Union Budget 2017-18 Highlights.

Date : 01.02.2017
Union Budget 2017-18 presented with focus on rural areas, affordable housing, digital economy and bringing transparency in political funding.
Railway budget incorporated in the General Budget to bring focus on multi-modal approach to transportation sector
Income tax rate halved for small tax payers with income up to Rs 5 lakhs
“We are largely a tax non-compliant society” says FM
Highlights of the Budget 2017-18
Public Finances
·         Fiscal deficit pegged at 3.2 percent of GDP
·         Revenue Deficit target at 1.9% of GDP
·         Total expenditure for 2017-18 at Rs 21,47,000 crore,
·         The net tax revenue grew by 17% in 2015-16
·         Total resource transfer to States and UTs with legislature at Rs 4.11 lakh crore up from Rs 3.6 lakh crore in BE 16-17
·         Plan, non-plan classification of expenditure done away with in the Budget for 2017-18 to give a holistic picture
Taxation
·         We are largely a tax non-compliant society & the burden of tax-evaders falls on honest taxpayers Only 1.72 lakh people show income above Rs 50 lakh: FM
·         1.5 crore people show income between Rs 2.5-5 lakh; 52 lakh people between between Rs 5-10 lakh; 24 lakh above Rs 10 lakh
·         Existing rate of taxation of those with income between 2.5 lakh to 5 lakh to be reduced from 10% to 5%:
·         All taxpayers above 5 lakh rupees to get benefit of 12,500 rupees across the board:
·         Surcharge of 10% for those whose annual income is Rs 50 lakh to 1 crore
·         Time period of revising tax return to be reduced to 12 months
·         A single one-page form for filing IT returns for taxable income up to 5 lakh rupees
·         Long-term capital gains tax on immovable property to apply after 2 years, instead of 3 years now
·         No transaction over Rs 3 lakh will be allowed in cash
·         Tax rate for companies with an annual turnover up to 50 crores to be reduced to 25%, to strengthen MSME sector:
Infrastructure
·         Total allocation for infrastructure stands at a record level Rs 3,96,135 crore in 2017-18
·         Allocation for national highways stepped up to Rs 64,000 cr from Rs 57,676 cr 
·         Rs 2000 Cr announced for coastal road connectivity - essentially to enhance connectivity to ports & coastal villages
·         Rs27,000 crore on to be spend on Pradhan Mantri Gram Sadak Yojana; 
Railways
·         Railways to focus on 4 major areas 1. Passenger safety 2. Capital and development work 3. Cleanliness 4. Financial and accounting reforms
·         Railways plan size for 2017-18 pegged at Rs. 1,31,000 crore
·         Railway line of 3,500 km will be commissioned in 2017-18 as against 2,800 km in 2016-17
·         For rail passenger safety, a fund of 1 lakh crores will be allocated over the next 5 years 
·         500 stations will be made differently abled friendly with lifts and escalator
·         Government proposes Coach Mitra facility to redress grievances related to rail coaches
·         Indian Railways plans to feed about 7000 stations with solar power in the next few years
·         Service charge on e-tickets booked through IRCTC will be withdrawn
·         Railway tariffs to be fixed on the basis of cost, social obligation and competition; 
·         State run companies like IRCON and IRCTC to be listed in markets
Defence
·         Defence allocation of Rs 2.74 lakh crore
Agriculture
·         Total allocation for rural, agricultural & allied sectors for 2017-18 a record 1,87,223 cr, up by 24%:
·         Allocation under MNREGA increased to 48,000 crore from Rs 38,500 crore 
·         Rs 9,000 cr higher allocation for payment of sugarcane arrears 
·         Govt to set up dairy processing fund of Rs 8,000 crore over three years with initial corpus of Rs 2,000 crore 
·         Modern law on contract farming will be drafted and circulated to states 
·         Dedicated micro-irrigation fund to be set up by NABARD to achieve mission of Per Drop, More Crop 
·         Coverage of Fasal Bima Yojana to go up from 30 pc of cropped area to 40 pc in 2017-18 and 50 per cent next year 
Housing
·         To construct one crore houses by 2019 for homeless.
·         PM Awas Yojana allocation raised from Rs 15,000 cr to Rs 23,000 cr 
Trade & Commerce
·         Trade Infrastructure Export Scheme to be launched in 2017-18 
·         Basic customs duty on LNG to be reduced from 5% to 2.5%
Ease of doing business
·         Foreign Investment Promotion Board (FIPB) will be abolished. 90% of FDI coming through automatic route.
Digital India
·         AadharPay, a merchant version of Aadhaar-enabled payment system to be launched shortly for those without debit cards, mobile phones
·         Allocation of Rs 10,000 cr for Bharat Net project for providing high-speed broadband in FY18 
·         By end of FY 2017-18 high speed broadband connectivity on optic fibres will be available in more than 1,50,000 gram panchayats
·         Digi Gaon initiative will be launched to provide tele-medicine, education & skills through digital technology:
Skill Development & Empowerment
·         600 districts to get Pradhan Mantri Kaushal Kendra (PMKK) for skilling youth for opportunities
·         “SANKALP” for Livelihood Promotion Programme to be Launched at a cost of Rs. 4000 Crores 
·         Mahila Shakti Kendras to be set up at village level, in 14 lakh ICDS centres, with an allocation of Rs. 500 crore
·         Pradhan Mantri Mudra Yojana lending target has been doubled at Rs 2.44 lakh crore for 2017-18
Political funding
·         Max. amount of cash donation a political party can receive to be 2000 rupees from any one source
·         Political parties will be entitled to receive donation by cheque or in digital mode, from their donors
·         Amendment to RBI Act proposed to enable electoral bonds
Tourism
·         5 special tourism zones,anchored on SPV, to be set up; Incredible India 2.0campaign to be launched across the world
HRD
·         National Testing Agency to be established to conduct all entrance exams for higher education:
·         Innovation Fund for secondary education to be created
·         Two new AIIMS to be set up Jharkhand and Gujarat 
·         “SWAYAM” Platform will be launched to leverage Information Technologythis will enable students to virtually attend the courses taught by the best faculty; access high quality reading resources, participate in discussion forums; take tests and earn academic grades. Access to SWAYAM would be widened by linkage with DTH channels, dedicated to education.
Welfare
·         For senior citizens, Aadhaar based health cards will be issued 
·         Allocation for welfare of women and children increased from Rs 1,56,528 crores in BE 2016-17 to Rs 1,84,632 crores in 2017-18 

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