A brief analysis of union budget 2017 that covers all important 10 pillars on which government has focused and upcoming future impact on the economy

1. UNION BUDGET 2017

2. Prepared by
SUMIT SINGH
Arundas Mohandas Nair
Tushar N Rajan
Rahul kumar Gupta
Preety Ann Jacob
R.K.Ranjit

3. INTRODUCTION
• From discretionary, favouritism based to system and
transparency based
• Inflation brought under control.
• CPI-based inflation: 6% in July 2016 to 3.4% in
December, 2016
• Current Account Deficit: from 1% of GDP to 0.3%.

4. • FDI grew 36% despite 5% reduction in global FDI
inflows.
• For-ex reserves reached 361 billion US Dollars as on
20th January, 2017
• War against black money launched
• Fiscal consolidation, without compromising on public
investment.

5. CHALLENGES IN 2017-18
• World economy faces considerable uncertainty
• US Federal Reserve's , intention to increase policy rates
in 2017
• Uncertainty around commodity prices
• Pressures for protectionism are building up

6. TRANSFORMATIONAL
REFORMS IN LAST YEAR
• Passage of the Constitution Amendment Bill for GST
and the progress for its introduction
• Demonetisation of high denomination bank notes
• Enactment of the Insolvency and Bankruptcy Code

7. • Budget 2017-18 contained 3 major reforms:
I. presentation of Budget advanced to 1st February
II. Merger of Railways Budget with General Budget
III. Removal of plan and non-plan classification of
expenditure

8. DEMONITISATION
• Bold and decisive measure to curb tax evasion
• To eliminate corruption, black money, counterfeit
currency and terror funding
• Drop in economic activity
• Benefits: reduced corruption, digitization, increased
financial savings

9. • surplus liquidity in the banking system will lower
borrowing costs and increase the access to credit

10. ROADMAP & PRIORITIES
• Agenda for 2017-18 is : “Transform, Energise and
Clean India” – TEC India
• TEC India seeks to
– Transform the quality of governance and life of people
– Energise the youth and the vulnerable
– Clean the evils of corruption, black money and non-
transparent political funding

11. RURAL
POPULATION
FARMERS YOUTH
INFRASTRUCTURE
THE POOR AND THE
UNDERPRIVILAGED
FINANCIAL SECTOR
DIGITAL
ECONOMY
TAX
ADMINSTRATION
PRUDENT
FISCAL
MANAGEMENT
PUBLIC
SERVICE

12. FARMERS

13. • Agricultural credit fixed at Rs. 10 lakh crores
• Farmers to benefit from 60 days interest waiver
• Focus on increasing institutional credit supply for
which government has allocated Rs. 1900 crores
• Focus on increasing croped area under Fasal Bima
Yojana to 40 % for which allocation Rs. 9000 crores
has been made
• New mini labs in Krishi Vigyan Kendras to cover 648
KVKs for soil testing

14. • Long term irrigation fund to be augmented for which
allocation of Rs. 9000 crores has been made.
• Micro Irrigation Fund to achieve “per drop more
crop” with an initial corpus of Rs. 5000 crores
• e-NAM to be expanded from 250 to 585. Assistance
upto Rs. 75 lakhs to every e-NAM
• Dairy processing and Infrastructure development
Fund to be set up with a corpus of Rs. 2000 crores.

15. Rural population

16. • To bring 1 lakh crore household out of poverty and
50000 gram panchayats poverty free by 2019
• 5 lakh farm ponds will be taken up during the year
2017-2018
• Women participation in MGNREGA has increased to
55 percent from less than 48 percent
• MGNREGA to be allocated with a corpus of Rs.
48000 crores

17. • Government has taken up the task of connecting
habitations in left wing extremism affected blocks
under PMGSY. Allocation of Rs. 27000 crores is
done including State’s share
• Allocation of Pradhan Mantri Awaas Yojana increased
from 15000 crores to 23000 crores with a target to
complete 1 crore houses

18. • Aim to acheive 100 percent village electification
• Increase in allocation of Prime Minister’s
employment generation program and credit support
schemes
• Open Defecation Free villages are being given
priority for piped water supply

19. • Government to provide safe drinking water to over
28000 villages affected by arsenic and fluoride
affected habitations
• Mason training will be provided to 5 lakh persons by
2022
• “Human Resource reforms for results” will be
launched during 2017-2018

20. YOUTH

21. • System of measuring annual learning outcomes in
schools.
• Innovation Fund for Secondary Education.
• Good quality higher education institutions to have
greater administrative and academic autonomy
• SWAYAM platform, leveraging IT, to be launched
with at least 350 online courses.

22. • National Testing Agency - to conduct all entrance
examinations for higher education institutions.
• Skill Acquisition and Knowledge Awareness for
Livelihood Promotion programme (SANKALP) to be
launched at a cost of 4000 crores.
• Skill Strengthening for Industrial Value Enhancement
(STRIVE) will also be launched in 2017-18 at a cost
of ` 2,200 crores

23. • A scheme for creating employment in the leather and
footwear industries along the lines in Textiles Sector
to be launched.
• Incredible India 2.0 Campaign will be launched
across the world to promote tourism and employment.

24. THE POOR AND THE
UNDERPRIVILEGED

25. • Mahila Shakti Kendra will be set up with an
allocation of 500 crores in 14lakh ICDS Anganwadi
Centres.
• Under Maternity Benefit Scheme ` 6,000 each will be
transferred directly to the bank accounts of pregnant
women.
• Affordable housing to be given infrastructure status.

26. • National Housing Bank will refinance individual
housing loans of about 20,000 crore in 2017-18.
• Government has prepared an action plan to eliminate
Kala-Azar and Filariasis by 2017, Leprosy by 2018,
Measles by 2020 and Tuberculosis by 2025 is also
targeted.
• Action plan has been prepared to reduce IMR from
39 in 2014 to 28 by 2019.

27. • MMR from 167 in 2011-13 to 100 by 2018-2020.
• To create additional 5,000 Post Graduate seats per
annum.
• Two new All India Institutes of Medical Sciences to
be set up in Jharkhand and Gujarat.
• Propose to amend the Drugs and Cosmetics Rules to
ensure availability of drugs at reasonable prices and
promote use of generic medicines.

28. • The allocation for Scheduled Castes has been
increased by 35% compared to BE 2016-17.
• The allocation for Scheduled Tribes has been
increased to 31,920 crores and for Minority Affairs to
4,195 crores.
• For senior citizens, Aadhar based Smart Cards
containing their health details will be introduced.

29. • To foster a conducive labour environment, legislative
reforms will be undertaken to simplify, rationalise
and amalgamate the existing labour laws into 4 Codes
on
(i) Wages
(ii) Industrial relations
(iii) Social security and welfare and
(iv) Safety and working conditions.

30. Infrastructure

31. Roads & Highways in Union Budget
2017
• ₹64,000 crore will be allocated for the development
of National Highways.
• 133kms of roads will be constructed per day in rural
areas under Pradhan Mantri Gram Sadak Yojana.
Compared to 73kms of road per day in the period
2011-14

32. • ₹27,000 crore will be allocated for rural roads
in the financial year 2017-18 against ₹19,000
crore in 2016-17.

33. Railways
• A 22% rise in the Railways Budget was announced.
• 3500 kms of railway lines will be constructed.
• Service charge on rail tickets booked through IRCTC
will be withdrawn.
• Atleast 25 train stations are expected to be awarded
during 2017-18.

34. • A rail safety fund with corpus of ₹100,000 crore will
be created over a period of 5 years.
• 500 rail stations to be made friendly to the differently
abled by providing lifts and escalators.
• Steps will be taken to launch dedicated trains for
pilgrimage and tourism.

35. • By 2019, all coaches of the Indian Railways will be
fitted with bio-toilets.
• Railways will integrate end to end transport solutions
for selected commodities through partnerships.
• Unmanned railway level crossings to be eliminated
by 2020.
• A new metro rail policy will be announced.

36. Manufacturing & Industries
• India is the 6th biggest manufacturer this last fiscal,
up 3 places from last FY.
• The country will be turned into an electronics hub.

37. Housing & Amenities
• The government is targeting 1 crore houses for poor
and homeless and those living in kachcha housing by
2019.
• ₹23,000 crore has been allocated for rural housing
in 2017-18 against ₹15,000 crore allocated last year.
• Affordable Housing has now been given
‘Infrastructure’ status.

38. Education
• Government will focus on the true potential of the
youth.
• Good quality institutions will be focused -better
quality & education.
• Government will provide education through digital
platform.

39. • Access to SWAYAM education portal online, which
will be introduced with 350 online courses.
• Skill strengthening to be implemented this year with a
budget of Rs 2,200 crore.

40. FINANCIAL SECTOR

41. • Abolished of Foreign Investment Promotion
Board(FIPB).
• A Computer Emergency Response Team for our
Financial Sector (CERT-Fin) will be established.
• Propose to create an integrated public sector ‘oil
major’ .
• A new ETF with diversified CPSE stocks and other
Government holdings will be launched

42. • ‘Indradhanush’ roadmap, ` 10,000 crores for
recapitalisation of Banks.
• Lending target under Pradhan Mantri Mudra Yojana
to be set at Rupees 2.44 lakh crores.
• A bill relating to resolution of financial firms will be
introduced in the current Budget Session of
Parliament.

43. Public sector

44. • Government e-market place which is now functional
for procurement of goods and services.
• Utilise the Head Post Offices as front offices for
rendering passport services
• A Centralised Defence Travel System has been
developed.
• Rationalise the number of tribunals and merge
tribunals wherever appropriate.

46. FINANCIAL SECTOR
 Abolished of Foreign Investment Promotion Board(FIPB).
 A Computer Emergency Response Team for our Financial
Sector (CERT-Fin) will be established.
 Propose to create an integrated public sector ‘oil major’ .
 A new ETF with diversified CPSE stocks and other
Government holdings will be launched

47. Continued…….
‘Indradhanush’ roadmap, ` 10,000 crores for
recapitalisation of Banks.
Lending target under Pradhan Mantri Mudra
Yojana to be set at Rupees 2.44 lakh crores.
 A bill relating to resolution of financial firms will
be introduced in the current Budget Session of
Parliament.

49. PUBLIC SERVICE
 Government e-market place which is now functional for
procurement of goods and services.
 Utilise the Head Post Offices as front offices for rendering
passport services
 A Centralised Defence Travel System has been developed.
 Rationalise the number of tribunals and merge tribunals
wherever appropriate.

52. 3.9%
5.6% 6.6% 7.1% 7.2% 7.6% 7.1%
GDP Growth Rate rate

53. GDP TO PER CAPITA

54. • India's per capita income to cross Rs 1 lakh in FY17-18
and increased by 10.4%
• Unemployment rate will remain at 3.4 per cent in 2017-
18.
• CPI inflation has remained largely steady throughout
FY17-18 with the average rate being about 5 per cent.

56. CURRENCY

57. FOREX RESERVE

58. The fiscal deficit as a percentage of GDP was budgeted at 3.5% for
2016–17 in the previous year’s budget. This is revised to 3.2 % for
2017–18.

59. GFCE as a percentage of GDP will be higher in FY17 as compared with
that of in FY16, largely due to an increase in wages as per the Seventh
Pay Commission.

60. PFCE quarter-on-quarter performance was stagnant in
FY17.

61. CAPITAL FLOW

62. CURRENT ACCOUNT TO GDP

63. BALANCE OF TRADE

64. FDI

65. TEC INDIA
• Transform
• Energies
• Clean India