Amid protests today, Finance Minister Arun Jaitley presented the Union Budget 2017. After the sudden demise of Former Union Minister and MP, E. Ahamed , it seemed that budget would be postponed untill tomorrow. But nevertheless, the Budget was presented steadfastly. As per the convention, the House adjourns for a day whenever a sitting MP passes away.While presenting the budget, Finance Minister, Arun Jaitley proclaimed India as a bright spot in the global economy. He said, “India has become the 6th largest manufacturing country and that GST Bill will further spur the economic growth.” He also added that world economy is facing uncertainty and focus is on creating more Jobs.
While presenting the budget, Finance Minister, Arun Jaitley proclaimed India as a bright spot in the global economy. He said, “India has become the 6th largest manufacturing country and that GST Bill will further spur the economic growth.” He also added that world economy is facing uncertainty and focus is on creating more Jobs.
Talking on demonetization, Jaitley said that the increased liquidity reflects lower lending rates and the pace of remonetisation will soon become easy.
- The Total expenditure of Budget 2017-18 is Rs 21.47 lakh crore.
- Capital expenditure has been increased by almost 25%.
- Total resources devolved to states at Rs 4.11 lakh crore.
Finance Minister Arun Jaitley presented following updates:
Income Tax rates slashed: Reduction of Income tax rate to 5% from 10 % for annual income between Rs. 2.5 lakh to 5 lakh. There will be zero tax liability for people with annual income of Rs. 3 lakh. 15% surcharge remains same for those with incomes of over Rs. 1 crore whereas individuals’ earning between Rs. 50 lakh to Rs. 1 crore the surcharge is 10%.
Good news for MSMEs: There is reduction of Corporate Income Tax on medium and small enterprises. MSMEs with 50 crore turnover will get a 5% reduction in corporate income tax.
Demonetization: Finance Minister stated in his budget speech that impact of demonetisation will not spill into next year. He also averred that demonetisation has potential to generate long-term benefits and due to demonetisation, banks have started reducing rates.
New FDI policy: A new FDI policy is under consideration, where PSU firms will be listed under revised procedure. Also, new exchange traded fund consisting of PSU stock will be launched in 2017-18. Along with this, to ease out foreign investment, Finance Minister announced abolition of Foreign Investment Promotion Board (FIPB).
Recapitalization of banks: Banking stocks got renewed hope as Arun Jaitley announced Rs 10,000 crore for bank capitalization.
Fiscal Deficit: The fiscal deficit of 3.2% in 2017-18 and 3% in 2018-19. Revenue deficit for 2017-18 will be 1.9%.
FinTech regulator soon: As currently there is no regulator for FinTech companies in India such as Paytm, Government has proposed creation of a payment regulatory board at RBI.
Education: Under the education sector, Government plans to introduce market relevant training for youth. Also, reforms will be proposed for UGC and several more colleges will be provided accreditation.
New law for economic offenders: Offenders who have absconded to another country, Government plans to bring in a law to confiscate their assets. The new plan is the creation of a new law for attaching assets of such absconders.
Going digital: As we all know, India is witnessing massive digital revolution right now. Finance Minister while stressing on the benefits of going digital, announced the launch of two more schemes for use of BHIM app. BHIM App (Bharat Interface for Money) is an app that allows you to send and receive money with just one tap.
Infrastructure: The infrastructure allocation is at a record of Rs 3,96,135 crore in Union Budget 2017.
Labor Rights: Arun Jaitley said that government is keen to foster an environment where labor rights will be protected and steps will be taken in this regard.
Skilling: For boosting skilling segment, Government will establish 100 India international Skill Centres.
Health: By 2025, Government targets to eliminate tuberculosis. Also, reduction in the cost of life-saving drugs was announced. Two new AIIMS to be set up in Jharkhand and Gujarat.