Union Budget 2017 was presented today by the Finance Minister, Mr. Arun Jeitley. 1st February 2017 was probably the most awaited day after the legendary demonetisation on 8th November 2016. The Union Budget 2017 was to be presented officially by our Honourable Finance Minister today. The budget for this financial year is released earlier in the wake of the economic scenario of India. Narendra Modi described this budget as “futuristic” path for India which aims at fulfilling the dreams of citizens from all sectors. Here are the key highlights from the Union Budget, sequentially as telecast live.
Union Budget 2017 Key Highlights
The Budget started on a high note with the Honourable President Pranab Mukherjee calling the session himself. At approximately 11:10 a.m., Arun Jaitley started presenting the budget.
The announcement of this financial year’s budget being a “system and policy-based administration” was the declaration of eliminating black money completely. With a formal economy finally introduced, the financial reins are now completely in the hands of the government.
The merging of Railway Budget with the Union Budget was a huge step forward in the commencement of an economy that is stable and integrated. Though the budget has been merged, the Railways remain an autonomous body.
- More financial assets will be spent by the government of rural areas, households below the poverty line and infrastructure development.
- Soil testing equipment will be set up in all rural areas (648 Krishi Vigyan Kendras) as the first step towards development.
- The new economic aim is to raise the GDP ( Gross Domestic Product) rate to 7.6% in the financial year 2017-2018.
- By developing the rural areas, double the normal income will be generated for farmers. The Mahatma Gandhi National Rural Employment Guarantee Act will improve giving the agricultural sector a growth rate of 4.1%. There will be a credit of INR 48,000 crore towards MGNREGA and INR 10 Trillion for the agricultural sectors.
- A major reform in Union Budget 2017 is the passing of GST Bill which will ensure a centralized taxation on goods and other services.
- INR 27,000 is to be used for the Pradhan Mantri Gram Sadak Yojana to provide homes to one crore homeless people.
- 28,000 domestic households affected by arsenic invested water will be provided clean drinking water facilities.
- The credit linked subsidy scheme loans have extended their period from 15 years to 201 years under the Pradhan Mantri Awas Yojana.
- 100 International skill centers will be introduced to help the Indian citizens to get a job in a foreign country. Apart from that the higher education system of the country will become be made autonomous by giving an autonomy under UGC to colleges and institutions.
- Dairy funds of INR 8000 crore is proposed for three years. The initial financial support provided to the dairy industry is INR 2000 crore.
- FDI policy liberalization is being done by abolishing Foreign Investment Promotion Board. All FDI request will now follow an automatic route.
- Expenditure budget extended towards railways is INR 1.3 Lakhs crore. This is to develop the Indian Railways by providing more facilities like escalators, lift etc.
- There will be no Service Tax levied on any bookings through IRCTC E-Ticketing portal.
- INR 10,000 crore will be credited towards Bharat Net Project meaning that high-speed Broadband connection will be given.
- 64000 crore will be credited towards highway development projects.
- Power Development of 24,000 MW through solar energy by funding all solar power projects.
- The advance tax rate on Income Tax will be increased by 34.8% in the wake of demonetization.
- Income tax for Microfinance Units will be reduced.
- The customs on Liquefied Natural Gas (LNG) is to be reduced to 2.5%.
- All cash transactions for every individual will be limited to INR 3 Lakhs.
- Political parties can receive donations only via transparent modes like cheque or digital banking. The cash donation amount towards the political parties will be limited to INR 2000 per individual.
- The Income Tax Rate for all the salaried citizens earning between INR 3- 5 Lakhs will be reduced to 5% from the previous rate of 10%. A 10% surcharge rate in Income Tax will be applicable for those earning between INR 50 Lakhs to INR 1 crore.
Union Budget Allocation
MNREGA- 48,000 Crore INR compared to last years 35,000 Crore INR
Transport sector – 2 Trillion INR
Highways- 64,000 Crore INR.
Indian Railways – 55,000 Crores INR.
PM Awas Yojana- 23,000 Crore INR
Defense – 86,400 Crore INR
Agriculture credit – 10,00,000 Crore INR
Income Tax Slab 2017-18
|Total Income (Taxable Income)||Net Tax|
|Below 3,00,000 INR||0|
|10,00,001-50,00,000 INR||30% + 10 % surcharge|
|50,00,001-1,00,00,000 INR||30 % + 15 % surcharge|