The Finance Minister Arun Jaitley presented the Union Budget 2017-2018 today in the Lok Sabha. This is the 4th budget by the Modi government. In the budget, finance minister Arun Jaitley stated that demonetization’s move won’t have a long term impact on Indian economy. This budget has also taken into consideration the welfare of children and women; the allocation of funds has considerably increased.
A joint budget was presented and it included the Railway budget as well. Talking about railways, the main focus will be on cleanliness, capital works and also on passenger safety. This is the 1st time in 92 years that both the budgets were presented together.
Economists had given a warning that GDP will be hit, but measures were taken so that the impact is soft. After the Union Budget was presented, both houses of parliament were adjourned.
Key announcements of this budget were mainly in housing, railways, political party funding, financing and taxes.
Here’s the key highlights of the Budget:
- Budget preponement to 1st February will give sufficient time to departments to implement government scheme.
- Agriculture sector is expected grow at 4.6% agriculture expenditure targeted ₹ 10 Lakhs.
- 36% increase in FDI flow, forex reserves at $361 Billion in January, which is enough to cover 12 months need.
- Allocation under MNREGA to ₹ 48000 crore from ₹ 38500 crore.
- One crore houses for poor by 2019.
- 133 km road per day constructed under Pradhan Mantri Gram Sadak Yojana as against 73 km in 2011-14.
- For senior citizens, Aadhar cards giving their health condition will be introduced.
- Two new AIIMS to be set up in Jharkhand and Bihar.
- Service charge on Rail Tickets book through IRCTC to be withdrawn.
- 500 Rail stations to be made Differently Abled-Friendly by providing lifts and escalator.
- Government to set up strategic crude oil reserves in Odisha and Rajasthan.
- Defence expenditure excluding pension at ₹ 2.74 Lakh Crore.
- Small firms with turn over upto ₹ 50 crores to pay 25% tax now instead of 30%
- No cash transaction above ₹ 3 Lakhs.
- Maximum cash donation any party can receive will be ₹ 2000 from one source.
- Reduction of Income Tax rate from 10% to 5% for tax slab of ₹ 250000 to ₹ 500000.
- Surcharge of 10% for those whose annual income is ₹ 50 Lakh to ₹ 1 Crore.
- Surcharge of 15% for those whose annual income is over Surcharge of 10% for those whose annual income is 1 crore.
- Revised Tax Slab will be like –
0 to 2.5 Lakhs – NIL
2.5 to 5 Lakhs – 5%
5 – 10 Lakhs – 20%
10 Lakhs & Above – 30%