Budget Session of Parliament LIVE: After fiery Zero Hour, Lok Sabha adjourned till 2.40 pm

Opposition and ruling united over bounty row on Mamata Banerjee's head

The Lok Sabha on Wednesday condemned a BJP youth wing leader's offer for a bounty of Rs 11 lakh to anyone who beheads West Bengal Chief Minister Mamata Banerjee.

Raising the issue soon after the House assembled to take up the day's business, TMC member Saugata Roy said a BJP youth wing leader had made the "announcement" of giving the reward for beheading Banerjee, after police resorted to lathicharge in Birbhum district to disperse a rally during Hanuman Jayanti. "Mamata Banerjee is not only an elected chief minister but a former member of this House too. It is a serious and alarming behaviour and the House must condemn it. She is a grassroot leader and government must take action on it," he said.

First leg of Budget Session productive: LS functioned for 113%, Rajya Sabha for 97%

The first part of the Budget Session was very productive as Lok Sabha functioned 113 percent while Rajya Sabha 97 percent. The productivity in the second half of the budget session till now for Lok Sabha and Rajya Sabha has been 112 percent and 87 percent. 

The Companies (Amendment) Bill, 2016 and The Repealing and Amending Bill, 2017 is scheduled for consideration and passage in Lok Sabha today.

MPs create ruckus in Parliament

The matter echoed on in the Parliament on Wednesday as TMC leaders raised the issue in Rajya Sabha, which garnered support from other parties as well. Samajwadi Party Rajya Sabha MP Jaya Bacchan expressed anguish on the BJP leader's remark, stating that the BJP was keen on protecting cows but not women.

TMC's Saugata Roy also strongly condemned the BJP leader's statement urging strong action against people who make such provocations. Meanwhile, BJP has distanced itslef from Varshney's comments, stating that the West Bengal state government is free to take action against him.

Last day of Budget Session - here's a quick recap of the session

Today is the last day of the Budget Session of Parliament. The first half of the session was held from 31 January to 9 February and after a month-long recess the second half of the session began on 9 March. During the session till now, the Lok Sabha has passed 21 bills and the Rajya Sabha 14 bills. They include the Enemy Property (Amendment and Validation) Bill, The Mental Health Care Bill, The Maternity Benefits (Amendment) Bill, The Payment of Wages (Amendment) Bill, 2017 and the crucial four supporting bills for the roll out of the Goods and Services Tax. 

Scrapping a colonial-era tradition of presenting the Budget at the end of February, for the first time in the history of Independent India, the Government presented the annual accounts on 1 February. Prime Minister Narendra Modi on Tuesday described the Budget Session as a winner for the treasury benches. He said, the government was able to secure passage of many key bills in the Parliament.

BJP leaders distance themselves from Yogesh Varshney's comment

BJP leader Mukhtar Abbas Naqvi disowned Varshney's comment, saying: "I condemn this type of statement. The state government can take proper action." BJYM leader Varshney issued the outrageous threat while hitting out at Mamata over police action on a rally held on Sunday to mark Hanuman Jayanti in Birbhum district.

Alleging that people were beaten up brutally by the police, Varshney described Mamata as a "demon" and said, "When I saw the video, I only had one thought... that if anyone gets me Mamata Banerjee's head I will give them 11 lakh."

Last leg of budget session favourable for BJP govt

The second half of the budget session of Parliament, which ends on Wednesday, has been favourable to the ruling NDA, which not only managed to push its economic reforms agenda but also put up a united front. Prime Minister Narendra Modi on Tuesday told the parliamentary party of the BJP that the session was a victory for the Union government.

Actor and MP Jaya Bachchan, along with BJP leader from Bengal Rupa Ganguly, reacting sharply to the comments against Mamata

Bounty announced for Mamata; Rajya Sabha slams BJYM leader Yogesh Varshney

After a day of ruckus in Parliament over the "illegal" death penalty given to former Indian Navy officer Kulbhushan Jadhav, MPs in Rajya Sabha were up in arms after a Bharatiya Janata Yuva Morcha (BJYM) leader announced a reward of Rs 11 lakh to whoever who beheads West Bengal Chief Minister Mamata Banerjee and gets her head.

The remark, which came shortly after a lathicharge which happened at Birbhum district to disperse a rally raising slogans of "Jai Sri Ram" on Hanuman Jayanti, recieved a lot of flak and criticism.

BJYM leader Yogesh Varshney told ANI, "Those who will cut and bring West Bengal Chief Minister Mamata Banerjee head, I will give that person Rs.11 lakh. Mamata Banerjee never allows Saraswati Puja, fairs during Ram Navami and during Hanuman Jayanti procession, people were lathi charged and brutally beaten up. She organizes Iftar party and always supports Muslims."

Here's what Mukhtar Abbas Naqvi said about the Alwar incident in Rajya Sabha 

“Hamare desh mein yeh message nahi jana chahiye ki hum yeh hatya ko samarthan kar raha hai… issliye it is a very sensitive issue.. crore logo ke bhavnao se judha hua mudha hai.. hamara aisa koi message nahi jana chahiye ki hum hatiya ke samarthan mein khade hue hai (This issue is a very sensitive issue. There should be no indication or message that we are backing those who are violent. It’s an emotional issue for crores of people.) Issliye jis particular state ki barein mein jo baat kar rahe hai, us tarah ki koi bhi ghatna, jis tarah ki ghatna pesh ki ja rahi hai, aise koi ghatna zameen par nahi hui hai. Jis media report ki barein mein bat ki ja rahi hai, us state ki sarkar ne pehle hi condemn kiya hai. (No such incident, as being reported, has taken place on the ground. The media report which are being cited, the concerned state government has already condemned.)"

Version of Alwar incident reported by media is untrue: Naqvi in Rajya Sabha

Dismissing the version of events of the killing of a Muslim man by cow vigilante groups in Rajasthan’s Alwar amid growing uproar over the alleged murder, Union Minister Mukhtar Abbas Naqvi on Thursday said, "Jis tarah ki ghatna pesh ki ja rahi hai, us tarah ki ghatna zameen par hua nehi (The version of events presented didn’t occur)." 

Naqvi was addressing the Rajya Sabha amid an uproar over the Alwar incident. As a united Opposition slammed the government for doing nothing against rogue groups thrashing people on the pretext of cow protection, Naqvi said, "This issue is a very sensitive issue. The message should not go from the House that we are supporting cow slaughter. Millions of people’s sentiments are involved in the issue."

Congress slams Union minister Mukhtar Abbas Naqvi for denying Alwar lynching

Speaking in the Rajya Sabha, Union minister Mukhtar Abbas Naqvi denied that any lynching had taken place in Rajasthan's Alwar. Reacting to this, Leader of Opposition, Ghulam Nabi Azad said that even the New York Times had carried a report on the lynching. 

Ravindra Gaikwad compares himself to Mahatma Gandhi

The Shiv Sena MP says Airlines imposing travel ban on him is like Mahatma Gandhi being thrown out of train in South Africa.

Not censuring Ravindra Gaikwad for unruly behaviour an opportunity lost

It is indeed sad that the conduct of this elected representative is just another passing news shower. Everyone seems happy that airlines have banned him from flying, a minor inconvenience that will melt away in a few days. In no way does it highlight the frequent high-handedness by VIPs in India where aviation is concerned — nobody said 'enough is enough now, put on your seatbelt and shut up!'

Shiv Sena MP Anant Geete, other party  MPs heckle Civil Aviation Ashok Gajapati Raju

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The scenes turned ugly in the Lok Sabha as Shiv Sena MPs tried to gherao the minister. However, Home Minister Rajnath Singh and other ministers came to Raju's rescue. 

Lok Sabha adjourned till 12.45 pm after ruckus over Ravindra Gaikwad's statement on Air India row

Gaikwad remains defiant 

I apologise to the Parliament if I've caused any hurt, but not to the Air India official: Ravindra Gaikwad,Shiv Sena MP in Lok Sabha. 

AI staff caught me by collar: Gaikwad

Ravindra Gaikwad says that the Air India staff assaulted him. He says that the officials of the airline caught him by his collar and his reaction was in defence. 

Shiv Sena MP Ravindra Gaikwad speaks on AIr India issue 

Gaikwad began by saying that the airline staff treated him badly. He also added that he must get justice from the Speaker of the Lok Sabha. Gaikwad blames media for launching a trial against him. 

Rajnath Singh on Alwar Lynching

Rajnath Singh says that the Rajasthan government has taken cognisance of the case and that a FIR has been filed on the issue and people have been arrested. 

Alwar lynching rocks Rajya Sabha 

After the man lynched in Alwar died on Wednesday, the Congress party asked for a discussion on the issue. Mallikarjun Kharge says that the Rajasthan Government failed to act on the issue. He added that this was the fifth such incident in Rajasthan. 

Three of the four GST bills passed in the Parliament

Jaitley concludes govt stand on new tax regime, requests House to pass it as is

Arun Jaitley said that the government has strived to ensure that the GST council is representatve of everybody's interest and the body debating the draft of the bill also included representatives from each state.

"Council will be a permanent body with a political complexion that accommodates everyone and has representatives from every state. Therefore I request the House to pass the bill unanimously drafted by a representative council as is," Jaitley said.

No tax on agriculture under GST regime: Jaitley

Jaitley sought to reassure the Lok Sabha on the changing tax regime as far as foodgrains are concered. The finance minister said that Agriculture as and industry and foodgrain have always remained exempt from taxes and they always will. 

Arun Jaitley says no precedent of a taxation bill not being a money bill

"This law seeks to replace the Central Excise law, Service Tax law etc and consolidates them into one. So here is a taxation law that alters the tax regime and replaces existing tax laws then how come it won’t be a money bill," Jaitley asked.

He said he was ready to sit and wait for the Opposition to point out even one precedent when a taxation bill has not been treated as a money bill.

Oppn alleges govt made GST bill a money bill only to override Rajya Sabha, where BJP does not enjoy majority

Anti-profiteering clause a must in GST bill to check inflation: Jaitley

I didn't make this law, it was 7 Congress finance ministers who did: Arun Jaitley

Compensation package was introduced only to bring on-board the manufacturing states: Jaitley

Jaitley said that the council introduced the provision of a compensation package only for the benefit of manufacturing states as we saw that the transition to GST would affect them adversely while it benefited the consuming state.

For one commodity their will be one rate of tax in the country: Arun Jaitley

Jaitley said that one commodity will have a single rate of tax across the country, but it is not necessary that two different commodities enjoy the same rate of GST.

Arun Jaitley responds to Congress' objection says parliament's right to form legislation plenary

Jaitley said that the idea that we can deviate from GST council's recommendations is problematic and ill advised as the laws will keep changing depending on the colour of the political party in power. Therefore to protect the structure of federalism that the government is trying to implement it is imperative that the GST council has the power to decide on taxation issues.

However, the finance minister added that the Parliament will have the power to send back a suggestion for reconsideration. He also reassured the House that the power to form a legislation is plenary to the Parliament.

Congress questions the amount of power GST council will wield, says Parliament will no longer have power to debate/ amend taxation laws

INC leader Veerappa Moily, interrupts Jaitleys speaks, asks if GST council is supreme power, who will protect the funds

Arun Jaitley defends GST bill after Oppn arguments, says goods will slightly become cheaper after new tax law

Greater impetus will be on self assessment under GST: Jaitley

Arun jaitley told the Lok Sabha that the new tax regime is designed in a way that larger impetus is placed on self assessment of tax for the people, barring limited cases of audits. He said this will not only simplify the tax filing process but do away with multiple layers of taxation for the common man.

GST will aide free flow of goods and services across the country: Jaitley

"There is no free flow of goods and services in the country. The objective of the new tax regime was to establish such a system that when goods and services flow across company, taxes are levied at a uniform rate and a single window," Jaitley said. 

Finance Minister Arun Jaitley responds to Oppn on GST

Jaitley started off by thanking the members of Opposition for engaging in a debate. He then pointed out that the debate was crucial as once the GST bill becomes an act, it will drastically change the tax regime in the region.

Jaitley also said that multiple window taxation system has ailed the economy since long and must be fixed in favour of the common man.

NK Premachandran raises concerns over GST Council getting arbitrary powers 

NK Premachandran of RSP accused the BJP of toppling UPA's efforts bring about the reform and taking advantage now to impelement them.

"The BJP, then principal opposition, opposed it only on political considerations," he said.

According to him, the present GST Bill abrogates the powers of the state governments.

He quoted from an article by renowned economist Prabhat Patnaik and asked whether we should sacfricice a basic feature of our federalisation for an uncertain gain?

Also with the right to decide the tax rate being vested with the GST Council, the supremacy of Parliament in violation of Article 265.

GST Council is getting artbitrary powers, he said.

Supriya Sule raises worries over data leak from GSTN, seeks precautionary steps

Supriya Sule raises another major concern - data leak.

Sule pointed out GSTN will possess all the data of the taxpayers.

"What are the steps you take to protect the data?" she asked reminding that any data theft will cost the country dearly.

She also said there are many hiccups in GST and also sought to know what could be exact impact of the reform on GDP and FDI?

Varaprasad Rao urges govt to not impose high tax on drinks like Pepsi, consumer durables 

Varaprasad Rao of the YSR Congress Party asks are there any plans to bring alcohol and petroleum products within the ambit of GST? 

He also wants the government to look at the additional cess on consumer durables as this will affect common man. According to him the total cess may even touch 48 percent. 

He also urged the government to not levy higher cess on aerated drinks like Pepsi as this impacts even the common man.

Vishweshwar Reddy of TRS compares Bill to ugadi pachadi - khatta, meetha and kadva

Konda Vishweshwar Reddy of Telengana Rashtra Samithi makes the best comparison of the GSt Bill - it is like ugadi pachadi- khatta, meetha and kadva.

"But it's healthy and wholesome," he says.

He goes on to explain how the Bill has some positives and negatives of the reform.

As for the meetha, the GST Bill is ushering in a new era.

According to him, tax compliant hospitals and builders may have a competitive disadvantage. "This can be bitter."

As for kadva he points out there could be an increase in tax inspections. "This goes against PM's maximum governance, minimum government," he says.

AP will loose 2000 Crore annually due to GST: TDP MP Jayadev Galla

While lauding the overall GST tax regime, the TDP MP pointed out that the GST will benefit the consumer states, it will add to the agony of other states, including Andhra Pradesh.

The MP said that the Centre must look at the pathetic fiscal condition of AP, post the division of the state, and compensate it accordingly. He said that the Telegu state will lose as much as Rs 2000 Crore annually.

Bhartruhari Mahtab asks what is need for anti-profiteering clause? What is competition law for?

Bhartruhari Mahtab of the Bju Janata Dal is questioning the rational behind the anti-profiteering clause in the GST Bill.

'We have a competition law in the country. Why is the anti profiteering provision necessary? What is the Competition law for?" he asks.

Bhartruhari Mahtab of BJD says expecting too much from Bill will be illusory

Bhartruhari Mahtab of the Bju Janata Dal feels it will be illusory to expect too much from GST.

"GST hinges on revenue neutral rate. These are now fixed at 0, 5, 12, 18 and 28 percent and above. We will know only after the first year if it's revenue neutral or not," Mahtab says.

Will the commercial tax department become redundant, asks AIADMK's Venkatesh Babu

AIADMK's Venkatesh Babu asks a pertinent question.

Will the commercial tax dept be made redundant by GST? What will happen to the staff in the department? Will they lose jobs?

Veerappa Moily terms the Bill a technological nightmare; one tax one nation is a myth 

According to Veerappa Moily, GST will be a technological nightmare. "Officials implementing it will suffer. No ad-hoc provision to make payment, give credit," he says.

He wants the tax payers to be educated, made aware of the new system. "One tax one nation is a myth," he says.

He points out that the common man will have to file multiple forms. He urged the finance minister to explain how the compliance can be simlified.

"The intentions can be good but you are bringing anarchy into the country. There will be turnf war between the states and the Centre," Moily says.

Arun Jaitley explains the various tax slabs; are Coca-Cola and others listening?

Arun Jaitley explains the various tax slabs and the rationale behind the peak rate of 40 percent of more on certain goods. 

The first tax slab is 0 percent. The next is 5 percent and then 12-18 percent. The fourth slab is 28 percent. 

There are certain goods that are identified as sin goods and luxury items. The cess above 28 percent imposed on these will flow into compensation fund. \

The peak rate has been keenly awaited by many companies such as Coca-Cola and Pepsi. Coca-Cola has actually urged the govenrment to reain the peak rate at 34 percent recently.

Arun Jaitley explains the various tax slabs; are Coca-Cola and others listening?

Arun Jaitley explains the various tax slabs and the rationale behind the peak rate of 40 percent of more on certain goods. 

The first tax slab is 0 percent. The next is 5 percent and then 12-18 percent. The fourth slab is 28 percent. 

There are certain goods that are identified as sin goods and luxury items. The cess above 28 percent imposed on these will flow into compensation fund. \

The peak rate has been keenly awaited by many companies such as Coca-Cola and Pepsi. Coca-Cola has actually urged the govenrment to reain the peak rate at 34 percent recently.

Watch Arun Jaitley's speech here

Arun Jaitley says India will have one-tax movement

The finance minister says the entire country will have one tax movement. The Centre and states will split the tax income.

"We are going to have a different system from now on," he says explainings the Union, State & Concurrent lists and the Centre's jurisdiction.

All eyes on Congress strategy

As the Lok Sabha members gear up for the GST Bill debate, all are waiting with bated breath to see whether the supplementary legislations are going to be passed in the current session. 

The biggest tax reform has to be rolled out before September, otherwise both the central and state governments will not have the right to collect the taxes.

The government has set 1 July as the deadline. All eyes are on the amendments the Congress is going to move.

Lok Sabha adjourned till 2.40 pm

Illegal Bangladeshi immigrants



BJP MP Nishikant Dubey says, "While we're talking about employment being deprived to citizens of other countries, we should look at the illegal immigrants from Bangladesh who steal our jobs, food and amenities. The citizens of Bangladesh are not citizens of India, therefore, the government must implement measures including at the block-level to ascertain who is a Bangladeshi and who is an Indian. Jai Hind. Jai Bharat"

Transnational terrorist organisations

BJD MP Jay Panda says, "We've suffered cross-border and homegrown terrorism, but we've been quite resilient against transnational terrorism. But these twin attacks including the train blast that were carried out by Islamic State, indicate a shift. Over the past few months, the government has made 68 arrests, most of whom are educated."

He adds, "This is a new threat and the government must face it. It is a new chapter altogether and unless we discuss it in this house and unless the government focuses on the threat from Islamic State, we are looking at grave danger."

RECAP: Rajya Sabha adjourned shortly after obituary notices

Soon after the House met for the day after a month-long recess, Chairman Mohammad Hamid Ansari read out obituary references to former members Puttapaga Radhkrishna, P Shiv Shankar, Syed Shabuddin, Rabi Ray and sitting member Haji Abdul Salam.

A two-minute silence was observed after which Ansari announced that the House would remain adjourned for the day.

 

- IANS

Plight of fishing community all over India

Congress MP Shashi Tharoor widens the scope of the discussion adding fishermen arrested by Pakistan and those detained by the British in Diego Garcia.

"Whether our country grows at 10 percent or not, we must translate this into the greater good of the bottom 10 percent, including our fishermen... We need training programmes to teach them different trades during the no-trawling season," says Tharoor.

Topic shifts to slain Tamil Nadu fishermen

AIADMK MP P Venugopal says, "After the killing of the fishermen, we expect the government to act very strongly. Shooting incidents have increased over the years. Pertinent to point out that during peace talks in Chennai, a consensus was reached that Indian fishermen would not be fired upon but this is being violated all the time."

Rajnath Singh answers
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Rajnath clarifies, "We have taken these incidents seriously. They are saddening and unfortunate incidents. And all steps will be taken by the Government of India to ensure that our citizens in the US are safe and secure. Since the external affairs minister is unwell at the moment, we will issue a full statement next week."

'I want to know what we are discussing with the US'

TRS MP AP Jithender Reddy says, "The American government has only condemned the crimes against Indians. It has done nothing to get justice or protect Indians... I request Government of India to provide all possible assistance to our fellow Indians living in other countries."

Reddy alludes to President Donald Trump's slogan of 'America for Americans' as a source of concern, and says, "When Srinivas' body was brought back to India, all of Telangana mourned. I want to know what we are discussing with the US. The external minister must clarify. A proper statement has to be given."

Travel advisory needed for Indians

BJD MP Bhartruhari Mahtab notes that the US recently put out a travel advisory for American travellers coming to South Asia. "Is the Government of India going to put out an advisory for NRIs stating which US states should be avoided?"

No strategy for Indians' safety

Mallikarjun Kharge says, "The Central government has no strategy to secure its citizens or assure their safety abroad. Ever since Donald Trump came to power, such incidents have been increasing. We are told that the US is the most transparent and democratic on one hand, and that it's the most powerful country on the other hand. And in such a country — where so many of our citizens are students and employees, if our youths are being killed, why is the Narendra Modi government sitting quietly?"

"Modi tweets about everything. Why is he so quiet about this? When visiting leaders come, he's hugging them. When someone from China comes, he sits with him on a swing. And now, why is he sitting silently?" rages Kharge.

Rajnath Singh on UP anti-terror operation

"Saifullah was identified and the ATS surrounded him and attempted to arrest him, unfortunately, he refused to surrender and opened fire. After 12 hours of firing, the ATS made its way into his safehouse and killed him. Eight pistols, several cartridges, three mobile phones and a few walky-talkies were found in his possession," says Rajnath.

Sumitra Mahajan pays tribute to Isro for its achievements

Sumitra Mahajan cracks the whip

"Kaun kitna kaam karta hai mujhe bhi maloom hai (I know who does how much work). I know it. Please chale jaiye (go away)," she tells a protesting MP.

Rajya Sabha adjourned till 11 am on Friday

What to expect from this session of Parliament?

1) Finance bill to be introduced

2) Legislation on GST Bill

3) Announcement on 7th Pay Commission

Opposition already aims to push for adjournment

According to Congress sources quoted by Times Now, the Opposition is set to push for adjournment following obituary messages. Will this come to fruition? We'll find out very soon.

MNREGA was changed 1,035 times: Modi in Lok Sabha

"We also brought about the Income Tax Declaration scheme. We ended over 1,100 obsolete laws," Narendra Modi said in Lok Sabha.

"You have no right to take pride in one of your programmes because since the time of kings, programmes for welfare of poor have been there. Just the names for the programmes have changed," he said.

"Despite MNREGA being there for a long time, there have been 1,035 changes in it," Modi said. "What was the reason that you had to make 1,035 changes since you brought about MNREGA?" said the prime minister.

This was the perfect time for demonetisation: Modi in Lok Sabha

"You know that if there is a disease, and a doctor recommends operation, he talks about keeping the body healthy first," said the prime minister in Lok Sabha.

"For demonetisation, this was the perfect time because the economy was healthy," said Modi.

They think Independence was attained only due to one family: Modi in Lok Sabha

"An ordinary person like me had asked those who could afford it to let go of their gas subsidy," Modi said. "Over 1.2 crore people of this country came forward to sacrifice their gas subsidy," he added.

"We should recognise the power of the people," he said. "No one wants harm for our nation. Everyone wants welfare for the poor," he added.

"I have earlier also said that earlier governments also contributed to the fight against poverty," Modi said.

"But they (Opposition members) have never talked Veer Savarkar or Bhagat Singh fighting for independence. They think freedom was attained only due to one family," he said.

When someone sees seva in scam, dharti maa becomes sad: Modi

"I was thinking about how the earthquake came. When somebody sees seva in scam, even dharti maa becomes sad, and an earthquake thus follows," Modi said.

"Mallikarjunji was saying that it was because of Congress that democracy had prevailed and I had become prime minister," Modi further said. "But the people are aware of the actual situation now," he added.

Yesterday, an 'earthquake' finally came: Modi in LS

"I thank the President for his address," said Prime Minister Narendra Modi in Lok Sabha.

"A lot of issues were raised in the debate on the motion of thanks and I am grateful to members of the House for raising these issue," he said.

"Yesterday, there was an earthquake," Modi said, after which some MPs laughed as they probably saw a pun on the word 'earthquake'.

"Finally the earthquake is here," he said. "I was thinking about how this earthquake came. There must be reason that dharti maa is so angry with us," he added.

The Opposition MPs didn't seem to like that joke as they began shouting.

'Abhi toh jeb phati hai, abhi kurta bhi phatne wala hai'

"The Opposition was waiting eagerly for the people to oppose demonetisation. But nothing happened," said Union minister Mahesh Sharma in Lok Sabha.

"Kale dhan ki is ladai mein abhi toh jeb phati hai, abhi kurta bhi phatne wala hai," said the minister.

We want honest tax payers to benefit: Jaitley

What we need is good policy implementation. Then India can move mountains.

The Budget has failed to address the banking sector problem. Only keeping aside Rs 10,000 lakh crore is not sufficient. The banks already have Rs 6,000 lakh crore  NPAs. 

The Union Budget 2017-18 is extremely positive for the common man, farmers, small and medium businesses and would drive significant growth in the Indian economy. Government’s commitment to make taxation rate reasonable, tax administration fair and expand the tax base are the steps taken in the right direction. The tax relief given by the government for the middle class tax payers will definitely boost the purchasing power, thereby aiding the overall growth of the economy. The major tax relief given to the MSMEs and SMEs with an annual turnover of Rs 50 crores, would enable them to invest in job creation, increase capital expenditure and explore their digital journey.

The strong emphasis laid on technology in almost all the development areas in the budget reaffirms that technology has been at the forefront of India’s recent economic growth and digital transformation. It has been recognised as an important enabler across initiatives ranging from agriculture to skill development to manufacturing and infrastructural development. The government’s focus on making India a digital payment economy will definitely help companies like HP to contribute in technology adoption in rural and semi-urban areas, thereby bringing the Digital India’ vision closer to reality. We also welcome the finance minister’s commitment to introduce and implement Goods and Services Tax (GST) as per schedule and start GST awareness programme from 1 April, 2017 for all stakeholders.

Digital economy budget

It is a digital economy budget. Government has pushed the digital theme in every area of the budget. Every person from small shops to consumers are pushed towards the digital economy. Tax benefits, incentives to use digital payments and extending loans based on a digital footprint will create a larger merchant ecosystem for digital payments. Incentives for labour intensive sectors including housing, farming and dairy will help SMEs to create new jobs. Focus and attention to bank NPAs, as well as increasing bank capitalisation is a great step towards strengthening the financial system of the country. Finally, the income tax rate changes will encourage more people to report their incomes and create a larger tax net for the country. Overall, it is a great budget that will encourage people to move to the formal economy and derive benefits.

FDI much easier now at entry point: Jaitley

"FDI has become much easier at entry point. Only 10% of the FDI require intervention from the parent ministries. 90% of the FDI are immediately invested. FIPB goes through the same set of norms which the ministries go. So the FIPB is abolished to remove a hurdle," Jaitley on the abolition of FIPB.  

Defence allocation

"Budgetary allocations are just indicative. If the defence can speed up the procurement process, it would be given as much money as they want," Finance Minister Arun Jaitley on only 6% hike in defence allocation to Doordarshan.

If union finance minister Arun Jaitley thinks that his move to reduce the individual's contribution to political parties from Rs 20,000 to Rs 2,000 would check influx of corrupt money into the political system, he may find himself pursuing a chimera.

Long before such provision came into existence, political parties have devised mechanism to bypass any scrutiny of their account by creating list of fictious donations. For instance, in Uttar Pradesh, regional parties are believed to have developed a skill in creating a fictitious list of contributors.

Insiders admit that most of these parties which have collected ill-gotten monies through various commercial deals have created an army of people who create the list of their contributors in lakhs to turn their black money into white. Since political parties have any army of cadre , they can create this list to show as donors in large numbers.

Loan waivers harm economy: Bhaskar

"Loan waivers destroy the fabric of loan and borrowing and destroy banks also," Bhaskar said.

Budget 2017 is clueless, useless, baseless: Mamata Banerjee

Poll campaign won't focus on Budget: Baru

"On the economic slowdown, the finance minister has promised a lot of expenditure. I am not sure that in the next one month if the campaign would focus on the Budget. It would be largely local," says author and commentator Sanjaya Baru.

Railway budget lost its identity: Kharge

Delhi deprived of its due in budget: Manish Sisodia

'Will FIPB end up as another repackaging, just like NITI Aayog?'

FIPB to be abolished. Like NITI Ayog that replaced Planning Commisstion, this may be an act of repackaging passed off as abolition.

Digital payments

It is encouraging to see that government is moving forward on payment system regulation. We hope the setting up of a separate payment regulatory board will help in improving interoperability and innovation. The Finance Minister also announced digital infra related measures and we hope all these steps will help more and more people joining the digital ecosystem. As expected Finance Minister made a formal announcement on the launch of AadhaarPay in today’s budget and I am confident that this will push digital payments to grassroots levels of the country.

Incentivised urban decongestion

Considering the impetus being given to road infrastructure, manufacturing and affordable housing, the government has put in all the required ingredients to incentivise urban decongestion and the development of new industrial cities around our industrial transport corridors.

How did Jaitley set fiscal deficit at 3.2%? Sleight of hand?

Amazing. How has Arun Jaitley fixed fiscal deficit at 3.2 percent of GDP for FY18 while raising capital expenditure by 25%? Sleight of hand?

Poll campaign won't focus on Budget: Baru

"On the economic slowdown, the finance minister has promised a lot of expenditure. I am not sure that in the next one month if the campaign would focus on the Budget. It would be largely local," says author and commentator Sanjaya Baru.

Budget focussing on efficiency: Aiyar

"Good thing about the Budget that they tried to stay on course. This government is focussing on efficiency. The government has avoided the temptation of speaking to the voters in Uttar Pradesh or Punjab through the Budget," says Aiyar. 

"The direction of the Budget is craftsmanlike. It has dealt with intricate issues like demonetisation," he said. 

"However, the question remain is the fine print. We have to see where the cuts and gains have been. The expenditure has increased," Aiyar said.  

Amit Shah on budget

"We had promised transparency in 2014. The prime minister fulfilled that promise by introducing various schemes," said Amit Shah on the Union Budget 2017.

Budget 2017 will bring economy to No. 1 position: Gadkari

Profitable farming likely to prevent migration to urban areas: Bhaskar 

"By putting money in agriculture he is trying to stem the migration to urban areas. If farming becomes profitable that would stop migration and the challenge of job creation," says Bhaskar. 

Political reform policy wise correct and will be politically correct in the long term

Massive reform in tax rules

The FM has announced massive reforms in tax rules, including audit and book keeping rules for small and medium businesses. This is bound to boost compliance amongst small taxpayers. Threshold for maintenance of books of accounts for individuals and HUFs turnover limit being increased from Rs 10 lakh to 25 lakh or income limit increase from Rs 1.2 lakh to Rs 2.5 lakh. This is a positive step for ease of doing business. These limits have not been raised since a long time. Those companies with turnover under Rs 50 crores now have to pay 25 percent tax instead of 30 percent. 

The FM has given in to strong demands for lower taxes and offered a balm for demonetisation. Those who earn upto Rs 5lakhs will either pay no tax or their tax outgo will reduce to 50%. Our exemption limits have stayed put since a long time. Low income earners have been given relief. Reduction in slab rate to 5% for Rs 2.5L to Rs 5L is applicable to all resulting in minimum tax saving of Rs 12,500 for all. This is likely to boost consumption and put higher disposable income in the hands of taxpayers. This is important for a push post demonetisation and boosting growth.

Banks punished

"Banks have got their punishment for the bad loans and bad assets," says commentator Rajesh Raparia.

Budget 2017 sticks to fiscal prudence with a fiscal deficit of 3.2 percent whilst balancing enhanced spending in several socio economic schemes and different aspects of economic development. There is some cheer for individuals as tax rates for income between 2.5 lakhs to 5 lakhs has been reduced from 10 percent to 5 percent. However, an additional 10 percent surcharge has been introduced on income between 50 lakhs and 1 crore which is a dampener for high networth individuals.  MSME with turnover up to Rs 50 crores will benefit from lower tax rate of 25 percent and there are some concessions to boost the real estate sector.

The trust of the budget is to enhance the tax base and move towards digitisation through several amendments in the act. No change in capital gains tax regime for listed stocks and clarification on non applicability of indirect transfer rules to FPIs and AIFs will be a big relief to the investors and could trigger an immediate rally on the stock markets. One can argue that the Budget could be more ambitious at the cost of fiscal prudence. However, in global macro economic backdrop, the calibration in the Indian economy post demonetisation and much awaited GST which is now on anvil, Budget 2017 is stable fine balancing act, with fiscal prudence, directional spending and no surprises on the taxation front which should lead the country to a sustainable growth path.

Budget reminds of Nehru-era welfarism: Narayanan

"Modi government has finally resorted to Nehru-era welfarism but it has not picked on the Nehru era  ambition. It has gone on to believe that alms to the poor would help them politically," says Madhavan Narayanan. 

A great budget. Heartening to see the government encouraging the entrepreneurial spirit and bringing in financial inclusion through digital means.

Clarity on demonetisation was needed: Bhatia

"More clarity on demonetisation and black money was required," says financial advisor Surya Bhatia.

Real estate sector gains the most in this Budget: PwC India

"Benefit on the corporate side is for the real estate and housing sector. Borrowing cost has been reduced. A number of measures for the benefit of the sector. Holding period from three to two years," says Vishal J Shah, Partner, Direct tax, PwC India.

Onus lies on us to pay right taxes: Surya Bhatia

"The onus lies on us. We should get together and pay the rightful taxes," says financial advisor Surya Bhatia.

Budget at a glance: Highlights

    * Tax rates halved to 5% for income of Rs 2.5-5 lakh, tax slabs unchanged
    * 10% surcharge on people earning between Rs 50 lakh-1 cr
    * 15% surcharge on annual income above Rs 1 cr to continue
    * Cash transactions above Rs 3 lakh to banned
    * Corporate tax for SMEs with turnover up to Rs 50 cr cut to 25%; 96% companies to benefit
    * Customs duty of LNG halved to 2.5%
    * Fiscal deficit pegged at 3.2% next year, 3% in FY'19
    * Political parties barred from accepting cash donation beyond Rs 2,000 per individual
    * They can receive donations via cheques, electronic mode; electoral bonds to be issued by RBI
    * Aadhaar-based health cards for senior citizens; a scheme for them to ensure 8 pc guaranteed returns
    * FIPB to be abolished; further FDI policy liberalisation
    * Government to have time-bound procedure for CPSE listing
    * Railway PSUs -- IRCTC, IRFC, IRCON to be listed
    * Payment Regulatory Board to be set up within RBI to regulate digital payments
    * Negotiable instruments Act to be amended to deal with cheque bounce cases
    * Legislative changes to confiscate of assets of economic offenders who flee country
    * Demonetisation bold, decisive measure; to help GDP growth, taxes mop up to rise
    * Effect of demonetisation not to spill over to next year
    * GST, demonetisation 'tectonic changes' for economy
    * Service charges on e-tickets booked via IRCTC waived
    * Capital expenditure of Railway fixed at Rs 1.31 lakh cr
    * Rail safety fund of Rs 1 lakh cr over 5 years, unmanned level crossing to be eliminated by 2020
    * Budget based on 3 agenda -- Transform, Energise, Clean India (TECIndia). MORE PTI JD
    * 3 yr period for long-term capital gains tax on immovable property reduced to 2 years; base year indexation shifted from April 1, 1981 to April 1, 2001
    * Disinvestment target at Rs 72,500 cr, up from 56,500 cr 
    * Gross market borrowing pegged at Rs 6.05 lakh cr
    * Duty exempted on POS machines and Iris readers for encouraging digital payments
    * Tax benefits for Start ups to be for 3 out of 7 yrs
    * FPI to be exempt from indirect transfer provision
    * Integrated public sector oil major to be created to match global giants
    * Direct Tax collection growth 15.8%, indirect tax 8.3%
    * Total expenditure pegged at Rs 21.47 lakh crore
    * Capital expenditure up 24%; to have multiplier effect
    * Allocation to states hiked to Rs 4.11 cr
    * FRBM Committee suggests Debt-GDP ratio of 60% by 2020
    * Retail inflation to remain within 2-6 pc
    * 2 new AIIMS to come up in Jharkhand, Gujarat
    * Highest ever allocation of Rs 48,000 cr to MNREGA
    * Farm sector to grow at 4.1% this fiscal, to double farm income in five years
    * Farm credit target for next fiscal at Rs 10 lakh crore
    * Fasal Bima yojana increased to 40% of crop area; raised to Rs 1.41 lakh crore in Kharif 2017 season
    * Infrastructure investment pegged at Rs 3.96 lakh cr
    * To double irrigation fund corpus to Rs 40,000 cr
    * Infrastructure status accorded affordable housing
    * Dairy processing fund with Rs 2000cr corpus to be set up
    * Rs 1.84 lakh cr allocated for women, child initiatives
    * Rs 1.87 lakh cr allocated to rural, agri, allied sectors
    * 1 crore houses by 2019 for homeless
    * PM Awas Yojana allocation up from Rs 15,000 cr to Rs 23,000 cr
    * 100% village electrification to be achieved by May 2018
    * Rs 31,920 cr allocated for Scheduled Tribes, Rs 4,195 cr for nminority affairs, outcome based budgeting to start
    * Road sector allocation hiked to Rs 64,000 cr
    * Innovation Fund to be created for Secondary Education
    * Allocation of Rs 2.41 lakh crore rail, road, shipping to create jobs, spur economic activity
    * New metro rail policy to be announced
    * New crude oil reserves proposed at Odisha and Rajasthan; to take strategic reserve capacity to 15.33 mmt 
    * India on cusp of digital revolution
    * FDI increased 35 pc to Rs 1.45 lakh crore in H1 FY'17.

Commitment to eliminate corruption, black money reflected in budget: Modi

"This budget is an attempt to give pace to the speed with which the country is changing. This budget is our future," he said.

Railway budget has focused on safety: Modi

"Railway budget has focused on railway safety fund," said the prime minister.

LED lights to become expensive

Parts used for the manufacture of LED lights will attract basic customs duty of 5% and CVD of 6%.

Bad news if you love to puff!

Excise duty on various lengths of cigarettes hiked by 2.5% to 6 %

Modi praises 'historic' budget

"This will give speed to development," said Prime Minister Narendra Modi.

"In this Budget, there were highways and Iways made. From railways to data speed, from education to health, steps have been taken to fulfill everyone's dream," said Modi. "For this historic budget, the finance minister and his team deserve congratulations," he added.

"The entire transport sector has integrated planning. Railways will be able to contribute more effectively now," he said.

One big oil PSU is good; Bhaskar

"Having one monolith oil organisation would be great. We are talking about a similar banking organisation and that would be great," says Bhaskar.

GST will be a new way of looking into the economy: Narayanan 

"With the coming of the GST soon we are looking into a completely new way of looking into the economy," says Madhavan Narayanan.

By granting infrastructure status to affordable housing, the government acknowledges that affordable housing industry is an important driver of the economy. Affordable housing developers will now be eligible for several government incentives, subsidies, tax benefits and most importantly institutional funding. The status could also mean that the Government may release land specifically for affordable housing development in central locations of major urban centres in India.  

The FM has reduced the holding period for land and building from 3 years to 2 years for long-term capital gains purpose. This would help improve invest ability in properties in comparison to shares and stocks where the period is 1 year.

A good budget

Prima facie, Finance Minister Arun Jaitley has offered a fine blueprint to revive the economic growth momentum with proposals to push rural sector growth, encourage affordable housing and small companies with a slew of schemes, higher infrastructure spending and tax rebates. The budget also carried some signs of a bold, reformist agenda with steps to cleanse the political funding and proposal to unlock value in firms like IRCTC, even as it shied away from steep corporate tax rate cuts and much-needed funding for weak state-run banks. However, all in all, the budget hasn’t failed to meet the general expectations and will aid India’s consumption story by putting more money into the hands of people.

Rahul Gandhi lashes out at Modi govt

"Some big announcements should have been made for farmers," said Congress vice-president Rahul Gandhi after the Union Budget 2017 was presented.

"In the first speech made by Narendra Modi, he talked about bullet trains. Did bullet trains come? No. Safety is the fundamental problem in railways. The safety record in railways is at the lowest," he said.

'Personal income tax: Rationalisation of tax structure a distant dream'

No major change in personal income tax except for change in reduction of rate from 10 percent to 5 percent for Rs 2.5-5 Lakh. Rationalisation of the complete tax structure as per Direct Tax code still seems to be a distant dream.

Lok Sabha adjourned after Finance Minister Arun Jaitley concludes his Budget 2017 speech.

Sunny days ahead for the common man as individual tax rate reduced to 5% for the income bracket of 2.5-5 lakhs.

Government has finally moved one step forward in cleaning a corrupt and non-transparent system of political funding. This was a long-pending demand from the public at large. Though Prime Minister Modi had been talking about it for some time and Election Commission had made certain suggestions to the government, there was a great deal of scepticism on whether or when the Government would actually make a move in this regard.

The popular pressure had grown after demonetisation. It was heartening to hear FM Jaitley talking of brining some amendments to take small but significant steps to cleanse political funding with the admission that political parties continue to accept through anonymous sources and donors fear to entail adverse consequences. The limit for anonymous cash donation has been brought down from Rs 20,000 to Rs 2,000.

'MSME corporate tax cut a big boost to entrepreneurship'

Reduction in corporate tax for SMEs and increased exemption of profits to 3/7 yrs a big boost to the small and 1st gen businessmen of the nation.

Change in political funding rules will decrease black money flow

Maximum cash donation a political party can accept from one source has been brought down to Rs 2,000. As per the current norms, any political funding less than Rs 20,000 didn’t require to show source. This new change is a step in good direction and will hopefully bring down the flow of black money in political funding.

Reduction of the existing rate of tax for low tax bracket individuals

"Reduce existing rate for income from Rs 2.5 lakh to 5 lakh to 5 % from 10%. 50% saving in income tax if a person is earning up to Rs 5 lakh. Tax forgone due to this step stands at Rs 15,500 crore. The government to levy surcharge of 10% on those who are earning between Rs 50 lakh to Rs 1 crore," says Jaitley. 

Reducing cash limit for political funding from Rs 20,000 to Rs 2,000 is meaningless. Because there is no limit in number of persons.

NO TRANSACTION OVER RS. 3 LAKH WILL BE PERMITTED IN CASH

FM gives a boost to small and micro companies

Corporate tax for most companies in the MSME sector reduced by 5 percent. This will give a boost to the MSME sector hit by demonetisation.

Donation to political parties, no more than Rs 2,000 in cash 

"Up to Rs 2,000 can be donated in cash by anyone source to a political party. Political parties can receive donations through digital methods and cheques. Donors can buy RBI bonds and would be able to donate to a political party which can redeem within a specified time. The bond can be bought through cheque or by employing any digital method. Every political party has to file its returns as per Income Tax Act," says Jaitley.

'Changes in holding period for property good for realty'

Lower holding period for coming under cpaital gains tax net and shift of year for indexation purpose will be helpful to the real estate sector.

Increase in MGNREGA funds is not the decision of the government. The government was forced to do so by Supreme Court. Already done in the supplementary entry budget.  Actually capping MGNREGA at Rs 48,000 crore violates SC orders. FM has added only Rs 500 crores while the ministry has asked Rs 5,000 crores.

Capital gains tax for housing

“Propose to make changes in capital gains tax for housing. Holding period for land and building will be reduced to 2 years from 3 years. Instead of build-up area, carpet area will be counted for affordable housing,” says Jaitley.

PM Fasal Bima Yojana: Who is the government insuring exactly — farmers or companies?

Government expenditure has increased substantially from Rs 5,500 crore proposed last year to Rs 13,200. But it seems to have gone in the pocket of private insurance companies. Share of farmers covered has increased from 21% to only 24%. Sum assured has gone up, not the numbers of farmers covered, nor the claim amount. Who is the government insuring exactly: farmers or companies?

Tax cut for smaller firms

"Propose to cut 5% tax for those firms whose turnovers are below Rs 50 crore. 96% firms of the country would be benefitted," says Jaitley. 

'New law to confiscate absconders' overseas properties; need to see the details'

A new law proposed to enable lenders to confiscate assets of absconders living overseas. But existing laws permitted this. Remains to be seen how this new law is drafted and implemented.

Funds for banks at Rs 10,000 cr: Another year of disappointment?

Arun Jaitley said government will infuse Rs 10,000 crore this year in public sector banks, which constitute 70 percent of the industry. This is part of the ‘Indradhanush’ plan to infuse Rs 70,000 crore in PSU banks over five years. Given the mess the banking sector is in, the kind of bad loan problems, analysts were expecting much bigger capital infusion to equip public sector banks, beyond what is already planned. Though the FM has assured that government will make sure banks get additional capital, past evidence shows that capital is yet again going to be a major problem for the sarakari banks.

Consider this: Presently, state-run banks are severely undercapitalised. At least seven of the PSU banks have less than 8.5 percent Tier-I capital adequacy and one bank less than 8 percent. The problem is worsened with their non-performing assets (NPAs) hitting the roof (nearly Rs 6 lakh crore as on September, 2016 or nearly 8 percent of the total bank credit), and total chunk of stressed assets (bad loans and restructured loans together) jumping to 12-13 percent of the total bank credit. Jaitley should have allocated much more for weak state-run banks. Here, there is a bit of disappointment.

Post demonetisation deposits go up

"Demonetisation deposits between Rs 2-80 lakh made In 1.09 crore accounts. Post demonetisation deposits above Rs 80 lakh in 1.48 lakh accounts," says Jaitley.

The push towards e-transactions through BHIM and Aadhar enabled payments puts India at the cusp of a digital revolution.

Revenue deficit pegged at 1.9% of GDP

Tax proposal to help middle class

"The thrust of my tax proposal in this Budget is to bring relief to the middle class, boost affordable housing, transparent political funding. Net tax growth at 17% in the last 2 years," says Jaitley.   

'Fiscal deficit roadmap consistent with promise; but need great effort'

With regard to fiscal deficit roadmap of 3 years, a long-term view has been maintained. This is consistent with promises made. However, it would require great effort to achieve it.

Poetry time once again, this time on black money. Opposition , treasury benches join hands in complimenting poet Arun Jaitley. 

Poetry time once again, this time on black money. Opposition, treasury benches join hands in complimenting poet Arun Jaitley. 

Government decision to bring a law to attach properties of absconders is a significant move. It would enable the government to attach properties of the likes of Vijay Mallya, Lalit Modi and so on, who fled from country. Whether or not this would act as deterrent but would certainly send a strong signal that bhagodas family members wouldn't enjoy the assets and wealth with impunity.

Tax-GDP ratio

"Tax-to-GDP ratio very low in India. We are largely a tax non-compliant society. When too many evades tax, the burden falls on those who are honest," says Jaitley.

'Banking recap funds short of expectations'

Rs 10,000 crores for banks recapitalisation is in line, but short of expectations.

Jaitley silent on some of farmers' key demands

FM's loud silence on some of the key demands and expectations of farmers: Income security for farmers, higher MSP release of farmers from debt-trap, improvement in irrigation, electricity, fertilizer and seed subsidies. Very disappointed.

Fiscal deficit for 2017 at 3.2%

“Total resources to be transferred to states and UTs estimated at Rs 4.11 lakh crore. Allocation of capital expenditure up 25% YoY. Peg fiscal deficit for 2017 at 3.2%,” says Jaitley.

IRCTC listing — big move

The announcement from Jaitley that railway-related state-run companies like IRCON and IRCTC are to be listed on stock exchanges is a bumper move that’ll enable the government to unlock the big value of these giants. This is a proposal that has been in the discussions for too long, but no definite decisions have been taken so far. Jaitley’s move, in this context, is significant.

Integrated oil major proposed; end of current OMCs?

The finance minister has proposed to create an integrated PSU oil major. Is this the end of current PSU oil marketing companies?

Defence personnel getting their concession tickets booked in railway through online processes without standing in queue at railways reservation counters with authorised concession warrants is a welcome step. It otherwise sounds a small step but gives great comfort to defence personnel. Modi government would hope to get their goodwill.

Listing PSUs

“Propose revised mechanism for time-bound listing of PSUs. Shift to digital platforms to benefit the common man,” says Jaitley.

Increasing target for agriculture credit to Rs 10 lakh crore is nothing but a routine announcement. From 9 to 9.5 to 10. In any case, this is given by the banks, not FM. What the FM could have announced was interest relief. This he is not done. Nor has he announced any measures to ensure that this credit reaches to small, tenant farmers. So net results ZERO.

'No specifics on cyber security'

Specifics on cyber security steps missing. Interface with police and courts required. As many as 125 lakh people adopt BHIM app, but regulator for epayments missing.

Payment Board to come up in RBI

IRCON, IRFC to be listed

"IRCON and IRFC to be listed on stock exchanges. There is a proposal to create an integrated PSU oil major. Listing of CPSE will increase accountability," says Jaitley.

'Infra status to affordable housing will boost sector'

The increase in railway expenditure focusing on infrastructure creation — steady going. National highway will have no speed breaker for smooth motoring. Implementation will be key. Affordable housing as infrastructure is an innovative idea to boost the sector.

‘IRCTC service charge withdrawal will boost e-ticketing; will airlines follow?’

Service charge withdrawal on Railway tickets e-booking a way to encourage e transactions. This will also compel airlines.

The government to set-up new crude oil reserves.

Farmers got nothing but nice words

Agriculture sector announcements are deeply disappointing. Like last year, farmers have got nice words but nothing else.

Solar power gets more power

“The government to take up second phase of solar power development for additional 20,000 MW. Over 250 proposals for electronics mfg received in last 2 yrs for Rs 1.26 lakh crore,” says Jaitley.

The fact that FM Jaitley referred to Railway after about 50 minutes of budget speech is an indicator that the government was keen to send out a strong political message that it cared for poor, underprivileged and concerns of youth. It was basically elaboration of what PM Modi had outlined in his 31 December 2016 address to the nation, the day his 50-day deadline for deposits of old demonetised notes had ended. It will depend on the ruling BJP as a party to reach out to electorate in UP, Punjab, Uttrakhand, Goa and Manipur with certain positives.

‘Elimination of unmanned rail crossings to reduce accidents by 40%’

Safety deadlines a key deviation from previous Railway Budget. Throughput enhancement will reduce the need to keep increasing fares. Elimination of unmanned rail crossings by 2020 can reduce accidents by 40 %.

FDI policy

"New FDI policy under consideration," says Jaitley.

FIPB to be abolished.

Metro policy and highway allocation 

"New Metro Rail Policy to be announced. It will open up new job possibilities.National Highway Allocation fixed at Rs 64,000 Crore. Airports Authority of India Act to be amended to enable monetisation of land," says Jaitley.

'Need more investment in rural education infrastructure'

Launching of education portal is a good step. However, investment in schools and educational infrastructure in rural sector is the need of the hour.

Affordable Housing gets Infra status. Good move 

Jaitley’s announcement that affordable housing will be given infrastructure status is an important step. This is a big move that can, at one stroke, give a major push to the affordable housing sector since banks can now lend money to affordable housing projects under infrastructure category. This can also work to boost real estate and construction activities that has slowed in the recent months. Good move, Mr FM!

Housing shares surge up to 11% after rise in housing allocation

The finance minister said the government proposes to complete 1,00,00,000 houses by 2019 for houseless and those living in kaccha houses. Towards this, he increased allocation for PM Awas Yojana to Rs 23,000 crore.

The shares of Ashiana Housing rose 11%, LIC Housing Fin 1.5%,  Ganesh Housing 1.38% and Ansal Housing 10%.

Re-emphasis on cashless economy would boost digital transactions leading to greater financial inclusion, transparency and economic growth: Mehul Turakhia, Director Finance, Directi

Concerns of medical students have been addressed for post-graduate education. It is interesting to see that that government decision to allow private hospitals to begin DNB medical courses found a place in the budget.

Aadhaar card to have health details of senior citizens 

"A pilot project with Aadhaar cards containing the health details of senior citizens will be started in 15 districts,"says Jaitley.  

Rail passenger safety gets importance

"A Rail Raksha Sanraksha Koch with a corpus of Rs 1 lakh cr in the course of five years. Unmanned railway crossings to disappear by 2020. Railway lines of 3,500 km will be commissioned in 2017-18," says Jaitley.

"500 stations to be made differently-abled with lifts, escalators. Solar power to lit up more stations," he said.

"Coach Mitra facility to come up. All trains to have bio-toilets," Jaitley said.  

"Service charge for tickets booked through IRCTC to be withdrawn. Tariffs to be fixed as per competition and quality of service," said Jaitley. 

‘Bharat shining, with focus on rural and agri sectors’

Good going by the finance minister. He has focused on rural fundamentals — micro irrigation and dairy focus, contract farming, water harvesting and infrastructure. The FM has made Rs 1.87 lakh crore allocation for rural and agri sector. Bharat shining!

Modi govt addresses its core social constituency

Modi government has used the first half of the budget to address its core social constituency — farmers, rural poor, Dalits, women, youth. Remember, this is the third budget of the Modi government and thus most significant to send out a message to those who looked up to this government with certain hopes and aspirations.

Farmers, rural poor, youth, girls and women, artisans, unprivileged and their concerns of education, infrastructure, loan, jobs and social security were dwelt at length. PM Modi and FM Jaitley realise the burden of expectation that is there on them and it was good to see that FM addressed to that in the beginning.

Innovation in 4,000 backward blocks to generate rural entrepreneurship

Innovation in 4,000 backward blocks will generate rural entrepreneurship. Mason training and skill India development clearly aimed at long-term formalisation of informal occupations.

Rural schemes continue. But are job losses factored in?

Jaitely’s speech reaffirms the government’s aggressive focus on the rural push, a key item in the government’s agenda. Jaitley said this government wants to take one crore households out of poverty by 2019 and complete rural electrification by 1 May, 2018. The FM has almost started from where PM Modi stopped in his New year speech as far as government’s big rural push is concerned. More sops were doled out for the farmers. As usual, the bank credit target for agriculture was further increased to Rs 10 lakh credit target this year. Whether the banking system have the capacity to take up the additional burden given the existing high level of bad loans from the segment is a question.

The additional sops for the farmers include increase in Fasal bima yojana coverage to 40 percent and crop insurance coverage by 50 percent, a Rs 5,000 crore micro irrigation fund and Rs 8,000 crore dairy processing fund. Further, the government will support NABARD to digitise 63,000 primary agri societies, the FM said. Rs 48,000 crore has been allocated to MNREGA from Rs 37,000 crore last year, Jaitley said. But, isn’t also due more number of people moving from factory jobs to informal sector? The government has increased the allocation for rural agriculture and allied sectors by 24 per cent to Rs 1,87,223 crore, which should ideally help revival in rural sector post demonetisation impact. But are job losses factored in?

'Interest waiver; not loan waiver — very good sign for prudential banking'

Overall rural allocation is 24 percent higher than last year’s. Computerisation of Nabard will allow tracking of funds for farmers. Micro irrigation and fertigation will ensure more crop per drop.

Interest waiver, and not loan waiver. It a very good sign for prudential banking.

Union Finance Minister Arun Jaitley's speech is calculated to consolidate political constituencies for the Narendra Modi government. It begins with unambiguous thrust on agriculture, rural areas and addresses the concerns of women and youth. Obviously a cursory analysis of Jaitley's speech would leave no one in doubt that Modi's preparation for 2019 elections has begun with this budget.

Two new AIIMS  announced

Gujarat, Jharkhand to get an AIIMS each

Modi govt keen to take political capital out of MGNREGA

The way Jaitley spoke of MGNREGA, about increased allocation and the way productive assets would be built including water ponds, is clearly an indicator that Modi government is keen to take political capital out of a scheme that was the shining armour of erstwhile UPA government.

Rural fundamentals in focus; It's a good way to go

India, which was the 7th largest economy, has now become the sixth largest in manufacturing. India Rise! The focus on fundamentals as regards rural sector is a good way to go.

Special effort for farmers to double income to be focused on Eastern States. A hint for UP elections? 

MNREGA funds for asset creation, moving out of the old Dole regime. Housing allocation for rural housing grows 50 percent. The focus is on rural income and demand, and formalising rural economy.

Modi govt's political thrust apparent

The political thrust of Modi government in union budget 2017 is clearly apparent from repeated reference to schemes beneficial to farmers, rural poor, infrastructure, dailts women, youth. Rs 10 lakh crore has been earmarked for credit to farmers in eastern Indian and Jammu and Kashmir.

Mudra Yojna gets special mention. Funds for housing to rural poor under Prime Minister Rural Poor Housing scheme, allocation for MGNREGA has been increased to highest ever with the rider that it will be used to create productive assets. Mark the word eastern India, it had loaded political connotation without Uttar Pradesh word used.

Roads now made quicker

"Pace of construction of roads has increased to Rs 133 km/day in 2017," Says Jaitley.

India, which was the 7th largest economy has now become the sixth largest in manufacturing. India Rise! The focus on fundamentals as regards rural sector is a good way to go

Agriculture credit increase a good step: Aneja

Increase in agriculture credit and its disbursal along with more coverage of crop insurance scheme is a good step and will be helpful to the farm sector hit by the demonetisation of Rs 500 and Rs 1,000 notes.

Policy moves from favouritism to transparency

Use of Spring festival signals hope. Policy moves from favouritism to transparency and informal to formal. The finance minister is sending a macro message for foreign investors.

No demonestisation spill over next year: Jaitley

Not seeing effects of the demonetisation spill over to next year, The effects of demonetisation not expected to spill over to the next year, says the finance minister. However, this goes against the indication in the Economic Survey that was released yesterday. The survey had given a GDP growth projection of 6.75-7.5 pecent for the next year. Experts have been of the opinion that the wide range could be an indication that there could be a spill over effect next year too. 

Not seeing effects of the demonetisation spill over to next year

The effects of demonetisation are not expected to spill over to the next year, says the finance minister. However, this goes against the indication in the Economic Survey that was released yesterday. The survey had given a GDP growth projection of 6.75-7.5 pecent for the next year. Experts have been of the opinion that the wide range could be an indication that there could be a spill over effect next year too.

Spending more for underprivileged a target: Jaitley

"My overall approach while preparing this Budget has been to spend more in rural areas, poverty alleviation through fiscal prudence," says Jaitley.  

Jaitley resorts to poetry, asks all to embrace the new. This of course celebrates the new thrust towards a cashless economy.

Demonetisation is the new normal: Jaitley

"Demonetisation is the new normal. Demonetisation seeks to make our GDP bigger, cleaner." says Jaitley.

India seen as an engine of global growth: Jaitley

"According to the IMF, India is going to be the one of the fastest growing economies. Inflation has been controlled. The government has launched a massive war on black money. India seen as an engine of global growth," says Jaitley.

CAD going going down: Jaitley

"Growth in a number of emerging economies is likely to recover in 2017 after a poor performance in 2016. Uncertain crude oil prices have had its implication on the emerging economies," says Jaitley.

"India's macroeconomic stability continues to be its fountainhead of its growth. CAD has declined by 1%," says Jaitley.

Will textile, leather sectors get sops to push job creation?

The Economic Survey may have dropped borad hints at how the governmenet may be planning to push job creation.

"Apparel and Leather & Footwear sectors are eminently suitable for generating jobs that are formal and productive, providing bang-for-buck in terms of jobs created relative to investment and generating exports and growth," said the survey released yesterday.

The Survey adds that these sectors provide immense opportunities for creation of jobs for the weaker sections, especially for women, and can become vehicles for broader social transformation in the country.

This could be a broad hint at the government's plans for these sectors, which have large unorganised constituency. Though labour laws have been a major impediment in increasing investment in the sector and it is for the states to breing in reforms in this area now, the Centre could announce sops to boost the sectors. It is also to be remembered that textile was one of the sectors that was hit hard by the demonetisation of the Rs 500 and Rs 1,000 notes.

Finance Minister Arun Jaitley begins his fourth Union Budget speech. Wishes the country on the occasion of Vasant Panchami. 

Uproar in Lok Sabha

Opposition leaders are now shouting in the House even as Arun Jaitley begins to speak.

House should be adjourned today: Kharge

"E Ahamed is a senior leader. He was there for 45 years in the legislative affairs," said Congress leader Mallikarjun Kharge in Lok Sabha.

"As a mark of respect, the House should be adjourned today. Budget should be presented tomorrow," he said.

But Sumitra Mahajan said that she has already given her ruling.

Budget will go on: LS Speaker

"I would have adjourned the House for the day but today, the sitting has been fixed for the Budget, which is a constitutional obligation," said Lok Sabha Speaker Sumitra Mahajan.

"The House may go ahead with the presentation of the Budget," she said. "However, the House will not sit tomorrow."

House stands in silence for 2 minutes as a mark of respect to departed leader and sitting Congress MP E Ahamed.

Lok Sabha session begins

Budget will be presented: Lok Sabha Speaker

Arun Jaitley confirms Budget is on track at 11 am

Budget should be postponed: Kharge

"If they will not show respect, it won't be appropriate," said Congress leader Mallikarjun Kharge. "The Budget which they had to present in March is being presented now," he added.

"The budget should be delayed. Otherwise, it will be an inhuman act," he said. "There is a lot of time. The Budget can be presented tomorrow too."

Govt wanted to postpone announcement of E Ahamed's demise: Congress

A Congress MP, speaking on the condition of anonymity, said the government wanted to postpone the announcement of E Ahamed's passing. "They announced it at midnight after pressure from his family," the MP said.

Detailed table on impact of demonetisation, but where are the numbers?

The Economic Survey, though as expected, had given an impact analysis of the demonetisation but has not given any numbers.

Firstpost business editor Rajesh Pandathil noted that though there is detailed table on the impact of note ban, it has no numbers mentioned anywhere.

"It says that bank deposits increased sharply through end-December, that they will decline and probably settle at a slightly higher level, it doesn't say how much was the deposit increase or when it is likely to become steady. So also about the RBI balance sheet. Did the CEA anlayse the note ban without any numbers in hand? If yes, it is surprising," Rajesh said.

Cash supply to be normal by April 2017

Explaining the rationale behind its 6.75-7.5% GDP growth estimate for the next financial year, the Economic Survey said cash will replenished by end March 2017 and the economy would revert to the normal after that.

On the RBI's likely interest rate action, Subramanian at the press conference said the market interest rates have already been trending down. 

He ducked the question whether the government could have done something better.

Mahatma may have given go-ahead to Universal Basic Income as anti-poverty scheme

The Economic Survey advocates the concept of Universal Basic Income (UBI) as an alternative to the various social welfare schemes in an effort to reduce poverty. The survey juxtaposes the benefits and costs of the UBI scheme in the context of the philosophy of the Father of the Nation, Mahatma Gandhi. 

The UBI is a simple idea based on three principles - universality, unconditionality and agency, said Subramanian at the press conference.

The Mahatma as astute political observer, would have anxieties about UBI as being just another add-on Government programme, but on balance, he may have given the go-ahead to the UBI.

Based on a survey on misallocation of resources for the six largest Central Sector and Centrally Sponsored Sub-Schemes (except PDS and fertilizer subsidy) across districts, the Economic Survey points out that the districts where the needs are greatest are precisely the ones where State capacity is the weakest. This suggests that a more efficient way to help the poor would be to provide them resources directly, through a UBI.

Currency squeeze after demonetisation was less than perceived

Caution has to be exercised in analysing the impact of demonetisation. It is an unusual monetary experiment. No real model exist. It is an unusual experiment in the monetary history, Subramanian said.
 

Demonetisation has affected different forms of money very differently, he said. It simultaneously reduced the supply of cash and by the same token it increased the bank deposits.

The currency squeeze was less than perceived. It was higher in December than in November, contrary to the general perception, he said.

Demonetisation a risk; policy support required to aid recovery

The Economic Survey has realised the risk of the the demonetisation to the country's economic growth and noted the recovery from the negative impact will require policy support from the government.

After the demonetisation of Rs 500 and Rs 1,000 notes, normalcy is yet to return to rural areas. The cash crunch induced by he note ban has resulted in job losses in the informal sector. As daily labourers returned to their villages, the demand for jobs under MGNREGA has spiked, media reports said.

Towards the budget, there has been demand for higher allocation for the social sector in order o get over the pain of demonetisation.

Will Economic Survey clear the air about the impact of demonetisation?

This year's Economic Survey is nothing like the previous years'. The reason is the country has been witness to an unprecedented step - demonetisation.

After the demonetisation of Rs 500 and Rs 1,000 notes from 9 November, the common man endured much pain hoping that the government's step will finally put an end to black money generation and the evaders will pay a price. However, the government is yet to come out with exact data on how much money has come into the system and what is the amount of black money it may have amassed.

The expectation is chief economic advisor Arvind Subramanian will give some idea as to how the demonetisation has impacted the economy in the Economic Survey.

Watch: Prime Minister Narendra Modi addresses media ahead of the Budget Session of Parliament

President Mukherjee salutes the courage of soldiers who undertook the surgical strikes

President also congratulated the government for fulfilling the four-decade old demand of One Rank One Pension. 

President hails the decision to demonetise high-currency notes

Today's top development

Once President Mukherjee's address to the joint session of the Parliament concludes, Union Finance Minister Arun Jaitley will table the Economic Survey 2016-17. Mamata Banerjee's Trinamool Congress has decided not to attend the Parliament for two days. 

Three ordinances have been listed today for promulgation.

Hits and misses from President’s budget session address last year 

The President's address, a day before the Union Budget is presented, sets the tone for the upcoming Budget Session as the broad initiatives taken by the Union government and objectives for the coming year are listed out.

Govt committed for sabka saath sabka vikas: President Pranav Mukherjee

Welfare of 'gareeb', 'peedit', 'Dalit', 'vanchhit' core of the government: Mukherjee

This is a historic session heralding advancement of budget cycle: Mukherjee

Budget session begins with President Pranav Mukherjee's speech

Mukherjee speaks at Parliament

President Pranav Mukherjee has reached parliament