Union Budget 2017-18: Key highlights

Theme and expenditure:

The 2017-18 Budget will focus on ten major themes: Farmers, Rural population, Youth, Poor
and underprivileged health care, Infrastructure, Financial sector for stronger institutions,
Speedy accountability, Public services, Prudent fiscal management, and Tax administration
The total expenditure of budget 2017-18 has been placed at Rs 21.47 lakh crore

GDP Growth and agenda for 2017 - 18

IMF estimates world GDP will grow by 3.4 per cent in 2017
Our agenda for 2017-18 is transform, energise and clean India, i.e tech India

FDI:
The Foreign Investment Promotion Board has been abolished. Further liberalisation in the
FDI policy would be taken in the next few days

Sustainability:
Sanitation in rural areas has gone up from 42% in October 2014 (launch of Swachh Bharat) to
60% now
Provide safe drinking water to 28,000 arsenic and fluoride contaminated areas over the next
four years
Budget allocation for welfare of women and children under various ministries increased to
Rs 1,84,632 cr
On health, the government proposes to eliminate tuberculosis by 2025. Two new AIIMS
Hospitals to be set up in Jharkhand and Gujarat
Govt has prepared an action plan for poor health. We have targeted the elimination of
tuberculosis by 2025
1.5 lakh health sub-centres will be transformed into health and wellness centres
Priority will be given to tribal, Dalit, women to setup greenfield enterprises

Education:
To introduce a system of measuring annual learning; Science to be given focus
Skill centres will be set up across the country to help youth seeking opportunities outside the
country

Skill Development:
Skill India Mission was launched in 2015 to maximise the potential of our youth. 100 India
International Skill centres will be established across the country

Power:
100% village electrification will be achieved by May 1,2018

Railways:
Merger of railway, Union budget is historic step. This brings rly to govt's central fiscal policies
Focus is on swachch railways
Rail safety fund with a corpus of Rs 100,000 crore to be created over a period of 5 years.
Jaitley announces Rs 55000 crore for Railways in Budget 2017
Rs 1.3 lakh crore has been allotted for solar power, disabled friendly stations
3,500 km of railway lines to be commissioned this year, up from 2,800 km last year
 Railway tariffs to be fixed on the basis of cost, social obligation and competition; Railway
related state-run companies like Ircon, IRCTC to be listed on stock exchanges

Demonetization:
Surplus liquidity in banking system created by demonetisation will lower borrowing cost and
increase access to credit
Demonetisation seeks to create a GDP that is bigger, cleaner and real
Demonetisation and GST will have an epoch making impact on our lives, says FM Arun Jaitley
while presenting budget
India's Current Account Deficit decreased from about 1% of GDP last year to 0.3% of GDP in
first half of 216-17
Growth in a number of emerging economies is expected to recover in 2017

Manufacturing:
FII has increased from Rs 1.07 lakh crore to Rs 1.45 lakh crore. India has become the sixth
largest manufacturing country in the world.
Government has ensured fiscal consolidation without cutting back on public investments
India has become the 6th largest manufacturing company

Agriculture:
With better monsoon, agriculture is expected to grow at 4.1%. Target for agricultural credit
for 2017-18 is set at ten lakh crore
Will support Nabard for 63,000 functional PACs. Done in 3 years at an estimated cost of Rs
1,900 cr.
Issurance of soil health cards have gathered momentum. Fasal Bima Yojana 40% cropped
area to be covered in 2017-18, 50% in 2018-19.
A dedicated fund worth Rs 5,000 crore to be set up for micro-irrigation under Nabard
Minilabs by qualified local entrepreneurs to be set up for soil testing in all 648 krishivigyan
kendras in the country

MGNREGA:
MGNREGA should create productive asets to improve farm productivity, incomes. MNREGA
allocation increased
Highest ever allocation for MNREGA at Rs 48,000 crore. Participation of women in
MGNREGA up to 55%
50,000 gram panchayats will be poverty-free by 2019. Our government has made a
conscious effort to reorient MNGREGS
The target of 5 lakh ponds and 10 lakh compost pits for last year has been achieved. 2017-18
will have another 5 lakh ponds
Participation of women in MNREGS has increased to 55 per cent.

Infrastructure:
Total allocation for infrastructure stands at Rs. 3,96,134 crore
The government is looking to complete 1,00,00,000 houses by 2019 for houseless and those
living in kaccha house
Budget allocation for highways stepped up to Rs64,000 crore in FY18 from Rs57,676 crore
For transport sector, including railways, road and shipping, government provides Rs 2.41
lakh crore. (PTI)
Health
On health, the government proposes to eliminate tuberculosis by 2025
Two new AIIMS Hospitals to be set up in Jharkhand and Gujarat
Budget allocation for welfare of women and children under various ministries increased to
Rs 1,84,632 cr

Youth
Propose to leverage ICT with the launch of "Swayam" platform which has 350 free courses
For youth, proposed to introduce a system of measuring annual learning; Science to be given
focus; Quality education will energize our youth
Skill centres will be set up across the country to help youth seeking opportunities outside the
country
SANKALP 4000 crores allotted to train for market oriented training. At least 3.5 crore youth
will be provided market-relevant training under Sankalp programme
Govt plans to increase additional 5,000 post graduate seats per annum

BHIM app:
25 lakh people adopted the BHIM app so far; merchant version of Aadhaar-enabled payment
will be launched shortly for those without debit cards, mobile phones
Govt will launch two new schemes to promote the use of BHIM app

Energy:
Basic customs duty on LNG to be reduced from 5% to 2.5%
Rs 4,814 crore for Deen Dayal Upadhyayal Gram Jyoti Yojana
Uncertainty of commodity prices, especially crude oil prices, may have far reaching
implications for the fiscal situation of various economies including India
It is however expected to be tempered by a quick response from producers of shale oil and
gas. This would have a sobering impact on prices of crude and petroleum
Plans to set-up an additional two strategic crude oil reserves in Chandikhole in Odhisha and
Bikaner in Rajasthan taking the country's strategic oil reserve capacity to 15.33 million tonne
Solar power to feed 7,000 railway stations

Taxes:
Predominance of cash in our economy makes it easy for people to avoid taxes, we are
largely a tax non compliance society
3.7 crore individuals filed tax returns, 99 lakh of them below taxable limit. Number of people
with more than 50 lakh income is 1.26 lakh
Govt gets Rs 1.74 crore in filing returns. Paltry number of companies have filed returns,
many companies have shown losses
Personal income tax disposed increased by 34%
FM proposed tax relief for builders on unsold inventories
Reduces income by 5% for SMEs with annual turnover of Rs 50 crore. 96% of Indian
companies will benefit from slash in tax by 5%

Personal Tax:
Reduce existing rate of taxation for individual assessees b/w 2.5 lakh and 5 lakh to 5%
instead of the current 10%
A single one-page form for filing IT returns for taxable income up to 5 lakh rupees
Surcharge of 10% for those whose annual income is Rs 50 lakh to 1 crore
15% surcharge on incomes above Rs 1 crore to continue
Cash transactions:
The SIT on black money suggested no transaction above Rs 3 lakh should be permitted in
cash. The Govt has accepted it

Fiscal and revenue deficit

3% fiscal deficit recommended for the next 3 years. 0.5% deviations from GDP estimates. Far
reaching structural reforms
1.9 % revenue deficit for 2017-18

Net tax revenue

The net tax revenue of 2013-14 was Rs 11.38 lakh crore which grew by 17% in 2016-17

Political funding reforms:

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.

Affordable Housing
FM proposes changes 1. The carpet areas of 30 sq metre and 60 sq metre will be counted 2.
The scheme has been extended to 5 years 3. changes in capital gain tax

Banks:
Rs 10000 crore for recapitalisation of public sector banks. Additional funds to be provided if
required

Foreign Investment Promotion Board

FIPB (Foreign Investment Promotion Board) to be abolished in 2017-18 to liberalize FDI
policy

Defence:
Defence expenditure excluding pension at Rs 2.74 lakh crore