The Union Budget for 2017-18 was presented by Finance Minister Arun Jaitley on February 1st, 2017 with an overall size of 21.47 lakh crore rupees. Key focuses of the budget included transforming governance, energizing various sections of society including youth and farmers, and cleaning the country from corruption. Major allocations were made for infrastructure development, rural development including doubling farmers' income, healthcare, education and skills development, and the defense sector. The fiscal deficit target for 2017-18 was set at 3.2% of GDP.
2. Union budget was presented before Parliament By Hon’ble Finance
Minister Arun Jaitely on 1st Feb, 2017
The Budget size was 21.47 Lakh Crore
The Agenda was “Transform, Energize and Clean India (TCE).”
TRANSFORM the quality of governance and
quality of life of our people;
ENERGISE various sections of society,
especially the youth and the vulnerable, and
enable them to unleash their true potential;
CLEAN the country from the evils of corruption, black
money and non-transparent political funding
3. Major Changes in BudgetPresentation
3
• Provides for Integrated Planning and development of Infrastructure
• Undoes the Colonial Legacy & political interference in Railway plans
Railways Merged with
Union Budget
• This allows for timely approval and allocation of resources for the
Fiscal
• Government Expenditures and Plans can kick start from the beginning
of the financial year
• Expense categorization to be under Capital & Revenue Heads
• Reduces Policy complexity in implementation and monitoring
Budget Announcement
Date Preponed to 1st
Feb
Plan & Non Plan
Categorization Done
away with
4. Farmers : committed to double the income in 5 years;
Rural Population : providing employment & basic infrastructure;
Youth : energising them through education, skills and jobs;
The Poor and the Underprivileged : strengthening the systems of social
security, health care and affordable housing;
Infrastructure: for efficiency, productivity and quality of life;
Financial Sector : growth & stability by stronger institutions;
Digital Economy : for speed, accountability and transparency;
Public Service : effective governance and efficient service delivery through
people’s participation;
Prudent Fiscal Management: to ensure optimal deployment of resources and
preserve fiscal stability;
Tax Administration: honouring the honest.
6. Particulars Actual 15-16
Budget Estimate
16-17
Budget Estimate
17-18
Receipts
Revenue 1257992 1444156 1600203
Total Receipts 1257992 1444156 1600203
Expenditure
Capital 253022 247032 309801
Revenue 1537761 1731037 1836934
Total Expenditure 1790783 1978069 2146735
Fiscal Deficit 532791 533904 546332
Fiscal Deficit (% of
GDP)
3.90% 3.50% 3.20%
Rs. In Crore
7. 2017-18
Tax Revenue- 87.66%
Non- Tax Revenue- 12.34%
(Includes Non-Debt Capital
and Borrowings) 19.75%
23.45%
11.11%
17.28%
12.34%
12.34%
3.73%
2017-18
Income Tax
Corporation Tax
Customs
Union Excise Duty
Service Tax and Other
Taxes
Non-Tax Revenue
Non-Debt Capital
Receipt
8. Application of Funds
Centrally Sponsered
Scheme
10%
Central Sector
Scheme
11%
Interest Payment
18%
Defense
9%
Subsidies
10%
Finance Commision
And Other Transfer
5%
States' Share of
Taxes and Duties
24%
Other Expenditure
13%
2017-18
Centrally Sponsered Scheme
Central Sector Scheme
Interest Payment
Defense
Subsidies
Finance Commision And Other
Transfer
States' Share of Taxes and Duties
Other Expenditure
Classification of Plan and Non-plan
Expenditure has been Abolished
9. 2010 2011 2012 2013 2014 2015 2016 2017
Fiscal deficit 4.18483 3.73591 5.16269 4.9019 5.02863 5.10817 5.32783 5.46532
As % of GDP 6.79% 4.87% 5.79% 4.85% 4.43% 4.04% 3.92% 3.20%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
AS%OFGDP
RS.INLAKHCRORE
Trajectory of Fiscal Deficit
Fiscal deficit As % of GDP
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
Gross Tax Revenue6.217.898.8510.311.312.414.515.2
As % of GDP 10.010.29.9310.29.999.8110.68.87
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
0
2
4
6
8
10
12
14
16
AS%OFGDP
RS.INLAKHCRORE
Taxation Income
Gross Tax Revenue As % of GDP
201
0
201
1
201
2
201
3
201
4
201
5
201
6
201
7
Total borrowings 4.16 3.7 4.36 4.67 4.75 4.9 4.8 3.5
4.16
3.7
4.36 4.67 4.75 4.9 4.8
3.5
0
1
2
3
4
5
6
Rs.inLakhCrore
Government Borrowing
Total borrowings
10. A sum of Rs. 10 lakh crore is allocated as credit to
farmers, with 60 days interest waiver.
NABARD fund will be increased to Rs. 40,000
crore.
Government will set up mini labs in Krishi Vigyan
Kendras for soil testing.
A dedicated micro irrigation fund will be set up for
NABARD with Rs 5,000 crore initial corpus.
Irrigation corpus increased from Rs 20,000 crore to
Rs 40,000 crore.
11. The government targets to bring 1 crore households out of
poverty by 2019.
During 2017-18, five lakh farm ponds will be taken up
under the MGNREGA.
Over Rs 3 lakh crore will be spent for rural India.
MGNREGA to double farmers' income.
Will take steps to ensure participation of women in
MGNREGA up to 55%.
Space technology will be used in a big way to ensure
MGNREGA works.
Will allocate Rs. 19,000 crore for Pradhan Mantri Gram
Sadak Yojana in 2017-18.
The country well on way to achieve 100% rural
12. Will introduce a system of measuring annual
learning outcomes and come out with an
innovation fund for secondary education.
Focus will be on 3,479 educationally-backward
blocks.
Skill India mission was launched to maximise
potential. Will set up 100 India International
centres across the country.
Courses on foreign languages will be introduced.
Will take steps to create 5000 PG seats per annum.
13. For the poor and underprivileged health care
Rs. 500 crore allocated for Mahila Shakthi Kendras.
Under a nationwide scheme for pregnant women, Rs. 6000
will be transferred to each person.
A sum of Rs. 1,84,632 crore allocated for women and
children.
Health sub centres, numbering 1.5 lakh, will be transformed
into health wellness centres.
Two AIIMS will be set up in Jharkhand and Gujarat.
Will undertake structural transformation of the regulator
framework for medical education.
Allocation for Scheduled Castes is Rs. 52,393 crore
14. Infrastructure and railways
A total allocation of Rs. 39,61,354 crore has been made for
infrastructure.
Total allocation for Railways is Rs. 1,31,000 crore.
No service charge on tickets booked through IRCTC.
Raksha coach with a corpus of Rs. 1 lakh crore for five
years (for passenger safety).
3,500 km of railway lines to be commissioned this year up
from 2,800 km last year.
SMS-based ''clean my coach service'' is put in place.
Rs. 64,000 crore allocated for highways.
High speed Internet to be allocated to 1,50,000 gram
panchayats.
15. Energy sector
A strategic policy for crude reserves will be set up.
Rs. 1.26,000 crore received as energy production
based investments.
Trade infra export scheme will be launched 2017-
18.
16. FDI policy reforms - more than 90% of FDI inflows are
now automated.
Shares of Railway PSE like IRCTC will be listed on stock
exchanges.
Pradhan Mantri Mudra Yojana lending target fixed at Rs
2.44 lakh crore for 2017-18.
Digital India - BHIM app will unleash mobile phone
revolution. The government will introduce two schemes to
promote BHIM App - referral bonus for the users and cash
back for the traders (promoted ).
17. Total expenditure is Rs. 21, 47,000 crore.
Plan, non-plan expenditure to be abolished; focus will be on
capital expenditure, which will be 25.4 %.
Rs. 3,000 crore under the Department of Economic Affairs
for implementing the Budget announcements.
Expenditure for science and technology is Rs. 37,435 crore.
Total resources transferred to States and Union Territories is
Rs 4.11 lakh crore.
Recommended 3% fiscal deficit for three years with a
deviation of 0.5% of the GDP.
Revenue deficit is 1.9 %
Fiscal deficit of 2017-18 pegged at 3.2% of the GDP. Will
remain committed to achieving 3% in the next year.
18. Funding of political parties
The maximum amount of cash donation for a
political party will be Rs. 2,000 from any one
source.
Political parties will be entitled to receive donations
by cheque or digital mode from donors.
Defence sector
The defence sector gets an allocation of Rs. 2.74,114
crore(6%).
19. Tax proposals
Out of 13.14 lakh registered companies, only 5.97 lakh
firms have filed returns for 2016-17.
Individuals numbering 1.95 crore showed an income
between Rs. 2.5 lakh to Rs. 5 lakh.
Out of 76 lakh individual assesses declaring income more
than Rs. 5 lakh, 56 lakh are salaried.
Only 1.72 lakh people showed income of more than Rs. 50
lakh a year.
Between November 8 to December 30, deposits ranging
from Rs. 2 lakh and Rs. 80 lakh were made in 1.09 crore
accounts.
Net tax revenue of 2013-14 was Rs. 11.38 lakh crore.
Reduce basic customs duty for LNG to 2.5% from 5%.
20. Rate of growth of advance tax in Personal I-T is
34.8% in the last three quarters of this financial year.
Under the corporate tax, in order to make MSME
( Micro, Small & Medium Enterprises)companies
more viable, there is a proposal to reduce tax for
small companies with a turnover of up to Rs 50
crore to 25%. About 67 lakh companies fall in this
category. Ninety-six % of companies to get this
benefit.
The limit of cash donation by charitable trusts is
reduced to Rs 2,000 from Rs 10,000.
No more cash transactions above Rs. 3 lakh.
21. Personal income tax
Existing rate of tax for individuals between Rs. 2.5-
Rs 5 lakh is reduced to 5% from 10%.
All other categories of tax payers in subsequent
brackets will get a benefit of Rs 12,500.
10% surcharge on individual income above Rs. 50
lakh and up to Rs 1 crore to make up for Rs 15,000
crore loss due to(rebate Rs 12,500) cut in personal
I-T rate. 15% surcharge on individual income above
Rs. 1 crore to remain(rebate Rs 14,500).
Net revenue loss in direct tax could be Rs. 20,000
crore.
22. Stock markets react positively to Budget 2017
BSE Sensex rises 485.68 points, or 1.76%, to
28,141.64 while the Nifty 50 rises 155.10 points, or
1.81%, to 8,716.40 after the Union budget speech.
Rail stocks fell up to 6% as investors were unhappy
on the proposed allocation to railways for 2017-18.
23. The following is a list of items that will turn
costlier:
Cigarettes, pan masala, cigar , bidis, chewing
tobacco, LED lamp components ,Cashew nuts,
Aluminium ores, Polymer coated MS tapes used in
manufacturing of optical fibres, Silver coins ,Printed
circuit board used in making mobile phones.
Following is a list items that will turn cheaper:
Booking railway tickets online, LNG(Liquefied
natural gas) , Solar tempered glass used in solar
panels, Fuel cell based power generating systems,
Wind operated energy generator , POS machines
card and fingerprint readers.