Union budget 2017
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The budget document outlines key details of the 2017-18 Indian union budget. Some highlights include a fiscal deficit target of 3.2% of GDP, total borrowing estimated at Rs. 546332 crore, a reduction of the corporate tax rate for MSMEs to 25%, and a reduction of the tax rate on income up to Rs. 5 lakh to 5%. It also notes a 25.4% increase in capital expenditure from the previous year.
Union budget 2017
- 1. Key Features of Budget 2017-18
- 2. Introduction Union budget was presented before Parliament By Hon’ble Finance Minister Arun Jaitely on 1st Feb, 2017 The Budget size was 21.47 Lakh Crore 3 Major Reforms in Budget were Budget Advance to 1st Feb. Merger of Rail And Union Budget Removal of Plan and Non-Plan classification of expenditure The Agenda was “Transform, Energize and Clean India (TCE).” Transform the Quality of Governance and Life of People Energize Various Section of Society and Clean Country from Evil of Corruption, Black Money and Non-transparent Political Funding.
- 3. Indian Economy CPI based Inflation brought under control from 6% in July 2016 to 3.4% December 2016 CAD decline from 1% to 0.3%of GDP in first half of 2016-17 FDI grew 36% in H1 of 2016-17 despite 5% reduction in Global FDI Inflows Foreign Reserve reached to $361 Billion level The Indian Economy has been Robust to Mild Shocks IMF and World Bank has forecasted Good Growth In Indian GDP
- 4. GDP Growth Rate 3.90% 5.60% 6.60% 7.20% 7.60% 7.10% 6.75% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 2008-09 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 GDP Growth Rate
- 5. Budget Financial Particulars Actual 15-16 Budget Estimate 16-17 Budget Estimate 17-18 Receipts Revenue 1257992 1444156 1600203 Total Receipts 1257992 1444156 1600203 Expenditure Capital 253022 247032 309801 Revenue 1537761 1731037 1836934 Total Expenditure 1790783 1978069 2146735 Fiscal Deficit 532791 533904 546332 Fiscal Deficit (% of GDP) 3.90% 3.50% 3.20% Rs. In Crore
- 6. Sources of Funds 2017-18 Tax Revenue- 87.66% Non- Tax Revenue- 12.34% (Includes Non-Debt Capital and Borrowings) 19.75% 23.45% 11.11% 17.28% 12.34% 12.34% 3.73% 2017-18 Income Tax Corporation Tax Customs Union Excise Duty Service Tax and Other Taxes Non-Tax Revenue Non-Debt Capital Receipt
- 7. Application of Funds Centrally Sponsered Scheme 10% Central Sector Scheme 11% Interest Payment 18% Defense 9%Subsidies 10% Finance Commision And Other Transfer 5% States' Share of Taxes and Duties 24% Other Expenditure 13% 2017-18 Classification of Plan and Non-plan Expenditure has been Abolished
- 8. 2010 2011 2012 2013 2014 2015 2016 2017 Fiscal deficit 4.18483 3.73591 5.16269 4.9019 5.02863 5.10817 5.32783 5.46532 As % of GDP 6.79% 4.87% 5.79% 4.85% 4.43% 4.04% 3.92% 3.20% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% As%ofGDP Rs.inLakhCrore Trajectory of Fiscal Deficit Fiscal deficit As % of GDP 2010 2011 2012 2013 2014 2015 2016 2017 Gross Tax Revenue 6.21377.89178.84910.33411.34112.414 14.5 15.158 As % of GDP 10.08%10.28%9.93%10.22%9.99%9.81%10.68%8.87% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 0 2 4 6 8 10 12 14 16 As%ofGDP Rs.inLakhCrore Taxation Income Gross Tax Revenue As % of GDP 2010 2011 2012 2013 2014 2015 2016 2017 Total borrowings 4.16 3.7 4.36 4.67 4.75 4.9 4.8 3.5 4.16 3.7 4.36 4.67 4.75 4.9 4.8 3.5 0 1 2 3 4 5 6 Rs.inLakhCrore Government Borrowing Total borrowings
- 9. Priorities and Roadmap 10 Focused Areas of Budget Farmers:- Committed to Double the income in 5 years Record 10 Lakh Crore target for Agri Credit 60 days Interest Waiver Computerisation and Integration of all 63000 Agri. Credit Society with core banking System Rural Population:- Providing Employment & Basic Infrastructure. Aims to Bring 1 Cr Household out of Poverty by 2019 MNREGA allocation to highest ever 48000 Cr in 17-18 100% Village Electrification by 1st May, 2018 Total Allocation for Rural, Agriculture and Allied Sector Rs. 187223 Cr.
- 10. Priorities and Roadmap Youth:- Energizing the through Education, Skill and Job To Introduce a System of Measure Annual Learning Outcome in our Schools SWAYAM Platform, Leveraging IT to be launched with at least 350 Online Courses. The Poor and The Underprivileged:-Strengthening the System of Social Security, Health Care, and Affordable Housing National Housing Bank will Refinance Individual Housing Loans about 20000 Cr in 17-18 To Create additional 5000 Post Graduate seats per annum to ensure adequate availability of specialist Doctors Two New AIMS to be set up in Jharkhand and Gujrat. Allocation for Scheduled Tribes has been increased to 31920 Cr For Senior Citizen, Aadhar Based Smart Card containing their Health details will be Introduced
- 11. Priorities and Roadmap Infrastructure:- For Efficiency, Productivity and Quality of Life For Transportation Sector including Rail, Roads, Shipping provision of 241387 Cr has been made Total Capital and Development Expenditure of Railways has been pegged 131000 Cr By 2019 all Coaches of Railways will have Bio-Toilets Road Sector Allocation is increased to 64900 Cr Select Airport in Tier 2 cities will be Taken up for Operation Second Phase of Solar Park Development to be taken up for Additional 20000 MW Capacity
- 12. Priorities and Roadmap Financial Sector:- Growth & Stability by Stronger Institutions FIPB to be Abolished and Liberalisation of FDI Policy Lending target under Pradhan Mantri Mudra Yojana to be 2.44 Lakh Cr Digital Economy:- For Speed, Accountability and Transparency Aadhar Pay, A merchant version of Aadhar Enabled Payment System will be launched Public Services:- Effective Governance and Efficient Service delivery through People’s Participation To Utilise the Head Post Offices as Front Offices for Rendering Passport Services The Government e-market place which is functional for Procurement of Goods And Services
- 13. Priorities and Roadmap Prudent Fiscal Management:- To Ensure Optimal Deployment of Resources and Preserve Fiscal Stability Steeped up Allocation of Capital Expenditure by 25.4% over the Previous Year Total Resources being transferred to States’ and Union Territories is Rs. 4.11 Lakh Cr against 3.60 Lakh Cr in Last Year Fiscal Deficit is targeted 3.2% of GDP in Current Year and 3% of GDP in Next Year Tax Administration:- Honoring The Honest
- 14. 9.8 Cr Person are in Employment 4.2 Cr in Organised Salaried Sector 1.74 Cr Filed Return 2.46 Cr not Filed Return 5.6 Cr in Informal Sector Only 1.81 Cr people have Filed Return 13.94 Lakh Companies Are Registered Only 5.97 Lakh Companies Filed Return 2.76 lakh Companies Showed Loss or Zero Profir 1 Lakh Companies Showed Profit Less than 1 Cr 28667 Companies Showed Profit in Between 1 Cr to 10 Cr Only 7781 companies Showed Profit Above 10 Cr 7.97 Lakh Companies Didn’t Filed Return Car Sold During Year -1.25 Cr People Flew Abroad – 2 Cr
- 15. Tax Proposal India has Low Tax-to-GDP Ratio Rate of growth of Advance tax in Personal I-T is 34.8% in last three quarters of this financial year Holding period for long term capital gain lowered to 2 years Small And Medium Enterprises having turnover upto 50 Crore will be Taxed @25% Limit of cash donation by charitable trust reduced to Rs 2,000 from Rs 10,000 Tax rate For 2.5 Lakh to 5 Lakh will be 5% instead of 10% All other categories of tax payers in subsequent brackets will get benefit of Rs 12,500 People filing I-T returns for the first time will not come under govt. scrutiny 10% surcharge on individual Income above Rs. 50 lakh 15% Surcharge on Individual Income Above Rs. 1 Cr
- 16. Other Announcements Promoting Digital Economy No transaction above Rs 3 lakh to be permitted in cash Ease of Doing Business Threshold limit for Audit of Business who opted for Presumptive income scheme is increased from 1 Cr to 2 Cr Threshold for maintenance of Books for Individuals and HUFs is Increased from turnover of 10 lakhs to 25 lakhs or income from 1.2 Lakhs to 2.5 Lakhs Transparency in Electoral Funding Maximum Amount of Cash Donation can be received by Political Party if Ceased to Rs. 2000 Every Political Party would have to file a Return within Prescribed time Goods and Service Tax The Extensive reach out efforts to trade and industry for GST will Start from 1st April 2017 to make them Aware of the taxation System
- 17. Summary Fiscal Deficit estimated to be 3.20% Borrowing will be Rs. 546332 Cr Corporate tax rate for MSME has been reduced to 25% Tax rate on income upto Rs. 5 lakh has been reduced to 5% Capital Expenditure has been increased by 25.4% from previous year