrease in the assets.

8. Capital receipts refer to those receipts which either create a liability or
cause a reduction in the assets of the government. They are non-recurring
and non-routine in nature. A receipt is a capital receipt if it satisfies any
one of the two conditions:
 The receipt must create a liability for the government
 The receipts must cause a decrease in the assets

9. Budget expenditure refers to the estimated expenditure of
the government during a given fiscal year. The budget
expenditure can be broadly categorised as:
 Revenue Expenditure
 Capital Expenditure

10. Revenue Expenditure refers to the expenditure which neither creates any
asset nor causes any reduction in any liability of the government. It is
recurring in nature.
 It is incurred on normal functioning of the government.
 Examples: Payment of salaries, pensions, interests, etc.
An expenditure is a revenue expenditure, if it satisfies the following two
essential condition:
a) The expenditure must not create an asset of the government.
b) The expenditure must not cause decrease in an liability.

11. Capital expenditure refers to the expenditure which either creates an asset or
causes a reduction in the liabilities of the government. It is non-recurring in
nature.
 It adds to capital stock of the economy and increases its productivity through
expenditure on long period development programmes.
 Examples: Loan to states and Union Territories, etc.
An expenditure is a capital expenditure, if it satisfies any one of the following two
conditions:
1. The expenditure must create an asset for the government.
2. The expenditure must cause a decrease in the liabilities.

12. There are three types of budgets:
o BalancedBudget:Government budget is said to be balanced budget if
estimated government receipts are equal to the estimated government
expenditure.
o SurplusBudget: If estimated government receipts are more than the estimated
government expenditure, then the budget is termed as “Surplus Budget”.
o DeficitBudget: If estimated government receipts are less than the estimated
government expenditure, then the budget is termed as “Deficit Budget”.

13. Budgetary deficit is defined as the excess of total estimated over total estimated
revenue. When the government spends more than it collects, then it incurs a
budgetary deficit. With reference to budget of Indian government, budgetary
deficit can be of 3 types:
1) Revenue Deficit
2) Fiscal Deficit
3) Primary Deficit

14. Revenue Deficit is concerned with the revenue expenditures and receipts of the
government. It refers to excess of revenue expenditure over revenue receipts
during the given fiscal year.
Revenue Deficit = Revenue Expenditure – Revenue Receipts
It signifies that government’s own revenue is insufficient to meet the expenditures
on normal functioning of government departments and provisions for various
services.

15. Fiscal deficit presents a more comprehensive view of budgetary imbalances.
Fiscal Deficit refers to the excess of total expenditure over total receipts
(excluding borrowings) during the given fiscal year.
Fiscal Deficit= Total Expenditure – Total Receipts excluding
borrowings
Sources Of Financial Fiscal Deficit:
Government has to look out for different options to finance the fiscal deficit. The
main two sources are:
 Borrowings: Fiscal Deficit can be met by borrowings from the internal sources or
external sources.
 Deficit Financing: Government may borrow from RBI against its securities to
meet the fiscal deficit. RBI issues new currency for this purpose. This process is
known as deficit financing.

16. Primary deficit refers to difference between fiscal deficit of the current year and
interest payments on the previous borrowings.
Primary Deficit = Fiscal Deficit – Interest Payments
Implications Of Primary Deficit:
It indicates, how much of the government borrowings are going to meet expenses
other than the interest payments. The difference between fiscal deficit and
primary deficit shows the amount of interest payments on the borrowings made
in past. So, a low or zero primarydeficit indicates that interest commitmentshave
forced the government to borrow.

17. 17
India Budget Impact
2017-18 01 February, 2016
INDIA UNION BUDGET
2017-18
01 FEBRUARY 2017

19.  Union budget was presented before Parliament By Hon’ble Finance
Minister Arun Jaitely on 1st Feb, 2017
 The Budget size was 21.47 Lakh Crore
 3 Major Reforms in Budget were
◦ Budget Advance to 1st Feb.
◦ Merger of Rail And Union Budget
◦ Removal of Plan and Non-Plan classification of expenditure
 The Agenda was “Transform, Energize and Clean India (TCE).”
◦ Transformthe Quality of Governance and Life of People
◦ Energize Various Section of Society and
◦ Clean Country from Evil of Corruption, Black Money and Non-transparent
Political Funding.

20.  CPI based Inflation brought under control from 6% in July 2016 to 3.4%
December 2016
 CAD decline from 1% to 0.3%of GDP in first half of 2016-17
 FDI grew 36% in H1 of 2016-17 despite 5% reduction in Global FDI
Inflows
 Foreign Reserve reached to $361 Billion level
 The Indian Economy has been Robust to Mild Shocks
 IMF and World Bank has forecasted Good Growth In Indian GDP

21. 3.90%
5.60%
6.60%
7.20%
7.60%
7.10%
6.75%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
2008-09 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
GDP Growth Rate

22. Particulars Actual 15-16 Budget Estimate 16-17 Budget Estimate 17-18
Receipts
Revenue 1257992 1444156 1600203
Total Receipts 1257992 1444156 1600203
Expenditure
Capital 253022 247032 309801
Revenue 1537761 1731037 1836934
Total Expenditure 1790783 1978069 2146735
Fiscal Deficit 532791 533904 546332
Fiscal Deficit (% of
GDP)
3.90% 3.50% 3.20%
Rs. In Crore

23. 2017-18
Tax Revenue- 87.66%
Non- Tax Revenue- 12.34%
(Includes Non-Debt Capital
and Borrowings) 19.75%
23.45%
11.11%
17.28%
12.34%
12.34%
3.73%
2017-18
Income Tax
Corporation Tax
Customs
Union Excise Duty
Service Tax and Other Taxes
Non-Tax Revenue
Non-Debt Capital Receipt

24. Centrally Sponsered
Scheme
10%
Central Sector
Scheme
11%
Interest Payment
18%
Defense
9%
Subsidies
10%
Finance Commision
And Other Transfer
5%
States' Share of
Taxes and Duties
24%
Other Expenditure
13%
2017-18
Classification of Plan and Non-plan
Expenditure has been Abolished

25. 2010 2011 2012 2013 2014 2015 2016 2017
Fiscal deficit 4.18483 3.73591 5.16269 4.9019 5.02863 5.10817 5.32783 5.46532
As % of GDP 6.79% 4.87% 5.79% 4.85% 4.43% 4.04% 3.92% 3.20%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
As%ofGDP
Rs.inLakhCrore
Trajectory of Fiscal Deficit
Fiscal deficit As % of GDP
201
0
201
1
201
2
201
3
201
4
201
5
201
6
201
7
Gross Tax Revenue 6.2147.8928.84910.3311.3412.41 14.5 15.16
As % of GDP 10.0810.289.93%10.229.99%9.81%10.688.87%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
0
2
4
6
8
10
12
14
16
As%ofGDP
Rs.inLakhCrore
Taxation Income
Gross Tax Revenue As % of GDP
2010 2011 2012 2013 2014 2015 2016 2017
Total borrowings 4.16 3.7 4.36 4.67 4.75 4.9 4.8 3.5
4.16
3.7
4.36
4.67 4.75 4.9 4.8
3.5
0
1
2
3
4
5
6
Rs.inLakhCrore
Government Borrowing
Total borrowings

26.  10 Focused Areas of Budget
◦ Farmers:- Committed to Double the income in 5 years
 Record 10 Lakh Crore target for Agri Credit
 60 days Interest Waiver
 Computerisation and Integration of all 63000 Agri. Credit Society with core
banking System
◦ Rural Population:- Providing Employment & Basic Infrastructure.
 Aims to Bring 1 Cr Household out of Poverty by 2019
 MNREGA allocation to highest ever 48000 Cr in 17-18
 100% Village Electrification by 1st May, 2018
 Total Allocation for Rural, Agriculture and Allied Sector Rs. 187223 Cr.

27. ◦ Youth:- Energizing the through Education, Skill and Job
 To Introduce a System of Measure Annual Learning Outcome in our Schools
 SWAYAM Platform, Leveraging IT to be launched with at least 350 Online Courses.
◦ ThePoor and TheUnderprivileged:-Strengthening the System of Social Security, Health
Care, and Affordable Housing
 National Housing Bank will Refinance Individual Housing Loans about 20000 Cr in
17-18
 To Create additional 5000 Post Graduate seats per annum to ensure adequate
availability of specialist Doctors
 Two New AIMS to be set up in Jharkhand and Gujrat.
 Allocation for Scheduled Tribes has been increased to 31920 Cr
 For Senior Citizen, Aadhar Based Smart Card containing their Health details will be
Introduced

28. ◦ Infrastructure:- For Efficiency, Productivity and Quality of Life
 For Transportation Sector including Rail, Roads, Shipping provision of
241387 Cr has been made
 Total Capital and Development Expenditure of Railways has been pegged
131000 Cr
 By 2019 all Coaches of Railways will have Bio-Toilets
 Road Sector Allocation is increased to 64900 Cr
 Select Airport in Tier 2 cities will be Taken up for Operation
 Second Phase of Solar Park Development to be taken up for Additional
20000 MW Capacity

29. ◦ Financial Sector:- Growth & Stability by Stronger Institutions
 FIPB to be Abolished and Liberalisation of FDI Policy
 Lending target under Pradhan Mantri Mudra Yojana to be 2.44 Lakh Cr
◦ Digital Economy:- For Speed, Accountability and Transparency
 Aadhar Pay, A merchant version of Aadhar Enabled Payment System will be
launched
◦ PublicServices:- Effective Governance and Efficient Service delivery through
People’s Participation
 To Utilise the Head Post Offices as Front Offices for Rendering Passport
Services
 The Government e-market place which is functional for Procurement of
Goods And Services

30. ◦ Prudent Fiscal Management:- To Ensure Optimal Deployment of
Resources and Preserve Fiscal Stability
 Steeped up Allocation of Capital Expenditure by 25.4% over the
Previous Year
 Total Resources being transferred to States’ and Union Territories
is Rs. 4.11 Lakh Cr against 3.60 Lakh Cr in Last Year
 Fiscal Deficit is targeted 3.2% of GDP in Current Year and 3% of
GDP in Next Year
◦ Tax Administration:- Honoring The Honest

31.  India has Low Tax-to-GDP Ratio
 Rate of growth of Advance tax in Personal I-T is 34.8% in last three quarters of
this financial year
 Holding period for long term capital gain lowered to 2 years
 Small And Medium Enterprises having turnover upto 50 Crore will be Taxed
@25%
 Limit of cash donation by charitable trust reduced to Rs 2,000 from Rs 10,000
 Tax rate For 2.5 Lakh to 5 Lakh will be 5% instead of 10%
 All other categories of tax payers in subsequent brackets will get benefit of Rs
12,500
 People filing I-T returns for the first time will not come under govt. scrutiny
 10% surcharge on individual Income above Rs. 50 lakh
 15% Surcharge on Individual Income Above Rs. 1 Cr

32.  Promoting Digital Economy
◦ No transaction above Rs 3 lakh to be permitted in cash
 Ease of Doing Business
◦ Threshold limit for Audit of Business who opted for Presumptive income scheme is
increased from 1 Cr to 2 Cr
◦ Threshold for maintenance of Books for Individuals and HUFs is Increased from turnover
of 10 lakhs to 25 lakhs or income from 1.2 Lakhs to 2.5 Lakhs
 Transparency in Electoral Funding
◦ Maximum Amount of Cash Donation can be received by Political Party if Ceased to Rs.
2000
◦ Every Political Party would have to file a Return within Prescribed time
 Goods and Service Tax
◦ The Extensive reach out efforts to trade and industry for GST will Start from 1st April 2017
to make them Aware of the taxation System

33. TOPIC PDF EXCEL
Budget at a Glance
Debt and Deficit Statistics
Transfer of Recourses to States and Union
Territories with Legislature
Budget Profile
Receipts
Expenditure
Outlay on Major Schemes
bag1.xlsx
bag2.xlsx
bag3.xlsx
bag5.xlsx
bag6.xlsx

34. Prepared by: MOHD INTESHAB