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In A Nutshell | FM Arun Jaitley Unveils Budget 2017-18

Finance Minister Arun Jaitley unveils Union Budget 2017-18 under pressure to offer tax giveaways and step up capital and welfare spending to ease the pain from demonetisation in India

Photo Credit : PTI

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Finance Minister Arun Jaitley unveils Union Budget 2017-18 in the Lok Sabha at 11 am on Wednesday (February 012) under pressure to offer tax giveaways and step up capital and welfare spending to ease the pain from demonetisation in India.

Here are the live updates:

Income tax upto Rs 5 lakh income reduced to 5 per cent. Zero tax liability on those with income of upto Rs 3 lakh.

10 per cent surcharge on those with income between Rs 50 lakh and Rs 1 crore.

No cash transaction above Rs 3 lakh to be permitted, says Jaitley.

Income tax on medium, small and micro enterprises with annual turnover of Rs 50 cr reduced from 30pc to 25 pc, announces Jaitley.

Thrust of direct tax proposals is to stimulate growth, relief for middle class, affordale housing, curb black money, transparency in political funding, simplification of tax laws, says Jaitley.

Between November 8 and Decembe 30, 2016, deposits between Rs 2 lakh and Rs 80 lakhs was made in 1.09 lakh bank accounts (Rs 5.3 lakh avg deposit), says Jaitley.

Deposits of more than Rs 80 lakh were made in 1.48 lakh bank accounts (Rs 3.31 cr average).

1.72 lakh show income more than Rs 50 lakh a year, but 1.25 cr cars sold last year. Two crores Indian travelled in in 2015. All this showswe are largely a tax-noncompliant economy, says Jaitley.

Of 76 lakh individuals who reported income of over Rs 5 lakh, 56 lakh are salaried

Big-time offenders, including economic offenders fleeing the country will now face legislative changes, even a new law, under which their assets in the country will be confiscated till they subject themselves to the law of the land, says Jaitley. Needless to say, all constitutional safeguards will be provided

2 schemes to promote BHIM app, says Jaitley. One is a referral scheme and the other is a cashback.

Crude oil strategic reserves to be set up in Odisha and Rajasthan apart from 3 already constructed: FM

Coverage of Fasal Bima Yojana to go up from 30 pc of cropped area to 40 pc in 2017-18 and 50 per cent next year: FM

For transport sector, including railways, road and shipping, government provides Rs 2.41 lakh crore.

Rs 10,000 crore has been set aside for recapitalisation of banks

National highway allocation at Rs 64,000 crore.

Rs 10,000 crore for BharatNet project to expand broadband coverage.

National Housing Bank will refinance individual loans worth Rs 20,000 cr in 2017-18.

No service charge on ticket booking through IRCTC website, announces Jaitley.

All coaches of railways to be fitted with bio-tyres by 2019, and at least 25 stations will be redeveloped over next year.

Railways to implement end-to-end solutions for some commodities, and propose to feed 7000 solar railway station in medium term, says Jaitley.

PM Kaushal Kendras will be extended to 600 districts; 100 international skill centres to be opened to help people get jobs abroad.

Market reforms will be undertaken, states will be asked to denotify perishables from Essential Commodities Act: FM

A system of annual learning outcome in schools to be introduced; innovation fund for secondary education to be set up, says Jaitley.

We propose to provide safe drinking water to 28,000 arsenic and fluoride affected habitations, says the FM.

To construct one crore houses by 2019 for homeless. PM Awas Yojana allocation raised from Rs 15,000 cr to Rs 23,000 crore, says Jaitley.

Special scheme for employment in textile sector launched. A similar scheme in leather sector, too, says Jaitley. The government is committed to ensuring conducive labour environment, and will undertake legislative reforms to simplify labour laws in India.

Additional 5k post-graduate seats per annum, and two new AIIMS to be set up in Jharkhand and Gujarat, says Jaitley.

Propose to finish 1 crore houses by 2019 for those living in kachcha houses, says Jaitley, and pace of construction of roads has increased to Rs 133 km/day in 2017.

Long-term irrigation fund set up in NABARD, additional corpus Rs 20,000 crore

The Union Cabinet approves extension of tenure of loans under Credit Linked Subsidy Scheme of Pradhan Mantri Awas Yojana from 15 to 20 years.

Open defecation free villages to be given priority for piped water, says Jaitley.

Mini labs by qualified local entrepreneurs to be set up for soil testing in all 648 krishi vigyan kendras in the country, says Jaitley.

Have done away with planned and non-planned allocation, says Jaitley, and Budget has been advanced to enable Parliament avoid a vote on account.

The allocation for MGNREGA for 2017-18 has been increased to Rs 48000 crore, and we will bring one crore rural families out of poverty, says Jaitley.

Long-term irrigation fund has been set up in Nabard, and its corpus will be raised to Rs 40 crore, announces Jaitley. We are committed to double farmer's income in five years. The target for agricultural credit fixed at Rs 10 lakh crore this year, and agriculture expected to grow at 4.1% in the current year, he says.

My focus in this Budget is to spend more in rural areas, infrastructure, poverty alleviation and yet maintain fiscal prudence, says Jaitley.

Three challenges for emerging markets, says Jaitley. One, the current monetary policy stance of US Fed may lead to higher capital outflows. Two, uncertainty over commodity prices. And three, signs of increasing retreat from globalisation of services and goods, as pressures for protectionism build up across the world.

Agriculture: Dedicated micro irrigation fund to be set up. For post harvest, farmers will get better prices in market: FM

Issuance of soil health cards have gathered momentum. We will setup a mini lab in krishi vigyan kendras: Arun Jaitley

We will take special efforts to ensure adequate flow of credit to under served areas, Northeastern states and Jammu and Kashmir: FM

Government to spend more on rural areas, infrastructure and poverty alleviation with fiscal prudence.

Government committed to double farmer income: Arun Jaitley

We have taken more steps to help farmers to increase production and deal with post harvest problems: FM

"We are aware that we need to do more. Our agenda for next year is to transform, energise and clean India," Arun Jaitley said addressing the Speaker.

Demonetisation is a bold initiative, seeks to create a new normal, is part of my government's resolve to eliminate counterfeit currency, black money, and terror funding, says Jaitley. The disruption is expected to have only a transient impact on economy, and quotes Mahatma Gandh: A right cause never fails.

"Pace of remonetisation has picked up and the effects of demonetisation will not spill over next year. Drop in economic activity during remonetisation will only have a transient impact," Arun Jaitley said.

The Finance Minister hailed both GST and demonetisation as 'tectonic changes' in the Indian economy.

Advantages in terms of GST are competitiveness, greater transparency etc have been discussed in both Houses: Arun Jaitley.

Saying that demonetisation seeks to 'create a new normal', the Finance Minister added that it was a follow up of the other measures taken by the govt in past two years.

India has become the 6th largest manufacturing country in the world, up from the 9th position, Arun Jaitley said.

Jaitley said that GDP growth had recovered following demonetisation. He said India's growth rate was much higher than the global estimate of 3.4 per cent for 2017.

Arun Jaitley said that inflation, which was in double digits and has now been controlled, while sluggish growth has been replaced by high growth. He also mentioned that the government has launched a war against black money through its demonetisation policy.

"The government is now seen as a trusted custodian of public money, I express gratitude to people for their strong support," said Arun Jaitley.


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Union Budget 2017-18 arun jaitley tax reforms parliament
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