Union Minister for Finance and Corporate Affairs Arun Jaitley along with Minister of State for Finance and Corporate Affairs Arjun Ram Meghwal and Minister of State for Finance Santosh Kumar Gangwar
Following are the main points of Finance Minister Arun Jaitley's Budget Speech presented in Parliament:
Net revenue loss in direct tax would be Rs 20,000 crore
For revenue consideration, trying to bring maximum use of technology. Maximise efforts for e-assessment.
GST: Will bring more revenue as tax net will increase
GST: Preparedness of IT system on schedule.
Simple 1 page form to be filed for Income tax for income up to Rs 5 lakh
All other categories of income (i.e. above 5 lakhs) would get uniform benefit of Rs 12,500
Taxation for individual assesseess reduced from 10% to 5% for income between Rs 2.5 lakhs and 5 lakhs
Personal Income Tax: Burden currently on salaried employees.
Time period of revising tax refund reduced to 12 months, and for scrutiny reduced to 18 months from 21 months
TDS of 5% now exempted for Insurance agents
Ease of doing business: Increase in threshold limit increased to Rs 2 crore for audit from the earlier Rs 1 crore
An amendment to RBI Act to issue Electoral Bonds. Every political party will have to file returns.
Political parties will be entitled to receive donations by cheque or in the digital mode
Transparency in political funding: Max amount of cash donation a political party can receive will be Rs 2,000 from any one source
No transaction above Rs 3 lakh would be permitted in cash
To promote Make in India, changes in customs duty on some items.
Medium and small enterprises provide maximum employment. 2.85 lakh companies making a profit of less than Rs 1 crore. For MSME companies, income tax reduced to 25% if turnover is less than Rs 50 crore. 96% of India's companies will get this benefit of 5% tax reduction.
Minimum alternative tax: Not feasible to remove this at present.
Basket for investing capital gains to be expanded.
Propose to make changes in capital gain tax in property. Long term capital gain reduced from 3 years to 2 years for immovable property.
For affordable housing, the carpet area of 30 and 60 sq m will now be completed. 30 sq m will apply only in metro cities. This scheme extended to 5 years.
We will end 2016-17 with an increase of 17% in net tax revenue. Personal income declaration to be increased by 34.8%
To eliminate black money - taxation rates are to be made reasonable, and tax base needs to be expanded
We are largely tax non-compliance society: FM Arun Jaitley
Out of 76 lakh individual assesses who declared income of about Rs 5 lakhs per annum, 56 lakhs are salaried.
Direct tax collection not commensurate with the size of the economy
FM to now present tax proposals
Revenue deficit pegged at 1.9% in 2017-18
Fiscal deficit target for 2017-18 at 3.82% of GDP; and 3% for 2018-19
Defence expenditure (excluding pension) allocation increased to Rs 2,74,114 crore
Fiscal situation: Total expenditure 2017-18 is Rs 21 lakh crore; Focus now on revenue and capital expenditure.
Special online travel booking portal for defence personnel
Public service: Head Post office to be utilised as the front office for Passport services
Govt to create Payment Regulatory Board in RBI
Aadhar based POS terminals to be established at merchant establishments
BHIM App: 125 lakh people have already adopted. Two new schemes to promote this App - Referal scheme and Cashback scheme
Digital economy: India now at the crux of massive digital revolution: FM Jaitley
PM Mudra Yojana: For 2017-18 target doubled to Rs 2,44,000 crore
Rs 10,000 crore for recapitalisation of banks
A new ETF will be launched in 2017-18
Propose to create an integrated oil major
Divestment policy announced in last Budget will continue
Cyber security: A team would be set up
To integrate stock and derivative market for commodity trading
Financial sector: To abolish FIPB in 2017-18; Roadmap for the same to be announced soon.
Trade Infrastructure Exports Scheme to be launched. Total allocation for infrastructe is Rs 3,96,135 crore
Taking steps to make India a global hub for electronic manufacture
Energy sector: To set up strategic crude reserves at 2 more places in Odisha and Rajasthan.
Telecom sector: Under BharatNet project, allocation stepped up
Airport Authority of India Act to be amended
Allocation increased to Rs 64,000 crore for National Highways
New Metro Rail Policy to be announced. It will open up more job opportunities.
Endeavour to be to improve operating efficiency of Railways
Service charges for tickets booked through IRCTC will be withdrawn
Railways to undertake end-to-end delivery for selected commodities.
All railway coaches to be fitted with bio-toilets by 2019.
SMS based 'Clean my coach' service has been started in Railways
At least 25 railway stations to be awarded for redeployment.
Railway lines of 3,500 km to be commissioned in 2017-18
Infrastructure: For 2017-18, Railways will focus on passenger safety and financial accounting reforms.
For senior citizens, Aadhar based smart cards containing their health details will be introduced.
Special importance to schemes for the welfare of SCs, STs and minorities; Budget allocation increased by 35% for SCs.
Legislative reforms to simplify and rationalise labour laws
Two new AIIMS to be set up in Jharkhand and Gujarat
1.5 lakh health centres to be transformed into Health Wellness Centres
An Action Plan to eliminate Kala azar, leprosy, tuberculosis, etc.
Poor & Underprivileged: Affordable housing to be given 'Infrastructure' status. National Housing Bank will refinance housing loans.
Scheme for leather and footwear sector skill training to be implemented; similar to the existing scheme for textiles and garment
'Sankalp' will provide market relevant training.
PM Kaushal Kendras to be extended to more than 600 districts across the country.
National Testing Authority to be set up to conduct all entrance exams.
Swayam platform to enable students to virtually attend classes taught by best faculty. Linked with DTH channels.
Youth - Emphasis on science education; Focus on 3,749 educationally backward blocks.
Rs 1,87,223 crore total allocation for rural areas; 24% higher than last year.
Sanitation coverage increased from 42% to 60%
PM's employment generation scheme: Allocation increased 3 times
On way to achieve 100% rural electrification by May
PM awas yojana (gramin) allocation increased
Rs 19,000 crore for PMGSY in 2017-18
PM gram sadak yojana - pace of construction accelerated to 133 km per day
Highest ever allocation for MNREGA at Rs 48,000 crore
MNREGA - Participation of women has increased.
Rural development - Mission Antodyay to bring 1 crore households out of poverty
Dairy farming - A dairy processing infrastructure fund to be set up with a corpus of Rs 2,000 crore.
Micro irrigation fund to be set up by NABARD for "per drop, more crop"
Soil Health Cards: Mini labs to be set up
Will work with NABARD for seamless flow of credit to farmers: FM
Farmers - Special efforts to ensure adequate credit to underserved areas like the Northeast
10 themes: Farmers, rural population, youth, poor & underprivileged; infrastructure; financial sector; digital economy; public service; prudent fiscal management; and tax administration (honouring the honest)
Agenda for next year is - Transform, energise and clean/tech India
Budget 2017-18 contains 3 major reforms: Advancement of Budget date to Feb 1; Merger of Railway budget with general budget; and Done away with Plan and Non-Plan expenditure: FM
My priority is to spend more in rural areas, infrastructure and poverty alleviation and yet maintain fiscal prudence: Arun Jaitley
Demonetisation seeks to create a new normal where GDP is bigger
Demonetisation was a bold and decisive measure by the government: FM
India has become 6th largest manufacturing country in the world; up from 9th previously.
Foreign exchane reserves reach $360 billion
India's CAD declined to 0.3% of GDP in first half of 2016-17
Three major challenges - current monetary policy stance of US; uncertainty around crude oil prices; signs of increasing retreat from globalisation: FM
World economy facing considerable uncertianty: FM
Govt is now seen as a trusted custodian of their money: Jaitley
We have moved towards policy based administration: FM
Good governance is the underlined theme of people's expectations, says Jaitley
Fibre2Fashion News Desk – India