Union Budget 2017-18: A Quick Look

Trade & Policy

Union Budget 2017-18: A Quick Look

Plan Expenditure: Rs. 9,45,078

Non-Plan Expenditure: Rs. 12,01,657

Total Expenditure: Rs. 21,46,735

Fiscal Deficit: 3.2%

Revenue Deficit: 1.9%

Current Account Deficit - 0.1%

FDI Investments: 1.45 Lakh Crores (16-17) 1st Half

GDP for Budget Estimate for 2017-18 has been projected at Rs.16847455 crore assuming 11.75% growth over the Revised Estimates of 2016-17 (Rs. 15075429 crore)

Rural and Agriculture Sector

Government will spend more in rural areas.

Target for agricultural credit in 2017-18 has been fixed at a record level of Rs. 10 lakh crore.

There will be special focus on North East and Jammu & Kashmir.

Farmers to benefit from 60 days interest waiver.

NABARD to be fully computerized within 3 years at an estimated cost of Rs. 1,900 crores.

Fasal Bhima Yojna to be increased from current 30% of cropped area to 50% by 2019 in a phased manner.

Mini Labs to be set up in Krishi Vigyan Kendras for farmers.

Long term irrigation fund increased from Rs 20,000 crore to Rs 40,000 crore

NABARD to receive 50,000 crore as micro-irrigation fund.

Rs. 19,000 crore provided for Pradan Mantri Gram Sadak Yojna in current budget.

Rs. 23,000 crore allocated for building houses for homeless under the prime minister’s scheme.

e-NAM market to expand coverage from 259 APMCs to 585 APMCs.

De-notification of perishables from APMC markets expected to give better prices to farmers from their sale.

Model law to be framed on contract farming.

Dairy processing and infrastructure development fund with initial corpus of Rs. 2000 crore to be set up under the aegis of NABARD.

The total allocation for the rural, agriculture and allied sectors in 2017-18 is Rs. 1,87,223 crores, which is 24% higher than the previous year.

MGNERGA

Provision for MGNERGA increased by Rs.10,000 crore in current budget. The figure will stand at Rs 48,000 crore

Youth

SWAYAM platform to be launched that will run 350 online courses for youth.

National Testing Agency to be set up for coordinating all entrance exams to institutes of higher learning.

SANKALP, a skill acquisition program for youth will be given a corpus of Rs. 4000 crore to impart training to 3.5 crore youth.

Skill Strengthening program STRIVE to get a corpus of Rs. 2200 crores.

Five special tourism zones will be set up in partnership with states.

Allocation for women and children has been increased from Rs. 1,56528 crores in the previous year to RS. 1,84,632 crores in current year.

Welfare

Affordable housing to be given infrastructure status

1.5 lakh Health Sub Centres will be transformed into Health and Wellness Centres.

5,000 additional PG medical seats per annum to ensure increased health care

Legislative reforms to tackle labor reforms to satisfaction of all

The allocation for the welfare of Scheduled Castes has been stepped up from Rs. 38,833 crores in BE 2016-17 to Rs 52,393 crores in 2017-18, representing an increase of about 35%.

For senior citizens, Aadhar based Smart Cards containing their health details will be introduced.

Transport

For 2017-18, the total capital and development expenditure of Railways has been pegged at Rs. 1,31,000 crores. This includes Rs. 55,000 crores provided by the Government.

For passenger safety, a Rashtriya Rail Sanraksha Kosh will be created with a corpus of 1 lakh crores over a period of 5 years.

Railway lines of 3,500 kms will be commissioned in 2017-18, as against 2,800 kms in 2016-17.

At least 25 stations are expected to be awarded during 2017-18 for station redevelopment.

It is proposed to feed about 7,000 stations with solar power in the medium term.

By 2019, all coaches of Indian Railways will be fitted with bio toilets.

A new Metro Rail Policy will be announced with focus on innovative models of implementation and financing, as well as standardisation and indigenisation of hardware and software.

In the road sector Budget allocation stepped up for highways from Rs. 57,976 crores in BE 2016-17 to Rs. 64,900 crores in 2017-18.

Select airports in Tier 2 cities will be taken up for operation and maintenance in the PPP mode.

For transportation sector as a whole, including rail, roads, shipping, government has provided Rs. 2,41,387 crores in 2017-18. Rs. 67,000 crores allocated for National Highways

Stepped up the allocation for BharatNet Project to Rs. 10,000 crores in 2017-18 for laying of fiber optics cables.

Energy

For strengthening Energy sector, Government has decided to set up Strategic Crude Oil Reserves.

In solar energy, government proposes to take up the second phase of Solar Park development for additional 20,000 MW capacity.

Creating an eco-system to make India a global hub for electronics manufacturing

The total allocation for infrastructure development in 2017-18 stands at 3,96,135 crores.

Taxes and Others

Income tax for the Rs. 2.5 lakh to 5 lakh slab has been reduced from 10 percent to 5 percent.

FPIB to be abolished in 2017-18 and new FDI policy will be in place.

A Computer Emergency Response Team for India’s Financial Sector (CERT-Fin) will be established.

Pradhan Mantri Mudra Yojna funds to be doubled and slated at Rs. 2.44 lakh crore

In order to make MSME companies more viable and also to encourage firms to migrate to company format, the budget proposed to reduce the income tax for smaller companies with annual turnover upto Rs. 50 crore to 25%.

In order to give a boost to banking sector, budget proposed to increase allowable provision for Non-Performing Asset from 7.5% to 8.5%.

Cash donation to political party from individuals has been reduced from Rs. 20,000 rupees to Rs. 2000.

No transaction above Rs. 3 lakh allowed in cash.

Defense expenditure to be Rs. 2.74 Lakh crores excluding pension