Union Budget 2017-18

Union Finance Minister Shri Arun Jaitley presented the Union budget in Lok Sabha.

Agenda – TEC (Transform, Energize & Clean)

The aim is to Transform the quality of governance and life of people; Energise various sections of society especially the youth and the vulnerable and Clean the country from the evils of corruption, black money and non-transparent political funding.

Three major reforms-

  • Presented on Februray 1, 2017 instead of usual practice of being presented on last day of February.
  • Merger of Railway Budget with the General Budget.
  • Abolition of Planned & Non-Planned Expenditure.

Focus on 10 Themes –

Farmers, Rural Population, Youth, Poor and the Underprivileged, Infrastructure, Financial sector, Digital Economy, Public Service, Prudent Fiscal Management & Tax Administration.

Fund Allocation-

  • The total Budget expenditure allocated for 2017-18 is  21.47 lakh crores.
  • Total allocation for rural, agriculture and allied sectors for 2017-18 is Rs 1,87,223 crore, which is 24 percent more than previous year’s allocation.
  • The defence sector gets an allocation of 2,74,114 crore.
  • Total Infrastructure Allocation is 3,96,135 crores. Out of this, total capital and development expenditure of Railways has been allotted Rs. 1,31,000 crores.
  • Capital expenditure increased by 25.4% compared to the previous year.
  • Total resources being transferred to the States and the Union Territories with Legislatures is Rs. 4.11 lakh crores as against Rs. 3.60 lakh crores in 2016-17.
  • FRBM (Fiscal Responsibility & Budget  Management) Committee has recommended 3% fiscal deficit for the next three years.
  • The fiscal deficit projected for 2017-18 is 3.2% of GDP and 3% in the following year.
  • The Revenue Deficit is estimated at 1.9% in 2017-18 as against 2.1 percent in 2016-17.
  • Net market borrowing of Government to be limited to Rs. 3.48 lakh crores in 2017-18 compared to Rs. 4.25 lakh crores in 2016-17.

Rural Sector –

  • Allocation under MNREGA (Mahatma Gandhi National Rural Employment Guarantee Scheme) increased.
  • Allocation under Pradhan Mantri Awaas Yojana (PMAY Gramin) increased.
  • Additional allocation of  4,814 crore has been proposed under the Deendayal Upadhyaya Gram Jyoti Yojana to achieve 100% village electrification by May 1, 2018.
  • Government will undertake Mission Antyodaya to make 1 crore households and 50000 gram panchayats poverty free by 2019, i.e. the 150th birth anniversary of Gandhiji.
  • National Housing Bank to refinance individual housing loans in 2017-18.

Youth –

  • Pradhan Mantri Kaushal Kendras (PMKK) has been extended to more districts across the country.
  • India International Skills Centres would be set up to offer advanced training and courses in foreign languages to help youths seeking job outside the country.
  • Skill Acquisition and Knowledge Awareness for Livelihood Promotion programme (SANKALP) to be launched in 2017-18 to provide market relevant training to 3.5 crore youth.
  • Next phase of Skill Strengthening for Industrial Value Enhancement (STRIVE) to be launched in 2017-18.
  • SWAYAM (Study Webs of Active –Learning for Young Aspiring Minds), an online education platform would be launched with at least 350 online courses and further link it to DTH channels, dedicated to education to enable students to virtually attend the courses taught by the best faculty; access high quality reading resources; participate in discussion forums; take tests and earn academic grades.
  • National Testing Agency to be set up as an autonomous organization to conduct all entrance examinations for higher education institutions.

Women & Welfare –

  • Mahila Shakti Kendra to be set up at village level in Integrated Child Development Services (ICDS) Anganwadi Centres.
  • Allocation for Women and Children welfare under various schemes across all Ministries increased.
  • Under Maternity Benefit Scheme Rs. 6,000 will be transferred directly to the bank accounts of pregnant women who undergo institutional delivery and vaccinate their children.
  • Two new All India Institutes of Medical Sciences to be set up in the States of Jharkhand and Gujarat.

Railways –

  • Rashtriya Rail Sanraksha Kosh to be created for safety of Passengers.
  • 500 stations will be made differently-abled friendly with lifts and escalators.
  • Coach Mitra facility to be launched to register all coach related complaints and requirements.
  • Indian Railways coaches to be fitted with bio-toilets by 2019.
  • Service charge on booking e-tickets through IRCTC has been withdrawn.


Financial sector-

  • Foreign Investment Promotion Board (FIPB) to be abolished in 2017-18.
  • Trade Infrastructure for Export Scheme (TIES) to be launched in 2017-18 to promote export infrastructure.
  • Computer Emergency Response Team for Financial Sector(CERT-Fin) will be established.
  • The shares of Railway PSEs like IRCTC, IRFC and IRCON will be listed in stock exchanges.
  • Rs. 10,000 crore allocated for re-capitalization of Banks in 2017-18 in line with the ‘Indradhanush’ roadmap.
  • Allocation under the Pradhan Mantri Mudra Yojana has been doubled in 2017-18 with priority to Dalits, Tribals, Backward Classes, Minorities and Women.

Digital economy-

  • Two new schemes would be launched under BHIM (Bharat Interface for money) App for digital transactions. Referral Bonus Scheme for individuals and a Cashback Scheme for merchants.
  • Government to create Payments Regulatory Board in the Reserve Bank of India replacing the existing Board for Regulation and Supervision of Payment and Settlement Systems.
  • DigiGaon initiative to be launched to provide tele-medicine, education and skills through digital technology for improving Telecom sector.

Public service –

  • Head Post Offices to function as front offices for rendering passport services.
  • Centralised Defence Travel System developed to enable soldiers and officers to book travel tickets.
  • Tribunals with overlapping functions to be merged.
  • A High-Level Committee under the Chairmanship of honourable Prime Minister to be set up to improve the standards of public service and transparent governance.
  • Centenary year of Champaran Satyagrah to be commemorated in 2017-18.
  • The Government of India will support Government of Gujarat to commemorate 100 years of Sabarmati Ashram in 2017.
  • A comprehensive web-based interactive Pension Disbursement System for Defence Pensioners will be established.
  • Government proposes to introduce a system of single registration and two-tier system of examination.

Tourism –

  • Five Special Tourism Zones anchored on (Special Purpose Vehicle) SPVs would be set up in partnership with the States.
  • Incredible India 2.0 Campaign will be launched across the world.

Tax proposal –

For Promoting Affordable Housing and Real Estate Sector:

  • The holding period for considering the Capital Gain Tax of immovable property has been reduced from 3 to 2 years.
  • Minimum Alternate Tax (MAT) has been proposed to be carry forwarded for 15 years instead of 10 years.
  • In MSME (Medium Small Micro Enterprise) sector for companies with turnover upto Rs. 50 crore the income tax will be reduced to 25%.
  • Basic customs duty on LNG (Liquefied Natural Gas) reduced from 5% to 2.5%.

For Promoting Digital Economy:

  • For tax payers with annual turnover of less than Rs. 2 crore, the rate of 6% of annual turnover will be used for calculating tax (presumptive income) instead of earlier 8%.
  • Limit of cash donation reduced from Rs. 10,000 to Rs. 2000.
  • No cash transaction above Rs 3 lakh will be permitted.

For Transparency in Electoral Funding:

  • political party can receive a maximum of Rs 2,000 in cash per person.

For ease of Doing Business:

  • Business entity that will opt for presumptive income scheme the threshold of audit has been increased from Rs 1 Crore to Rs 2 Crore.
  • No TDS (Tax deducted at source) deduction on commission payable to individual insurance agents if their income is below taxable limit.

For Personal Income-Tax:

  • For individuals with income between Rs 2.5 Lakh and Rs 5 lakh rate of taxation has been reduced from 10% to 5%.
  • For individuals whose annual taxable income is between Rs. 50 lakhs and Rs. 1 crore a surcharge of 10% of tax payable will be levied.
  • Single Page Income Tax Return filing form for taxable income under Rs. 5 lakh.
  • Small firms with turnover up to Rs.50 crore will now only need to pay 25% tax instead of 30%.
  • Taxpayers who do not file their income tax returns on time will have to shell out a penalty of upto Rs 10,000 from 2018 – 19.