This year budget was one of the major one for all Indians, after demonetization and GST we need to see how this budget would affect us. This budget also has an importance because of the election in 2019. So lets see what where the highlights of the budget.
Highlights of Budget
Corporate Tax is 25% for mid and small industries with turnover up to 250 Crore.
Fiscal deficit is 3.5% of GDP at Rs 5.95 lakh crore in 2017-18. Projecting fiscal deficit to be 3.3% of GDP in the next fiscal
No changes in personal income tax rate
Incentives for Senior citizens: Exemptions in income of Rs 10,000 from Banks FD and post offices
Senior citizens to get Rs 50,000 per annum exemption for medical insurance under Sec 80D
Rs 7,000 cr revenue forgone on account of lower corporate tax for Rs 250 crore turnover companies
Rs 19,000 cr revenue loss on direct tax in last fiscal
LONG TERM CAPITAL GAINS EXCEEDING RS 1 LAKH WILL BE TAXED AT 10% WITHOUT INDEXING
Short Term capital tax remains at 15%
Education cess increased to 4% from 3% to collect additional Rs 11,000 crore
GST revenue will be received only for 11 months, that will have an effect on balance sheets
GST collections projection pegged at Rs 7.43 lakh crore in full year 2018-19 as against Rs 4.44 lakh crore in nine months of current fiscal.
Govt makes PAN mandatory for any entity entering into a financial transaction of Rs 2.5 lakh or more.
Customs Duty on certain products, such as mobile phones and televisions has been increased, to provide a fillip to ‘Make in India’.
Import of solar tempered glass for manufacture of solar cells exempted from customs duty.
Customs duty on crude edible vegetable oils like groundnut oil, safflower seed oil hiked from 12.5% to 30%; on refined edible vegetable oil from 20% to 35%.
Customs duty on sunglasses, cigarette lighter, toys, bus and truck tyres, select furniture hiked.
Customs duty on imitation jewellery hiked from 15% to 20%; doubled on all watches to 20%.
Import duty on LCD/LED/OLED panels, parts of TVs hiked to 15%; duty on smart watches, wearable devices, footwear doubled to 20%.
New scheme for providing electronic assessment to eliminate person-to-person contact.
Jaitley stressed on the fact that India’s agricultural production is at a record high level today. 275 million tonne food grains and 300 million tonne fruits and vegetable have been produced in the country.
The FM said the government wants farmers to earn 1.5 times the production cost, and the Minimum Selling Price (MSP) for the Kharif Crops has been set at 1.5 times the produce price. Jaitley said the Centre will work with states to ensure that all farmer get a fair price.
A sum of Rs 500 cr will be allocated for Operation Green to be launched. It will promote agricultural products.
Extend the facility of Kisan credit card to fisheries and for animal husbandry
Rs 10,000 crore set aside for Fisheries and Aquaculture Development Fund
Rs 10,000 crore set aside for animal husbandry infra fund
Propose to launch a restructured bamboo mission with a fund of Rs 1200 crore . “Bamboo is green gold,” Jaitley said.
Agricultural credit target increased from Rs 8.5 lakh crore to Rs 11 lakh core
Special scheme to manage crop reduce in Haryana, Punjab and Delhi to reduce pollution
8 crore poor women will get new LPG connections.
PM Saubhagya Yojana: 4 crore poor people will get power connection.
The government will spend Rs 16,000 crore on this scheme.
Govt plans to construct 2 crore toilets in next fiscal year under Swach Bharat Mission
Government target house for all by 2022. 51 lakh houses have been constructed affordable houses in rural and further 50 lakh houses in urban areas.
1 cr houses to be built under Pradhan Mantri Awas Yojana in rural areas
National livelihood scheme gets Rs 5,750 crore .
In 2018-19, ministries will be able to spend Rs 14.34 lakh crores for creat ..
Govt gives Rs 9,975 crore for social security schemes for the next fiscal year.
Govt to increase digital intensity in education. Technology to be the biggest driver in improving quality of education: FM Jaitley
Rs. 1 lakh crore allocated to revitalisation and upgradation of education sector. Promoting learning based outcomes and research.
By 2022, every block with more than 50 per cent ST population will have Ekalvya schools at par with Navodaya Vidyalayas
Aims to move from black board to digital board schools by 2022.
PM reasearch fellows: Govt will identify 1000 B-Tech students each years and provide them to do PHD’s in IIT and IISc, while also teaching undergraduate students once a week at that time.
Aayushman Bharat programme: 1.5 lakh centres will be set up to provide health facilities closer to home. Rs 1,200 crore to be allocated for this programme
Flagship National Healthcare protection scheme, with approximately 50 crore beneficiaries. Up to Rs 5 lakh per family per year for secondary and tertiary care hospitalization. World’s largest government-funded healthcare programme.
Universal health coverage will be expanded after seeing the performance of the scheme
Rs 600 crore allocated for tuberculosis patients, at the rate Rs 500 per month during the course of their treatment.
Jaitley announces setting up of one medical college for every three parliamentary constituencies, with 24 New government medical colleges also being envisioned. Government also will work on upgrading hospitals to medical colleges
Petroleum/ Diesel Sector
Excise on unbranded diesel cut by 2 rupees to 6.33 rupee/ltr
Excise on unbranded petrol cut by 2 rupees to 4.48 rupee/ltr
Govt will contribute 12% of the wages of new employees in EPF in all sectors for next 3 years
Women contribution to EPF reduced to 8% for first 3 years
India needs investment of Rs 50 lakh crore in the infrastructure sector
Construction of new tunnel in Sera Pass to promote tourism
Out of 100 smart cities 99 cities have been selected, with an outlay of Rs 2.04 lakh crore
Govt to introduce pay-as-you-use system for toll payments
Railway capex has been pegged at Rs 1.48 lakh crore , up from Rs 1.31 lakh crore last year
Eliminate unmanned railway crossing
All stations with footfall of greater than 25,000 will have escalators.
More stations and trains will progressively be built with WiFi and CCTV camera
Govt to eliminate 4267 unmanned rail crossing in broad gauge in 2 years
Allocates Rs 11,000 crore Mumbai rail network and Rs 17,000 crore for the Bangalore metro
Allocation to Digital India scheme doubled to Rs 3073 cr
5 lakh WiFi HotSpots to provide Broadband access to 5 crore rural citizens, at the cost of Rs 10,000 cr.
Government will take measures to stop cryptocurrency circulation, as it is not considered legal tender
Government will explore the usage of Blockchain technology.
I have mentioned most of the highlights of this year budget. Let see how much will be applicable.