The budget document discusses the key highlights and themes of India's 2017-2018 budget. It allocates a total budget of ₹21.47 lakh crores distributed across 10 themes: agriculture, rural population, youth, healthcare for the poor, infrastructure, financial sector, digital economy, public services, fiscal management, and tax administration. Key areas that received funding include agriculture, rural development, healthcare, education, infrastructure, railways, and defense. The budget also outlined tax proposals including reductions in personal income tax rates and the capital gains holding period.

1. Presented by
Ajayaraj,R.
S3 MBA
SNIT, door
BUDGET
ANALYSIS-2K’17

3. Total Budget
Total Budget of ₹ 21.47 Lakhs crores for 2017-2018 Distributed in following terms
 Agriculture
 Rural Population
 Youth
 The Poor and the Underprivileged
 Railway
 Infrastructure
 Financial Sector
 Digital Economy
 Public Service
 Prudent Fiscal Management
 Tax Administration

4. The Budget broadly focused on 10 themes
The 2017 Union Budget, presented by Finance Minister Arun Jaitley on Wednesday, was
broadly focused on 10 themes
1. The agricultural sector
2. The rural population
3. The youth
4. The poor and underprivileged health care
5. Infrastructure
6. The financial sector for stronger institutions
7. Speedy accountability
8. Public services
9. Prudent fiscal management
10. Tax administration for the honest

5. Key highlights
Finance minister Arun Jaitley unveiled sweeping measures in his budget speech on Wedne
sday that ranged from boosting farm growth to easing the burden on the salaried middle class.
Here are the big 10 numbers from his speech:
 5%: Income tax for people with incomes between 2.5 lakh -5 lakh, down from 10%
 Rs 2,000: Maximum donation political parties can receive in cash from one source
 35%: Increase in personal income tax because of scrapping of Rs 500 and Rs 1000 notes
 25%: Tax rate for companies with an annual turnover up to 50 crore
 Rs 3 lakh: Maximum quantum of cash transaction allowed
 17%: Growth in tax revenue
 3.2%: Fiscal deficit as a percentage of India’s GDP
 24%: Increase in rural spending
 35%: Increase in funds allocation for scheduled castes
 6%: Increase in defence spending

6. Following are the highlights of Mr. Jaitley's Budget speech:
Following are the highlights of Mr. Jaitley's Budget speech:
 Demonetization
 Agriculture sector
 Rural population
 For youth
 For the poor and underprivileged health care
 Infrastructure and railways
 Energy sector
 Financial sector
 Fiscal situation
 Funding of political parties
 Defense sector
 Tax proposals
 Personal income tax

7. Demonetization
Demonetization is expected to have a transient impact on the economy.
It will have a great impact on the economy and lives of people .
Demonetization is a bold and decisive measure that will lead to higher GDP growth.
The effects of demonetization will not spillover to the next fiscal.

8. COSTLIER
Cigarettes, pan masala, cigar, cheroots, bidis, chewing
tobacco
LED lamp components
Cashew nuts (roasted and salted)
Aluminum ores and concentrates
Polymer coated MS tapes used in manufacturing of
optical fibers
Silver coins and medallions
Printed circuit board used in making mobile phones
CHEAPER
Booking railway tickets online
RO membrane elements for household usage
LNG
Solar tempered glass used in solar panels
Fuel cell-based power generating systems
Wind operated energy generator
Vegetable tanning extracts used in making leather product
Point of Sale (PoS) machines card and fingerprint readers
Group insurance for Defense services

9. Agriculture sector
Agriculture sector
 NABARD fund will be increased to Rs. 40,000 crore.
 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.
 Dairy processing infrastructure fund wlll be initially created with a corpus of
Rs. 2000 crore.

10. Rural population
Rural population
 The government targets to bring 1 crore households out of poverty by 2019.
 Space technology will be used in a big way to ensure MGNREGA works
 The country well on way to achieve 100% rural electrification by March 2018
 Will take steps to ensure participation of women in MGNREGA up to 55%.
 The government proposes to complete 1 crore houses for those without homes.
 Swachh Bharat mission has made tremendous progress; sanitation coverage has
gone up from 42% in Oct 13 to 60% now.

11. For youth
For youth
Will introduce a system of measuring annual learning outcomes and come out w
ith an innovation fund for secondary education.
Skill India mission was launched to maximize potential. Will set up 100 India
International centers across the country.
Will take steps to create 5000 PG seats per annum
Focus will be on 3,479 educationally-backward blocks

12. For the poor and underprivileged health care
For the poor and underprivileged health care
 Rs. 500 crore allocated for Mahila Shakthi Kendras.
 A sum of Rs. 1,84,632 crore allocated for women and children.
 Two AIIMS will be set up in Jharkhand and Gujarat
 Allocation for Scheduled Castes is Rs. 52,393 crore
 Elimination of tuberculosis by 2025 targeted

13. Infrastructure and railways
A total allocation of Rs. 39,61,354 crore has been made for infrastructure.
No service charge on tickets booked through IRCTC.
SMS-based ''clean my coach service'' is put in place.
By 2019 all trains will have bio-toilets.
Rs. 64,000 crore allocated for highways
New Metro rail policy will be announced with new modes of financing.

14. Energy sector
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.

15. Financial sector
Financial sector
 FDI policy reforms - more than 90% of FDI inflows are now automated.
 Shares of Railway PSE like IRCTC will be listed on stock exchanges.
 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.
 Foreign Investment Promotion Board will be abolished.
 Computer emergency response team for financial sector will be formed.
 Easy online booking system for Army and other defense personnel
 Head post office as the central office for rendering passport service

16. Defense sector
Defense sector
The defense sector gets an allocation of Rs. 2.74,114 crore.

17. Tax proposals
Tax proposals
 India’s tax to GDP ratio is not favorable
 Proportion of direct tax to indirect tax is not optimal
 Net tax revenue of 2013-14 was Rs. 11.38 lakh crore.
 Holding period for long term capital gain lowered to two years
 The government proposes to reduce basic customs duty for LNG to 2.5% from 5%.
 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.

19. Personal income tax
Personal income tax
 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 brackets 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.