Key Highlights of Union Budget 2017-2018

As you all knows, Our Finance Minister Arun Jaitley presented the Union Budget 2017-2018 by today i.e. 1st Feb 2017 and here the main key highlights of this union budget are as follows:-

  • India stands out as a bright spot amid world economic gloom.
  • Our focus will be on energising youth to reap benefits of growth and employment.
  • IMF estimates world GDP will grow by 3.4 per cent in 2017.
  • Oil prices, rising dollar and volatile commodity prices seen as risks to Indian economy.
  • India is seen as engine of global growth, have witnessed historic reform in last one year.
  • Demonetization is a bold and decisive measure, for many decades tax evasion was a way of life for many.
  • Note ban is expected to have only a transient impact on economy.
  • Father of the nation Mahatma Gandhi said: “A right cause never fails”.
  • The pace of remonetisation has picked up.
  • Effects of demonetization not expected to spill over to next year.
  • Budget preponement to February 1 will give sufficient time to departments to implement government schemes.
  • Our Budget agenda is – transform, energise and clean India – TEC India.
  • Our approach in preparing the Budget is to spend more on rural areas, infrastructure and poverty alleviation with fiscal prudence.
  • Agriculture sector is expected to grow at 4.6%, agriculture expenditure targeted at Rs 10 lakh crore.
  • 36% increase in FDI flow; Forex reserves at $361 billion in January, which is enough to cover 12 months needs.
  • Allocation under MNREGA increased to 48,000 crore from Rs 38,500 crore. This is highest ever allocation.
  • Total allocation for rural, agricultural and allied sectors for 2017-18 is Rs 187223 crore, which is 24% higher than last year.
  • One crore houses for poor by 2019.
  • Safe drinking water to cover 28,000 arsenic and Fluoride-affected habitations in the next four years.
  • 133-km road per day constructed under Pradhan Mantri Gram Sadak Yojana as against 73-km in 2011-14.
  • For senior citizens, Aadhar cards giving their health condition will be introduced.
  • Two new All India Institute of Medical Sciences(AIIMS) to be set up in Jharkhand and Gujarat.
  • 3500km railway lines to be put up.
  • Service charge on rail tickets booked through IRCTC to be withdrawn.
  • Rail safety fund with corpus of Rs 100,000 crore will be created over a period of five years.
  • 500 rail stations to be made differently abled-friendly by providing lifts and escalators.
  • A new metro rail policy will be announced, this will open up new jobs for our youth.
  • Foreign investment promotion board (FIPB) to be abolished.
  • Allocation for infrastructure stands at a record Rs 3,96,135 crore.
  • Government to set up strategic crude oil reserves in Odisha and Rajasthan.
  • 1.25 crore people have already adopted BHIM App for digital payments.
  • Aadhaar Pay- an app for merchants- to be launched’ 20 lakh aadhaar-based POS by September 2017.
  • Government is considering introduction of new law to confiscate assets of offenders who escape the country.
  • Defence expenditure excluding pension at Rs 2.74 lakh crore.
  • Fiscal deficit for 2017-18 pegged at 3.2 percent of GDP.
  • Fiscal deficit target for next three years pegged at 3 percent.
  • India’s tax-to GDP ratio is very low. We are largely a tax non compliance society, when too many people evade taxes burden falls on those who are honest.
  • Out of 3.7 crore who filed tax returns in 2015-16, only 24 lakh persons showed income above Rs 10 lakh.
  • Of 76 lakh individuals who reported income of over Rs 5 lakh, 56 lakh are salaried.
  • Small firms with turnover up to Rs 50 crore to pay 25% tax now, instead of 30%.
  • Black money SIT has suggested no cash transaction above Rs 3 lakh. The government has accepted this recommendation.
  • Maximum cash donation any party can receive will be Rs 2000 from one source.
  • Political parties will be entitled to receive donations by cheques or digital modes.
  • An amendment being proposed to RBI Act to enable the issuance of electoral bonds for political funding.
  • Reduction of income tax rate from 10% to 5% for tax slab of Rs 250,000 to Rs 500,000.
  • 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.

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