India's Finance Minister Arun Jaitley (C) arrives at the parliament where he is due to present the federal budget, in New Delhi, India, February 1, 2017. REUTERS/Adnan Abidi
India’s Finance Minister Arun Jaitley (C) arrives at the parliament before presenting the Union budget. (REUTERS photo)
Finance Minister Arun Jaitley laid down the Union budget 2017-2018 in Lok Sabha today, the fourth budget by the Narendra Modi government. This year’s budget is followed by the demonetisation move by Prime Minister Narendra Modi on November 8, 2016 which tendered invalid Rs 500 and Rs 1000 notes, in a surprise move. Top economists have warned that the GDP could take a hit following the move and the budget to be presented today will, in all likelihood, take measures to ensure it’s a soft hit.
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This was also the first time in 92 years that the Railway Budget was presented together with the Union Budget. . Following the presentation of the Union budget, both Houses of Parliament adjourned for the day. There were reports that the budget presentation may be postponed to February 2, following the passing away of Lok Sabha Member of Parliament E Ahamed. However, a call on this was taken by Lok Sabha Speaker Sumitra Mahajan.
There were key announcements in the budget, particularly in taxes, finance, political party funding, railways, and housing. Here is how Budget 2017-18 will impact you:
Railways
Railways budget has announced a Rail Sanrakshan Kosh with a corpus of Rs.1 lakh crore. The government will provide a seed fund and the remaing will be generated by the Railways.
In order to improve the security of Railways, unmanned level crossings are proposed to be eliminated by 2020.
Railways lines of 3500 km to be commissioned this year. Dedicated trains for religious tourism.
Railways will integrate end to end transport solutions for selected commodities through partnership. By 2019, all coaches of Indian Railways will be fitted with bio-toilets.
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At least 25 stations are expected to be awarded during 2017-18; 500 stations will be made differently abled-friendly by providing lifts and escalators. In addition, a new metro rail policy will be announced, this will open up new jobs for the youth to modernise the Metro infrastructure.
Good news for all those who book tickets on IRCTC. You will no longer have to pay service charge. Competitive booking prices will also be rolled out on IRCTC.
The Railways will focus on cleaner trains and dedicated trains for pilgrimage and tourism.
500 Railway stations will also be made disabled friendly.
Aviation:
Selective airports in tier 2 cities for development.
Taxes and finance
Government to widen tax net as income tax payers are mostly salaried employees. Government decided to reduce burden on income tax payers.
Rate of income tax on income between Rs. 2.5 lakh and Rs. 5 lakh reduced to to 5 % from the current 10%.
Basic custom duty for LNG reduced from 2.5% from 5%.
Limit of cash donations by charitable trust brought down from Rs.10,000 to Rs 2,000.
Small companies that have a turnover above Rs.50 crore will now have to pay to pay 25% tax as against the 30% they have to pay now. Around 67 lakh companies fall within this category.
Government accepted recommendation of Black money special investigation team (SIT) to prohibit cash transaction above Rs. 3 lakh.
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One page tax filing form for taxable income under Rs.5 lakh.
10% Surcharge imposed for individuals with annual income between Rs 50 lakh and Rs. 1 crore.
Govt considering option to amend Negotiable Instruments Act to ensure that holders of dishonoured cheques get payment.
Reforms in Political parties’ funding
Max amount political party can receive in cash donation will be Rs 2000 from any one source.
Political parties will be entitled to recieve donations by cheque or digital mode.
Additional step amendment proposed to RBI act to enable issuance of electoral bonds in accordance to scheme by GOI. Donor could purchase bonds from authorised banks. Redeemable only in registered accounts of party.
Agriculture:
Double income in five years for farmers.
Strengthening social security net.
Target for agricultural credit– RS. 10 lakh crore.
Fasal beema yojana coverage to be increased to 40 percent in 2017-18 and 50 percent in 2018-19.
Modern law on contract farming to be circulated in states.
Health
Senior citizens will be provided Aadhar cards mentioning their health conditions.
2 new AIIMS to come up in Jharkhand in Gujarat.
Regulatory reform in medical sector along with push for more DNB courses in medical colleges of repute.
More doctors will be provided on tertiary level.
28,000 arsenic and Flouride -affected areas to get safe drinking water in the next four years.
Rural sector
Total allocation given to rural sector along with agricultural and allied sector for 2017-18 fixed at Rs. 1,87,223 crore. This is a raise of 24% from the preceding year.
50,000 gram panchayat to be made poverty free.
Geotagging all MGNREGA assets and put in public domain.
Allocation of Rs. 3 lakh crore for MGNREGA to double farmer’s income. Women participation in MGNREGA has increased from 48% to 55%.
Housing sector
Infrastructrure status granted to Housing sector after years of demands. Delayed residential projects to get boost. Fillip to real estate sector.
1 crore houses under Housing for All this year.
Pradhan Mantri Awas Yojana allocation up to Rs. 23,000 crore for this fiscal
Energy
100 per cent village assured electrification by 1 March 2018.
Push for 20,000 MW increase in solar energy output.
Education
Innovation fund to promote local innovation; ICT enabled transformation, 3479 educationally backward blocks.
National Testing Agency to transform higher studies, entrance exam structure.