Historic Date: 01/02/2017
Time: 11:00 AM
Venue: Parliament, Delhi
Agenda: 'Sabka Sath Sabka Vikas'
Final Verdict of Announcing the Budget: By Sumitra Mahajan after the sad demise of E. Ahamed
Why Historic: The very first time the Railway Budget is being combined and presented with the Union Budget.
Experts say: It should try to remove the fear from taxpayers within the people.
Fourth Budget by Bhartiya Janta Party
Major reason to shift it to February 1: To enable the Parliament to avoid a vote on account and pass a single appropriation bill for 2017-18 before the close of the current financial year. This would enable to operationalise all schemes and projects right from the commencement of the next financial year.
Presentation of went ahead as planned and this is what Budget 2017 has for the country:
He said the expectations from the party included:
1) Burning issues like inflation and price rise
3) Better utilization of the natural resources of the country.
The government is now seen as the trusted custodian of the country.
Demonetization has a strong potential to generate long-term benefits which will lead to increased GDP and higher tax revenues. The effects of demonetization are not expected to spill over next year.
Budget 2017-18 contains three major reforms:
1) The presentation of the budget had been advanced to the February 1, to enable the Parliament to avoid a vote on account and pass a single appropriation bill for 2017-18 before the close of the current financial year. This would enable to operationalise all schemes and projects right from the commencement of the next financial year.
2) The merger of the Railway Budget with the Union Budget.
3) Done away with the planned and non-planned classification of expenditure.
2) Rural Population
3) Youth jobs and skills
4) Poor and underprivileged
6) Financial Sector
8) Public Service and effective governance
9) Prudent Fiscal management.
10) Tax administration honoring the honest
Total expenditure of Budget 2017-18 has been placed at Rs 21.47 lakh crore.
- Support NABARD for computerization and integration for 63,000 functional PSEs with core banking support in three years at the cost of 1,900 crores.
- The coverage of Fasal BIMA Yojana will increase from the current 30 percent of the cropped area in 2016-17 to 40 percent in 2017-18 and 40 percent in 2018-19. The budget provision of Rs. 5,500 in the Yojana in 2016 is increased to 13,240 crores to 2016-17.
- The real benefit to the farmers will be available after testing the soil and therefore the government will set up a mini lab in the Krishi Vigyan Kendra to ensure 100 percent coverage for all 648 KVKs in the country.
- A long-term irrigation has been set up by NABARD which has an addition of Rs 20,000 crores.
- Safe drinking water to 28,000 arsenic and fluoride affected habitations.
- Rs 10 lakh crores to the farmers as credit.
- Agriculture expenditure targeted at Rs 10 lakh crores; agriculture expected to grow by 4.6 percent.
- Demand for tractors and two-wheelers to rise.
- 50,000 Gram panchayats to be made poverty free by the year 2019.
- Dairy processing infrastructure fund to be set up with a fund of Rs 8,000 crore under NABARD.
- Assistance for cleaning and packaging of farmer produce up to RS 75 lakh
- Pradhan Mantri Gram Sadak Yojna roads work accelerated to 133 km roads per day in 2016-17 as against 73 km per day during 2011-14.
- Govt plans one crore houses for poor by 2019; PM Awas Yojana gets Rs 23,000 crore.
- Allocation for MGNREGA at Rs 48,000 crore; highest ever.
- Increase in FDI flow by 36 percent.
- Forex reserves at $361 billion in January enough to cover 12 months needs.
- Propose to leverage ICT with the launch of "Swayam" platform which has 350 free courses.
- Villages will be electrified, have sleek roads and houses for everyone by 2018.
- For skill strengthing of youth: Sankalp
- Labour law to have four codes after simplification
- MAT can be carried further for 15 years as against by the companies 10 years allowed earlier.
- Base year of indexation 2001; holding period for long-term capital gains for immobile assets reduced to 2 years from 3 years.
- Tax increased by 34.8% due to demonetization advance tax on personal income.
- Holding period in capital gains tax in real estate reduced to 2 years
- With the aim of generating 20,000 MW second phase of solar power development to be taken up.
- Trade Infrastructure Export Scheme to be launched in 2017-18; total allocation for infra at record Rs 3.96 lakh crore
- Rs 2,74,114 crore allocated for defence expenditure (excluding pension) and this includes Rs 86,000 crore for defence capital
- Defence budget raised by 10 percent to Rs 2,74,000 crore.
30) Allocation for national highways stepped up from Rs 57,676 crore to Rs 64,000 crore
- Allocation of Rs 10,000 crore for Bharat Net project for providing high-speed broadband in the financial year 2018.
- Government to provide Rs 2.41 lakh crore for transport sector including road, railways, and shipping.
- Apart from three already constructed crude oil strategic reserves to be set up in Odisha and Rajasthan.
- Digi Gaon to be launched to promote education and tele-medicine.
- An increased allocation for scientific ministry to Rs 37,435 crore in 2017-18.
- Freeing CBSE of entrance test chores is a good idea.
- Fiscal Deficit targeted for 2017-18 is 3.2%.
- Govt Capital expenditure raised 25%
- Aadhar payment to come soon.
- Government proposes to merge state oil companies with an attempt to create a $100-billion behemoth.
- Sanitation cover under Swachh Bharat is at 60 percent now.
- Revenue deficit reduced to 2.3 percent to 2.1 percent.
- Big disappointment on corporate tax, it has been reduced only for small companies.
- Head post offices will be issuing passports.
- The government will be bringing scheme for leather and footwear sector.
- Customs duty halved to 2.5 per cent on LNG.
- Maximum donation a political party can receive from any one source in cash is Rs 2,000.
- 5 percent TDS on insurance agents removed.
- No change in service and excise tax due to upcoming GST.
- With a support of Rs 55,000 crore Budget outlay for Railways raised to Rs 1,31,000 crore.
- No service charge on tickets booked by IRCTC will be taken.
- 25 new stations to be developed
- Railway safety of Rs 1 lakh crore to be set up over a period of 5 years.
- Railway lines of 3,500 km commissioned.
- Railway related state-run companies like IRCTC and IRCON to be listed on stock exchanges.
- All coaches of Indian Railways will be fitted with bio-toilets BY 2019.
- Total capital & developmental expenditure of Rs 1.31 lakh crore for Railways for the financial year 2017-18, including Rs 55,000 crore will be provided by the government.
- Surcharge of 10% on income between Rs 50 lakh to 1 crore.
- Surcharge of 10% in those with income above 50 lakhs per annum.
- Tax exemption limit has been increased from current 2.5 lakh per annum to 3 lakhs.
It is the best budget, no new proposals.