Some Important Points from Key Features of Budget 2017-2018:
- In the last two and half years administration has moved from discretionary, favoritism based to system and transparency based
- Inflation brought under control. CPI-based inflation declined from 6% in July 2016 to 3.4% in December, 2016
- Passage of the Constitution Amendment Bill for GST and the progress for its introduction
- Enactment of the Insolvency and Bankruptcy Code; amendment to the RBI Act for inflation targeting; enactment of the Aadhar bill for disbursement of financial subsidies and benefits
- Generate long term benefits including reduced corruption, greater digitisation, increased flow of financial savings and greater formalisation of the economy
- The surplus liquidity in the banking system will lower borrowing costs and increase the access to credit
ROADMAP & PRIORITIES
Agenda for 2017-18 is : “Transform, Energise and Clean India” – TEC India
- Coverage under Fasal Bima Yojana scheme will be increased from 30% of cropped area in 2016-17 to 40% in 2017-18 and 50% in 2018-19
- New mini labs in Krishi Vigyan Kendras (KVKs)
- Aim to bring one crore households out of poverty and to make 50,000 Gram Panchayats poverty free by 2019, the 150th birth anniversary of Gandhiji
- Allocation for Prime Minister’s Employment Generation Program and Credit Support Schemes has been increased three fold
- SWAYAM platform, leveraging IT, to be launched with at least 350 online courses.
- Skill Acquisition and Knowledge Awareness for Livelihood Promotion programme (SANKALP) to be launched at a cost of ` 4000 crores
THE POOR AND THE UNDERPRIVILEGED
- Mahila Shakti Kendra will be set up with an allocation of ` 500 crores in 14 lakh ICDS Anganwadi Centres.
- Government has prepared an action plan to eliminate Kala-Azar and Filariasis by 2017, Leprosy by 2018, Measles by 2020 and Tuberculosis by 2025 is also targeted
- For passenger safety, a Rashtriya Rail Sanraksha Kosh will be created with a corpus of ` 1 lakh crores over a period of 5 years
- ‘Coach Mitra’, a single window interface, to register all coach related complaints and requirements to be launched
- 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
- Foreign Investment Promotion Board to be abolished in 2017-18 and further liberalisation of FDI policy is under consideration
- A new ETF with diversified CPSE stocks and other Government holdings will be launched in 2017-18
- In line with the ‘Indradhanush’ roadmap, 10,000 crores for recapitalisation of Banks provided in 2017-18
Aadhar Pay, a merchant version of Aadhar Enabled Payment System, will be launched shortly
PRUDENT FISCAL MANAGEMENT
FRBM Committee has recommended 3% fiscal deficit for the next three years
MEASURES FOR STIMULATING GROWTH
- Concessional withholding rate of 5% charged on interest earned by foreign entities in external commercial borrowings or in bonds
- MAT credit is allowed to be carried forward up to a period of 15 years instead of 10 years at present
TRANSPARENCY IN ELECTORAL FUNDING
- Maximum amount of cash donation, a political party can receive, will be 2000/- from one person.
- Amendment to the Reserve Bank of India Act to enable the issuance of electoral bonds in accordance with a scheme that the Government of India would frame in this regard.
- Existing rate of taxation for individual assesses between income of `2.5 lakhs to 5 lakhs reduced to 5% from the present rate of 10%
- Surcharge of 10% of tax payable on categories of individuals whose annual taxable income is between `50 lakhs and ` 1 crore
GOODS AND SERVICES TAX
- The GST Council has finalized its recommendations on almost all the issues based on consensus
- The extensive reach-out efforts to trade and industry for GST will start from 1st April, 2017
Click Here for : Key Features of Budget 2017-2018