This presentation has been prepared to give a glimpse of Union Budget 2017-18. It will come handy for management students who have Finance as one of their subjects.

2.  Fiscal Situation.
 Tax Proposals.
 Personal Income Tax.
 Healthcare.
 Education.
 Social.
 Agriculture.
 Financial Sector.
 Infrastructure & Railways.
 Energy.
 Defense.
 Demonetization.
 Funding of Political Parties.

3.  Total expenditure outlay at INR 21,47,000 crore.
 Abolition of Plan &, Non-plan expenditure. Emphasis will be on
Capital expenditure, which will be 25.4 % of the total outlay.
 Department of Economic Affairs to get an allocation of INR 3,000
crore for implementing the Budget announcements.
 Expenditure for science and technology has been raised to INR
37,435 crore.
 INR 4.11 lakh crore worth of resources transferred to States and
Union Territories.
 Fiscal deficit is recommended to be at 3% for three years with a
deviation of 0.5% of the GDP.

4.  Fiscal deficit of 2017-18 pegged at 3.2% of the GDP.
 Revenue deficit stands at1.9 %.
 India’s tax to GDP ratio is very disheartening.
 45% firms have filed returns for 2016-17.i.e., only 5.97 lakh firms
out of 13.14 lakh registered companies.
 Direct tax to indirect tax ratio is not optimum and inefficient.
 1.95 crore individuals declared an income between INR 2.5 lakh
to INR 5 lakh.

5.  76 lakh individual declared income more than INR 5 lakh of
which 56 lakh are salaried (74%).
 1.72 lakh people declared income of more than INR 50 lakh a
year, which is abysmal.
 Net tax revenue of 2013-14 was INR 11.38 lakh crore.
 Out of 76 lakh individual assessees declaring income more than
INR 5 lakh, 56 lakh are salaried.
 1.95 crore individuals showed income between INR 2.5 lakh to
INR 5 lakh.

6.  Substantial increase in rate of growth of advance tax in Personal
I-T , 34.8% in the last three quarters of FY 2016-17.
 Holding period for long term capital gain lowered to two years.
 Proposal to have a carry-forward of MAT for 15 years.
 Capital gains tax to be exempted for persons holding land from
which land was pooled for creation of the state capital of Andhra
Pradesh.
 To make MSME companies more sustainable, Proposal to reduce
the corporate tax for small companies with a turnover of up to
INR 50 crore to 25%.The benefit will accrue to approximately 67
lakh companies, which is 96% of the companies in this category.

7.  Basic Customs Duty for LNG reduced from 5% to 2.5%.
 The Income Tax Act to be amended to avoid cash transaction
above INR 3 lakh.
 The limit of cash donation by charitable trusts is reduced to INR
2,000 from INR 10,000.
 Net revenue loss in direct tax expected to be INR 20,000 crore.

8.  Existing rate of tax for individuals between INR 2.5 -5 lakh is
reduced to 5% from 10%.
 All other categories of tax payers in subsequent brackets will
get a benefit of INR 12,500.
 Single page return for people with an annual income of
INR 5 lakh other than business income.
 People filing I-T returns for the first time will not come under
any government scrutiny.
 10 % surcharge on individual income above INR 50 lakh and up
to INR 1 crore to make up for INR 15,000 crore loss due to cut
in personal I-T rate. 15% surcharge on individual income above
INR 1 crore to continue.

9.  INR 500 crore allocated for Mahila Shakthi Kendras.
 INR 6000 will be transferred to each pregnant women under a
special scheme.
 A sum of INR 1,84,632 crore allocated for welfare of women and
children.
 INR 52,393 crore have been allocated for welfare of Scheduled
Castes.
 Health of senior citizens to monitored with Aadhaar-based
smartcards.
 Elimination of tuberculosis by 2025 targeted.
 Two AIIMS to be set up in Jharkhand and Gujarat.

10.  Special fund to be created for secondary education.
 3,479 educationally-backward blocks to get increased
emphasis.
 Colleges to be identified based on accreditation.
 100 Skill India mission centers to be established to tap the
potential of the youth.
 Courses on foreign languages to be introduced.
 Proposed introduction of a new system of measuring annual
learning outcomes.

11.  Five lakh farm ponds will be taken up under the MGNREGA.
 MGNREGA plans to double farmers' income.
 Plans for increased participation of women in MGNREGA up to
55%.
 INR 3 lakh crore planned to be spent for rural India.
 Target to bring 1 crore households out of poverty by 2019.
 INR 19,000 crore allocated for Pradhan Mantri Gram Sadak
Yojana in 2017-18.
 Affordable housing to be given infrastructure status.
 Proposal to complete 1 crore houses for homeless.

12.  INR 10 lakh crore allocated as credit to farmers, with 60 days
interest waiver.
 NABARD fund to be increased to INR 40,000 crore.
 Micro irrigation fund to be set up for NABARD with INR 5,000
crore initial corpus.
 Irrigation corpus doubled from INR 20,000 crore to INR 40,000
crore.
 Dairy processing infrastructure fund to be set up with INR
2000 crore initial corpus.
 Mini labs to be setup in Krishi Vigyan Kendras for soil testing.
 Issuance of soil cards emphasized.

13.  Shares of Railway PSE like IRCTC, IRFC, etc. to be listed on
stock exchanges.
 Foreign Investment Promotion Board to be abolished.
 Revised mechanism to ensure time-bound listing of CPSEs.
 Computer emergency response team for financial sector to
be formed.
 Pradhan Mantri Mudra Yojana lending target fixed at INR 2.44
lakh crore for 2017-18.

14.  Head post office as the central office for rendering passport
service.
 Easy online booking system for Army and other defense
personnel.
 To avoid economic offenders fleeing India, proposal to
introduce legislative change or introduce law to confiscate
the assets of these people within the country.
 Digital India - BHIM app to unleash mobile phone revolution.
BHIM App to be promoted using referral bonus for the users
and cash back for the traders.

15.  A total allocation of INR 39,61,354 crore has been made for
infrastructure.
 Total allocation for Railways is INR 1,31,000 crore.
 A corpus of INR 1 lakh crore for five years (for passenger
safety) to be created.
 3,500 km of railway lines to be commissioned.
 SMS-based ''clean my coach service'' is put in place.
 No service charge on tickets booked through IRCTC.

16.  Five-hundred stations to be made differently-abled friendly.
 It is proposed to have bio-toilets in all trains by 2019.
 Unmanned level crossings to be eliminated by 2020.
 Railways to partner with logistics players for front-end and
back-end solutions for select commodities.
 INR 64,000 crore allocated for highways.
 High speed Internet to be allocated to 1,50,000 gram
panchayats.
 New Metro rail policy to be announced with new modes of
financing.

17.  Crude oil strategic reserves to be set up in Odisha and
Rajasthan apart from 3 already constructed.
 INR 1.26,000 crore received as energy production based
investments.
 Trade infra export scheme to be launched 2017-18.
 Second phase of solar power development with an aim to
generate 20000 MW planned.
 Solar tempered glass used for manufacture of solar
cells/panels exempted from customs duty.

18.  The defense sector gets an allocation of INR 2,74,114 crore
including INR 86,00 crore for defense capital.

19.  Poorly planned and ill executed Demonetization scheme was
not touched upon in detail.
 Demonetization is expected to have a long lasting impact on
the economy and is likely to spill over till FY 2018-19.
 It has already impacted the lives of people especially those who
remain outside the banking network.
 Experts opine that the “Demonetization” may lead to lowering
of GDP growth by about 0.5% this fiscal year.
 Between November 8 to December 30, deposits ranging from
INR 2 lakh and INR 80 lakh were made in 1.09 crore accounts.

20.  Cash donation for a political party restricted to a maximum
of INR 2,000 from any single source.
 Donations to Political parties permitted by check or digital
mode from donors.
 An amendment is being recommended to the RBI Act to
permit issuance of electoral bonds .Electoral Bonds can be
purchased from banks or post offices through check or digital
transactions. These bond can be only redeemed by registered
political parties.

21. “Overall this budget appears to have been used as a
mechanism for controlling the damage done to the
economy and sentiments due to demonetization. It has
missed out on an opportunity to efficiently allocate the
money deposited through 26 crore Jan Dhan Accounts
during the Demonetization drive. The focus on
agricultural and rural development appear to have been
planned with the forthcoming state elections in view. It
is unlikely that this budget will be able to improve the
GDP or help create jobs.”