COMPARISON BETWEEN THE BUDGET OF 2018-19 AND 2017-18

1. UNION BUDGET 2018-19
vs
2017-18
INSTRUCTOR
PROF. SHREERAM SINGH
(PROF. KVK, BHU)
MR. ANOOP M.
(ASSISTANT PROF. RGSC, BHU)
SPEAKER
CHANCHAL SINGH
B.Sc (Ag) IV th Year
R-14010
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2. OVERVIEW
• DEFINATION
• AGRICULTURE AND RURAL ECONOMY
• HEALTH
• EDUCATION
• TAXATION
• MUDRA YOJNA etc.
• KEY NUMBERS
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3. WHAT IS UNION BUDGET?
• The Union Budget of India, also referred to as
the Annual Financial Statement in the Article 112 of
the Constitution of India, is the annual budget of
the Republic of India.
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4. UNION BUDGET 2018-19
• The Union Budget for 2018-19 has been
announced by Mr Arun Jaitley, Union Minister for
Finance, Government of India, in Parliament on
February 1, 2018.
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5. FOCUS OF 2018-19
• It focuses on uplifting the rural economy and
strengthening of the agriculture sector,
healthcare for the economically less privileged,
infrastructure creation and improvement in the
quality of education of the country.
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6. FOCUS OF 2017-18
• Focus of the budget was on the farming sector, the
rural population, the youth, the poor and
underprivileged health care, infrastructure, the
financial sector for stronger institutions, speedy
accountability, public services, prudent fiscal
management and tax administration for the honest.
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7. OVERVIEW OF BUDGET
• The GDP grew at 6.3 per cent in the second quarter of
2017-18 and is expected to grow at 7.2-7.5 per cent in
the second half of 2017-18.
• Growth for 2018-19 is forecasted at 7.4 per cent by the
International Monetary Fund (IMF).
• Exports are expected to grow at 15 per cent in 2017-
18.
• Fiscal deficit target for 2018-19 is set at 3.3 per cent of
the GDP.
• Fiscal deficit for 2017-18 is revised to Rs 5.95 lakh crore
(US$ 93.54 billion) at 3.5 per cent of the GDP.
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8. AGRICULTURE AND RURAL
ECONOMY(18-19)
• The government is committed towards doubling the
farmers’ income by 2022.
• A total of Rs 14.34 lakh crore (US$ 225.43 billion)
will be spent for creation of livelihood and
infrastructure in rural areas.
• Minimum Support Price (MSP) for all announced
kharif crops will be at least one and half times of their
production cost, similar to the majority of rabi crops.
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9. • A restructured National Bamboo Mission will be
launched with a total outlay of Rs 1,290 crore (US$
202.79 million).
• Allocation for the National Rural Livelihood Mission
is increased to Rs 5,750 crore (US$ 903.93 million)
for 2018-19.
• Institutional credit to the agriculture sector is targeted
at Rs 11 lakh crore (US$ 172.93 billion) for 2018-19,
compared to Rs 10 lakh crore (US$ 157.2 billion) for
2017-18.
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10.  A Fisheries and Aqua culture Infrastructure
Development Fund (FAIDF) and an Animal
Husbandry Infrastructure Development Fund
(AHIDF) will be started with a total corpus of Rs
10,000 crore (US$ 1.57 billion).
 An Agri-Market Infrastructure Fund will be started
with a corpus of Rs 2,000 crore (US$ 314.41 million).
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11. AGRICULTURE AND RURAL
ECONOMY(17-18)
• The National Bank for Agriculture & Rural
Development (NABARD) fund was hiked to
Rs.40,000 crore also it received a micro irrigation
fund with an initial corpus of Rs.5,000 crore.
• The government initiated the set up of mini labs for
testing the soil in Krishi Vigyan Kendras.
•
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12. • The government aimed at bringing 1 crore families out of
poverty by the year 2019.
• More than Rs.3 lakh crore was allocated for rural
developments. The government also took steps to ensure
the increased participation of women in the Mahatma
Gandhi National Rural Employment Guarantee Act
(MGNREGA).
• The government initiated the creation of 1 crore houses
for the poor and set the scene for rural electrification
projects.
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13. HEALTH
• Various incidences from the past year (2017-18) led
to the formation of the strong health budget .
• Funding for health, education and sanitation
programmes in Budget 2018-19 appears to be the
highest over the last three years–a 13 percent rise
from the previous year
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14. • National Health Protection Scheme, providing a
health insurance cover of ₹5 lakh a family per annum.
The scheme will cover 10 crore vulnerable families,
with approximately 50 crore beneficiaries.
• Creation of health and wellness centres, 1.5 lakh in
number, will provide free essential drugs and
diagnostic services. A sum of Rs. 1200 crore had been
allocated for this.
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15. Spending on the health ministry has declined to 2.1 percent of
the total Union Budget from 2.4 percent in 2017-18. Health
expenditure should be 2.5 percent of gross domestic product
(GDP) by 2025, according to the National Health Policy.
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16. EDUCATION
• SSA has been allocated a budget of Rs 26,128 crore
up from Rs 23,500 crore in the previous budget.
Similarly, RMSA will be provided with Rs 4,213
crore, up by Rs 300 crore from the previous budget
• The flagship school meal programme of Mid-day-
Meal will get Rs 10,500 crore in FY19, an increase of
Rs500 crore from the previous budget.
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17. • In the higher education space, the total budgetary
allocation has been reduced for IITs—from Rs
8,244.8 crore to Rs 6,326 crore in 2018-19. There is a
cut in the budget allocations to IIMs as well as the
University Grants Commission
• .
• Budget 2018 Cut of fund allocation for e-learning
from Rs 518 crore to Rs 456 crore in FY19. However,
it has pegged an allocation of Rs 250 crore for the
World Class Institutions plan.
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18. • Prevalent 3% education cess will be replaced with a
4% education and health cess. This will help the
government garner Rs11,000 crore per annum from
taxpayers.
• Introduction of RISE scheme.
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19. Sourcse-https://currentaffairs.gktoday.in/rise-scheme-iits-set-25-government-loans-higher-education-
institutes-02201852921.html
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20. OTHERS
• Taxation
• 2017-18: In a bid to boost to the MSMEs, Jaitley
proposed to reduce the tax rate of MSMEs reporting
turnover of less than 50 crore rupees to 25 per cent from
the earlier 30 per cent. He also made an assertion that this
benefit covers 96% of the total companies in India that
are filing tax returns
• .
• 2018-19: Extention of the benefit of the reduced rate of
25 per cent also to companies who have reported turnover
up to Rs 250 crore in the financial year 2016-17.
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21. • MUDRA (Micro-Units Development & Refinance
Agency Ltd) Yojana
• 2017-18: The government announcement to double
the lending target to Rs 2.44 lakh crore under the
Pradhan Mantri Mudra Yojana for 2017 aiming to
benefit the small entrepreneurs.
• 2018-19: Allocating of Rs 3 lakh crore for
(MUDRA). This figure stands as a 20 per cent rise
from the last year.
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22. • Defence Sector
• 2017-18: The defence sector received an allocation of
Rs. 2.74,114 crore in the Union Budget 2017-18.
• 2018-19: Rs 2, 95,511.41 crore has been earmarked
for Defence. This accounts for 12.10 percent of the
total Central Government expenditure for the year
2018-19.
• Also the finance minister hinted at formulating a new
industrial policy for defence sector.
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23. • Textile Sector
• 2017-18: Total budget allocation to the Textile
Ministry stood at Rs. 6226.5 crores for the year 2017-
18 aiming at technological upgradation support and
incentives to boost competitiveness.
• 2018-19: An outlay of Rs.7148 crore has been
provided for the textile Sector aiming at similar goals
as set in the previous budget including allocation
towards upgrading technology, skilling and
generation of employment.
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