Budget 2017: Important announcements

While addressing the house, Jaitley said that demonetisation was a bold and decisive measure. He said that decision was important to counter tax evasion that has become a way of life for many

Budget 2017: Important announcements

Finance Minister Arun Jaitley started his General Budget 2017 speech amid the ruckus created by the Opposition demanding the suspension of the session following the death of sitting MP E Ahamed. He said the total allocation for the 2017-18 financial year is Rs 21.47 trillion. Jaitley also announced that the allocation in the defence sector is Rs. 2.74 lakh crore.

Finance Minister said the fiscal deficit for the previous financial year pegged at 3.2% of GDP and Revenue deficit pegged at 1.9%. He added only 1.81 crore people have returned their taxes. "Due to Demonitisation advance tax on personal Income tax increased by 34.8%," Jaitley added.

Important announcements

  • Will complete 1,00,00,000 houses by 2019 for houseless and those living in kaccha houses

  • Allocation for highways raised to Rs. 64,000 crore

  • Rs. 10,000 crore for recapitalisation of banks

  • Allocation for Scheduled Castes raised to Rs. 55,393 crore

  • For youth, proposed to introduce a system of measuring annual learning; Science to be given focus
    By May 1, 2018, 100 per cent village electrification will be achieved

  • Sanitation in rural areas has gone up from 42 per cent in October 2014 (launch of Swachh Bharat) to 60 per cent now

  • PMGSY roads work accelerated to 133 km roads per day in 2016-17 as against 73km per day during 2011-14

  • Highest ever allocation for MNREGA at Rs 48,000 crore. Participation of women in MGNREGA up to 55 per cent

  • National Testing, highest single authority for Entrance Exams to be set up

  • Two AIIMS to be set up in states of Gujarat and Jharkhand

  • For senior citizens, Aadhar cards giving their health condition will be introduced

  • Budget allocation for welfare of women and children under various ministries increased to Rs 1,84,632 crore

  • All Railway coaches to have Bio-Toilets by 2019

  • At least 25 railway stations to be redeveloped in 2017-18

  • All Service Taxes regarding IRCTC transactions withdrawn

  • 20 lakh Aadhaar-based swipe machines by 2020

  • Web-based pension distribution system for defence pensioners

  • FIPB (Foreign Investment Promotion Board) to be abolished to ease foreign investment

  • Strategic crude oil reserves to be set up in states of Odisha, Rajasthan

  • Capital gains tax to be exempted, for persons holding land from which land was pooled for creation of state capital of Telangana

  • Income tax for small companies with an annual turnover of 50 crores, now to pay 25%, a 5% reduction

  • Basic customs duty on LNG to be cut from 5% to 2.5% in 2017-18

  • No cash transactions above Rs 3 lakh

  • Capital gains tax holding period now reduced to 2 years

  • Maximum donation political party can get from 1 source is Rs 2000, they can receive  donations by cheque, digital modes

  • An amendment being proposed to RBI Act to enable the issuance of electoral bonds for political funding, says Jaitley

  • Reduce existing rate of taxation of those with income between 2.5 lakh to 5 lakh from 10% to 5%

  • No tax for those who use tax rebates on 4.5 lakh income

  • 10% surcharge for those with income of Rs. 50 lakh to Rs. 1 crore

  • 15% surcharge for those with incomes of over Rs. 1 crore remains

    No tax to be levied on income upto Rs 3 lakh

    No scrutiny on first time payers

    15% surcharge on incomes above Rs 1 crore to continue

Jaitley said the fiscal deficit target set for 2018-19 pegged at 3% of GDP.

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