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Summary of Budget 2018-19

Budget - Dated:- 1-2-2018 - Government says that it is firmly on course to achieve high growth of 8% plus as manufacturing, services and exports are back on good growth path. While GDP growth at 6.3% in the second quarter of 2017-18 signalled turnaround of the economy, growth in the second half is likely to remain between 7.2% to 7.5%. The Union Minister for Finance and Corporate Affairs Shri Arun Jaitley while presenting the General Budget 2018-19 in Parliament today said that Indian society, p .....

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ndia, Shri Jaitley said, the Government led by Prime Minister, Shri Narendra Modi, has successfully implemented a series of fundamental structural reforms to propel India among the fastest growing economies of the world. The Finance Minister said that Government has taken up programmes to direct the benefits of structural changes and good growth to reach farmers, poor and other vulnerable sections of our society and to uplift the under-developed regions. He said, this year s Budget will consolid .....

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such exercise in the world and is a global success story. Agriculture and Rural Economy Referring to the Government s commitment to the welfare of farmers and doubling farmers income by 2022, the Finance Minister announced a slew of new schemes and measures. He said ,that government has decided to keep MSP for all unannounced kharif crops atleast one and half times of their production cost after declaring the same for the majority of rabi cops. He said,the volume of institutional credit for agr .....

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ector with a total corpus of ₹ 10,000 crore for the two new funds. On the lines of Operation Flood a new Scheme Operation Greens was announced with an outlay of ₹ 500 Crore to address the challenge of price volatility of perishable commodities like tomato, onion and potato with the satisfaction of both the farmers and consumers. He also announced to develop and upgrade existing 22,000 rural haats into Gramin Agricultural Markets (GrAMs) to take care of the interests of more than 86% .....

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e connected by March, 2018. Shri Jaitley announced ₹ 200 crore for organized cultivation of highly specialized medicinal and aromatic plants and said that the organic farming by Farmer Producer Organizations (FPOs) and Village Producers Organizations (VPOs) in large clusters, preferably of 1000 hectares each will be encouraged. Similarly, allocation of Ministry of Food Processing has been doubled from ₹ 715 crore in 2017-18 to ₹ 1400 crore in 2018-19. Terming Bamboo as Green Go .....

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ds to fisheries and animal husbandry farmers to help them meet their working capital needs. Shri Jaitley said India s agri-exports potential is as high as US $100 billion against current exports of US $30 billion and to realize this potential, export of agri-commodities will be liberalized. He also proposed to set up state-of-the-art testing facilities in all the forty two Mega Food Parks. He also announced a special Scheme to support the efforts of the governments of Haryana, Punjab, Uttar Prad .....

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re in 2018-19. Referring to the measures taken for the benefit of lower and middle class, the Finance Minister said, under Ujjwala Scheme distribution of free LPG connections will be given to 8 crore poor women instead of the previous target of 5 crore women. Under Saubahagya Yojana, 4 crore poor households are being provided with electricity connection with an outlay of ₹ 16,000 crore. To fulfil target of housing for All by 2022 ,more than one crore houses will be built by 2019 in rural a .....

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ing extra-budgetary and non-budgetary resources of ₹ 11.98 lakh crore. Apart from employment due to farming activities and self employment, this expenditure will create employment of 321 crore person days, 3.17 lakh kilometers of rural roads, 51 lakh new rural houses, 1.88 crore toilets, and provide 1.75 crore new household electric connections besides boosting agricultural growth. Education, Health and Social Protection The Finance Minister said that estimated budgetary expenditure on hea .....

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ulture besides providing training in sports and skill development. To step up investments in research and related infrastructure in premier educational institutions, including health institutions, a major initiative named Revitalising Infrastructure and Systems in Education (RISE) by 2022 with a total investment of ₹ 1,00,000 crore in next four years was announced . He said that a survey of more than 20 lakh children has been conducted to assess the status on the ground, which will help in .....

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ogramme this year has been kept at ₹ 9975 crore. The Finance Minister announced the world s largest government funded health care programme titled National Health Protection Scheme to cover over 10 crore poor and vulnerable families (approximately 50 crore beneficiaries) providing coverage upto 5 lakh rupees per family per year for secondary and tertiary care hospitalization. He also committed ₹ 1200 crore for the National Health Policy, 2017, which with 1.5 lakh Health and Wellness .....

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been sanctioned under the Namami Gange programme for infrastructure development, river surface cleaning, rural sanitation and other interventions at a cost of ₹ 16,713 crore. 47 projects have been completed and remaining projects are at various stages of execution. All 4465 Ganga Grams - villages on the bank of river - have been declared open defecation free. He said, the government has identified 115 aspirational districts taking various indices of development in consideration for making .....

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d more than 50% belong to SCs, STs and OBCs. It is proposed to set a target of ₹ 3 lakh crore for lending under MUDRA for 2018-19 after having successfully exceeded the targets in all previous years. Employment Generation Reiterating that creating job opportunities is at the core of Government policies, Finance Minister cited an independent study as showing that 70 lakh formal jobs will be created this year. To carry forward the momentum created by the measures taken during the last 3 year .....

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; 7148 crore for the textile sector in 2018-19 as against ₹ 6,000 Crore in 2016. Infrastructure and Financial Sector Development Emphasising that infrastructure is the growth driver of economy, the Finance Minister estimated that investment in excess of ₹ 50 lakh crore is needed to increase growth of GDP and connect the nation with a network of roads, airports, railways, ports and inland waterways. He announced increase of budgetary allocation on infrastructure for 2018-19 to ₹ .....

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develop ten prominent tourist sites into Iconic Tourism destinations by following a holistic approach involving infrastructure and skill development, development of technology, attracting private investment, branding and marketing. Under the Bharatmala Pariyojana, about 35000 kms road construction in Phase-I at an estimated cost of ₹ 5,35,000 crore has been approved. Railways Railways Capital Expenditure for the year 2018-19 has been pegged at ₹ 1,48,528 crore. A large part of the Ca .....

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have 90 kilometers of double line tracks at a cost of over ₹ 11,000 crore. 150 kilometers of additional suburban network is being planned at a cost of over ₹ 40,000 crore, including elevated corridors on some sections. A suburban network of approximately 160 kilometers at an estimated cost of ₹ 17,000 crore is being planned to cater to the growth of the Bengaluru metropolis. Air Transport The Budget proposes to expand the airport capacity more than five times to handle a billio .....

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ce Service Centre (IFSCs) in India. Digital Economy The Finance Minister said that NITI Aayog will initiate a national program to direct efforts in artificial intelligence. Department of Science & Technology will launch a Mission on Cyber Physical Systems to support establishment of centres of excellence for research, training and skilling in robotics, artificial intelligence, digital manufacturing, big data analysis, quantum communication and internet of things. The Budget doubled the alloc .....

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ustrial production corridors. Shi Jaitley announced that a scheme will be evolved to assign every individual enterprise in India a unique ID, on the lines of Aadhar. Disinvestment The Finance Minister announced that 2017-18 disinvestment target of ₹ 72,500 crore has been exceeded and expected receipts of ₹ 1,00,000 crore. He set disinvestment target of ₹ 80,000 crore for 2018-19. Three Public Sector Insurance companies- National Insurance Co. Ltd., United India Assurance Co. Lt .....

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lakh for the President, ₹ 4 lakhs for the Vice President and ₹ 3.5 lakh per month to Governor. These emoluments were last revised in 2006. With regard to the emoluments paid to the Members of Parliament, the Finance Minister proposed necessary changes to refix the salary and allowances with effect from April 1, 2018. He said the law will also provide for automatic revision of emoluments every five years indexed to inflation and hoped that the Hon ble Members will welcome this initia .....

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Minister projected a Fiscal Deficit of 3.3% of GDP for the year 2018-19. The Revised Fiscal Deficit estimates for 2017-18 were put at ₹ 5.95 lakh crore at 3.5% of GDP. He also proposed acceptance of key recommendations of the Fiscal Reform and Budget Management Committee to bring down Central Government s Debt to GDP ratio to 40%. Presenting his direct tax proposals, the Finance Minister said that attempts to reduce the cash economy and increase the tax net have paid rich dividends. The gr .....

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income tax compared to average buoyancy for the pre 2016-17 period, amounts to a total of ₹ 90,000 crore, which is a result of a strong anti-evasion measures by the government. The Finance Minister also said that there has been a huge increase in the number of returns filed by tax payers. The number of Effective Tax Payers has increased from 6.47 crore at the beginning of Financial year 2014-15 to 8.27 crore at the end of 2016-17. Shri Jaitley has proposed 100 percent deduction to companie .....

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he apparel industry, has been proposed to be extended to the footwear and leather industry. The Finance Minister has also proposed to rationalise the deduction of 30 percent by allowing the benefit for a new employee employed for less than the minimum period during the first year, but continues to remain employed for the minimum period in the subsequent year. Turning to the real estate sector, the Finance Minister has proposed that no adjustment shall be made in respect of transactions in immova .....

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it the entire class of micro, small and medium enterprises, which account for almost 99 percent of companies filing tax returns, he said. The estimated revenue forgone during Financial Year 2018-19 will be ₹ 7,000 crore. This lower corporate income tax rate would leave such companies with higher investible surplus, which would create more jobs. The Budget proposals also seek to provide relief to salaried tax payers by allowing a Standard Deduction of ₹ 40,000 in place of the present .....

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ot enjoy any allowance for transport and medical expenses, Shri Jaitley said. 2.5 crore salaried employees and pensioners would benefit from this proposal and the revenue cost would be approximately ₹ 8,000 crore. Relief to Senior Citizens has also been proposed. The proposals are :- Exemption of interest income on deposits with banks and post offices are proposed to be increased from ₹ 10,000 to ₹ 50,000. TDS shall not be required to be deducted under section 194A. Benefit wil .....

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ll give extra tax benefit of ₹ 4,000 crore to senior citizen. It is also proposed to extend the Pradhan Mantri Vaya Vandana Yojana up to March, 2020. The current investment limit is also proposed to be increased to ₹ 15 lakh from the existing limit of ₹ 7.5 lakh per senior citizen. It is proposed to provide more concessions for International Financial Services Centre (IFSC), in order to promote trade in stock exchanges located in IFSC. The concessions propose transfer of deriva .....

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nance Minister has proposed to provide that in case of non deduction of tax, 30 percent of the amount shall be disallowed and would be taxed. Turning to rationalization of Long Term Capital Gains (LTCG), the Finance Minister noted buoyancy in the equity market, as a result of reforms and incentives given so far. The total amount of exempted capital gains from listed shares and units is around ₹ 3,67,000 crore (as per returns filed for A.Y. 2017-18). Shri Jaitley said that a major part of t .....

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or economic growth. Shri Jaitley has proposed to tax such Long Term Capital Gains exceeding ₹ 1 lakh at the rate of 10 percent, without allowing any indexation benefit. However, all gains up to 31st January, 2018 will be grandfathered. The Finance Minister has also proposed to introduce a tax on distributed income by equity oriented mutual funds at the rate of 10 percent, to provide a level field across growth oriented funds and dividend distributing funds. The proposed change in Capital G .....

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