Union Budget 2017-Complete Information: Our focus will be on energising our youth to reap the benefits of growth and employment, Finance Minister Arun Jaitley said as he unveiled his annual Union Budget 2017 on Wednesday, adding the impact on accrue spending on rural areas, infrastructure and fighting poverty.
Jaitley called India “an engine of global growth” but highlighted risks to its outlook from likely U.S. interest rate hikes, rising oil prices and signs that globalisation is in retreat.
Union Budget 2017: Important Pointers
Finance minister Arun Jaitley presented the Union Budget 2017 in Parliament on Wednesday. The Union Budget 2017 was broadly focused on 10 themes: the farming sector, the rural population, the youth, the poor and underprivileged health care, infrastructure, the financial sector for stronger institutions, speedy accountability, public services, prudent fiscal management and tax administration for the honest.
Here are the key highlights of his budget speech:
Union Budget 2017: Tax
- For those who are earning below Rs 5 lakh a year, a single page IT return form would be introduced.
- Taxpayers in other categories except Rs 2.5-Rs 5 lakh bracket would get tax benefits amounting to Rs 12,500.
- 10% surcharge on those who are earning between Rs 50 lakh and Rs 1 crore, this has been introduced to compensate Rs 15,000 crore loss in Income Tax revenues due to reduced tax slabs.
- Income Tax rate reduced from 10% to 5% for those taxpayers who are earning between Rs 2.5 lakh and 5 lakh.
- Out of 13.14 lakh registered companies, only 5.97 lakh filed tax returns last year.
- Out of 76 lakh individual taxpayers declaring income of more than Rs 5 lakh, 56 lakh were salaried employees.
- Only 1.72 lakh taxpayers declared income of more than Rs 50 lakh a year.
- Capital Gains tax would be exempted for those persons owning land.
Union Budget 2017: For Youth & Defence Sector
- Will introduce a system of measuring annual learning outcomes and come out with an innovation fund for secondary education.
- Focus will be on 3,479 educationally-backward blocks.
- Colleges will be identified based on accreditation.
- Skill India mission was launched to maximise potential. Will set up 100 India International centres across the country.
- Courses on foreign languages will be introduced.
- Will take steps to create 5000 PG seats per annum.
- The defence sector gets an allocation of Rs. 2.74,114 crore.
Union Budget 2017: Demonetisation
- Demonetisation is expected to have a transient impact on the economy.
- It will have a great impact on the economy and lives of people .
- Demonetisation is a bold and decisive measure that will lead to higher GDP growth.
- The effects of demonetisation will not spillover to the next fiscal.
Union Budget 2017: Rural Population
- Mission Antyodaya to bring 1 crore households of poverty
- MGNREGA: Rs 48,000 crore has been allocated; participation of women now at 55%; using space technology in a big way
- Prime Minister Gram Sadak Yojana: Rs 19,000 crore allocated; along with states, Rs27,000 crore will be spent in FY18
- Pradhan Mantri Awas Yojana: Rs 23,000 crore allocated
- 100% village electrification by May 2018
- Rural livelihood mission: Rs 4,500 crore allocated
- Mason training to be provided for 5 lakh people
- Panchayat Raj: Human resource reform programme to be launched
- Rs 1,87,223 crore allocated for rural programme
Union Budget 2017: Poor and Underprivileged
- Rs. 500 crore allocated for Mahila Shakthi Kendras.
- Under a nationwide scheme for pregnant women, Rs. 6000 will be transferred to each person.
- A sum of Rs. 1,84,632 crore allocated for women and children.
- Affordable housing will be given infrastructure status.
- Owing to surplus liquidity, banks have started reducing lending rates for housing.
- Elimination of tuberculosis by 2025 targeted.
- Health sub centres, numbering 1.5 lakh, willl be transformed into health wellness centres.
- Two AIIMS will be set up in Jharkhand and Gujarat.
- Will undertake structural transformation of the regulator framework for medical education.
- Allocation for Scheduled Castes is Rs. 52,393 crore
- Aadhaar-based smartcards will be issued to senior citizens to monitor health.
Union Budget 2017: Railways and Infrastructure
- Total capex and development expenditure of railways pegged at Rs 1.31 trillion.
- Railways: Passenger Safety fund corpus set up, unmanned level crossings to be eliminated by 2020.
- Railway lines of 3,500 km to be commissioned.
- To launch dedicated tourism/pilgrimage trains.
- 500 stations to be made differently-abled friendly.
- Cleanliness in railways: To introduce Coach Mitra facility, by 2019, bio toilets for all coaches.
- Railways to offer competitive ticket-booking facility; service charge withdrawn for tickets booked on IRCTC.
- New metro rail policy to be announced.
- Roads sector: Allocation for national highways at Rs 64,000 crore.
- Airports Authority of India Act to be amended to enable monetization of land resources.
- Total allocation to transport sector at Rs 2 trillion.
- Telecom sector: Allocation to Bharat Net programme at Rs 10,000 crore.
- Digi-gau initiative to be launched.
- To make India global hub for electronics manufacture.
- Export infra: New restructured central scheme to be launched.
- Total allocation for infrastructure: Rs 3.96 trillion.
Union Budget 2017: Financial & Energy Sector
- Foreign Investment Promotion Board has been abolished as further liberalization steps for FDI will be introduced.
- Bills would be introduced to curtail illicit deposit schemes and chit-funds mushrooming in the country.
- A special Emergency Response Team would be established to check cyber crimes involving financial institutions like banks.
- IPO of IRCTC, IRCON and IRFC (parts of Indian Railways) has been proposed.
- Rs 10,000 crore would infused into public sector banks under Indradhanush plan.
- A separate Payments Regulatory Board in the Reserve Bank of India would be established to monitor all digital payments, thereby replacing Regulation and Supervision of Payment and Settlement Systems.
- Rs 4.11 lakh crore would be transferred to State and UT administrations.
- A strategic policy for crude reserves will be set up.
- Rs. 1.26,000 crore received as energy production based investments.
- Trade infra export scheme will be launched 2017-18.
Union Budget 2017: Fiscal Management
- Total budget expenditure: Rs 21 trillion.
- Rs3,000 crore to implement various budget announcements.
- Defence expenditure excluding pensions: Rs 2.74 trillion.
- Consolidated outcome budget for all ministries being created.
- Fiscal deficit for FY18 pegged at 3.2% of GDP.
- Revenue deficit for FY18 at 1.9%.
Union Budget 2017: Digital Economy
- India at cusp of massive digital revolution.
- Govt to launch two new schemes to promote BHIM app, including cashback scheme for merchants.
- Aadhaar Pay to be launched for people who don’t have mobile phones.
- Focus on rural and semi-urban areas.
- To strengthen financial inclusion fund.
- Panel on digital payments has recommended structural reforms.
- To create payment regulatory board at RBI.
Union Budget 2017: Farmers
- Farmer credit fixed at record level of Rs 10 trillion, will ensure adequate flow to underserved areas
- Soil health cards: Govt to set up mini-labs in Krishi Vigyan Kendras
- Long-term irrigation fund in Nabard corpus at Rs 40,000 crore
- Model law on contract farming to be circulated
- Dairy processing infra fund with corpus of Rs 8,000 crore
- Dedicated micro-irrigation fund with Rs 5,000 crore corpus
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 2017.
Following were the highlights of Union Budget 2017, presented by Finance Minister Arun Jaitley in Parliament on February 1, 2017.
Read More on Union Budget 2017: Click Here.
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.
Interesting facts about the Budget
- The word ‘budget’ is derived from the Middle English word ‘bowgette’, which came from ‘bougette’ which means a leather bag in French. According to Article 112 of the Constitution of India, the Union Budget is a statement of the estimated receipts and expenditure of the government for that particular year.
- The concept of a Budget was introduced in India on April 7, 1860, by the East India Company.
- James Wilson, the financial member of Indian Council that advised the Indian Viceroy, presented the Budget for the first time.
- Independent India’s first finance minister, RK Shanmukham Chetty, presented the first Budget on November 26, 1947. That Budget covered only seven and a half months — from August 15, 1947, to March 31, 1948.
- The process of printing documents for the Budget starts with a ritual — the ‘Budget halwa’ ceremony in the North Block office. The finance minister and senior officials are present during the ceremony.
- Budget work is insanely secret. The entire text of the Budget document is prepared by selected officials and stenographers. They work on computers which are delinked from other networks and closely monitored.
- All the staff working on the Budget, nearly 100 officials, stays in the North Block for two to three weeks. They are cut-off from the outside world, including their families. They are provided just one phone on which they can only receive calls.
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