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
Infrastructure
·
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
Youth
·
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
Farmers
·
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