Union Budget 2018-19: All you Need to Know

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Union Budget 2018-19: All you Need to Know

Union Budget 2018-19: Our focus will be on energising our youth to reap this year’s Budget will focus on strengthening agriculture and rural economy and the government was committed to double the farmers income by 2022, Finance Minister Arun Jaitley said as he unveiled his annual Union Budget 2018 on 2nd February 2018.

This is the first budget after big-ticket economic reforms like the Goods and Services Tax, dynamic fuel pricing, mega PSU bank recapitalisation and more. The Union Budget also includes the Rail Budget, the latter was presented separately till it was decided to present a joint annual budget in 2017.

 

Union Budget 2018: Important Pointers

Jaitley’s budget allocated billions of dollars for rural infrastructure and unveiled a health insurance programme for around 500 million poor. Here is the full text of Jaitley’s budget speech.

Union Budget 2017: Agriculture and Rural Economy

  • Government is committed to the welfare of farmers. Emphasis is on generating higher income for farmers. Famers output atis record level.
  • Agricultural market and infra fund of with corpus of Rs 2,000 will be created for 22,000 gramin agricultural markets and 585 APMCs.
  • A restructured national bamboo mission with corpus of Rs 1,290 crore will be set up. Rs 10,000 crore are allocated to set up two funds to promote fisheries and animal husbandry.
  • 275 million ton food-grains have been produced.
  • Double farmers’ income, increase production from same land parcels.
  • Minimum support price (MSP) for all upcoming Kharif crops has been raised to 1.5 times the cost of production.
  • Focus is on low cost farming and higher selling price
  • Exports to grow by 17 pc in 2017-18.
  • Grameen Agricultural Market (GRAM) will provide farmers a means to sell directly to buyers.
  • Restructured National Bamboo Mission to be launched with an allocation of Rs 1290 crore to promote bamboo sector in a holistic manner.
  • Agri-Market Development Fund with a corpus of Rs 2000 crore to be set up for developing agricultural markets.
  • target for loans to self help group for women has been increased to Rs 75,000 crore.
  • 11 lakh crore for credit for farm sector. He also announced a special scheme to manage crop residue
  • target for loans to self help group for women has been increased to Rs 75,000 crore
  • In terms of social protection and security, gas connections will now be provided to 8 crore poor women.
  • In the energy coverage push, Rs 16,000 crore for PM Saubhagya Yojana was allocated for connecting 4 crore households with free electricity.
  • Government has set a target to construct at least 2 crore toilets under Swachh Bharat Mission. Also, under Housing for All by 2022 and PM Awas Yojana (rural), 51 lakh affordable housing units constructed in rural and 50 lakh in urban areas.
  • For boosting livelihood opportunities and private enterprise, target for loans to self help group for women has been increased to Rs 75,000 crore.
  •  Allocation to National Livelihood Mission set at Rs 5,750 crore.
  • A total allocation of Rs 14.34 lakh crore from extra and non-budgetary resources has been estimated for housing, infrastructure and livelihood in rural areas.

“Desh mein krishi utpadan record star par hai, 2022 tak kisaano ki aay dugni karenge,” says Arun Jaitley

Union Budget 2017: Railways

Total capital expenditure for Indian Railways set at Rs 1,48,528 crore. A special railway university will also be set up in Vadodara, Gujarat.

Union Budget 2017: Trade

Customs duty on mobile phones, TVs hiked for providing fillip to Make in India initiative. Government also proposes 10 per cent social welfare surcharge on imports.

Union Budget 2017: Health Sector

  • Allocation on National Social Assistance Programme this year has been kept at Rs. 9975 crores.
  • Allocation on National Social Assistance Programme this year has been kept at Rs. 9975 crores.
  • The Union Govt. is launching world’s largest government-funded healthcare program, Rashtriya Samaj Beema Yojana (approximately 50
    crore beneficiaries).
  • This will have 50 crore beneficiaries and 10 crore families will get 5 lakh per year for their families to cover secondary and tertiary hospital expenses.
  • The government will provide Rs 600 crore as nutritional support to all Tuberculosis (TB) patients.
  • Twenty four new government medical colleges will be set up by upgrading existing district hospitals in the country.

Union Budget 2017: Fiscal targets

Government aims for 2018-19’s fiscal deficit target of 3.3 per cent of GDP. Revised fiscal deficit for 2017-18 was Rs 5.95 lakh crore or 3.5 per cent of GDP.

Union Budget 2017: Taxation

NO PERSONAL INCOME TAX CHANGES PROPOSED IN BUDGET 

  • Growth in direct taxes (till Jan 15) is 18.7 %
  • Surcharge of 10% on income above Rs 50 lakh but less than Rs 1 cr to be continued next year; 15% on income above Rs 1 cr to also continue.
  • 100% tax deduction is allowed to co-operative societies
  • Corporate Tax of 25% extended to companies with turnover up to Rs 250 cr in financial year 2016-17.
  • Incentives for Senior citizens: Exemptions in income of Rs 10,000 from Banks FD and post offices 
  • Senior citizens to get Rs 50,000 per annum exemption for medical insurance under Sec 80D 
  • Rs 7.5 lakh per senior citizen limit for investment in interest-bearing LIC schemes doubled to Rs 15 lakh 
  • Standard deduction of Rs 40,000 allowed for transport, medical reimbursement for salaried tax payers 
  • Govt to reduce hardships faced in realty deals; no adjustment to be made in case circle rate does not exceed 5 pc of sale consideration
  • Rs 8,000 crore revenue lost due to standard deduction allowed to salaried employees 
  • Rs 7,000 cr revenue forgone on account of lower corporate tax for Rs 250 cr turnover cos 
  • Rs 19,000 cr revenue loss on direct tax in last fiscal

Union Budget 2018: Education

  • Govt to increase digital intensity in education. Technology to be the biggest driver in improving quality of education
  • Rs. 1 lakh crore allocated to revitalisation and upgradation of education sector
  • Govt to increase digital intensity in education. Technology to be the biggest driver in improving quality of education
  • Rs. 1 lakh crore allocated to revitalisation and upgradation of education sector 
  • By 2022, every block with more than 50 per cent ST population will have Ekalvya schools at par with Navodaya Vidyalayas
  • Aims to move from black board to digital board schools by 2022.
  • Govt will identify 1000 Btech students each years and provide them to do PHDs in IIT and IISc, while also teaching undergraduate students once a week at that time.

Union Budget 2018: Social Security

  • Govt will expand PM Jan Dhan Yojana: Al 16 crore accounts will be included under micro insurance and pension schemes 
  • 1.26 cr accounts opened under Sukanya Samriddhi Scheme 
  • Social inclusion schemes for Scheduled Castes – Rs 52,719 crore
  • Social inclusion schemes for Scheduled Tribes Rs 39,139 crore
  • A dedicated affordable housing fund will be set up this year.
  • Govt. allocated Rs.5,750 crore to National Livelihood Mission and Rs. 2,600 crore to the groundwater irrigation scheme.

Union Budget 2018: MSME

  • Rs 3,794 crore allocated to the MSME sector in the form of capital support and interest subsidy By 2022, every block with more than 50 per cent ST population will have Ekalvya schools at par with Navodaya Vidyalayas
  • Rs 3 lakh crore target has been set for the Mudra Yojana
  • Rs 4.6 lakh cr sanctioned under MUDRA Scheme  Petroleum/ Diesel Sector
  • Excise on unbranded diesel cut by 2 rupees to 6.33 rupee/ltr
  • Excise on unbranded petrol cut by 2 rupees to 4.48 rupee/ltr.

It is said when my goal is in sight, the winds favour me and I fly. There is no other day more appropriate than this, were the closing remarks of our Finance Minister Arun Jaitley on annual Union Budget 2018.

Following were the highlights of Union Budget 2018, presented by Finance Minister Arun Jaitley in Parliament on February 2, 2018.

Want to Read More on Union Budget 2018?? Go Through :

Jaitley’s reforms were welcomed almost everywhere, but also raised the spectre of more money the Central government would have to forego in the form of reduced tax intake.

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