Budget 2018 Summary
Dear Students, Today on 01st February 2018, Thursday, Finance Minister Arun Jaitley Presented Union Budget 2018. We are sharing Key Highlights Union Budget 2018 (Fiscal
Situation, Tax, Imports and Exports, Agriculture, Rural Economy, Education,
Health,Social Security, MSME, Employee-centric schemes, Infrastructure,
Railways, Aviation, Markets, Technology, Companies, Banking and Industries).
Union Budget 2018 Key Highlights
Budget 2018 - Fiscal Situation:
Fiscal deficit is 3.5% of GDP at Rs 5.95 lakh crore in
2017-18. Projecting fiscal deficit to be 3.3% of GDP in the next fiscal.
GST revenue will be received only for 11 months, that will have
an effect on balance sheets
Rs 21.57 lakh crores transferred as net GST to states as
against projection of Rs 21.47 lakh crores
Budget 2018 - Tax
85.51 lakh new tax
payers filed income tax returns in FY17
NO PERSONAL INCOME
TAX CHANGES PROPOSED IN BUDGET
Growth in direct
taxes (till Jan 15) is 18.7 %
100% tax deduction is
allowed to co-operative societies
Corporate Tax of 25%
extended to companies with turnover up to Rs 250 cr in financial year 2016-17
Incentives for Senior
citizens: Exemptions in income of Rs 10,000 from Banks FD and post offices
Senior citizens to
get Rs 50,000 per annum exemption for medical insurance under Sec 80D
Standard deduction of
Rs 40,000 allowed for transport, medical reimbursement for salaried tax payers
Govt to reduce
hardships faced in realty deals; no adjustment to be made in case circle rate
does not exceed 5 pc of sale consideration
Rs 8,000 crore
revenue lost due to standard deduction allowed to salaried employees
Rs 7,000 cr revenue
forgone on account of lower corporate tax for Rs 250 cr turnover cos
Rs 19,000 cr revenue
loss on direct tax in last fiscal
LONG TERM CAPITAL
GAINS EXCEEDING RS 1 L AKH WILL BE TAXED AT 10% WITHOUT INDEXING
Short term capital
tax remains at 15%
A tax on distributed
income at 10%
Budget 2018 - Imports and
Exports
Customs Duty on
certain products, such as mobile phones and televisions has been increased, to
provide a fillip to 'Make in India'
Social welfare surcharge
of 10% on imported goods.
Budget 2018 - Agriculture
The government's
emphasis will be on generating higher incomes for farmers, by helping them
produce more with lesser cost, and in turn, earn higher income for their
produce.
Jaitley stressed on the fact that India's agricultural
production is at a record high level today. 275 million tonne foodgrains and
300 million tonne fruits and vegetable have been produced in the country.
The FM said the government wants farmers to earn 1.5 times
the production cost, and the Minimum Selling Price (MSP) for the Kharif Crops
has been set at 1.5 times the produce price. Jaitley said the Centre will work
with states to ensure that all farmer get a fair price.
Agricultural market
and infra fund of Rs 2000 crore fund will be set up to strengthen the market
connectivity.
A sum of Rs 500 cr
will be allocated for Operation Green to be launched. It will promote
agricultural products.
Extend the facility
of Kisan credit card to fisheries and for animal husbandry
Rs 10,000 crore set
aside for Fisheries and Aquaculture Development Fund
Rs 10,000 crore set
aside for animal husbandry infra fund
Propose to launch a
restructured bamboo mission with a fund of Rs 1200 crore . "Bamboo is
green gold," Jaitley said.
Agricultural credit
target increased from Rs 8.5 lakh crore to Rs 11 lakh core
Special scheme to
manage crop reduce in Haryana, Punjab and Delhi to reduce pollution
Budget 2018 - Rural Economy
8 crore poor women
will get new LPG connections.
PM Saubhagya Yojana:
4 crore poor people will get power connection.
The government will
spend Rs 16,000 crore on this scheme.
Govt plans to
construct 2 crore toilets in next fiscal year under Swach Bharat Mission
Government target
house for all by 2022. 51 lakh houses have been constructed affordable houses
in rural and further 50 lakh houses in urban areas.
1 cr houses to be
built under Pradhan Mantri Awas Yojana in rural areas.
National livelihood
scheme gets Rs 5,750 crore .
In 2018-19,
ministries will be able to spend Rs 14.34 lakh crores for creation of
livelihood in rural areas.
Govt gives Rs 9,975
crore for social security schemes for the next fiscal year.
Budget 2018 - Education
Govt to increase
digital intensity in education. Technology to be the biggest driver in
improving quality of education: FM Jaitley
Rs. 1 lakh crore
allocated to revitalisation and upgradation of education sector. Promoting
learning based outcomes and research.
By 2022, every block
with more than 50 per cent ST population will have Ekalvya schools at par with
Navodaya Vidyalayas
Aims to move from
black board to digital board schools by 2022.
PM reasearch fellows:
Govt will identify 1000 Btech students each years and provide them to do PHDs
in IIT and IISc, while also teaching undergraduate students once a week at that
time.
Budget 2018 - Health
Aayushman Bharat
programme: 1.5 lakh centres will be set up to provide health facilities closer
to home. Rs 1,200 crore to be allocated for this programme
Flagship National
Healthcare protection scheme, with approximately 50 crore beneficiaries. Up to
Rs 5 lakh per family per year for secondary and tertiary care hospitalisation.
World's largest government-funded healthcare programme.
Universal health
coverage will be expanded after seeing the performance of the scheme
Rs 600 crore
allocated for tuberculosis patients, at the rate Rs 500 per month during the
course of their treatment.
Jaitley announces
setting up of one medical college for every three parliamentary constituencies,
with 24 New government medical colleges also being envisioned. Government also
will work on upgrading hospitals to medical colleges
Budget 2018 - Social Security
PM Jivan Bhma Yojana
has benefited 5.22 crore families
Govt will expand PM
Jan Dhan Yojana: Al 16 crore accounts will be included under micro insurance
and pension schemes
1.26 cr accounts
opened under Sukanya Samriddhi Scheme
Social inclusion
schemes for Scheduled Castes - Rs 52,719 crore
Social inclusion
schemes for Scheduled Tribes Rs 39,139 crore
Budget 2018 - MSME
Rs 3,794 crore
allocated to the MSME sector in the form of capital support and interest
subsidy By 2022, every block with more than 50 per cent ST population will have
Ekalvya schools at par with Navodaya Vidyalayas
Rs 3 lakh crore
target has been set for the Mudra Yojana
Rs 4.6 lakh cr
sanctioned under MUDRA Scheme
Budget 2018 - Employee-centric
schemes
Govt will contribute
12% of the wages of new employees in EPF in all sectors for next 3 years
Women contribution to
EPF reduced to 8% for first 3 years
Budget 2018 - Infrastructure
India needs
investment of Rs 50 lakh crore in the infrastructure sector
Construction of new
tunnel in Sera Pass to promote tourism
Out of 100 smart
cities 99 cities have been selected, with an outlay of Rs 2.04 lakh crore
10 prominent tourist
sites will be made iconic tourist destinations, with an amalgamation of private
funding, marketing and branding
Bharatmala project:
To develop 35,000 KM under phase 1 with an outlay of Rs 5.35 lakh crore
Govt to introduce pay-as-you-use
system for toll payments
Budget 2018 - Railways
Railway capex has
been pegged at Rs 1.48 lakh crore , up from Rs 1.31 lakh crore last year
Eliminate unmanned
railway crossing
All stations with
footfall of greater than 25,000 will have escalators.
More stations and
trains will progressively be built with WiFi and CCTV camera
Govt to eliminate
4267 unmanned rail crossing in broad gauge in 2 years
Allocates Rs 11,000
crore Mumbai rail network and Rs 17,000 crore for the Bengaluru metro
150 km of additional
suburban railway networks to be set up in Bengaluru at the cost of Rs 17,000
cr.
Budget 2018 - Aviation
Airport Authority of
India (AAI) has 124 airports. Propose to increase the number by at least 5
times 1 billion trips a year, Rs 60 cr has been allocated to kickstart the
initiative
UDAN Scheme to
connect 64 unconnected airports across the country
Budget 2018 - Markets
Govt to take
additional measures to strengthen environment for venture capitalists and angel
investors.
SEBI to consider
mandating large corporations to meet 1/4th of their debt needs
SEBI to mull asking
large cos to meet 25% debt from bond market
RBI norms to nudge
companies to access bond market for funds
Budget 2018 - Technology
Allocation to Digital
India scheme doubled to Rs 3073 cr
5 lakh WiFi HotSpots
to provide Broadband access to 5 crore rural citizens, at the cost of Rs 10,000
cr.
Government will take
measures to stop cryptocurrency circulation, as it is not considered legal
tender
Government will
explore the usage of Blockchain technology.
Budget 2018 - Companies
AADHAAR FOR
CORPORATES? Govt will evolve a scheme to assign a Unique ID for cos
Disinvestment target
of Rs 80,000 crore for FY19
National Insurance
Co, Oriental Insurance Co and United Assurance Co to be merged into one entity
and subsequently listed
Govt revises
divestment target for the current fiscal to Rs 1 lakh crore for FY 18.
Budget 2018 - Banking
Recapitalisation will
pave the way for public banks to lend an additional Rs 5 lakh crore
Budget 2018 - Industries
Rs 7,148 cr allocated
for textile sector
Budget 2018 - Miscellaneous
Emoluments for
President set at Rs 5 lakh, Rs 4 lakh for Vice President, Rs 3.5 lakh for
governors
Emoluments for
Parliamentrians: Law for increase in pay based on index to inflation
Govt
earmarks Rs 150 cr to commemorate 150 years of birth of Mahatma Gandhi
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