Finance Minister Arun Jaitley Wednesday presented. He said that India was a bright spot in the current economic landscape. Government to spend 21.47 lakh crore in 2017-18.
Govt. decides to reduce burden of tax on honest taxpayers; reduces tax rate with income between 2.5 lakh to 5 lakh from 10% to 5%; 10% surcharge for annual income is Rs 50 lakh to 1 crore; 15% surcharge on incomes above Rs 1 crore to continue.
The budget presented on Wednesday contains 3 major reforms : Budget advanced for better expenditure management; merges rail with general budget; done away with plan/non plan classification of expenditure for a more holistic view of allocations
FM appeals to people to contribute to nation building by paying tax; tax liability of people below 5 lakh rupees income to reduce. Existing rate of taxation for individuals between income of 2.5 lakh to 5 lakh to come down to 5% from current 10%.
FM says approach to prepare the budget was to spend more on rural areas, infrastructure and poverty alleviation while maintaining fiscal prudence.
Govt adheres to fiscal consolidation withougt compromising growth and investment Fiscal deficit for 2017-18 pegged at 3.2% of GDP; Government committed to maintain fiscal deficit of 3% for this fiscal.
Farmers to continue to avail short term crop loan at 4%; Target for agriculture credit to be at record level of 10 lakh crores; to also benefit from 6o days of interest waiver as announce by the prime minister.
Coverage of fasal bima yojna to be increased to 40% next year and 50% in 2018-19; FM provides 9000 crore rupees for securing farmers against natural calamities.
Fund for irrigation doubled to 40000 crores dedicated micro irrigation fund for per drop more crop; 585 mandis to be linked under E-nam, each e-nam market to get 75 lakhs.
Govt to launch mission antodaya to bring 1 crore household out of poverty and make 50000 gram panchayats poverty free; every year more than 3 lakh crore being spent on rural areas.
Budget makes provision for highest ever allocation to MNREGA; FM provides 48 thousand crore for next year; 5 lakh farm ponds to be created.
FM provides for 27 thousand crores for PM GSY, 23000 crore for PM Awas yojna, to build 1 crore houses by 2019; for rural electrification around 5000 crore provided.
Mantra of sabka saath sabka vikas to focus on girl child and women; pregnant women to get 6000 rupees in direct transfer; funds for schemes for women and children raised to 1.8 lakh crore.
Budget approves 2 interest subvention scheme for low cost housing as announced by PM; provides for 20000 crores; loans to 12 lakh to attract 3% interest subsidy while 9 lakhs will get 4% subsidy.
Budget proposes to eliminate kala-azar, TB, Filariases, leprosy and measles; 2 new AIIMS to be set up in Jharkhand and Gujarat; new rules to regulate medical devices and generic drugs.
Special importance to implementation of schemes for SC/STs and minorities; allocation for same at 52 crore, 32 thousand crore and 4100 crore respectively; niti aayaog to monitor expenditure.
Total allocation for infrastructure development at 3.9 lakh crores; Railways get major chunk of 1.3 lakh crores; Highways 65 thousand crore; Bharat net project to provide broadband in 1.5 lakh gram panchayats; 10000 crore provided to the scheme.
Govt to come up with revised mechanism for time-bound listing of central PSU’s on stock exchanges; shares of railway PSE’s like IRCTC, IRFC and IRCON to be listed; govt to use exchange traded funds for further divestment.
Target for PM mudra yojna set at 2.44 lakh crores; Priority to be given to dalit, tribals, backward classes and women
Govt to launch Adhar enabled payment system to promote digital transactions; govt mulling making digital payments mandatory at several institutions including college hospitals and post offices.
Finance minister provides 2.7 lakh crores for defence excluding pensions, capital expenditure for defence at 86,488 crores.
Major boost to MSME, income tax for companies upto turnover upto 50 crores reduced to 25%; 96% of companies to benefit.
Fight against black money continues; government accepts proposal of SIT to not allow cash payment over 3 lakh rupees; to amend income tax act to enforce decision.
For transparency and electoral funding govt accepts suggestions of elections commission; no party to receive cash donation above 2000 rupees per person; govt to make provision to issue electoral bonds for registered political parties.
Budget continues to focus on ease of doing business; foreign portfolio investors to be exempt from indirect transfer provisions.