Budget 2017

 

 

“Oneright cause never fails”, by Mahatma Gandhi, Father of Nation

Demonetization, a bold design by the Govt, to fight against money laundering and terrorism though it took some time to neutralize the effect of cash crisis that common man faced in their day to day life.

 

Here is a question, how this impacts the budget 2017-2018?

 

Looking back at budget 2016-2017 the Modi Govt focused on MAKE IN INDIA and DIGITAL INDIA. Finance Minister Arun Jaitley affirmed that the economy was on right track and claimed that the CPI inflation came down to 5.4% from 9+ which could be a relief to the public.

In 2016 we saw raise in excise duties for tobacco, luxury cars, imported items like mobile phone, laptop etc.  In taxation there was no such major changes. Importance were given to infrastructure and agriculture. Many financial schemes and Krishi Kalyan scheme came in to pictures. Swatch Bharat Abhiyanwas one of the famous step by the Govt and in budget it got the allocation of 9500 cr. Another remarkable step was providing LGP subsidies to the BPL categories.

India has come as a rising star in world Economy so the budget has also been planned in such a way that we can use our maximum resources. Let me tell you, India’s GDP is more than that of U.K’s.

 

Now let’s look at the budget 2017-2018.The main focus is on energising youth to reap benefits of growth and employment so the main agenda is – transform, energise and clean India – TEC India

Agriculture sector is expected to grow at 4.6%, agriculture expenditure targeted at Rs 10 lakh crore.The focus is to spend more on rural development, infrastructure and poverty alleviation with fiscal prudence. Allocation for rural sector for Fiscal Year 2018 is Rs 1,87,200 cr, which is a record, and represents an increase of 24%.

Allocation under MNREGA increased from Rs 38,500 crore to Rs 48,000 crore. Even the participation of women in MNREGA has increased to 55%.

100% village electrification will be achieved by May 1,2018.

Not only this cabinet  has approved the extension of tenure of loans  from 15 to 20 years under Credit Linked Subsidy Scheme of Pradhan Mantri Awas Yojana.  The fund allocation for the same has raised from Rs 15,000 crore to Rs 23,000 crore. 1,00,00,000 houses to be allotted to the houseless and those living in kaccha houses by 2019.

Pradhan Mantri Gram Sadak Yojna roads work accelerated to 133 km roads per day in 2016-17 which was only 73 km per day during 2011-14. Even there a promise has been made by the Govt that as due to demonetization the famers and small scale businessmen have faced a huge lose so there is a waiver of three-month instalment for those who has taken an agricultural loan or any small scale business loan.

 

For Taxation there is some changes also occurred. As India’s tax-to GDP ratio is very low so we fall largely under a tax non-compliance society. When too many people hide their actual income and pay less taxes, the burden falls on those who are honest and paying the taxes regularly.

The total number of people who has filed tax returns in 2015-16 was 3.7 crore, out of which only 24 lakh persons showed income above Rs 10 lakh.

76 lakh individuals who declared the income of over Rs 5 lakh, 56 lakh are salaried.

Till 2.5 lakh the tax will remain nil, from 2.5 lakh to 5 lakh annually the tax rate has reduced from 10% to 5%.

10% surcharge for those who earn 50 lakh to 1 crore annually 15% surcharge for who earning more than 1 crore annually.

Small firms with turnover up to Rs 50 crore now will pay 25% tax instead of 30%.

Food subsidy estimated at Rs 1.45 trillion in 2017/18 which was Rs 1.35 trillion revised estimation for 2016/17.

 

As oil prices, rising dollar and volatile commodity prices seen as risks to Indian economy.Government to set up strategic crude oil reserves in Odisha and Rajasthan. Fuel subsidy has been reduced to Rs 250 billion in 2017/18 from Rs 275 billion revised estimate for 2016/17.

 

Service charge on rail tickets booked through IRCTC to be withdrawn.3500km railway lines to be put up.A new metro rail policy will be announced; this will open up new jobs for our youth.Rail safety fund with corpus of Rs 100,000 crore will be created over a period of five years.

 

ESI range has increased from 15000/month to 21000/month, so now a large number of salaried person can avail the benefits of ESI facilities for family and self.

 

Other sector like defence, health, railway etc also got some revised allocations.

Defence expenditure excluding pension is Rs 2.74 lakh crore .

Two new AIIMS to be built in Jharkhand and Gujrat. Budget allocation to health is Rs 489 billion in 2017/18 which was Rs 399 billion in 2016/17.

 

Service charge on rail tickets to be withdrawn booked through IRCTC. 3500km railway lines to be put up.

Rail safety fund with corpus of Rs 100,000 crore will be created over a period of five years. Plans to launch dedicated trains for pilgrimage and tourism.All coaches of the Indian Railways to be fitted with bio-toilets.Railways will integrate end to end transport solutions for selected commodities through partnerships

All the unmanned railway level crossings to be eliminated by 2020. 500 rail stations are to make differently-able friendly by providing lift and escalator facility

A new metro rail policy will be announced; this will open up new jobs for our youth.

 

If we compare the current budget to the last year one so there are many new changes, promises and schemes. So waiting to see what is the outcome as some promises and schemes still to be fulfilled from the last budgets.

 

Lets check some facts and findings by comparing the proposed budget so far

Receipt Chart

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Expenditure Chart

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Deficit Chart

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Tax Collection

Gross Tax Revenue

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Income Tax

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Corporation Tax

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Service Tax

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Customs Duty

 

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Union Excise Duty

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