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Key Features of Budget 2017-2018

INTRODUCTION


In the last two and half years administration has moved from
discretionary, favouritism based to system and transparency based



Inflation brought under control
...
4% in December, 2016



Economy has moved on a high growth path
...
3% of GDP in the first half of
2016-17
...
Foreign exchange reserves have reached
361 billion US Dollars as on 20th January, 2017



War against black money launched



Government continued on path of fiscal consolidation, without
compromising on public investment
...
First, presentation of Budget
advanced to 1st February to enable the Ministries to operationalise all
activities from the commencement of the financial year
...


FARMERS


Target for agricultural credit in 2017-18 has been fixed at a record level of
` 10 lakh crores



Farmers will also benefit from 60 days’ interest waiver announced on
31 Dec 2016



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
...




Dedicated Micro Irrigation Fund in NABARD to achieve ‘per drop more
crop’ with an initial corpus of ` 5,000 crores



Coverage of National Agricultural Market (e-NAM) to be expanded from
250 markets to 585 APMCs
...
During 2017-18, another 5 lakh farm
ponds will be taken up



Women participation in MGNREGA has increased to 55% from less than
48%



MGNREGA allocation to be the highest ever at ` 48,000 crores in
2017-18
...
of 73 km during 2011-2014



Government has taken up the task of connecting habitations with more
than 100 persons in left wing extremism affected Blocks under PMGSY
...




Well on our way to achieving 100% village electrification by 1st May 2018
...
Open Defecation Free villages are now being given priority for
piped water supply
...




For imparting new skills to people in rural areas, mason training will be
provided to 5 lakh persons by 2022



A programme of “human resource reforms for results” will be launched
during 2017-18 for human resources development in Panchayati Raj
Institutions



Total allocation for Rural, Agriculture and Allied sectors is ` 187223 crores

YOUTH


To introduce a system of measuring annual learning outcomes in our
schools



Innovation Fund for Secondary Education proposed to encourage local
innovation for ensuring universal access, gender parity and quality
improvement to be introduced in 3479 educationally backward districts
...
This would enable students to virtually attend courses taught by
the best faculty



National Testing Agency to be set-up as an autonomous and self-sustained
premier testing organisation to conduct all entrance examinations for
higher education institutions



Pradhan Mantri Kaushal Kendras to be extended to more than 600 districts
across the country
...



Skill Acquisition and Knowledge Awareness for Livelihood Promotion
programme (SANKALP) to be launched at a cost of ` 4000 crores
...
5 crore youth



Next phase of Skill Strengthening for Industrial Value Enhancement
(STRIVE) will also be launched in 2017-18 at a cost of ` 2,200 crores



A scheme for creating employment in the leather and footwear industries
along the lines in Textiles Sector to be launched



Incredible India 2
...


THE POOR AND THE UNDERPRIVILEGED


Mahila Shakti Kendra will be set up with an allocation of ` 500 crores in 14
lakh ICDS Anganwadi Centres
...




Propose to amend the Drugs and Cosmetics Rules to ensure availability of
drugs at reasonable prices and promote use of generic medicines



The allocation for Scheduled Castes has been increased by 35% compared
to BE 2016-17
...




For 2017-18, the total capital and development expenditure of Railways
has been pegged at ` 1,31,000 crores
...

This will be done through modernisation and upgradation of identified
corridors
...
During
2017-18, at least 25 stations are expected to be awarded for station
redevelopment
...




It is proposed to feed about 7,000 stations with solar power in the
medium term



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



By 2019, all coaches of Indian Railways will be fitted with bio toilets
...

This will facilitate greater private participation and investment in
construction and operation
...
A DigiGaon initiative will be

launched to provide

tele-medicine, education and skills through digital technology


Proposed to set up strategic crude oil reserves at 2 more locations,
namely, Chandikhole in Odisha and Bikaner in Rajasthan
...
33 MMT



Second phase of Solar Park development to be taken up for additional
20,000 MW capacity
...




A new and restructured Central scheme with a focus on export
infrastructure, namely, Trade Infrastructure for Export Scheme (TIES) will
be launched in 2017-18

FINANCIAL SECTOR


Foreign Investment Promotion Board to be abolished in 2017-18 and
further liberalisation of FDI policy is under consideration



An expert committee will be constituted to study and promote creation of
an operational and legal framework to integrate spot market and
derivatives market in the agricultural sector, for commodities trading
...




Bill relating to curtail the menace of illicit deposit schemes will be
introduced
...
This will contribute to stability
and resilience of our financial system



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
...
The
shares of Railway PSEs like IRCTC, IRFC and IRCON will be listed in stock
exchanges
...
44
lakh crores
...


DIGITAL ECONOMY


125 lakh people have adopted the BHIM app so far
...
They will be encouraged to introduce 20 lakh Aadhar based
POS by September 2017



Proposed to create a Payments Regulatory Board in the Reserve Bank of
India by replacing the existing Board for Regulation and Supervision of
Payment and Settlement Systems
10

PUBLIC SERVICE


The Government e-market place which is now functional for procurement
of goods and services



To utilise the Head Post Offices as front offices for rendering passport
services



A Centralised Defence Travel System has been developed through which
travel tickets can be booked online by our soldiers and officers



Web based interactive Pension Disbursement System for Defence
Pensioners will be established



To rationalise the number of tribunals and merge tribunals wherever
appropriate



Commemorate both Champaran and Khordha revolts appropriately

PRUDENT FISCAL MANAGEMENT


Stepped up allocation for Capital expenditure by 25
...
11 lakh crores, against ` 3
...
2% of GDP and
Government remains committed to achieve 3% in the following year



Net market borrowing of Government restricted to ` 3
...
25 lakh crores of the previous
year



Revenue Deficit of 2
...
1% in the
Revised Estimates
...
9% ,
against 2% mandated by the FRBM Act
11

PROMOTING AFFORDABLE HOUSING AND REAL ESTATE SECTOR


Between 8th November and 30th December 2016, deposits between 2 lakh
Rupees and 80 lakh Rupees were made in about 1
...
03 lakh
...
48 lakh accounts with average deposit size of ` 3
...




Under the scheme for profit-linked income tax deduction for promotion of
affordable housing, carpet area instead of built up area of 30 and 60
Sq
...
will be counted
...
mtr
...
mtr
...
Also, the
base year for indexation is proposed to be shifted from 1
...
1981 to
1
...
2001 for all classes of assets including immovable property



For Joint Development Agreement signed for development of property, the
liability to pay capital gain tax will arise in the year the project is completed



Exemption from capital gain tax for persons holding land on 2
...
2014, the
date on which the State of Andhra Pradesh was reorganised, and whose
land is being pooled for creation of capital city of Andhra Pradesh under
the Government scheme

MEASURES FOR STIMULATING GROWTH


Concessional withholding rate of 5% charged on interest earned by foreign
entities in external commercial borrowings or in bonds and Government
securities is extended to 30
...
2020
...


that

the

holding

of

the

original

Also the profit (linked deduction)

exemption available to the start-ups for 3 years out of 5 years is changed
to 3 years out of 7 years
12



MAT credit is allowed to be carried forward up to a period of 15 years
instead of 10 years at present



In order to make MSME companies more viable, income tax for companies
with annual turnover upto ` 50 crore is reduced to 25%



Allowable provision for Non-Performing Asset of Banks increased from
7
...
5%
...
5%

PROMOTING DIGITAL ECONOMY


Under scheme of presumptive income for small and medium tax payers
whose turnover is upto 2 crores, the present, 8% of their turnover which is
counted as presumptive income is reduced to 6% in respect of turnover
which is by non-cash means



No transaction above ` 3 lakh would be permitted in cash subject to
certain exceptions



Miniaturised POS card reader for m-POS (other than mobile phones or
tablet computers), micro ATM standards version 1
...
1, Finger Print Readers
/ Scanners and Iris Scanners and on their parts and components for
manufacture of such devices to be exempt from BCD, Excise/CV duty and
SAD

TRANSPARENCY IN ELECTORAL FUNDING


Need to cleanse the system of political funding in India



Maximum amount of cash donation, a political party can receive, will be
` 2000/- from one person
...




Amendment to the Reserve Bank of India Act to enable the issuance of
electoral bonds in accordance with a scheme that the Government of India
would frame in this regard
...
Similarly, the
threshold for maintenance of books for individuals and HUF increased from
turnover of 10 lakhs to 25 lakhs or income from 1
...
5 lakhs



Foreign Portfolio Investor (FPI) Category I & II exempted from indirect
transfer provision
...
a
...

Also the time for completion of scrutiny assessments is being compressed
further from 21 months to 18 months for Assessment Year 2018-19 and
further to 12 months for Assessment Year 2019-20 and thereafter

PERSONAL INCOME-TAX


Existing rate of taxation for individual assesses between income of
`2
...
5
lakhs to 5 lakhs
...




The extensive reach-out efforts to trade and industry for GST will start
from 1st April, 2017 to make them aware of the new taxation system

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