Key Features of Budget 2017-2018
INTRODUCTION
1. Inflation brought under control. CPI-based inflation declined from 6% in July 2016 to 3.4% in December, 2016.
2. Economy has moved on a high growth path. India’s Current Account Deficit declined from about 1% of GDP last year to 0.3% of GDP in the first half of 2016-17. FDI grew 36% in H1 2016-17 over H1 2015-16, despite 5% reduction in global FDI inflows. Foreign exchange reserves have reached 361 billion US Dollars as on 20th January, 2017
3. The Indian economy has been robust to mild shocks and IMF forecasts, India to be one of the fastest growing major economies in 2017
2. Economy has moved on a high growth path. India’s Current Account Deficit declined from about 1% of GDP last year to 0.3% of GDP in the first half of 2016-17. FDI grew 36% in H1 2016-17 over H1 2015-16, despite 5% reduction in global FDI inflows. Foreign exchange reserves have reached 361 billion US Dollars as on 20th January, 2017
3. The Indian economy has been robust to mild shocks and IMF forecasts, India to be one of the fastest growing major economies in 2017
FARMERS
1. Target for agricultural credit in 2017-18 has been fixed at a record level of
` 10 lakh crores.
2.Farmers will also benefit from 60 days’ interest waiver announced on 31 Dec 2016
3. To ensure flow of credit to small farmers, Government to support NABARD for computerisation and integration of all 63,000 functional Primary Agriculture Credit Societies with the Core Banking System of District Central Cooperative Banks. This will be done in 3 years at an estimated cost of ` 1,900 crores
4. 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 ` 9000 crore has been made
5. As announced by the Honourable Prime Minister, the Long Term Irrigation Fund already set up in NABARD to be augmented by 100% to take the total corpus of this Fund to ` 40,000 crores.
6. Dedicated Micro Irrigation Fund in NABARD to achieve ‘per drop more crop’ with an initial corpus of ` 5,000 crores
7. Coverage of National Agricultural Market (e-NAM) to be expanded from 250 markets to 585 APMCs. Assistance up to ` 75 lakhs will be provided to every e-NAM
8. Dairy Processing and Infrastructure Development Fund to be set up in NABARD with a corpus of ` 2000 crores and will be increased to ` 8000 crores over 3 years
2.Farmers will also benefit from 60 days’ interest waiver announced on 31 Dec 2016
3. To ensure flow of credit to small farmers, Government to support NABARD for computerisation and integration of all 63,000 functional Primary Agriculture Credit Societies with the Core Banking System of District Central Cooperative Banks. This will be done in 3 years at an estimated cost of ` 1,900 crores
4. 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 ` 9000 crore has been made
5. As announced by the Honourable Prime Minister, the Long Term Irrigation Fund already set up in NABARD to be augmented by 100% to take the total corpus of this Fund to ` 40,000 crores.
6. Dedicated Micro Irrigation Fund in NABARD to achieve ‘per drop more crop’ with an initial corpus of ` 5,000 crores
7. Coverage of National Agricultural Market (e-NAM) to be expanded from 250 markets to 585 APMCs. Assistance up to ` 75 lakhs will be provided to every e-NAM
8. Dairy Processing and Infrastructure Development Fund to be set up in NABARD with a corpus of ` 2000 crores and will be increased to ` 8000 crores over 3 years
RURAL AREAS
1. Against target of 5 lakh farm ponds under MGNREGA, 10 lakh farm ponds
would be completed by March 2017. During 2017-18, another 5 lakh farm
ponds will be taken up
2. Women participation in MGNREGA has increased to 55% from less than 48%
3. MGNREGA allocation to be the highest ever at ` 48,000 crores in 2017-18.
4. Government has taken up the task of connecting habitations with more than 100 persons in left wing extremism affected Blocks under PMGSY. All such habitations are expected to be covered by 2019 and the allocation for PMGSY, including the State's Share is ` 27,000 crores in 2017-18
5. Allocation for Pradhan Mantri Awaas Yojana – Gramin increased from ` 15,000 crores in BE 2016-17 to ` 23,000 crores in 2017-18 with a target to complete 1 crore houses by 2019 for the houseless and those living in kutcha houses.
6. Total allocation for Rural, Agriculture and Allied sectors is ` 187223 crores
2. Women participation in MGNREGA has increased to 55% from less than 48%
3. MGNREGA allocation to be the highest ever at ` 48,000 crores in 2017-18.
4. Government has taken up the task of connecting habitations with more than 100 persons in left wing extremism affected Blocks under PMGSY. All such habitations are expected to be covered by 2019 and the allocation for PMGSY, including the State's Share is ` 27,000 crores in 2017-18
5. Allocation for Pradhan Mantri Awaas Yojana – Gramin increased from ` 15,000 crores in BE 2016-17 to ` 23,000 crores in 2017-18 with a target to complete 1 crore houses by 2019 for the houseless and those living in kutcha houses.
6. Total allocation for Rural, Agriculture and Allied sectors is ` 187223 crores
YOUTH
1. To introduce a system of measuring annual learning outcomes in our
Schools.
2. SWAYAM platform, leveraging IT, to be launched with at least 350 online courses. This would enable students to virtually attend courses taught by the best faculty
3. Pradhan Mantri Kaushal Kendras to be extended to more than 600 districts across the country. 100 India International Skills Centres will be established across the country.
4. Skill Acquisition and Knowledge Awareness for Livelihood Promotion programme (SANKALP) to be launched at a cost of ` 4000 crores. SANKALP will provide market relevant training to 3.5 crore youth
5. Next phase of Skill Strengthening for Industrial Value Enhancement (STRIVE) will also be launched in 2017-18 at a cost of ` 2,200 crores
2. SWAYAM platform, leveraging IT, to be launched with at least 350 online courses. This would enable students to virtually attend courses taught by the best faculty
3. Pradhan Mantri Kaushal Kendras to be extended to more than 600 districts across the country. 100 India International Skills Centres will be established across the country.
4. Skill Acquisition and Knowledge Awareness for Livelihood Promotion programme (SANKALP) to be launched at a cost of ` 4000 crores. SANKALP will provide market relevant training to 3.5 crore youth
5. Next phase of Skill Strengthening for Industrial Value Enhancement (STRIVE) will also be launched in 2017-18 at a cost of ` 2,200 crores
THE POOR AND THE UNDERPRIVILEGED
1. Under Maternity Benefit Scheme ` 6,000 each will be transferred directly
to the bank accounts of pregnant women who undergo institutional
delivery and vaccinate their children
2. Affordable housing to be given infrastructure status
National Housing Bank will refinance individual housing loans of about ` 20,000 crore in 2017-18
3. To create additional 5,000 Post Graduate seats per annum to ensure adequate availability of specialist doctors to strengthen Secondary and Tertiary levels of health care
4. Two new All India Institutes of Medical Sciences to be set up in Jharkhand and Gujarat
5. The allocation for Scheduled Castes has been increased by 35% compared to BE 2016-17. The allocation for Scheduled Tribes has been increased to ` 31,920 crores and for Minority Affairs to ` 4,195 crores
2. Affordable housing to be given infrastructure status
National Housing Bank will refinance individual housing loans of about ` 20,000 crore in 2017-18
3. To create additional 5,000 Post Graduate seats per annum to ensure adequate availability of specialist doctors to strengthen Secondary and Tertiary levels of health care
4. Two new All India Institutes of Medical Sciences to be set up in Jharkhand and Gujarat
5. The allocation for Scheduled Castes has been increased by 35% compared to BE 2016-17. The allocation for Scheduled Tribes has been increased to ` 31,920 crores and for Minority Affairs to ` 4,195 crores
INFRASTRUCTURE
1. For transportation sector as a whole, including rail, roads, shipping,
provision of ` 2,41,387 crores has been made in 2017-18.
2. For 2017-18, the total capital and development expenditure of Railways has been pegged at ` 1,31,000 crores. This includes ` 55,000 crores provided by the Government
3. For passenger safety, a Rashtriya Rail Sanraksha Kosh will be created with a corpus of ` 1 lakh crores over a period of 5 years
4. Railway lines of 3,500 kms will be commissioned in 2017-18. During 2017-18, at least 25 stations are expected to be awarded for station redevelopment.
5. SMS based Clean My Coach Service has been started
‘Coach Mitra’, a single window interface, to register all coach related complaints and requirements to be launched
6. In the road sector, Budget allocation for highways increased from ` 57,976 crores in BE 2016-17 to ` 64,900 crores in 2017-18
2. For 2017-18, the total capital and development expenditure of Railways has been pegged at ` 1,31,000 crores. This includes ` 55,000 crores provided by the Government
3. For passenger safety, a Rashtriya Rail Sanraksha Kosh will be created with a corpus of ` 1 lakh crores over a period of 5 years
4. Railway lines of 3,500 kms will be commissioned in 2017-18. During 2017-18, at least 25 stations are expected to be awarded for station redevelopment.
5. SMS based Clean My Coach Service has been started
‘Coach Mitra’, a single window interface, to register all coach related complaints and requirements to be launched
6. In the road sector, Budget allocation for highways increased from ` 57,976 crores in BE 2016-17 to ` 64,900 crores in 2017-18
FINANCIAL SECTOR
1. Foreign Investment Promotion Board to be abolished in 2017-18 and
further liberalisation of FDI policy is under consideration
2. A mechanism to streamline institutional arrangements for resolution of disputes in infrastructure related construction contracts, PPP and public utility contracts will be introduced as an amendment to the Arbitration and Conciliation Act 1996.
3. In line with the ‘Indradhanush’ roadmap, ` 10,000 crores for recapitalisation of Banks provided in 2017-18
4. Lending target under Pradhan Mantri Mudra Yojana to be set at ` 2.44 lakh crores. Priority will be given to Dalits, Tribals, Backward Classes and Women.
2. A mechanism to streamline institutional arrangements for resolution of disputes in infrastructure related construction contracts, PPP and public utility contracts will be introduced as an amendment to the Arbitration and Conciliation Act 1996.
3. In line with the ‘Indradhanush’ roadmap, ` 10,000 crores for recapitalisation of Banks provided in 2017-18
4. Lending target under Pradhan Mantri Mudra Yojana to be set at ` 2.44 lakh crores. Priority will be given to Dalits, Tribals, Backward Classes and Women.
DIGITAL ECONOMY
1. 125 lakh people have adopted the BHIM app so far. The Government will
launch two new schemes to promote the usage of BHIM; these are,
Referral Bonus Scheme for individuals and a Cashback Scheme for
Merchants
2. 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
3. Banks have targeted to introduce additional 10 lakh new POS terminals by March 2017. They will be encouraged to introduce 20 lakh Aadhar based POS by September 2017
2. 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
3. Banks have targeted to introduce additional 10 lakh new POS terminals by March 2017. They will be encouraged to introduce 20 lakh Aadhar based POS by September 2017
TRANSPARENCY IN ELECTORAL FUNDING
1. Need to cleanse the system of political funding in India
2. Maximum amount of cash donation, a political party can receive, will be 2000/- from one person.
2. Maximum amount of cash donation, a political party can receive, will be 2000/- from one person.
PERSONAL INCOME-TAX
1. 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%
1. Surcharge of 10% of tax payable on categories of individuals whose annual taxable income is between `50 lakhs and ` 1 crore
3. Simple one-page form to be filed as Income Tax Return for the category of individuals having taxable income upto ` 5 lakhs other than business income
4. Appeal to all citizens of India to contribute to Nation Building by making a small payment of 5% tax if their income is falling in the lowest slab of 2.5 lakhs to 5 lakhs.
1. Surcharge of 10% of tax payable on categories of individuals whose annual taxable income is between `50 lakhs and ` 1 crore
3. Simple one-page form to be filed as Income Tax Return for the category of individuals having taxable income upto ` 5 lakhs other than business income
4. Appeal to all citizens of India to contribute to Nation Building by making a small payment of 5% tax if their income is falling in the lowest slab of 2.5 lakhs to 5 lakhs.
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