Key Features of Budget 2017-18

Key Features of Budget 2017-18

IntroductionUnion budget was presented before Parliament By Honble Finance Minister Arun Jaitely on 1st Feb, 2017The Budget size was 21.47 Lakh Crore3 Major Reforms in Budget wereBudget Advance to 1st Feb.Merger of Rail And Union BudgetRemoval of Plan and Non-Plan classification of expenditureThe Agenda was Transform, Energize and Clean India (TCE). Transform the Quality of Governance and Life of PeopleEnergize Various Section of Society andClean Country from Evil of Corruption, Black Money and Non-transparent Political Funding.

Indian EconomyCPI based Inflation brought under control from 6% in July 2016 to 3.4% December 2016CAD decline from 1% to 0.3%of GDP in first half of 2016-17FDI grew 36% in H1 of 2016-17 despite 5% reduction in Global FDI InflowsForeign Reserve reached to $361 Billion levelThe Indian Economy has been Robust to Mild ShocksIMF and World Bank has forecasted Good Growth In Indian GDP

GDP Growth Rate

Budget FinancialParticularsActual 15-16Budget Estimate 16-17Budget Estimate 17-18ReceiptsRevenue125799214441561600203Total Receipts125799214441561600203ExpenditureCapital 253022247032309801Revenue153776117310371836934Total Expenditure179078319780692146735Fiscal Deficit532791533904546332Fiscal Deficit (% of GDP)3.90%3.50%3.20%

Rs. In Crore

Sources of Funds2017-18Tax Revenue- 87.66%Non- Tax Revenue- 12.34%(Includes Non-Debt Capital and Borrowings)

Application of FundsClassification of Plan and Non-planExpenditure has been Abolished

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Priorities and Roadmap10 Focused Areas of BudgetFarmers:- Committed to Double the income in 5 yearsRecord 10 Lakh Crore target for Agri Credit60 days Interest WaiverComputerisation and Integration of all 63000 Agri. Credit Society with core banking SystemRural Population:- Providing Employment & Basic Infrastructure.Aims to Bring 1 Cr Household out of Poverty by 2019MNREGA allocation to highest ever 48000 Cr in 17-18100% Village Electrification by 1st May, 2018Total Allocation for Rural, Agriculture and Allied Sector Rs. 187223 Cr.

Priorities and RoadmapYouth:- Energizing the through Education, Skill and JobTo Introduce a System of Measure Annual Learning Outcome in our SchoolsSWAYAM Platform, Leveraging IT to be launched with at least 350 Online Courses.The Poor and The Underprivileged:-Strengthening the System of Social Security, Health Care, and Affordable HousingNational Housing Bank will Refinance Individual Housing Loans about 20000 Cr in 17-18To Create additional 5000 Post Graduate seats per annum to ensure adequate availability of specialist DoctorsTwo New AIMS to be set up in Jharkhand and Gujrat.Allocation for Scheduled Tribes has been increased to 31920 CrFor Senior Citizen, Aadhar Based Smart Card containing their Health details will be Introduced

Priorities and RoadmapInfrastructure:- For Efficiency, Productivity and Quality of LifeFor Transportation Sector including Rail, Roads, Shipping provision of 241387 Cr has been madeTotal Capital and Development Expenditure of Railways has been pegged 131000 CrBy 2019 all Coaches of Railways will have Bio-ToiletsRoad Sector Allocation is increased to 64900 CrSelect Airport in Tier 2 cities will be Taken up for Operation Second Phase of Solar Park Development to be taken up for Additional 20000 MW Capacity

Priorities and RoadmapFinancial Sector:- Growth & Stability by Stronger InstitutionsFIPB to be Abolished and Liberalisation of FDI PolicyLending target under Pradhan Mantri Mudra Yojana to be 2.44 Lakh CrDigital Economy:- For Speed, Accountability and TransparencyAadhar Pay, A merchant version of Aadhar Enabled Payment System will be launchedPublic Services:- Effective Governance and Efficient Service delivery through Peoples ParticipationTo Utilise the Head Post Offices as Front Offices for Rendering Passport ServicesThe Government e-market place which is functional for Procurement of Goods And Services

Priorities and RoadmapPrudent Fiscal Management:- To Ensure Optimal Deployment of Resources and Preserve Fiscal StabilitySteeped up Allocation of Capital Expenditure by 25.4% over the Previous YearTotal Resources being transferred to States and Union Territories is Rs. 4.11 Lakh Cr against 3.60 Lakh Cr in Last YearFiscal Deficit is targeted 3.2% of GDP in Current Year and 3% of GDP in Next YearTax Administration:- Honoring The Honest

Car Sold During Year -1.25 CrPeople Flew Abroad 2 Cr

Tax ProposalIndia has Low Tax-to-GDP RatioRate of growth of Advance tax in Personal I-T is 34.8% in last three quarters of this financial yearHolding period for long term capital gain lowered to 2 yearsSmall And Medium Enterprises having turnover upto 50 Crore will be Taxed @25%Limit of cash donation by charitable trust reduced to Rs 2,000 from Rs 10,000Tax rate For 2.5 Lakh to 5 Lakh will be 5% instead of 10%All other categories of tax payers in subsequent brackets will get benefit of Rs 12,500People filing I-T returns for the first time will not come under govt. scrutiny 10% surcharge on individual Income above Rs. 50 lakh15% Surcharge on Individual Income Above Rs. 1 Cr

Other AnnouncementsPromoting Digital EconomyNo transaction above Rs 3 lakh to be permitted in cashEase of Doing BusinessThreshold limit for Audit of Business who opted for Presumptive income scheme is increased from 1 Cr to 2 CrThreshold for maintenance of Books for Individuals and HUFs is Increased from turnover of 10 lakhs to 25 lakhs or income from 1.2 Lakhs to 2.5 Lakhs Transparency in Electoral FundingMaximum Amount of Cash Donation can be received by Political Party if Ceased to Rs. 2000Every Political Party would have to file a Return within Prescribed time Goods and Service TaxThe Extensive reach out efforts to trade and industry for GST will Start from 1st April 2017 to make them Aware of the taxation System

SummaryFiscal Deficit estimated to be 3.20%Borrowing will be Rs. 546332 CrCorporate tax rate for MSME has been reduced to 25%Tax rate on income upto Rs. 5 lakh has been reduced to 5% Capital Expenditure has been increased by 25.4% from previous year