New Delhi: Union Finance Minister Arun Jaitley on Wednesday said his Budget for 2017-18 allocates more towards rural areas, welfare schemes and infrastructure, while ensuring that government finances do not go out of control.
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Presenting his fourth budget in the Lok Sabha, the Finance Minister also outlined 10 themes for his latest exercise. “My approach in preparing the budget is to spend more on rural areas, infrastructure and poverty alleviation with fiscal prudence,” he said.
On demonetisation, he said it has long-term benefits and will create an economy that is bigger and cleaner. “The pace of remonetisation has also picked up and will soon reach comfortable levels. The effects of demonetisation are not expected to spill over to the next year.”
He also hoped all issues pertaining to the Goods and Services Tax will be resolved soon. “GST and demonetisation are ‘tectonic’ changes for the economy,” he said.
Outlining that India has been singled out as a bright spot in the global economy by both the International Monetary Fund (IMF) and the World Bank, Jaitley said: “Inflation has been controlled, low growth has been replaced with high growth and a massive war against black money has been launched.”
He said there will be a sure recovery of the economy in the next fiscal.
More updates:
• Agricultural credit target fixed at Rs 10 lakh crore. Agriculture expected to grow at 4.1% in current year
• Model law on contract farming to be sent to states for adoption
• Rural, agriculture and allied sectors’ allocations up 24% to Rs 187,223 crore
• Drought proofing of Gram Panchayats via construction of five lakh ponds across India
• MGNREGA allocation raised to RS 48,000 crore
• One crore houses for poor by 2019
• Affordable housing to get infrastructure status to avail benefits
• Five special purpose vehicles for tourism sector
• National testing agency to conduct entrance exams for higher education
• Two new AIIMS for Jharkhand and Gujarat
• Rs 1,31,000 crore for railways capex and development expenditure in 2017-18
• Charges for e-booking of railway tickets through IRCTC withdrawn
• Unmanned level crossings to be done away with by 2020
• Government earmarks new railway safety fund of Rs one lakh crore
• Rs 10,000 crore allocation for laying optic fibre cables
• Total infra outlay pegged at over Rs 390,000 crore
• Solar plan phase 2 to add 20,000 MW capacity
• Road sector allocation at Rs 64,000 crore
• Foreign Investment Promotion Board to be abolished
• Total transport sector allocation at over Rs 240,000 crore
• Computer response team to be set up for financial sector
• IRCTC, other railway entities to be listed
• LIC scheme for senior citizens with guaranteed 8% return
• New ETF with diverse central PSUs to be launched in 2017-18
• Two new schemes to be launched for adoption of BHIM digital payment app
• Assets of absconding economic offenders to be confiscated
• Total expenditure provision of Rs 21,41,000 crore
• Defence gets Rs 274,114 crore allocation
• Fiscal deficit pegged at 3.2% of GDP
• Rs 10,000 crore for recapitalisation of banks
• Revenue deficit pegged at 1.9%
• India largely a tax non-compliant society
• Net tax revenues up 17% for two successive years
• Norms for incentives under affordable housing scheme eased
• RBI Payments Regulatory Board for digital payments announced
• Tax sops extended by three years on overseas borrowings like masala bonds
• Tax rate on small firms cut to 25%
• Cash transaction above Rs 300,000 banned
• Basic customs duty on LNG cut from 5% to 2.5%
• Maximum donation from unknown sources to political parties limited to Rs 2,000
• RBI to launch electronic bonds
• Tax rate for individual earning of Rs 2.5-5 lakh reduced to 5%
• 10% surcharge for those with income of Rs 50 lakh to Rs 1 crore.
• One page I-T return form for individuals with less than Rs 5 lakh income
