Annual Budget presentation is a crucial activity discharged by the government in-action. It is closely watched and analysed by all stakeholders of the economy. This year on 1st February 2017, the Union Finance Minister Arun Jaitley presented his 4th Annual Budget 2017 in the Lok Sabha. In the independent India, this will be the 87th budget and the third of the Modi Sarkar. The budget revolved around 10 focus areas which are mentioned as under:
- Growth and Stability
- Indian Farming Sector
- Tax Administration
- Prudence fiscal management
- Public Service Delivery
- Digital Economy
- Financial Sector
- Rural Infrastructure
- Education, Skill and Employment
In this article we will provide you annual budget highlighting that are significant for the year 2017-18. These issues are expected to be covered in all the entrances and hence it is important to read them carefully.
It is also important to understand the reforms that are going to affect the status quo of the existing economic growth. Let us take a look at each provision and announcement that has been made by the finance minister in the Budget 2017-18. But before we proceed with the sector analysis of each sector, let us first read some interesting facts about the Annual Budget 2017-18. For a detailed look at the annual budget details, you can also download the free PDF that is provided at the end of this informative article.
Let us take a brief look at some interesting highlights that are a matter of great concern for the nation:
In the agriculture sector the target for agricultural credit in 2017-18 has been fixed at a record level of Rs.10 lakh crores. In addition, coverage under Fasal Bima Yojana scheme will be increased from 30% of cropped area in 2016-17 to 40% in 2017-18 and 50% in 2018-19 for which a budget provision of Rs.9000 crore has been made.
For Rural Population, over Rs. 3 lakh crores spent in rural areas every year, for rural poor from Central Budget, State Budgets, Bank linkage for self-help groups, etc. Alongside, women participation in MGNREGA has increased to 55% from less than existing 48%. Total allocation for Rural, Agriculture and Allied sectors is Rs. 187223 crores.
For the youth of India, Innovation Fund for Secondary Education proposed to encourage local innovation for ensuring universal access, gender parity and quality improvement to be introduced in 3479 educationally backward districts. Next phase of Skill Strengthening for Industrial Value Enhancement (STRIVE) will also be launched in 2017-18 at a cost of Rs. 2,200 crores.
For the poor and underprivileged, Mahila Shakti Kendra will be set up with an allocation of Rs. 500 crores in 14 lakh ICDS Anganwadi Centres. This will provide one stop convergent support services for empowering rural women with opportunities for skill development, employment, digital literacy, health and nutrition. Under the Maternity Benefit Scheme Rs. 6,000/- each will be transferred directly to the bank accounts of pregnant women who undergo institutional delivery and vaccinate their children. Government has prepared an action plan to eliminate Kala-Azar and Filariasis by 2017, Leprosy by 2018, Measles by 2020 and Tuberculosis by 2025 is also targeted.
For the Railways department, for FY 2017-18, the total capital and development expenditure of Railways has been pegged at Rs. 1,31,000 crores. This includes Rs. 55,000 crores provided by the Government. Additionally, SMS based Clean My Coach Service has been started.
In the road and transportation sector, Budget allocation for highways increased from Rs. 57,976 crores in BE 2016-17 to Rs. 64,900 crores in 2017-18. By the end of 2017-18, high speed broadband connectivity on optical fibre will be available in more than 1,50,000 gram panchayats, under BharatNet. A DigiGaon initiative will be launched to provide tele-medicine, education, and skills through digital technology.
In the financial sector, Bill relating to curtail the menace of illicit deposit schemes will be introduced. A Computer Emergency Response Team for our Financial Sector (CERT-Fin) will also be established. In line with the ‘Indradhanush’ roadmap, Rs. 10,000 crores for recapitalisation of Banks provided in 2017-18.
When we see digital economy, it should be noted that 125 lakh people have adopted the BHIM app so far. The Government will launch two new schemes to promote the usage of BHIM. A mission will be set up with a target of 2,500 crore digital transactions for 2017-18 through UPI, USSD, Aadhar Pay, IMPS and debit cards. In order to promote digital economy, under scheme of presumptive income for small and medium tax payers whose turnover is upto Rs. 2 crores, the present, 8% of their turnover which is counted as presumptive income is reduced to 6% in respect of turnover which is by non-cash means. Most importantly, no transaction above Rs. 3 lakh would be permitted in cash subject to certain exceptions.
In terms of public service, a Centralised Defence Travel System has been developed through which travel tickets can be booked online by our soldiers and officers. Web based interactive Pension Disbursement System for Defence Pensioners will be established.
Government has also made some lucrative announcements in the direction of affordable housing and real estate sector. Under the scheme for profit-linked income tax deduction for promotion of affordable housing, carpet area instead of built up area of 30 and 60 Sq.mtr. will be counted. Reduction in the holding period for computing long term capital gains from transfer of immovable property from 3 years to 2 years. Also, the base year for indexation is proposed to be shifted from 1.4.1981 to 1.4.2001 for all classes of assets including immovable property.
In order to facilitate transparency in electoral funding, maximum amount of cash donation, a political party can receive, will be Rs. 2000/- from one person. Every political party would have to file its return within the time prescribed in accordance with the provision of the Income-tax Act.
Taking a glance at the income tax slab for the FY 2017-18, Existing rate of taxation for individual assesses between income of `2.5 lakhs to 5 lakhs reduced to 5% from the present rate of 10% thereby giving a tax relief to the existing salary class. Surcharge of 10% of tax payable on categories of individuals whose annual taxable income is between `50 lakhs and ` 1 crore
These highlights of the annual budget are a synopsis of the otherwise detailed budget that you can read in the PDF compiled for you. All you need to do is download the freely available mobile friendly PDF and read it ON THE GO!
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