Here are the highlights of Union Budget 2017. The Budget broadly focussed on 10 themes.
The 2017 Union Budget, presented by Finance Minister Arun Jaitley on Wednesday, 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.
- Demonetisation is expected to have a transient impact on the economy.
- 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.
- A sum of Rs. 10 lakh crore is allocated as credit to farmers, with 60 days interest waiver.
- NABARD fund will be increased to Rs. 40,000 crore.
- Irrigation corpus increased from Rs 20,000 crore to Rs 40,000 crore.
- The government targets to bring 1 crore households out of poverty by 2019.During 2017-18, five lakh farm ponds will be be taken up under the MGNREGA.
- Over Rs 3 lakh crore will be spent for rural India. MGNREGA to double farmers’ income.
- The government proposes to complete 1 crore houses for those without homes.
- The country well on way to achieve 100% rural electrification by March 2018.
- 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.
- Skill India mission was launched to maximise potential. Will set up 100 India International centres across the country.
For the poor and underprivilege health care.
- 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.
Infrastructure and railways
- A total allocation of Rs. 39,61,354 crore has been made for infrastructure.Total allocation for Railways is Rs. 1,31,000 crore.
- No service charge on tickets booked through IRCTC.
- High speed Internet to be allocated to 1,50,000 gram panchayats.
- 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.
- FDI policy reforms – more than 90% of FDI inflows are now automated.
- Shares of Railway PSE like IRCTC will be listed on stock exchanges.
- Bill on resolution of financial firms will be introduced in this session of Parliament.
- Total expenditure is Rs. 21, 47,000 crore.
- Plan, non-plan expenditure to be abolished; focus will be on capital expenditure, which will be 25.4 %.
- Rs. 3,000 crore under the Department of Economic Affairs for implementing the Budget announcements.
Funding of political parties
- The maximum amount of cash donation for a political party will be Rs. 2,000 from any one source.
- Political parties will be entitled to receive donations by cheque or digital mode from donors.
- The defence sector gets an allocation of Rs. 2.74,114 crore.
- The Income Tax Act to be amended to ensure that no transaction above Rs 3 lakh is permitted in cash.
- The limit of cash donation by charitable trusts is reduced to Rs 2,000 from Rs 10,000.
Personal income tax
- Existing rate of tax for individuals between Rs. 2.5- Rs 5 lakh is reduced to 5% from 10%.
- 10 % surcharge on individual income above Rs. 50 lakh and up to Rs 1 crore.