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Highlights of Union Budget 2017

    IndianMoney.com Research Team | Wednesday, February 01,2017, 08:14 PM
 

Agriculture:

  • The Finance Minister wants farmers to feel secure against natural calamities. Finance Minister announces INR 10 lakh crore as credit to farmers with 60 days interest waiver.
  • NABARD fund would be increased to INR 40,000 crores. This money will be used for long term irrigation.
  • Government would set up mini-labs in Krishi Vignan Kendras for soil testing.
  • The issuance of soil health cards to gather momentum.
  • A dedicated micro irrigation fund to be set up under NABARD with funds worth INR 5000 Crores.
  • 40% of cropped area to be covered under Fasal Bima Yojana in 2017-18.
  • A dairy processing infrastructure fund to be created with a corpus of INR 2,000 Crores.
  • Model law on contract farming to be prepared and shared with States.

Rural Population:

  • Government sets a target to bring 1 crore households out of poverty by 2019, under Mission Antyodaya.
  • Government allocates INR 48,000 crores towards MGNREGA.
  • Participation of women in MGNREGA has gone up to 55%.
  • The Government has allocated INR 19,000 Crores towards Pradhan Mantri Gram Sadak Yojana in 2017-18.
  • The Government wants to achieve 100% electrification of all villages by May 1, 2018.
  • Allocation for Pradhan Mantri Awaaz Yojana increased from INR 15,000 Crores to INR 23,000 Crores.
  • 5 Lakh citizens to be given mason training.
  • The Government has allocated INR 4,500 Crores towards rural livelihood mission.
  • The Government wants to complete the construction of 1 Crore houses by 2019 for homeless citizens living in kaccha houses.
  • Sanitation in rural areas has gone up from 42% in October 2014 when Swachh Bharat was launched, to 60% now.

Digital Sector:

  • Government will strengthen the financial inclusion fund.
  • Government will launch 2 New Schemes to promote the BHIM app. More than 125 Lakh citizens have adopted the BHIM app.
  • Merchant version of Aadhaar-enabled payments to be launched, for those without debit cards and mobile phones.

Health:

  • The Government has allocated INR 500 Crores towards Mahila Shakthi Kendras.
  • The Government has started a nationwide scheme for pregnant women where INR 6,000 will be transferred to each pregnant women’s bank account.
  • The Government proposes to eliminate Tuberculosis by 2025.
  • Two new AIIMS to be set up in Gujarat and Jharkhand.
  • 1.5 Lakh health centers would be converted into health wellness centers.
  • Aadhaar-based smartcards launched for senior citizens to monitor their health.
  • The Government plans to eliminate Kala Azar and Filariasis by 2017, Leprosy by 2018, and Measles by 2020.

Financial Sector:

  • Shares of Railway PSE like IRCTC would be listed on stock exchanges. 
  •  Foreign Investment Promotion Board (FIPB) to be abolished in 2017-18.
  • Panel will be set up to study legal framework for spot and derivative markets.
  • Resolution mechanism to be set up for financial firms.
  • To help in cyber-security, computer emergency response team to be set up.
  •  Listing of PSEs would help in fostering public accountability and a revised mechanism for time-bound listing.
  • New ETF to be launched.
  • An integrated public sector oil major to be created.
  • Lending target under Pradhan Mantri Mudra Yojana set at INR 2.44 trillion.
  • Over 16,000 new enterprises have been set up under Stand-up India scheme.
  • Government to consider an option to amend Negotiable Instruments Act to ensure that holders of dishonoured cheques get payment.
  • A centralized pension distribution system to be established for defense personnel.
  • For big time economic offences, where offenders have fled the country, the Government will introduce a new law to confiscate assets of these citizens within the country.
  • 84 Government schemes to be on DBT (Direct Benefit Transfer) Platform.
  • Head Post Offices will soon be used as front office for passport services. This helps those who have to travel long distances for obtaining a passport.

Railways:

  • Railway lines of 3,500 Kms to be commissioned.
  • A railway safety fund with a corpus of 1 Lakh crores to be set up over 5 years.
  • 500 rail stations to be made differently abled-friendly by providing lifts and escalators.
  • A new metro rail policy would soon be announced to open up new jobs for our youth.
  • Railway tariffs to be fixed based on cost, social obligation and competition.
  • Integration of end to end transport solutions by railways for selected commodities through partnerships.
  • All coaches of Indian Railways would be fitted with bio-toilets by 2019.
  • 25 railway stations would be awarded in 2017-18.
  • There’s good news if you book rail tickets on IRCTC. You do not have to pay any service charge.
  • Focus to be on Swachch railways. SMS based clean my coach facility launched.
  • Dedicated trains would be launched for pilgrimage and tourism.

Education:

  • Innovation fund set up for secondary education.
  • Colleges would be identified, based on ranking and given autonomy.
  • National testing agency to be established for all entrance exams.
  • SWAYAM platform launched for virtual learning.
  • Fund of INR 4,000 Crores to promote skill acquisition and knowledge awareness.
  • 100 Indian International skill centers to be set up offering courses in foreign languages.

Personal Income Tax:

  • Existing tax rate for citizens between INR 2.5 Lakhs – INR 5 Lakhs, reduced from 10% to 5%.
  • All categories of tax payers in subsequent tax brackets will get a benefit of INR 12,500.
  • Citizens filing IT returns for the first time will not come under Government scrutiny.
  • Simple one page tax filing form, for taxable income under INR 5 lakh, other than business income.
  • A 10% surcharge on individual income above INR 50 lakhs and up to INR 1 crore, to make up for the INR 15,000 crore loss due to cut in the personal I-T rate.
  • 15% surcharge on income above INR 1 crore will continue.

Corporate Tax:

  • The corporate tax rate for MSME with annual turnover less than INR 50 Crores reduced to 25%.

Funding for Political Parties:

  • Political parties can receive donations by cheque or digital mode from donors.
  • Political parties can receive maximum cash donations of INR 2000.

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IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

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