Key highlights on 10 themes of Union Budget FY17-18 – Farmers, rural population, youth, poor and underprivileged, infrastructure, financial sector, digital economy, public service, prudent fiscal management, tax administration.

1. Union Budget FY17-18
Highlights: The 10 Big Themes
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2. Finance Sector
 FIPD has implemented e-filing, an online processing of FDI applications. We have decided to
abolish it: | The Foreign Investment Promotion Board can be phased out. We propose to
abolish the FIPB in 2017-18 and a road map for the same will be announced in a while. Further
Foreign Direct Investment relaxations are under consideration and necessary announcements
to be made in due course.
 Draft bill to curtail illegal deposits is in framework | Bill on resolution of financial firms to be
introduced in this session of Parliament
 Special measures will be undertaken to ensure cyber security in terms of finance - Bill on
resolution of financial firms to be introduced in this session of Parliament. Computer
Emergency Response Scheme to be set up for close coordination with financial sector
regulators
 The shares of Railway PSEs would be listed on various stock exchanges | Revised mechanism
to ensure time bound listing of CPSEs. IRCTC to be listed on stock exchanges.
 Pradhan Mantri Mudra Yojana lending target at Rs 2.44 lakh crore for 2017-18.

3. Digital Economy
 Promotion of digital economy an important part. India at a cusp of digital revolution
 125 lakh people have adopted the BHIM app. Government will launch 2 new schemes – a
referral bonus (for individuals) and a cashback scheme (for merchants) – to promote use of
BHIM
 Rs 10000 crore for recapitalisation of public sector banks. Additional funds to be provided if
required
 Aadhaar Pay: Aadhaar-enabled payment system to be launched shortly for those without debit Aadhaar Pay: Aadhaar-enabled payment system to be launched shortly for those without debit
cards, mobile phones
 Propose to create a payment regulatory board at RBI
 Panel on digital payment recommended reform in digital pay systems
 Banks To Set Up 1 Mn New Point-Of-Sale Terminals By March

4. Public Service
 A strong beginning in direct benefit transfer in LPG. Citizens in far-flung regions find it hard to
obtain passports. It has been decided to use head post offices as front offices for this
 Chandigarh and 8 other districts of Haryana have become kerosene-free
 Defence forces keep the country safe. A centralised defence travel system developed for defence
persons to book tickets online
 Govt considering a law on confiscating assets of offenders fleeing the country
 Capital expenditure allocation hiked by 25.4 per cent Capital expenditure allocation hiked by 25.4 per cent
 Total expenditure has been placed at Rs. 21,47,000 crore. The focus is now on revenue and
capital expenditure. Capital expenditure will be 25.4 per cent.
 For defence expenditure excluding pensions, Rs. 2,74,114 crore has been provided for
 Pegged fiscal deficit at 3.2 per cent of GDP and remain committed to achieve 3 per cent in the
following year
 Revenue deficit pegged at 1.9 per cent

5. Tax Administration
 Of 4.2 crore people in organised sector, those filing tax returns is 1.75 crore. Out of 13.94 lakh
companies, 5.97 lakh have filed returns. Out of these 5.97, 2.76 lakh show losses:
 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. We are largely a tax
non-compliant society
 After demonetisation, the analysis of data presents a revealing picture. Deposit between Rs 2
lakhs and 80 lakhs was made in 1.09 crore accounts from Nov 8 to Dec 31, 2016
 One of our main priorities is to eliminate black money from the economy. Govt committed to
make taxation rates reasonable.
 The net tax revenue of 2013-14 was Rs. 11.38 lakh crore. Govt confident to end the year with a The net tax revenue of 2013-14 was Rs. 11.38 lakh crore. Govt confident to end the year with a
growth in this of 17 per cent for the second year in a row
 The rate of growth in advance tax in personal income tax in the last three months is 34.8 per
cent
 Promoting affordable housing – To make housing scheme more attractive, propose changes.
The carpet area of 30 and 60 square metres will now be counted
 Holding period for considering gain on immovable property proposed to be reduced to 2 years |
Tax to be levied for unoccupied houses a year after getting completion certificate
 Capital Gains Tax holding period reduced from 3 years to 2 years for real estate

6. Tax Administration
 New capital for Andhra Pradesh. Exemption from capital gains tax from the day of creation of
separate state | Capital gains tax to be exempted, for persons holding land from which land
was pooled for creation of state capital of Telangana
 Removing MAT credit at present proposed
 IT exemption for startups - Reduce income tax for smaller companies with a turnover of Rs 50
crore to 25 per cent
 Allowance for NPAs in banks to be increased from 7.5 per cent to 8.5 per cent.
 Limit for cash donation to be received by NGOs reduced from Rs 10,000 to Rs 2,000
 The Special Investigating Team on black money has decided that no transaction above Rs. 3 The Special Investigating Team on black money has decided that no transaction above Rs. 3
lakh should be permitted in cash.
 Tax exemption on manufacturing of fingerprint, iris & biometric payment devices | Exempt CVD,
SAD on miniature POS & m-POS machines
 Max amount of cash donation that a political party will receive from one person will be Rs 2,000
from any one source
 Political parties will be entitled to receive donations by cheque or digital mode from donors.
 Amendment in RBI Act proposed to enable issuance of electoral bonds - these bonds can be
purchased only through cheque or digital payments

7. Tax Administration
 PERSONAL INCOME TAX – Post demonetisation, salaried class expect tax to be reduced.
Reduced existing rate of tax for 2.5 lakh to 5 lakh salary range from 10 per cent to 5 per cent.
 For people having taxable income up to Rs 5 lakh, only a one-page tax form to be filled
 All other categories of taxpayers in subsequent brackets will get benefit of Rs 12,500.
Surcharge of 10 per cent to be levied on persons earning between Rs. 50 lakh to Rs. 1 crore.
 A person filing returns for the first time will not be subject to scrutiny
 GST – finalized its recommendations on all aspects, the preparedness is on schedule.| Roll out GST – finalized its recommendations on all aspects, the preparedness is on schedule.| Roll out
to be implemented as planned
 Finance Bill introduced in Parliament. Parliament adjourned till Friday

8. Farmers
 The agricultural credit for 2017-2018 has been fixed at Rs 10 lakh crore: Arun Jaitley
 Government will set up a mini lab in Krishi Vigyan Kendras: Issuance of soil health cards have
gathered momentum, will setup a mini lab in krishi vigyan kendras
 Dairy processing infrastructure fund will be set up under NABARD, with fund of 8,000 crore

9. Rural
 Target of 5 lakh ponds and 10 lakh composite pits from MGNREGA have been achieved.
During 2017-18, another 5 lakh ponds will be taken up
 The budget for MNREGA has been hiked to 48,000 crores. This is the highest ever
 Propose to complete 1 crore houses for those living in kutcha houses/houseless by 2019
 Raised budget allocation to Deen Dayal Upadhyay Gram Jyoti Yojana to Rs 4,814 crore. Total
electrification of villages will be achieved by May 2018
 Sanitation coverage in rural areas has gone up from 42 per cent in October 2013 to 60 per Sanitation coverage in rural areas has gone up from 42 per cent in October 2013 to 60 per
cent. ODF-free villages are now being given priority for piped water supply
 Dedicated micro-irrigation fund will b set up by NABARD to achieve goal of 'Per Drop More
Crop'.Initial corpus will be Rs 5000 crore
 Provide safe drinking water to 28,000 arsenic and fluoride contaminated areas over the next
four years

10. Youth
 Quality education will energise the youth
 An innovation fund will be created to encourage innovation. Focus will be educationally
backward blocks | An innovation fund for secondary education will be created. In higher
education, undertake reforms to the UGC. Colleges will be identified based on accreditation
and ranking and given autonomous status
 More autonomy will be given to quality educational institutions
 100 Skill centres to be established across the country, these centres will provide advanced 100 Skill centres to be established across the country, these centres will provide advanced
training and foreign languages | Skill India Mission was launched in 2015 to maximise the
potential of youth. 100 India International Skill centres will be established across the country.
 A special scheme for creating employment in the textile sector has already been launched.
Similar schemes will be launched in the leather and footwear sectors.
 Tourism is a big employment generator - 5 special tourism zones to be set up

11. Poor and the Underprivileged
 Mahila shakti kendras will be set up in villages to empower rural women with greater
opportunities
 Stepped up allocation to Rs. 1.84 lakh crore for social sector spending. Affordable housing will
be given infrastructure status. The National Housing Bank will refinance Rs. 20,000 crore
 Govt has prepared an action plan for taking on poor health - Elimination of Tuberculosis by
2025 is a target .
 1.5 lakh health sub centres will be converted into health and wellness centres 1.5 lakh health sub centres will be converted into health and wellness centres
 2 new AIIMS will be set up in Jharkhand and Gujarat
 Amendment made to payment of wages act for benefit of labour
 Allocation for welfare of SCs increased 35 per cent to Rs 52,393 crores, ST to Rs 31,920
crores

12. Infrastructure
 Railway allocation at Rs 1,31,000 crores out of which Rs 55,000 crores will be given by
government from Budget
 Steps will be taken to launch pilgrimage and tourism trains
 500 stations will be made disabled-friendly
 At least 25 stations to be awarded for redevelopment
 3,500 km of railway lines to be commissioned this year, up from 2,800 km last year
 7,000 stations to be run on solar power. By 2019, all rail coaches will have bio toilets 7,000 stations to be run on solar power. By 2019, all rail coaches will have bio toilets
 Railways will offer competitive ticket booking facility, and service charge on e-tickets to be
withdrawn
 Cashless reservation has risen
 A new Metro Rail Act enacted – with focus on standardization of hardware and software along
with innovation
 Allocation for construction and maintenance for National Highways hiked from Rs 57,673
crores to Rs 64,000 crores

13. Infrastructure
 "Selected airports in tier 2 cities to be developed in PPP mode. Railways to partner with
logistics players for front end and back end solutions for select commodities. New metro rail
policy to be announced with new modes of financing."
 Telecom sector – 1,50,000 gram panchayats will be given hotspots to digitise through high
speed optic fibre broadband
 Will create an ecosystem to make India a hub for electronic manufacturing. Increasing the
allocation to schemes related to these to Rs 745 croresallocation to schemes related to these to Rs 745 crores
 Total infrastructure allocation at Rs 3,96,135 crores
 FIPD has implemented e-filing, an online processing of FDI applications. We have decided to
abolish it:
 Over 250 investment proposals for electronics manufacture has been received in the last two
years. Exponential increase in the allocation and incentives suggested.

14. Thank You…
Thank you for reading the Budget Highlights. We
shall soon be sharing our Budget Review…shall soon be sharing our Budget Review…