Thursday, February 2, 2017

Sector-wise Budget 2017-18 : Highlights – At a Glance

Opening Remarks

·       Our govt was elected amidst huge expectations; underlying theme was good governance
·       Massive war against black money has been launched
·       Govt now seen as a trusted custodian of public money
·       Focus on energizing youth to reap benefits of growth
·       World economy faces considerable uncertainty
·       Three major challenges for emerging economies: US Fed stance, uncertainty over commodity prices especially oil prices, signs of increasing retreat from globalization as protectionist fears build up 

Tax Administration

·       Black Money: No cash transaction above Rs. 3 lakh
·       Transparency in political funding: Parties continue to receive anonymous donations; proposed system to c lean up limits maximum amount of cash donations to Rs. 2000/=. No limit to payment through cheques or digitally. Amendment proposed to RBI Act to issue electoral bonds. Every party will have to file returns within specified time
·       Exempt FPI Category 1 & 2 investors from indirect provisions
·       Time period of revising tax returns reduced to twelve months income
·       Personal Income Tax: Rate reduced to 5% for income bracket Rs 2.5-5 Lakh. All categories to get uniform benefit of Rs 12.500 per person. Levy of  10% surcharge on bracket Rs 50 Lakh-Rs 1 Crore
·       Personal Income Tax: To have simple one page form for taxable income up to Rs 5 Lakh
·       Direct tax collection not commensurate with income/expenditure pattern of India
·       We are largely a Tax non –compliant society; predominance  of cash in society enable tax evasion
·       After demonetization; data received  will increase tax net
·       Real Estate: Changes in capital gain tax
·       Concessional withholding rate will be extended to 30 June2020 and for  rupee-denominated masala bonds
·       Start-ups: Relaxing holding rules
·       MAT not to be abolished at present; to allow carry forward for 15 years
·       Corporate tax rate: MSME’s rate (annual turnover less than Rs 50 Crore) reduced to 25%
·       Limit of cash donation for Charitable Trusts reduced to Rs 2000/=

Fiscal Management

·       Total Budget expenditure  Rs 21 trillion
·       Rs 3,000 crore to implement various budget announcements
·       Defence expenditure  excluding pensions is Rs 2,74,114 Crore
·       Consolidated outcome budget for all ministries being created
·       FRBM review panel has recommended debt-to-GDP of 60%
·       Fiscal deficit for FY18 pegged at 3.2% of GDP
·       Revenue deficit for FY 18 at 1.9%
·       Public Service
·       To use Head post office for  passport services
·       Defence: Centralized defence travel system developed
·       Defence: Centralised Pension distribution system to be  established
·       Govt recruitment: To introduce two-tier exam system
·       Considering introducing laws to confiscate assets of economic defaulters
·       High-level panel chaired by PM to commemorate Mahtama Gandhi’s 150th birth anniversary

Digital Economy

·       India at cusp of digital revolution
·       Govt to launch 2 scheme including cash back scheme for merchants
·       AADHAAR  Pay for people who don’t have mobile phones
·       Focus on rural and semi-urban areas
·       To strengthen financial inclusion fund
·       Panel on digital payments has recommended structural reforms
·       To create payment board at RBI

Financial Sector

·       FDI policy: FIPB to be abolished
·       Commodities market: Panel to study legal framework for spot & derivative market
·       Resolution mechanism for financial firms
·       Cyber security: Computer emergency response to be set up
·       Listing of PSEs will foster public accountability; revised mechanism for time-bound listing
·       To create integrated public sector oil major
·       Pradhan Mantri Mudra Yojana: Lending target at 2.44 trillion
·       Stand-up India scheme: Over 16,000 new enterprises have been set up


·       Total Capex & development expenditure of railways pegged at Rs 1,31,000 Crore
·       Railways: Passenger safety fund corpus set up. Unmanned level crossing to be eliminated by 2020
·       Railway lines of 3,500km to be commissioned
·       To launch dedicated tourism/pilgrimage trains
·       500 stations to be made differently-abled friendly
·       Cleanliness in Railways: To introduce Coach Mitra facility. By 2019, bio-toilets for all coaches
·       Railways to offer competitive ticket-booking facility. Service charge withdrawn from IRCTC
·       New metro rail policy to be announced
·       Roads sector: National highways allocation at Rs 64,000 Crore
·       AAI Act to be amended to enable monetization of land resources
·       Transport sector: Allocation at Rs 2 trillion
·       Telecom Sector: Allocation to Bharat Net programme at Rs 10,000 Crore
·       Digi-gau initiative to be launched
·       To make India global hub for electronics manufacture
·       Export infra: New restructured central scheme to be launched
·       Total allocation for infrastructure Rs 3.96 trillion

Poor & Underprivileged

·       Women: Mahila  Shakti Kendras with Rs 500 Crore corpus
·       Stepped up allocation to Rs 1,84,632 Crore for various schemes for women and children
·       Affordable housing to be given infrastructure status
·       Action plan to eliminate leprosy by 2018, TB by 2025, reduce IMR to 29 in 2019
·       To create additional PG medical seats
·       Two new AIIMS in Jharkhand & Gujarat
·       New rules for medical devices
·       Labour rights: Legislative  reforms to simplify existing labour laws
·       Allocation to SCs increased to Rs 52,393 crore; STs to Rs 31,920 crore, Minority affairs Rs 4,195 crore


·       Education: System of measuring annual learning outcomes, emphasis on science
·       Innovation fund for secondary education
·       Reforms in UGC: Colleges to be identified based on ranking  and given autonomy
·       Propose to leverage IT with launch of SWAYAM  platform for virtual learning
·       National testing agency to be established for all entrance exams, freeing CBSE & AICTE
·       100 Indian international skill centres to be established with courses in foreign language
·       To launch skill acquisition and knowledge awareness  -  Rs 4,000 crore
·       Special  scheme for  creating employment in leather/footwear sector
·       Tourism: Five special zones to be set up


·       Farmer  credit fixed at record level of Rs 10 trillion; will ensure adequate flow to underserved areas
·       Soil health cards: Govt to set up mini-labs in Krishi Vignan Kendras
·       Long-term irrigation fund in Nabard-corpus at Rs 40,000 crore
·       Model law on contract farming to be circulated
·       Dairy processing infra fund with corpus at Rs 8,000 crore
·       Dedicated micro-irrigation fund with Rs 5,000 crore corpus

Rural Population

·       Mission Antyodaya to bring 1 crore  households of pverty
·       MGNREGA: Participation of women now at 55%
·       MGNREGA: Rs 48,000 crore allocated
·       MGNREGA: using space technology in a big way
·       Prime Minister Gram Sadak Yogna: Rs 1,9000 crore allocated; along with states, Rs 27,000 crore to be  spent in FY18
·       Pradhan Mantri Awas Yogana: Rs  23,000 crore allocated
·       100% village electrification by May 2018
·       Rural livelihood mission: Rs 4,500 crore allocated
·       Mason training for 5 lakh people
·       Panchyat Raj: HR resource programme to be launched

·       Rs 1,87,223 crore for rural programmes

1 comment:

  1. Thanks for the easy-to-understand and informative blog. This year's budget has a lot for every sector. Indian real estate sector is also going to get benefited from the announcements and policies made for its improvement. Affordable housing segment is going to be the biggest gainer with the sector getting infrastructure status. Apart from this, the real estate market will see various other changes as well. Those interested in having a look at the real estate trends for 2017 can check the blog: http://www.blog.propchill.com/6-major-trends-anticipated-for-indian-real-estate-in-2017/