Union Budget 2018: Key Highlights
FM Arun Jaitley's delivered this government's fifth and last full Budget challenging fiscal situation and farm distress.
FM Arun Jaitley's delivered this government's fifth and last full Budget challenging fiscal situation and farm distress.
Following are the highlights of his speech:
Customs Duties
* Central Board of Excise and Customs renamed as Central Board of Indirect Taxes and Customs
* Customs Duty on certain products, such as mobile phones and televisions has been increased, to provide a fillip to 'Make in India'
* Customs duty on sunglasses, cigarette lighter, toys, bus and truck tyres, select furniture hiked.
* Customs duty on imitation jewellery increased from 15% to 20%; two times on all watches to 20%.
* Social welfare surcharge of 10% on imported goods.
* Import of solar tempered glass for manufacturing of solar cells exempted from customs duty.
* Customs duty on crude edible vegetable oils like groundnut oil, safflower seed oil increased from 12.5% to 30%; on refined edible vegetable oil from 20% to 35%
* Import duty on LCD/LED/OLED panels, parts of TVs increased to 15%; duty on smart watches, wearable devices, footwear doubled to 20%.
* New scheme for providing electronic assessment to eliminate person-to-person contact
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
* Surcharge of 10% on income above Rs 50 lakh but less than Rs 1 cr to be continued next year; 15% on income above Rs 1 cr to also continue.
* 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
* Rs 7.5 lakh per senior citizen limit for investment in interest-bearing LIC schemes doubled to Rs 15 lakh
* 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
* Standard deduction of Rs 40,000 allowed for transport, medical reimbursement for salaried tax payers
* Rs 7,000 cr revenue forgone on account of lower corporate tax for Rs 250 crore turnover companies
* Rs 19,000 cr revenue loss on direct tax in last fiscal
* Rs 8,000 crore revenue lost due to standard deduction allowed to salaried employees
* 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%
* GST revenue will be received only for 11 months, that will have an effect on balance sheets
* Govt makes PAN mandatory for any entity entering into a financial transaction of Rs 2.5 lakh or more.
* Education cess hikes by 4% from 3% to collect additional Rs 11,000 crore
* GST collections projection pegged at Rs 7.43 lakh crore in full year 2018-19 as against Rs 4.44 lakh crore in nine months of current fiscal 2017-18.
Agriculture
* The government's emphasis will be on generating higher incomes for farmers, by helping them produce more with lesser cost, and earn higher income for their produce.
* Agricultural market and infrastructure 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.
* FM stressed on the fact that India's agricultural production is at a record high level today. 275 million tonne of foodgrains and 300 million tonne of 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.
* Rs 10,000 crore set aside for Fisheries and Aquaculture Development Fund
* Rs 10,000 crore set aside for animal husbandry infra fund
* Extend the facility of Kisan credit card to fisheries and for animal husbandry
* 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
Education
* Govt to increase digital intensity in education. Technology to be the biggest driver in improving quality of education: FM Jaitley
* 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.
* Rs. 1 lakh crore allocated to revitalisation and upgradation of education sector. Promoting learning based outcomes and research.
Rural Economy
* Govt gives Rs 9,975 crore for social security schemes for the next fiscal year.
* PM Saubhagya Yojana: 4 crore poor people will get power connection.
* 8 crore poor women will get new LPG connections.
* 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
* In 2018-19, ministries will be able to spend Rs 14.34 lakh crores for creation of livelihood in rural areas.
* National livelihood scheme gets Rs 5,750 crore .
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 4.6 lakh cr sanctioned under MUDRA Scheme
* Rs 3 lakh crore target has been set for the Mudra Yojana
Petroleum/ Diesel Sector
* Excise on unbranded petrol cut by 2 rupees to 4.48 rupee/ltr
* Excise on unbranded diesel cut by 2 rupees to 6.33 rupee/ltr
Health
* 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
* Universal health coverage will be expanded after seeing the performance of the scheme
* 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.
Social Security
* Govt will expand PM Jan Dhan Yojana: Al 16 crore accounts will be included under micro insurance and pension schemes
* Social inclusion schemes for Scheduled Tribes Rs 39,139 crore
* PM Jivan Bima Yojana has benefited 5.22 crore families
* Social inclusion schemes for Scheduled Castes - Rs 52,719 crore
* 1.26 cr accounts opened under Sukanya Samriddhi Scheme
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
Railways
* Railway capex has been pegged at Rs 1.48 lakh crore , up from Rs 1.31 lakh crore last year
* Allocates Rs 11,000 crore Mumbai rail network and Rs 17,000 crore for the Bengaluru metro
* More stations and trains will progressively be built with WiFi and CCTV camera
* 150 km of additional suburban railway networks to be set up in Bengaluru at the cost of Rs 17,000 cr.
* Govt to eliminate 4267 unmanned rail crossing in broad gauge in 2 years
* Eliminate unmanned railway crossing
* All stations with footfall of greater than 25,000 will have escalators.
Infrastructure
* India needs investment of Rs 50 lakh crore in the infrastructure sector
* Out of 100 smart cities 99 cities have been selected, with an outlay of Rs 2.04 lakh crore
* Govt to introduce pay-as-you-use system for toll payments
* Construction of new tunnel in Sera Pass to promote tourism
* Bharatmala project: To develop 35,000 KM under phase 1 with an outlay of Rs 5.35 lakh crore
* 10 prominent tourist sites will be made iconic tourist destinations, with an amalgamation of private funding, marketing and branding
Markets
* Govt to take additional measures to strengthen environment for venture capitalists and angel investors.
* RBI norms to nudge companies to access bond market for funds
* 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
Aviation
* UDAN Scheme to connect 64 unconnected airports across the country
* 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
Technology
* Allocation to Digital India scheme doubled to Rs 3073 cr
* Government will take measures to stop cryptocurrency circulation, as it is not considered legal tender
* 5 lakh WiFi HotSpots to provide Broadband access to 5 crore rural citizens, at the cost of Rs 10,000 cr.
* Government will explore the usage of Blockchain technology.
Banking
* Recapitalisation will pave the way for public banks to lend an additional Rs 5 lakh crore
Companies
* Disinvestment target of Rs 80,000 crore for FY19
* Govt revises divestment target for the current fiscal to Rs 1 lakh crore for FY 18.
* National Insurance Co, Oriental Insurance Co and United Assurance Co to be merged into one entity and subsequently listed
Industries
* Rs 7,148 cr allocated for textile sector
Miscellaneous
* Defence outlay raised to Rs 2.82 lakh crore in 2018-19 from Rs 2.67 lakh crore in current year
* 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
* Emoluments for President set at Rs 5 lakh, Rs 4 lakh for Vice President, Rs 3.5 lakh for governors
* Food subsidy to rise to Rs 1.69 lakh crore in 2018-19 from Rs 1.4 lakh crore in current year.
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