Highlights Union Budget 2017-18: Arun Jaitley gives push to rural sector, housing for growth recovery

India will ramp up spending on rural areas, infrastructure and fighting poverty, Finance Minister Arun Jaitley said as he unveiled his annual budget on Wednesday, adding the impact on growth from the government's cash crackdown would wear off soon.

Addressing parliament, Jaitley called his fourth budget one for the poor. Yet, while vowing prudent fiscal management, he also raised his 2017/18 federal deficit target to 3.2 percent of gross domestic product to cover his spending promises. Jaitley called India "an engine of global growth" but highlighted risks to its outlook from likely U.S. interest rate hikes, rising oil prices and signs that globalisation is in retreat.

Prime Minister Narendra Modi's surprise decision last November to scrap high-value banknotes worth 86 percent of India's cash in circulation has hit consumer demand, disrupted supply chains and hurt capital investments.

Finance Minister Arun Jaitley tabling the Union Budget for 2017-18 in Parliament. PTI

Finance Minister Arun Jaitley tabling the Union Budget for 2017-18 in Parliament. PTI

The worst of the cash crunch is now over, however, and Jaitley said he expected it would not spill over into the fiscal year starting on April 1. A private manufacturing survey on Wednesday showed business was slowly returning to normal. Still, the finance ministry forecasts that growth could dip to as low as 6.5 percent in the current fiscal year to March, before picking up slightly in the coming fiscal year to between 6.75 and 7.5 percent.

Here are the key highlights of the Union Budget:

* Net tax revenue grew by 17 percent in 2015-16

* Committed to making taxation rate reasonable, our tax administration more fair and expand the tax base of the country

* Pradhan Mantri Mudra Yojana lending target has been doubled at Rs 2.44 lakh crore for 2017-18

* 3,500 km railway lines to be commissioned in 2017-18 against 2,800 km in 2016-17

* Railways plan size for 2017-18 pegged at Rs. 1,31,000 crore, including Rs 55,000 crore to be provided by the government

* Using space technology in a big way to plan MGNREGA works

* During 2017-18, another 5 lakh ponds to be constructed for drought-proofing

* AadharPay, a merchant version of Aadhaar-enabled payment system to be launched shortly for those without debit cards, mobile phones

* Sanitation coverage in rural areas has gone up to 60 per cent

* Swachh Bharat Mission has made tremendous progress in promoting safe sanitation and ending open defectation

* By 2019 all passenger coaches of railways to be fitted with bio-toilets

* 1 crore houses to be completed by 2019 for houseless and those living in 'kacha' houses

* Rs 19,000 crore in 2017-18 for PMGSY; together with contribution from states, Rs 27,000 crore to be spent

* Total allocation for rural, agricultural and allied sectors for 2017-18 is a record Rs 1,87,223 crore, up 24 percent from last year

* Target for agricultural credit in 2017-18 has been fixed at a record Rs 10 lakh crore

* Coverage of Fasal Bima Yojana to go up from 30 percent of cropped area, to 40 percent in 2017-18, 50 percent in 2018-19

* NABARD to set up dedicated micro-irrigation fund to be set to achieve Per Drop More Crop mission

* Corpus of NABARD's long-term irrigation fund raised to Rs 40,000 crore

* Mini soil-testing labs in Krishi Vigyan Kendras to ensure 100 per cent coverage

* Highest ever allocation to MGNREGA at Rs 48,000 crore

*Merger of Railway Budget with Budget 2017 a historic step

* Transform, Energize and Clean India - #TECIndia - our agenda for the next year

* Advancement of budget will enable all ministries, departments to operationalize all schemes right from beginning of next fiscal

* Demonetisation aims to create a new normal, where the GDP would be bigger, cleaner and real

* Effects of demonetisation not expected to spill over to next year

* Firmly believe that GST, Demonetisation, built on JAM, will have an epoch-making impact on the lives of our people


* Demonetisation aims to create a new normal, where the GDP would be bigger, cleaner and real

* Recalls #MahatmaGandhi's words: A right cause never fails

* 3 challenges in current global scenario:Monetary stance of US FED Reserve, Commodity prices specially crude oil & retreat from globalisation
* We have moved from a discretionary administration to a policy-based administration

* Expectations included burning issues like inflation and price rise, issue of corruption & crony capitalism

* Our government was elected amidst huge expectations of people, the underlying theme of expectations being good governance

* Hope to resolve all issues regarding GST via consultations


* We are moving from informal to formal economy & the Government is now seen as a trusted custodian of public money

Sluggish growth replaced by high growth; war on blackmoney launched. More steps will be taken to benefit farmers and the weaker sections; budget being presented during weak global economy, says Jaitley

-"Monetary policy to be expansionary in major economies. Uncertainty around commodity prices especially oil to have impact on emerging economies."

-CAD declined from 1 percent last year to 0.3 percent in first half of current fiscal. Protectionism is increasing

-36 percent increase in FDI flow; forex reserves at $361 billion in January enough to cover 12 months needs

-We are seen as engine of global growth; IMF sees India to grow fastest in major economies

-Demonetisation was a continuation of series of measures taken by govt in 2 years; it is bold and decisive measure

-Government took two tectonic policy initiatives - passage of GST Bill and demonetisation

-Effects of demonetisation not expected to spill over to the next year, says Finance Minister. GDP will be bigger, cleaner after demonetisation

-Only transient impact on economy due to demonetisation; long term benefit include higher GDP growth and tax revenue

-Merger of Railways Budget with General Budget brings focus on a multi-modal approach for development of railways, highways and inland water transport

-Demonetisation will help in transfer of resources from tax evaders to government

-Functional autonomy of the railways to be maintained, says Jaitley. Pace of remonetisation has picked up; demonetisation effects will not spill over to next year, says Jaitley

-World Bank expects GDP growth rate at 7.6 percent in Financial Year 2018 and 7.8 percent in Financial Year 2019. Our agenda for next year is to transform, energise and clean India

-Spend more in rural areas, infrastructure, poverty alleviation, while maintaining fiscal prudence as guiding principle of Union Budget. Budget presentation advanced to help begin implementation of schemes before onset of monsoon

-Committed to double farm income in 5 years. Plan, non-plan classification of expenditure done away with in the Budget for 2017-18 to give a holistic picture

-Mini labs by qualified local entrepreneurs to be set up for soil testing in all 648 krishi vigyan kendras in the country

-Demonetisation was a bold and decisive strike in a series of measures to arrive at a new norm of bigger, cleaner and real GDP

 

-Space technology to be used for monitoring MNREGA implementation

-100 percent electrification of villages to be completed by May 2018

-Rs 27,000 crore on to be spend on PMGSY; 1 crore houses to be completed by 2017-18 for the homeless

-Sanitation coverage in villages has increased from 42 percent in October 2016 to 60 percent, a rise of 18 percent

-We propose to provide safe drinking water to 28,000 arsenic and fluoride affected habitations.

-To construct one crore houses by 2019 for homeless. PM Awas Yojana allocation raised from Rs 15,000 crore to Rs 23,000 crore

-Rs 500 crore allocated to set up Mahila Shakti Kendras; Allocation raised from Rs 1.56 lakh crore to Rs 1.84 lakh crore for women and child welfare

-Two new AIIMS to be set up Jharkhand and Gujarat

-New rules regarding medical devices will be devised to reduce their cost

-35 percent increase in allocation for Supreme Court to Rs 52,393 crore

-Railway tariffs to be fixed on the basis of cost, social obligation and competition.

-Budget allocation for highways stepped up to Rs 64,000 crore in financial year 2018 from Rs 57,676 crore

-Over 90 percent of FDI proposls are now processed through automatic route. FIPB will be abolished.

-Second phase of solar power development to be taken up with an aim of generating 20,000 MW

-Rs 2,74,114 crore allocated for defence expenditure, excluding pension; This includes Rs 86,000 crore for defence capital


Published Date: Feb 01, 2017 01:44 pm | Updated Date: Feb 01, 2017 01:44 pm



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