This slide deck includes the highlights of the recent Union Budget of India for the financial year 2017-18 announced by Mr Arun Jaitley (Finance Minister) on 2nd Feb 2017.

1. UNION BUDGET
HIGHLIGHTS
2017-2018 2nd February ‘17

2. OPENING REMARKS
• Govt has continued with steady path of
fiscal consolidation: FM
• There are two tectonic policy initiatives:
GST implementation and
demonetization
• Surplus liquidity in banking system will
raise access to credit, leading to
multiplier effect on economic activity
• Budget contains 3 major reforms:
advancement of date of presentation,
merger of railway budget with general
budget, abolition of Plan and non-Plan
expenditure

3. DEMONITIZATION
• An epoch making decision
• A bold and decisive result of
measures taken in last two years
• The effects of demonetization will
not spillover to the next fiscal.
• Will shave of 0.5% off GDP.
• The surplus cash with banks will
boost liquidity and benefit all.

4. AGRICULTURAL

5. • Farmer credit fixed at record
level of Rs10 trillion; will ensure
adequate flow to underserved
areas.
• A sum of Rs. 10 lakh crore is
allocated as credit to farmers,
with 60 days interest waiver.
• Long-term irrigation fund in
Nabard—corpus at Rs40,000
crore.
• Dairy processing infrastructure
fund will be initially created
with a corpus of Rs. 2000
crore.
AGRICULTURAL

6. • Soil health cards: Govt to 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.
• Irrigation corpus increased from
Rs 20,000 crore to Rs 40,000
crore.
• A model law on contract
farming will be prepared and
shared with the States.
AGRICULTURAL

7. RURAL

8. • Mission Antyodaya to bring 1
crore households out of poverty
by 2019
• During 2017-18, five lakh farm
ponds will be taken up under the
MGNREGA.
• MGNREGA: Rs48,000 crore has
been allocated
• Will take steps to ensure
participation of women in
MGNREGA up to 55%.
RURAL

9. • 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.
RURAL

10. YOUTH

11. • Education: System of measuring
annual learning outcomes,
emphasis on science
• Innovation fund for secondary
education
• Reforms in UGC: Colleges to be
identified based on ranking and
given more autonomy
• Propose to leverage information
technology with launch of
SWAYAM platform for virtual
learning
YOUTH

12. • National testing agency to be
established for all entrance exams,
freeing up CBSE, AICTE and other
bodies.
• 100 Indian international skill
centres to be established with
courses in foreign languages
• Rs4,000 crore allocated to launch
skill acquisition and knowledge
awareness
• Special scheme for creating
employment in leather/footwear
sector
• Tourism: Five special zones to be
set up
YOUTH

13. POOR &
UNDERPRIVILEDGED

14. • Women: Mahila Shakti Kendras
with Rs 500 crore corpus
• Stepped up allocation to
Rs1.84 trillion for various
schemes for women and
children
• Affordable housing to be given
infrastructure status
• Action plan to eliminate leprosy
by 2018, TB by 2025, reduce
IMR to 29 in 2019
P&U

15. • To create additional PG medical
seats per annum
• Two new AIIMS in Jharkhand and
Gujarat
• Labour rights: Legislative reforms
to simplify and amalgamate
existing labour laws
• Allocation to SCs increased to
Rs52,393 crore; STs given
Rs31,920 crore, minority affairs
allocated Rs4,195 crore
• Senior citizens: Aadhaar-based
smart cards with health details to
be provided
P&U

16. INFRA
STRUCTURE

17. • Total capex and development
expenditure of railways pegged at
Rs1.31 trillion
• Railways: Passenger safety—Safety
fund corpus set up; unmanned level
crossings to be eliminated by 2020
• Railway lines of 3,500km to be
commissioned
• To launch dedicated
tourism/pilgrimage trains
• 500 stations to be made differently-
abled friendly
• Cleanliness in railways: To
introduce Coach Mitra facility; By
2019, biotoilets for all coaches
INFRA

18. • Railways to offer competitive ticket-
booking facility; service charge
withdrawn for tickets booked on IRCTC
• New metro rail policy to be announced
• Roads sector: Allocation for national
highways at Rs 64,000 crore
• Airports Authority of India Act to be
amended to enable monetization of
land resources
• Total allocation to transport sector at
Rs 2 trillion
• Telecom sector: Allocation to Bharat
Net programme at Rs 10,000 crore
INFRA

20. • FDI policy reforms - more than 90% of
FDI inflows are now automated.
• Shares of Railway PSE like IRCTC will
be listed on stock exchanges.
• 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.
FINANCE

21. • 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.
• For big-time offences - including
economic offenders fleeing India, the
government will introduce legislative
change or introduce law to confiscate
the assets of these people within the
country.
FINANCE

22. • Cyber-security: Computer emergency
response team to be set up
• Listing of PSEs will foster public
accountability; revised mechanism for
time-bound listing
• To create integrated public sector oil
major
• New Exchange Traded Fund to be
launched
• Pradhan Mantri Mudra Yojana:
Lending target at Rs2.44 trillion
• Stand-up India scheme: over 16,000
new enterprises have been set up
FINANCE

23. DIGITAL
ECONOMY

24. • Govt to launch two new schemes
to promote BHIM app, including
cashback scheme for merchants
and referral bonus scheme for
users
• Aadhaar Pay to be launched for
people who don’t have mobile
phones
• Panel on digital payments has
recommended structural reforms to
streamline process
• To create payment regulatory
board at RBI for better regulations
DIGITAL

25. • Aadhaar-card based smart cards
proposed for the older citizens in
regards to Healthcare and other
benefits
• Products promoting the digital
economy such as micro ATMS,
fingerprint scanner, PoS card
reader for mPOS and their parts
have been exempted from the
excise duty
• R&D Cess Act: imported
technology will cost less as the
non- creditable R&D cess is
replaced by creditable service tax
DIGITAL

26. • To use head post-office for passport
services
• Defence: centralized defence travel
system developed
• Defence: Centralized pension
distribution system to be established
• Govt recruitment: To introduce two-
tier exam system
• Govt looks to introduce laws to
confiscate assets of economic
defaulters
• High-level panel chaired by PM to
commemorate Mahatma Gandhi’s
150th birth anniversary
PUBLIC SERVICES

27. • 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.

28. • 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.
FISCAL

29. • 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.
FUNDING IN
POLITICS

30. • 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.
• Allocation for integrated power
development scheme also increased.
• An additional 20,000 megawatt to be
added in the second phase of solar
park development scheme.
• Taxes on parts, machinery used to
manufacture solar power project
components reduced.
ENERGY
SECTOR

31. • The income tax on smaller companies
with an annual turnover of up to Rs 50
crore has been reduced to 25 percent
• The profit-linked deductions has been
changed to three years out of seven
years
• Double the lending target of banks
under the MUDRA Yojna to Rs 2.44
lakh crore
• Ease of Foreign Investment by plans to
abolish FIPB
• Carry forward of Minimum Alternate
Tax (MAT) up to 15 years instead of
10.
STARTUPs
& MSMEs

33. • Direct tax collection not
commensurate with
income/expenditure pattern of
India
• We are largely a tax non-
compliant society; predominance
of cash in society enables tax
evasion
• After demonetization, data
received will increase tax net
• Black money: No cash transactions
above Rs3 lakh
• Transparency in political funding:
Parties continue to receive
anonymous donations; propose
system of cleaning up
TAXATION

34. • 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
• Personal income tax: To have simple
one-page form for taxable income up
to Rs5 lakh
• GST: preparedness of IT system on
schedule
• Not many changes to excise duties
since GST will be implemented soon
• FPI category 1 and 2 investors
exempted from indirect transfer
provisions
TAXATION

35. • Time period of revising tax returns
reduced to 12 months
• Real estate: to make changes in capital
gains tax
• Concessional withholding rate will be
extended to 30 June 2020, rupee-
denominated masala bonds to be
included
• MAT not to be abolished at present; to
allow carry-forward for 15 years
• Corporate tax rate: MSMEs’ rate
(annual turnover less than Rs50crore)
reduced to 25%
• LNG: Reduce customs duty to 2.5%
• Limit of cash donation for charitable
trusts cut to Rs2,000.
TAXATION

36. INCOME (Rupees) TAX (%)
Individual tax payers
Up to 2,50,000 No tax
2,50,001 - 5,00,000 0.05
5,00,001 – 10,00,000 0.2
More than 10,00,000 0.3
Senior citizens who are 60 years old and above but less than 80 years
Up to 3,00,000 No tax
3,00,001 - 5,00,000 0.05
5,00,001 - 10,00,000 0.2
More than 10,00,000 0.3
Senior citizens who are 80 years and above
Upto 5,00,000 No tax
5,00,001 - 10,00,000 0.2
More than 10,00,000 0.3
PERSONAL
TAX SLAB

38. Arun Jaitley
(Finance Minister of India)