Highlights of Jaitley's fiscally prudent Budget 2017

Income tax rate cut to 5% for individuals having income between Rs 2.5 lakh-Rs 5 lakh

Highlights-of-Jaitley's-fiscally-prudent-Budget-2017

Here are the highlights of Jaitley's budget for the 2017/18 fiscal year that begins on Feb 1.

FISCAL DEFICIT
  • The 2017/18 budget seeks to pursue prudent fiscal management to preserve financial stability.
  • Fiscal deficit at 3.4% 
  • Revenue deficit stands reduced to 2.1% in Fy18
GROWTH
Jaitley says India seen as an engine of global growth

DEMONETISATION
  • Demonetisation "a bold and decisive measure", will make GDP bigger and lead to higher tax revenues - finance minister
  • Hit to economy from government decision to outlaw high-denomination notes will be "transient", effects of demonetisation not expected to spill over to next year
  • Pace of remonetisation has picked up and will soon reach comfortable levels
  • Surplus money in the banking system will lower borrowing costs, increase credit flow
INFLATION
Consumer price index inflation is expected to remain within the central bank's mandated range of 2 to 6%
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SPENDING
  • India to spend more in rural areas, infrastructure and poverty alleviation
  • The government will continue process of economic reforms for the benefit of poor
  • Allocation under MNREGA increased to Rs 48,000 cr from Rs 38,500 cr; highest ever allocation
  • Dedicated micro-irrigation fund will b set up by NABARD to achieve goal of 'Per Drop More Crop'.Initial corpus will be Rs 5,000 crore
  • Mission Antyodaya to bring 1 crore households out of poverty and to make 50,000 Gram Panchayats poverty-free: FM Jaitley
  • Propose to double the lending target of Pradhan Matri Mudra Yojana and set it up at Rs 2.44 lakh crore for 2017-18: FM Arun Jaitley
AGRICULTURE
  • With a better monsoon agriculture is expected to grow at 4.1% in 2016/17
  • Agricultural credit target fixed at 10 trillion rupees for 2017/18
  • Total allocation for rural, agricultural and allied sectors for 2017-18 is Rs 1,87,223 cr, which is 24% higher than last year
  • 100% village electrification will be achieved by May 1,2018
  • To complete 1,00,00,000 houses by 2019 for houseless and those living in kaccha houses
  • Issuance of soil health cards have gathered momentum, will setup a mini lab in krishi vigyan kendras
  • Railway related state-run companies like IRCON and IRCTC to be listed on stock exchanges: FM Jaitley
Jobs
  • 3.5 Crore youth will be trained under Sankalp program launched by the government 
  • Railways Unmanned railway level crossings to be done away with by 2020
  • Railway related state-run companies like IRCON and IRCTC to be listed on stock exchanges
  • A new metro rail policy will be announced, this will open up new jobs for our youth
  • 3,500 km rail line to be commissioned in 2017-18
  • By 2019 all coaches of Indian Railways will be fitted with Bio-Toilets
Tax
  • 34% increase in disclosure of personal income tax
  • Out of 3.7 crore who filed tax returns in 2015-16, only 24 lakh persons showed income above Rs 10 lakh
  • The net tax revenue grew by 17% in 2015-16
  • For MSME sector: Income tax reduced to 25% with turnover upto Rs 50 crore
  • Capital gains tax to be exempted, for persons holding land from which land was pooled for creation of state capital of Telangana
  • 3-yr period for LTCG tax on immovable property reduced to 2 years; base year indexation shifted from 1.4.1981 to 1.4.2001
  • Propose to reduce existing rate of taxation of those with income between 2.5 lakh to 5 lakh from 10% to 5%
  • Surcharge of 10% for those whose annual income is Rs 50 lakh to 1 crore
Political Funding
Maximum cash donation any party can receive will be Rs 2000 from one source: FM Jaitley
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FINANCE MINISTER COMMENTS
  • "India stands out as a bright spot in the world economic landscape."
  • "My approach in preparing the budget is to spend more on rural areas, infrastructure and poverty alleviation with fiscal prudence."
  • "Signs of retreat from globalization have potential to affect exports from many emerging economies, including India."

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