Union Budget 2017 India – Key Highlights
Union Budget 2017 presented by Finance Minister Arun Jaitley. Here is the Key Highlights of this budget. The first budget of India presented by Finance Minister of India, James Wilson on April 7, 1860. During the time we were still under colonial rule. India is now becoming one of the fastest growing major economies in 2017. Our economy has moved on a high growth path. Recently War against black money launched by Government is still continuing without compromising on public investment. You can check Key Highlights of Union Budget 2017 India here.
There are lots of challenges in Union Budget 2017 India. This includes the US Federal Reserve’s , intention to increase policy rates in 2017, Uncertainty around commodity prices and Signs of retreat from globalisation of goods, services and people etc. Budget 2017-18 contains 3 major reforms, presentation of Budget advanced to February 1, merger of Railways Budget with General Budget and removal of plan and non- plan classification of expenditure.
Demonetization is the Bold step to eliminate corruption, black money, counterfeit currency and terror funding. Due to this temporary Drop in economic activity is noted. Its benefits are reduced corruption, greater digitization, increased flow of financial savings etc. Our Honourable Prime Minister announced various help for credit support to MSMEs; digital transactions; housing for the poor; relief to farmers; assistance to pregnant women and senior citizens; and priority to dalits, tribals, backward classes and women etc.
Agenda for 2017-18 Budget
Agenda for 2017-18 budget is : “Transform, Energise and Clean India” – TEC India.There are Ten distinct themes to foster this broad agenda. This focus on Farmers, Rural Population, Youth, The Poor and the Underprivileged, Infrastructure, Financial Sector, Digital Economy, Public Service, Prudent Fiscal Management and Tax Administration. The Target for agricultural credit in 2017-18 has been fixed at Rs 10 lakh crore.
Farmers and Rural Population
Total allocation for Rural, Agriculture and Allied sectors is Rs 187223 crore. There is 60 days’ interest waiver for farmers announced on December 31, 2016. NABARD for computerisation and integration of all 63,000 functional Primary Agriculture Credit Societies. This will be done in 3 years. Fasal Bima Yojana scheme coverage will be increased from 30% to 40% in 2017-18 and 50% in 2018-19. There is also New mini labs in Krishi Vigyan Kendras (KVKs) in the country for soil sample testing and Dedicated Micro Irrigation Fund in NABARD to achieve ‘per drop more crop’.
National Agricultural Market (e-NAM) coverage to be expanded from 250 markets to 585 APMCs. Dairy Processing and Infrastructure Development Fund to be set up in NABARD. Government aim to bring one crore households out of poverty and to make 50,000 Gram Panchayats poverty free by 2019. 10 lakh farm ponds would be completed by March 2017. There is also:-
- Pace of construction of PMGSY roads accelerated to 133 km roads per day in 2016-17
- connecting habitations with more than 100 persons in left wing extremism affected Blocks and this is expected to be covered by 2019
- Allocation for Pradhan Mantri Awaas Yojana – Gramin increased to Rs 23,000 crore in 2017-18
- Sanitation coverage in rural India has gone up from 42% in Oct 2014 to about 60%.
- National Rural Drinking Water Programme (NRDWP) to provide safe drinking water to over 28,000 arsenic and fluoride affected habitations
- Mason training will be provided to 5 lakh persons by 2022.
- “human resource reforms for results” will be launched during 2017-18 for human resources development
Youth, Poor and Unprivileged
There will be a system of measuring annual learning outcomes in our schools. Innovation Fund for Secondary Education to encourage local innovation to be introduced in 3479 educationally backward districts. SWAYAM platform, leveraging IT, to be launched with at least 350 online courses.National Testing Agency will be launched as an autonomous and self-sustained premier testing organisation. Pradhan Mantri Kaushal Kendras to be extended to more than 600 districts.
Skill Acquisition and Knowledge Awareness for Livelihood Promotion programme (SANKALP) to be launched. Next phase of Skill Strengthening for Industrial Value Enhancement (STRIVE) will also be launched in 2017-18. Incredible India 2.0 Campaign will be launched across the world. Mahila Shakti Kendra will be set up with an allocation of Rs 500 crore in 14 lakh ICDS Anganwadi Centres. Rs 6,000 will be transferred directly to the bank accounts of pregnant women who undergo institutional delivery. Others includes:-
- National Housing Bank will offer individual housing loans of about Rs 20,000 crore in 2017-18.
- Eliminate Kala-Azar and Filariasis by 2017, Leprosy by 2018
- Eliminate Measles by 2020 and Tuberculosis by 2025
- Reduce IMR, Two new All India Institutes of Medical Sciences in Jharkhand and Gujarat
- Create additional 5,000 Post Graduate seats per annum to strengthen Secondary and Tertiary levels of health care
- Propose to amend the Drugs and Cosmetics Rules to ensure availability of drugs at reasonable prices
- The allocation for Scheduled Castes has been increased by 35%
- Aadhar based Smart Cards containing their health details for senior citizen
Infrastructure and Finance
For transportation sector Rs 2,41,387 crore has been made in 2017-18. Rashtriya Rail Sanraksha Kosh will be created with a corpus of Rs 1 lakh crore over a period of 5 years for passenger safety. Railway lines of 3,500 kms will be commissioned in 2017-18. 500 stations will be provided with lifts and escalators for differently abled. About 7,000 stations get solar power in the medium term.
SMS based Clean My Coach Service and ‘Coach Mitra’ will launch to register all coach related complaints. By 2019, all coaches of Indian Railways will be fitted with bio toilets. 2,000 kms of coastal connectivity roads found for construction and development. Select airports in Tier 2 cities will be taken up for operation .A Computer Emergency Response Team for our Financial Sector (CERT-Fin) will be established.
Digital Economy and Public Service
The Government will launch two new schemes to promote the usage of BHIM. Aadhar Pay, a merchant version of Aadhar Enabled Payment System ready to launch. There is a target of 2,500 crore digital transactions for 2017-18. This will be through UPI, USSD, Aadhar Pay, IMPS and debit cards.
Real Estate and Business
There will be a Scheme for profit-linked income tax deduction for promotion of affordable housing. The 30 Sq.mtr. limit will apply only in case of municipal limits of 4 metropolitan cities. Reduction in the holding period for computing long term capital gains from transfer of immovable property from 3 years to 2 years.
Threshold limit for audit of business entities who opt for presumptive income scheme increased from Rs 1 crore to Rs 2 crore. Foreign Portfolio Investor (FPI) Category I & II exempted from indirect transfer provision. Commission payable to individual insurance agents. Time period for revising a tax return is being reduced to 12 months from completion of financial year.
Personal Income Tax and Goods and Service Tax
IT system Preparation for GST is also on schedule. The Rate of taxation for individual with income of Rs 2.5 lakh to 5 lakh reduced to 5%. Surcharge of 10% of tax payable for individuals whose annual taxable income is between `50 lakh and Rs 1 crore. Simple one-page form need to be filed as Income Tax Return for individuals having taxable income upto Rs 5 lakh.