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IndiaJaitley presents ‘Feel Good’ Budget 2017-18

Jaitley presents ‘Feel Good’ Budget 2017-18

Date:

Jaitley presents ‘Feel Good' Budget 2017-18

Union Budget 2017-18

Rs 10 lakh Cr Agri credit; 48,000 Cr for MNREGS; 10,000 Cr for Banks recapitalisation; 1.31 lakh Cr Capex for Railway; 3.96 lakh Cr for Infra; Rs 2,000 cash limit for parties; No cash transaction above Rs 3 lakh; Relief for income below Rs 5 lakh

New Delhi, February 1

Presenting the 2017-18 Budget in the Lok Sabha, the Finance Minister, Arun Jaitley halved the tax rate to 5 per cent on incomes between Rs 2.5 lakh and Rs 5 lakh but proposed a new surcharge of 10 per cent on incomes between Rs 50 lakh and Rs 1 crore and raised duties on cigarettes and pan masala while stepping up allocations for infrastructure, rural, and social sectors.

“This will reduce the tax liability of all persons with incomes below Rs 5,00,000 either to zero (with rebate) or 50 per cent of their existing liability,” Jaitley said.

Breaking from the past, Jaitley presented a historic Budget in which the railway budget has been merged and the date advanced by a month, retaining the 15 per cent surcharge on taxable income above Rs 1 crore.

While the surcharge alone would net Rs 2,700 crore a year, his give-away on direct tax proposals will result in a loss of Rs 15,500 crore.

The change in the personal income tax rate for individual assessees between Rs 2.5 lakh and Rs 5 lakh income would reduce the tax liability of all persons below Rs 5 lakh to either to zero (with rebate) or 50 per cent of their existing liability.

In order to have duplication of benefit, the existing benefit of rebate available to them is being reduced to Rs 2,500 available only to assessees up to income of Rs 3.5 lakh.

While the taxation liability of people with income up to Rs 5 lakh is being reduced to half, all other categories of tax payers in the subsequent slabs will also get a uniform benefit of Rs 12,500 per person.

In the case of senior citizens above 60 years, there will be no tax up to Rs 3 lakh, while the exemption will be up to Rs 5 lakh in case of citizens above 80 years.

Both the categories will attract income tax of 20 per cent on income between Rs 5 lakh and Rs 10 lakh and 30 per cent for income above Rs 10 lakh.

“It is a populist budget for the middle class. The budget proposes to give relief to the middle class while taxing the super-rich,” Neha Malhotra, Executive Director, Nangia & Co, an international tax advisory and accounting firm, told.

“It was a legitimate expectation post-demonetisation that the personal income tax rate will be reduced to soften the tax hit on the pockets of the individuals,” she added.

According to Malhotra, immovable property owners have been relieved by lowering the holding period for availing lower rate of long-term capital gains tax from three years to two years.

“Also, the base year for computing capital indexation benefit has been changed from existing April 1, 1981, to April 1, 2001. This move will give significant relief to the taxpayers earning profits from sale of house property and will encourage investments in the real estate sector,” she said.

Another woe of the taxpayers is that provisions applicable on dishonoured cheque under Section 138 of the Negotiable Instrument Act are ineffective.

New effective way to tackle the issue of bounced cheque is a welcome move which shall relieve those facing hardship on these fronts, she added.

Transaction in cash above Rs 3 lakh barred

Against the backdrop of demonetisation intended to eliminate black money and introduce clean transactions, the Budget barred any transaction in cash above Rs 3 lakh. As a measure of transparency in political funding, he lowered to one-tenth the donation that political parties can accept in cash to Rs 2000 per donor.

The Finance Minister expressed confidence that the pace of remonetisation has picked up and would soon reach comfortable levels with effects not expected to spillover into the next fiscal.

In view of the fact that the proposed GST is expected to be rolled out soon, he left indirect taxes largely untouched expect for some changes in duties on tobacco products, solar panels and circuit for mobile phones.

While excise duty on pan masala has been hiked to 9 per cent from 6 per cent currently and that on unmanufactured tobacco to 8.3 per cent from 4.2 per cent, the same on filter and non-filter cigarettes of all length was also hiked.

Mobile phones will be costlier with the Budget proposing a 2 per cent special auxiliary duty on import of populated printed circuit boards (PCBs).

The Finance Minister ruled out abolition of Minimum Alternate Tax (MAT) on companies but allowed them a carry forward facility for 15 years instead of 10 years to allow them MAT credit.

Agriculture credit raised to record Rs 10 lakh crore

In a bid to boost the rural and informal sectors hurt by the note ban, the Budget raised the target for agriculture credit during the coming year to a record Rs 10 lakh crore that will ensure flow of credit to under serviced areas.

The Budget provides for Rs 9,000 crore under the Crop Insurance Scheme and proposed to set up a dedicated micro-irrigation fund under NABARD with an initial corpus of Rs 5,000 crore.

The Budget provisions under rural employment guarantee scheme MGNREGA has been increased from Rs 38,500 crore in the current year to Rs 48,000 crore in 2017-18, while Rs 19,000 crore has been given under the rural roads programme.

The total allocation for rural, agriculture and allied sectors has been pegged at Rs 187,223 crore, which is 24 per cent higher than the previous year.

In a bid to boost infrastructure spending, the Minister proposed a total of Rs 1,31,000 crore towards capital and development expenditure of railways which includes Rs 55,000 crore provided by the government.

Railways: Passenger safety fund

The Railways will focus on four major areas of passenger safety, capital and development work, cleanliness and finance and accounting reforms. A passenger safety fund is being created with a corpus of Rs 1 lakh crore over five years and a plan for modernisation and upgradation of identified corridors.

Railway lines of 3,500 km will be commissioned in next fiscal as against 2,800 km in the previous year. Steps will be taken to dedicated trains for tourism and pilgrimages.

In the road sector, allocation for highways has been stepped up to Rs 64,900 crore against Rs 57,976 crore in Budget Estimates of 2016-17.

For the transportation sector as a whole, including rail, road and shipping, the Budget provides for Rs 2,41,387 crore in FY18. “This magnitude of investment will spur a huge amount of economic activity across the country and create more job opportunities,” Jaitley said.

Foreign Investment Promotion Board to be abolished

As a financial sector reform, the Budget also proposed to abolish Foreign Investment Promotion Board (FIPB).

Other measures to perk up the financial sector include further integration of commodities and securities derivatives market and full online process of registration of financial market intermediaries like mutual funds, brokers, portfolio managers to improve ease of doing .

The total expenditure in the Budget has been placed at Rs 21.47 lakh crore.

Defence expenditure, excluding pensions, has been pegged Rs 274,114 crore for FY18, including Rs 86,488 crore for capital.

With the abolition of plan, non-plan expenditure, the focus will be now on capital and revenue expenditure, Jaitley said.

“I have stepped up the allocation of capital expenditure by 25.4 per cent over the previous year. This will have multiplier effect and will lead to higher growth.

“The total resources being transferred to the states and the Union Territories with legislatures is Rs 4.11 lakh crore against Rs 3.60 lakh crore in Budget Estimate of 2016-17,” he said.

Outlining the fiscal deficit roadmap of 3 per cent recommended by the FRBM committee, the Minister has pegged it for 2017-18 at 3.2 per cent of GDP and said he will remain committed to achieving 3 per cent in the following year.

“With this gradual approach, I have ensured adherence to fiscal consolidation, without compromising the requirements of public investment,” he said.

The net market borrowing of the government has been limited at Rs 3.48 lakh crore after buyback, much lower than Rs 4.25 lakh crore in the current fiscal.

“More importantly, the revenue deficit of 2.3 per cent in BE 2016-17 stands reduced to 2.1 per cent in the revised estimates. The revenue deficit for next year is pegged at 1.9 per cent, against 2 per cent mandated by the FRBM Act,” he said.

As measures for stimulating growth, the Budget extended the concessional withholding rate of 5 per cent on interest earned by foreign entities in ECBs or in bonds and government securities by 3 years to June 2020. This benefit is also extended to rupee denominated masala bonds.

Jaitley reduced the peak rate of income tax for small companies with turnover of up to Rs 50 crore to 25 per cent, benefiting 6.67 lakh firms out of 6.94 lakh which file returns. The concession would lead to a revenue loss of Rs 7,200 crore per annum.

“My direct tax proposals for exemption, etc. would result in revenue loss of Rs 22,700 crore but after counting for revenue gain of Rs 2,700 crore for additional resource mobalisation proposal, the net revenue loss in direct tax would come to Rs 20,000 crore. There is no significant loss or gain in my direct tax proposal,” he said. — PTI

Salient features of the Union Budget presented by FM Arun Jaitley in Parliament:

 

PERSONAL TAX

*Zero tax for income below Rs 3 lakh

*Tax on income from Rs 2.5 lakh to Rs 5 lakh cut from 10% to 5%

*Surcharge on income more than Rs 15 lakh

*Capital gains tax period reduced from 3 years to 2

*One-page IT form for income up to Rs 5 lakh

FISCAL DEFICIT

Projects 2017/18 fiscal deficit at 3.2 percent of GDP

Government remains committed to 2018/19 fiscal deficit at 3 per cent of GDP

The 2017/18 budget seeks to pursue prudent fiscal management to preserve financial stability

 

GROWTH

 

Jaitley says India seen as an engine of global growth

 

EXPENDITURE

 

Estimates 2017/18 total expenditure at 21.47 trillion rupees

 

Capital spending raised by 25.4 per cent on year in 2017/18

 

BORROWING

 

2017/18 net market borrowing estimated at 3.48 trillion rupees

 

INFLATION

Consumer price index inflation is expected to remain within the central bank's mandated range of 2 to 6 per cent

 

DEMONETISATION

 

Demonetisation “a bold and decisive measure”, will make GDP bigger and lead to higher tax revenues, says finance minister

 

Hit to economy from government decision to outlaw high-denomination notes will be “transient”, effects of demonetisation not expected to spill over to next year

 

Pace of remonetisation has picked up and will soon reach comfortable levels

 

Surplus money in the banking system will lower borrowing costs, increase credit flow

 

TAXATION

 

Proposes to cut income tax rate in 2017/18 for small companies

 

Extends relaxation on withholding tax on foreign investor's interest income from debt until June 30, 2020

 

Proposes change in capital gains tax in real estate, land

 

AGRICULTURE

 

With a better monsoon agriculture is expected to grow at 4.1 per cent in 2016/17

 

Agricultural credit target fixed at Rs 10 lakh crore for 2017/18

 

Long-term irrigation fund allocated 400 billion rupees

 

Allocates 80 billion rupees for milk processing over 3 years

 

Farm insurance to cover 40 per cent of net sown area, up from 30 per cent last year

 

Modern law on contract farming will be drafted and circulated to states

 

INFRASTRUCTURE

 

Allocates 3.96 trillion rupees for infrastructure in 2017/18

 

Allocates 2.41 trillion rupees for transport sector in 2017/18

 

Proposes 640 billion rupees investments in national and state highways in 2017/18

 

FOREIGN INVESTMENT

 

Decides to abolish foreign investment promotion board

 

BANKING

 

The government to provide already planned 100 billion rupees capital infusion to state-run banks in 2017/18

 

DEFENCE

 

2017/18 defence expenditure excluding pensions estimated at 2.74 trillion rupees

 

DIVESTMENT

 

Proposes revised mechanism for time bound listing of public sector companies

 

RURAL SPENDING

 

Allocation for rural, agriculture and allied areas to increase by 24 per cent to 1.87 trillion rupees

 

Allocates 480 billion rupees to rural scheme in 2017/18, versus a revised estimate of 470 billion rupees in the current fiscal year

 

Allocates 190 billion rupees for rural road scheme in 2017/18

 

On course to complete 100 per cent electrification by May 1, 2018, allocating 48 billion rupees for rural electrification scheme

 

RAILWAYS

 

Proposes to invest 1.31 trillion rupees in railways in 2017/18; budget 2017/18 allocates 550 bln rupees for railways

 

Dedicated railway safety fund of 1 trillion rupees over next five years

 

3,500 km of railway lines to be commissioned in 2017-18 as against 2,800 km in 2016-17

 

Transformative measures have to be taken to make Indian railways competitive

 

Railways to withdraw service charges on online booking of tickets

 

LABOUR

 

Legislative reforms to be undertaken to simplify, rationalise existing labour laws

 

INDUSTRY-SPECIFIC MEASURES

 

To introduce legislation changes for confiscating assets of economic offenders

 

To set up two more strategic oil storage in 2 states; proposes to create integrated oil company

 

Announces new trade infrastructure export scheme

 

Taking steps to make India a global hub for electronics manufacturing; received over 2,50,000 proposals last year with an investment value of 1.26 trillion rupees

 

To integrate stock and derivative markets for commodities trading

 

To double lending target under Mudra Yojana (Micro Units Development and Refinance Agency) to 2.44 trillion rupees

 

India to spend more in rural areas, infrastructure and poverty alleviation

 

The government will continue process of economic reforms for the benefit of the poor

 

To allocate 40 billion rupees for market-relevant training for youth

 

Total allocation for women and children welfare set at 1.84 trillion rupees

 

Airports Authority of India to monetize land around certain tier 2 airports, use funds to upgrade airports

 

HOUSING  

 

National housing bank to provide 200 billion rupees for housing loans

 

Affordable housing to be given infrastructure status

 

FINANCE MINISTER'S COMMENTS

 

“India stands out as a bright spot in the economic landscape.”

 

“My approach in preparing the budget is to spend more on rural areas, infrastructure and poverty alleviation with fiscal prudence.”

 

“Signs of retreat from globalisation have potential to affect exports from many emerging economies, including India.” Reuters

 

Devoted to villagers, farmers and poor: PM

 

This Budget is yet again devoted to the well-being of the villagers, farmers and the poor, says Prime Minister Narendra Modi.

 

The Budget reflects commitment to eliminate corruption and black money, says Modi. Agencies

 

LED lamps, solar panels to be cheaper; silver coins, cigarettes dearer

New Delhi, February 1

Though Finance Minister Arun Jaitley in his budget speech for 2017-18 on Wednesday said his proposals on excise and customs duties will not result in any significant loss or gain to the exchequer, the fine print suggests a host of items can become either cheaper or dearer.

Items like LED lamps, solar panels, printed circuit boards for mobiles, micro ATMs, finger-print machines and Iris scanners will potentially become cheaper.

On the other hand, silver coins, cigarettes and tobacco, bidis, pan masala, goods imported through parcels, water filter membranes and cashew nuts will become dearer.

“The Centre, through the Central Board of Excise and Customs, shall continue to strive to achieve the goal of implementation of GST (Goods and Services Tax) as per schedule without compromising the spirit of co-operative federalism,” Jaitley said while presenting the Budget.

“Implementation of GST is likely to bring more taxes both to central and state governments because of widening of tax net. I have preferred not to make many changes in current regime of Excise and Service Tax because the same are to be replaced by GST soon,” he added

 

Tax rate in Rs 2.5-5 lakh income bracket cut to 5%

Chennai, February 1

In a major relief to the tax-burdened middle-class people, Finance Minister Arun Jaitley on Wednesday proposed to halve the income tax to 5 per cent for those earning between Rs 2,50,000 and Rs 5,00,000 per annum.

 

Railways safety given boost

With three recent rail accidents in Uttar Pradesh and Andhra Pradesh in which over 200 people lost their lives, the government finally accepted the Kakodkar Committee report by unveiling Railways Safety Fund of Rs 1,00,000 crore.

This was announced by Finance Minister Arun Jaitley, who for the time presented the unified general budget for the financial year 2017-18, as the practice of presenting a separate Rail Budget has been done away with from this year.

Making a reference about the safety fund as part of his budget announcements, Jaitley said, “The government will give to Railways Rs 20,000 crore as initial corpus and the rest of the amount the Railways will arrange on its own.”

There has been a consistent demand from the Railways to create such a fund since the money amounting to Rs 20,000 crore allocated by the Atal Bihari Vajpayee government in 2002-03, when Nitish Kumar was the Minister for Railways, was spent through.

Among the other highlights of this year's budget with respect to Railways is the Gross Budgetary Support (GBS) given to the national transport monolith, which has increased from Rs 50,000 crore in 2016-17 to Rs 55,000 crore this year. But the actual increase is of Rs 15,000 crore, as Railways did not require to pay dividend to the government this year on account of merging of its budget with the general budget.

In a bid to encourage digital transaction in passenger ticket bookings, the Finance Minister announced scrapping of service charges on booking of tickets through IRCTC.

Moreover, several other targets for Railways have been fixed such as all unmanned level-crossings will be eliminated by 2020, bio-toilets in all coaches by 2019 and financial accrual reforms roll out by 2019.

On the development and re-development side, the Finance Minister announced that 25 stations would be redeveloped, 500 stations would be converted into differently-abled-friendly and 7,000 stations would run on solar power by the end of the financial year 2017-18.

Defence budget increased by 6.2%

Despite rapidly expanding military prowess  of China and an perpetually belligerent Pakistan, the Narenda Modi-led Government on Wednesday maintained a ‘small' hike of  about 6.2 per cent  in defence spending and announced an allocation of Rs 2.74,114 crore ($40.31 billion) for the fiscal 2017-2018.

The budget includes a capital outlay of Rs 86,488 for new equipment, weapons, aircraft, naval warships, Army vehicles. This is a 9 per cent hike over the this years capital at Rs 78,586, indicating that the government will on its path of adding new weapons. Notably, Rs 6686 crore was unspent in this year and the spending was reduced in the revised estimates.

The overall hike works out to be about Rs 15,525 crore over the budgetary allocation for the ongoing fiscal (ending March 31) that was Rs 2,58,589 crore. This sum does not include the pensions bill which itself is close to Rs 85,000 per annum.

India's budget will be just about 26 per cent of China which is spending at $155 billion during its own fiscal year that ends almost the same time as India's. Though the expense of the MoD will account for 9 per cent of all government spending, it leaves India ‘gasping for breath' to catch up with its neighbour China.

The US has okayed a budget of $618 billion for this year, while Japan has passed a budget of US $43.6 billion for the year. Both have hiked the budget allocated for defence sector.

The Ministry of Defence has literally been weighed down by increased salaries and pensions — the expected effect of the Seventh Pay Commission and enhanced pensions after the one rank, one pension.

The allocation for new weapons, equipment and systems has been increased, but not the quantum jump that is needed to rapidly bridge the gap.

Union Finance Minister Arun Jaitley, who last year had not even mentioned the allocation for defence in his budget speech, this year mentioned the defence outlay.

Already India's expenses on operations and maintenance are dropping, while expenses on salaries have risen.

 

FM proposes tax concessions for Banks grappling with NPAs

New Delhi: In a big relief to banks struggling with bad loans, the government today proposed tax concession on provisions for NPAs while announcing capital infusion of Rs 10,000 crore for state-owned lenders.

It also proposed that tax on interest will be levied on actual receipts and not on accrual basis in respect of Non Performing Asset (NPA) or bad loan accounts.

BSE banking index surged 2.76 per cent, a full percentage point more than the BSE Sensex itself.

Presenting Union Budget 2017-18 in Parliament, Finance Minister Arun Jaitley said: “In order to give a boost to banking sector, I propose to increase allowable provision for Non-Performing Asset from 7.5 per cent to 8.5 per cent. This will reduce the tax liability of banks.”

He also proposed to tax interest receivable on actual receipt instead of accrual basis in respect of NPA accounts of all nonscheduled cooperative banks as well, at par with scheduled banks.

“This will remove hardship of having to pay tax even when interest income is not realised.

Currently banks can claim deduction in respect of provision for bad and doubtful debts.

Jaitley also announced that Rs 10,000 crore will be infused in public sector banks in the next fiscal and more will be provided if required.

“As per the Indradhanush plan, the public sector banks will be provided with Rs 10,000 crore in the next fiscal. Additional allocation would be made if required,” he said.

Under Indradhanush roadmap announced in 2015, the government will infuse Rs 70,000 crore in state banks over four years while they will have to raise a further Rs 1.1 lakh crore from the markets to meet their capital requirement in line with global risk norms, known as Basel—III.

 

In line with the blueprint, public sector banks has been given Rs 25,000 crore in each fiscal, 2015—16 and 2016—17. Besides, Rs 10,000 crore each would be infused in 2017—18 and 2018—19.

The government has already announced fund infusion of Rs. 22,915 crore, out of the Rs 25,000 crore earmarked for 13 PSBs for the current fiscal. Of this, 75 per cent has already been released to them.

The first tranche was announced with the objective of enhancing their lending operations and enabling them to raise more money from the market. (Agencies)

 

Cigarettes, tobacco, mobiles assembled in India to turn dearer

New Delhi: Smokers and tobacco consumers will have to pay more for their indulgence as Finance Minister Arun Jaitley continued with the crackdown on cigarettes, bidis and tobacco products by increasing taxes in the Budget 2017-18.

Besides, mobile phones and LED lights assembled in India will also become dearer with the finance minister increasing duties on imported printed circuit boards and components respectively.

Jaitley, however, made an attempt to make it more affordable for clean energy sources by cutting duties on solar tempered glass, fuel cell based power generating systems and wind operated energy generator.

With the expected implementation of GST, large scale tinkering of tax structure has been avoided in the Budget thereby sparing most of the commonly used daily items from price changes.

“Implementation of GST is likely to bring more taxes to both central and state governments because of widening of tax net. I have preferred not to make many changes in current regime of Excise and Service Tax because the same are to be replaced by GST soon,” Jaitley said while presenting the Budget.

Yet, tobacco and cigarettes have not been spared.

Excise duty on unmanufactured tobacco has been almost doubled to 8.3 per cent from 4.2 per cent earlier, while that on pan masala has been hiked to 9 per cent from 6 per cent.

 

Likewise, excise duty on cigar, cheroots has been changed to 12.5 per cent or Rs 4,006 per thousand, whichever is higher from 12.5 per cent or Rs 3,755 per thousand, whichever is higher. Excise duty on chewing tobacco, including filter khaini and jarda scented tobacco has also been doubled to 12 per cent from 6 per cent earlier.

Excise on paper-rolled handmade bidis has been increased to Rs 28 per thousand from from Rs 21 per thousand and the same for paper rolled biris has gone up from Rs 21 per thousand to Rs 78 per thousand.

Populated Printed Circuit Boards (PCBs) for use in the manufacturing of mobile phones, subject to actual user condition will also attract SAD of 2 per cent from nil earlier.

Similarly, parts used for manufacturing of LED lights will attract basic customs duty 5 per cent and CVD of 6 per cent from nil earlier.

As per the Budget announcement, imported cashew nut (roasted, salted or roasted and salted) will also become dearer as basic customs duty on the item has been hiked to 45 per cent from 30 per cent earlier.

Imported silver medallion, silver coins, having silver content not below 99.9 per cent, semi-manufactured form of silver and articles of silver will also be dearer as there items will now attract CVD of 12.5 per cent from nil earlier.

Jaitley has made a few announcements in the Budget that will help consumers.

Railway travel with e-tickets booked through IRCTC will become cheaper as service charge on it has been withdrawn.

RO water purifiers are likely to be slightly cheaper with basic customs duty on imported membrane sheet and tricot/ spacer for use in the manufacture of RO membrane element for household filters has been reduced from 12.5 per cent to 6 per cent.

However, with a view to encourage domestic production of RO membrane element, the government has hiked basic customs duty on it to 10 per cent from 7.5 per cent earlier.

Customs duty of LNG has been halved to 2.5 per cent which can lead to lower power and fertiliser costs.

With an eye on promoting clean energy source, the government has reduced basic customs duty on solar tempered glass used in solar panels from 5 per cent to nil.

Likewise, the basic customs duty and CVD on all items of machinery required for fuel cell based power generating systems to be set up in the country lowered to 5 and 6 per cent from 10/7 and 12.5 per cent earlier.

Also, the basic customs duty, on resins and catalyst for manufacture of cast components for wind operated energy generator has been lowered to 5 per cent from 7.5 per cent earlier, while CVD and SAD on these items have been slashed to nil from 12.5 per cent and 4 per cent, respectively earlier.

Continuing the focus on promoting leather industry, Jaitley announced that basic customs duty on vegetable tanning extracts used in making leather products such as bags and shoes has been slashed to 2.5 per cent from 7.5 per cent earlier.

Miniaturised POS card reader for m-POS, micro ATM as per standard version, finger print reader/scanner and iris scanner will also be cheaper as duty on these item have been reduced to nil.

For the defence forces, services provided or agreed to be provided by the Army, Naval and Air Force Group Insurance Funds by way of life insurance to their members under the Group Insurance Schemes of the Central Government is being exempted from service tax as against 14 per cent charged earlier.

Budget 2017-18 Highlights

 

  1. India stands out as a bright spot amid world economic gloom .

    2. Our focus will be on energising youth to reap benefits of growth and employment.

    3. IMF estimates world GDP will grow by 3.4 per cent in 2017 .

    4. Oil prices, rising dollar and volatile commodity prices seen as risks to Indian economy.

    5. India is seen as engine of global growth, have witnessed historic reform in last one year.

    6. Demonetisation is a bold and decisive measure, for many decades tax evasion was a way of life for many.

    7. Note ban is expected to have only a transient impact on economy .

    8. I am reminded of what our father of the nation Mahatma Gandhi said: “A right cause never fails”.

    9. The pace of remonetisation has picked up.

    10. Effects of demonetisation not expected to spill over to next year.

    11. Budget preponement to February 1 will give sufficient time to departments to implement government schemes.

    12. Our Budget agenda is – transform, energise and clean India – TEC India.

    13. Our approach in preparing the Budget is to spend more on rural areas, infrastructure and poverty alleviation with fiscal prudence .

    14. Agriculture sector is expected to grow at 4.6%, agriculture expenditure targeted at Rs 10 lakh crore.

    15. 36% increase in FDI flow; forex reserves at $361 billion in January, which is enough to cover 12 months needs.

    16. Allocation under MNREGA increased to 48,000 crore from Rs 38,500 crore. This is highest ever allocation

    17. Total allocation for rural, agricultural and allied sectors for 2017-18 is Rs 187223 crore, which is 24% higher than last year .

    18. One crore houses for poor by 2019.

    19. Safe drinking water to cover 28,000 arsenic and Fluoride-affected habitations in the next four years.

    20. 133-km road per day constructed under Pradhan Mantri Gram Sadak Yojana as against 73-km in 2011-14 .

    21. For senior citizens, Aadhar cards giving their health condition will be introduced .

    22. Two new All India Institute of Medical Sciences(AIIMS) to be set up in Jharkhand and Gujarat .

    23. 3500km railway lines to be put up.

    24. Service charge on rail tickets booked through IRCTC to be withdrawn.

    25. Rail safety fund with corpus of Rs 100,000 crore will be created over a period of five years.

    26. 500 rail stations to be made differently abled-friendly by providing lifts and escalators .

    27. A new metro rail policy will be announced, this will open up new jobs for our youth.

    28. Foreign investment promotion board (FIPB) to be abolished .

    29. Allocation for infrastructure stands at a record Rs 3,96,135 crore .

    30. Government to set up strategic crude oil reserves in Odisha and Rajasthan.

    31. 1.25 crore people have already adopted Bhim App for digital payments .

    32. Aadhaar Pay- an app for merchants- to be launched' 20 lakh aadhaar-based POS by September 2017 .

    33. Government is considering introduction of new law to confiscate assets of offenders who escape the country.

    34. Defence expenditure excluding pension at Rs 2.74 lakh crore .

    35. Fiscal deficit for 2017-18 pegged at 3.2 percent of GDP .

    36. Fiscal deficit target for next three years pegged at 3 percent.

    37. 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.

    38. Out of 3.7 crore who filed tax returns in 2015-16, only 24 lakh persons showed income above Rs 10 lakh.

    39. Of 76 lakh individuals who reported income of over Rs 5 lakh, 56 lakh are salaried.

    40. Small firms with turnover up to Rs 50 crore to pay 25% tax now, instead of 30%.

    41. Black money SIT has suggested no cash transaction above Rs 3 lakh. The government has accepted this recommendation .

    42. Maximum cash donation any party can receive will be Rs 2000 from one source.

    43. Political parties will be entitled to receive donations by cheques or digital modes .

    44. An amendment being proposed to RBI Act to enable the issuance of electoral bonds for political funding.

    45. Jaitley reduces income tax rate from 10% to 5% for tax slab of Rs 250,000 to Rs 500,000 .

    46. Surcharge of 10% for those whose annual income is Rs 50 lakh to 1 crore .

    47. 15% surcharge on incomes above Rs 1 crore to continue.

    48. Food subsidy estimated at Rs 1.45 trillion in 2017/18 versus Rs 1.35 trillion revised estimate for 2016/17

Northlines
Northlines
The Northlines is an independent source on the Web for news, facts and figures relating to Jammu, Kashmir and Ladakh and its neighbourhood.

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