Union Budget 2018: Highlights

Union Budget 2018 - Full Telecast

Sector-wise Union Budget 2018 - Highlights

Education, Skills & Job Creation
  • An Integrated B.Edprogram will be started soon, with teachers training as the main focus.
  • ₹1 lakh crore to be invested over the next 4 years for a new drive to boost Research and Development.
  • The government has proposed to increase digital intensity in education, as technology will be the biggest driver in improving quality of education.
  • Government will launch Revitalising Infrastructure and Systems in Education by 2022.
  • By 2022, every block with more than 50 percent ST population and at least 20,000 tribal people will have Ekalavya school at par with Navodaya Vidayalas.
  • The government will introduce 24 new medical colleges, including an upgradation of certain existing colleges. This move will ensure a government medical college in every state.
  • Jaitley also proposed to set up two new full-fledged schools of Planning and Architecture. The Finance Minister also proposed a gradual move from blackboard to digital board.
  • Government to set up special Railway University at Vadodara, Gujarat. The government plans “to treat education holistically with integration of class 2 to class 12.
MSME and Entrepreneurship
  • New focus areas for MSMEs in this year’s budget ₹3,794 crore to MSMEs for mass formalisation. Also the Govt. will soon announce measures to address non-performing assets of MSMEs.
  • Hinting at possible reforms in the near future, the government said that it is exploring possibility to reduce the Tax burden on MSMEs. Govt. will fund 12% of wages for new employee of EPF as per the proposal made in the recently presented budget. Also to improve Ease of Doing Business in the country, Finance Minister Arun Jaitley in his Budget 2018-19 speech, has extended the fixed-term contract hiring beyond apparels to all sectors.
  • MUDRA Yojana launched in April, 2015 has led to sanction of ₹4.6 lakh crore in credit from ₹10.38 crore MUDRA loans. 76% of loan accounts are of women and 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.
Tourism
  • The Union Budget 2018-19 presented by Arun Jaitley, Minister of Finance, Government of India in the Parliament yesterday proposes an estimated budget allocation of ₹2,150 crore for the Ministry of Tourism.
  • The allocation is more than 20% increase compared to revised estimate of ₹1,775 crore in the last budget.
  • Major proposal in the Union Budget 2018-19 includes the proposal of converting 10 identified and prominent tourist destinations into iconic and model destinations by adopting a holistic approach of development with the support of the private sector.
  • The Finance Minister also proposed schemes to enhance the visitor experience at 110 Model Monuments under the Archaeological Survey of India (ASI) under the National Heritage City Augmentation scheme of the government.
Airlines
  • The Centre’s emphasis on increasing air connectivity to the Northeast continued in the Union Budget for 2018-19 presented on Thursday, in which the finance ministry provided an impetus of ₹1,014.09 crore for the upcoming financial year towards revival of 50 airports and viability gap funding to improve aviation infrastructure in the region under the flagship regional connectivity scheme.
  • In the Budget, the finance ministry has also allocated a sum of ₹73.31 crore as grants-in-aid to the Airports Authority of India (AAI) as reimbursement of expenditure already done for development of Pakyong airport in Sikkim, which borders China.
  • Around 40 per cent, or 129, of the 325 air routes awarded under the second phase of the regional connectivity scheme were for Northeastern and hill states.
  • These include strategic airports such as Kargil in Jammu & Kashmir, Pakyong in Sikkim, and Tezu in Arunachal Pradesh, where civilian air connectivity will be provided for the first time
  • Further, the phase-II of the government’s flagship scheme has also seen routes being served by helicopters apart from fixed-wing aircraft. In fact, nearly 70 per cent — or 31 out of 56 — new destinations to be connected through air transport will be served by helipads.
IT/ITeS/Telecom
  • Budgetary allocation of ₹3,073 crore (US$ 483.09 million) for the Digital India programme is made for 2018-19.
  • A national program will be initiated by NITI Aayog to increase efforts in the area of artificial intelligence.
  • Technology under which centres of excellence for research, training and skilling robotics, artificial intelligence, digital manufacturing, big data analysis, quantum communication and internet of things will be established and promoted.
  • Budgetary allocation of ₹10,000 crore (US$ 1.57 billion) is made in 2018-19 for telecom infrastructure.
  • 500,000 Wi-Fi hotspots will be set up by government to provide internet connectivity to over 5 million rural citizens.
  • Every individual enterprise in India will be assigned a unique ID.
  • A National Logistics Portal as a Single Window online market place to link all stakeholders to be developed by the Ministry of Commerce.
  • A web-based Government Integrated Financial Management Information System (GIFMIS), administered by Controller General of Accounts, for budgeting, accounting, expenditure and cash management for more effective fiscal management of Government.
  • Announcement for the launch of “Prime Minister’s Research Fellows (PMRF)‟Scheme. He pointed out that 1,000 best B.Tech students will be identified from premier institutions each year and facilities will be provided to them to undertake Ph.D in IITs and IISc with an attractive fellowship.
NER (India)
  • Allocation of ₹1,290 crore to promote bamboo sector which is quite huge in comparison to earlier budgets.
  • Allocation of ₹73.31 crore as grants-in- aid to Airports Authority of India as reimbursement of expenditure already done for the development of Pakyong airport in Sikkim bordering China.
  • Allocations have been made in the Budget to construct a new tunnel at the Sela pass which will cut down travel time to Tawang by over an hour. This tunnel will also give all-weather access for troops to the China border.
  • The total budgetary allocation for the region for 2018-19 is ₹47,994.88 crore, up from ₹40,971.69 crore in 2017-18. Significantly, this increase of ₹7,023.19 crore is the highest since the country’s independence. Apart from this, the Development of North Eastern Region (DoNER) Ministry’s budget has also been hiked from ₹2,737 crore (in 2017-18) to ₹3,060 crore (2018-19). The direct grants-in- aid to the North Eastern states has also increased from ₹1,449.83 crore to ₹1,638.27 crore in this budget. Capital outlay for the region has gone up to ₹700 crore from ₹420 crore.
Health & Wellness
  • The overall health budget had increased from ₹39,879 crore (1.97% of total Union Budget) to ₹48,878 crore (2.27% of total Union Budget). The focus of health budget was towards human resources and medical education.
  • Government announced to modify Drugs and Cosmetics Act to promote generics and reduce the cost of medicines.
  • Two new All India Institute of Medical Sciences (AIIMS) was proposed to be set up in the states of Gujarat and Jharkhand.
  • To restructure medical education and add 5000 post graduate seats for specialist courses. Government has decided to start DNB (Diplomate National Board) courses in district hospitals and municipality hospitals across the country.
  • The primary care by converting 1.5 lakh sub centers in Indian villages to health and wellness centres. They announced for preparation of action plans to eliminate Kala Azar and Filariasis by 2017, leprosy by 2018, measles by 2020 and tuberculosis (TB) by 2025.
Banking & Finance
  • Public sector banks to lend additional credit of ₹5 lakh crore. Currently, PSBs remain the biggest contributors to the economy with 70 percent of assets in the banking sector. bank recapitalization program has been launched with bonds of Rs 80,000 crore being issued this year.
  • Even as the ₹2.11 lakh crore recapitalisation plan has been announced, corporate governance, improved productivity and efficiency, better financial risk and monitoring, credit concentration, improved debt recovery mechanisms and better incentives to attract the best talent are some of the focus areas that the Budget may want to look at.
  • Government will soon announce measures for effectively addressing non-performing assets and stressed accounts of MSMEs (micro, small and medium enterprises). This will enable larger financing of MSMEs and also considerably ease cash flow challenges faced by them.
  • With no big bang announcements on the Budget day, the banking sector had to be satisfied with what they already have. In fact, were given a bigger task to provide incremental loans worth ₹5 lakh crore in FY19.
  • Bank recapitalisation program has been launched with bonds of ₹80,000 crore being issued this year. The programme has been integrated with an ambitious reform agenda, under the rubric of an Enhanced Access and Service Excellence (EASE) programme.
  • This recapitalisation will pave the way for the public sector banks to lend additional credit of ₹5 lakh crore.
Retail
  • Bring clarity in FDI policy, especially in relation to e-commerce and sourcing, and introduce relaxed FDI regime for multi-brand retail trade (MBRT)
  • Give incentives to set up warehousing facilities Increase spending and create quality infrastructure to help expansion of modern and organized retail sector in rural areas and Tier II/III cities.
  • Reduction of GST rates for consumer goods and services and clarifications on transitional credit and anti-profiteering.
  • Simplification of compliance procedures under GST regime, scaling up of IT infrastructure will help ease compliance.
  • Clarifications on open issues and measures for ease of doing business, including those related to return filing timelines, their revisions, relaxation of non-compliance penalties would be welcome.
  • Official industry status would be welcome, as would announcements related to single window clearance for retail investment.
  • Give infrastructure status to real estate to help bring down finance, project costs, make homes more affordable.
  • Increased focus on affordable housing in line with the government's objective of Housing for All by 2022.
  • Set single-window clearance for all real estate projects, especially housing to avoid execution and project delays.
  • Reduce GST rate for projects under construction from current 12%.
  • Reduce GST rate for home purchases to 12%; Stamp duty should be subsumed under the GST.
Railways
  • Railway capital expenditure has been pegged at ₹1.48 lakh crore, up from ₹1.31 lakh crore last year. Most of the money would be spent on capacity expansion, since it was the top-most priority for the national transporter.
  • At ₹14.6 trillion, almost all of the railway budget is capital expenditure for capacity creation, including track doubling, third and fourth line works of 18,000 km; 5,000 km of gauge conversion and redevelopment of 600 railway stations.
  • ₹2,028 crore is to reimburse operating losses on strategic lines and reimburse IRCTC (Indian Railway Catering and Tourism Corporation) for the operational cost of e-ticketing. In the last budget, finance minister had waived service charges on railway e-tickets to encourage cashless transactions. The charges waived were ₹40 for AC class and ₹20 for sleeper class.
  • In a major thrust to modernisation, the budget is likely to earmark ₹95,000 crore for overall upgradation in the rail infrastructure including signalling automation, replacement of all old tracks and other assets.
  • Railways will step up the use of technologies like ‘fog safe’ and train protection and warning system, Govt to eliminate 4267 unmanned rail crossing in broad gauge in 2 years.
  • Introduction of modern train-sets; all stations with footfall of greater than 25,000 will have escalators.

Finance Minister Arun Jaitley’s Budget Speech

Highlights

Finance Minister Arun Jaitley presents the Narendra Modi government’s fourth Union Budget 2017-18. Here are the highlights:

  • Govt levies 10% capital gains tax for ₹1 lakh gains
  • Short-term capital gains tax continues to be 15%
  • Capital gains made on shares until Jan 31, 2018 grandfathered
  • Customs duties hiked on mobiles to 20 prevent from 15 per cent; on TVs to 15 prevent to boost domestic manufacturing
  • 6 crore toilets have been built so far under the Swachh Bharat campaign and the target for the next financial year is to build another 2 crore toilets.
  • No change in personal income tax structure, says Arun Jaitley
  • Standard deduction of ₹40,000 for salaried taxpayers, says Arun Jaitley
  • Status quo for salaried class, says Arun Jaitley
  • 25% Corp tax rate extended to companies with turnover up to ₹250 crore
  • FM says ₹90,000 crore extra collected as personal Income Tax in last 1 year and will continue with tax policies that reward honest tax payers
  • FM Arun Jaitley says propose to allow 100% tax deduction to companies registered as farmer-producer companies with a turnover of ₹100 crore
  • India produced over 275 million tonnes of foodgrain and 300 million tonnes of fruits and vegetables in 2016-17
  • Crop production at record high; govt is committed to giving 50% more than cost of crop production to farmers
  • Govt to set MSP at one-and-half times the cost of production for Kharif crops
  • Govt will ensure farmers get MSP if prices fall; Niti Aayog will discuss with state govts for mechanism to ensure farmers get better prices
  • ₹2,000 crore fund to be set up for upgrading rural agri markets
  • Govt has promoted organic farmers in a big way; women self-help groups to be encouraged to take up organic farming
  • Food processing sector growing at 8 pc; allocation for food processing ministry being doubled to ₹1400 crore
  • India's agri export potential is $100 bn as against current $30 bn exports, says FM
  • Mass formalisation of MSME sector is happening after demonetisation and GST
  • Target for loan disbursement under Mudra scheme set at ₹3 lakh crore for next fiscal
  • Govt to soon announce scheme to address the issue of Non-Performing Assets
  • ₹4.6 lakh crore sanctioned under MUDRA Scheme
  • Govt's budget for health, education and social security increased to ₹1.38 lakh crore for 2018-19 from ₹1.22 lakh crore in current fiscal
  • Govt identifies 115 "aspirational districts" to make them model districts of development
  • PM Jeevn Jyoti Bima Yojana to reach all poor households: Arun Jaitley
  • 24 new govt medical colleges and hospitals to be set up by upgrading existing district hospitals
  • Health insurance scheme to cover 500 million beneficiaries of 100 million families; FM Jaitley announces a cover of up to ₹5 lakh per year
  • For education sector, the government proposes revitalising infrastructure, opening schools for the ST populations as well as promoting programmes for teachers, in order to improve quality education for students: Arun Jaitley
  • Air Pollution in Delhi NCR is a cause for concern, special scheme will be implemented to support Govts of Haryana, Punjab, UP and Delhi NCT to address it and subsidize machinery for management of crop residue
  • Scheme for revitalizing school infrastructure, with an allocation of 1 lakh crore rupees over four years & Called RISE - Revitalising Infrastructure in School Education
  • Finance Minister says will set up PM Research Fellow Scheme; 1000 B-Tech students to be selected
  • Finance Minister says two new planning & architecture schools to be set up in IITs
  • Finance Minister says total investment of ₹1 lakh crore for 'RISE'
  • The government will launch a flagship National Health Protection Scheme, which will have 50 crore beneficiaries and the Centre will give up to ₹5 lakh per family per year which will include secondary and tertiary healthcare
  • Govt to focus on health, education & social protection and to use technology to improve education from 'Blackboard to Digital Board"
  • Allocating natural resources in a more transparent manner, there is a premium on honesty now
  • ₹14 lakh crore for enhancing rural livelihood
  • Finance Minister says propose to treat education holistically without segmentation
  • 80 million poor families to be given free gas connection under Ujjwala scheme
  • Finance Minister says allocate 2,600 underground water irrigation plan in 96 districts
  • 500 million beneficiaries of govt health care scheme
  • Rural infra and education get a massive push
  • Finance Minister Arun Jaitley says ₹16,000 crore allocation for electricity connection to poor families
  • Eklavya schools to be started for Scheduled Tribe population
  • ₹11 lakh crore for instant farm credit mooted next FY
  • Economy to grow by 7.2-7.5 per cent in second half of current fiscal, says FM
  • When our govt took over India was considered one of the fragile five economies of the world; we have reversed it; India is today fastest growing economy
  • Introduction of GST has made indirect tax system simpler
  • India is today a $2.5 trillion economy and will become fifth largest economy in the world from the present seventh largest
  • Budget will focus on strengthening agricultural and rural economy: FM Jaitley
  • PM has articulated the vision of minimum government, maximum governance: Jaitley
  • We are firmly on path to achieve 8% growth
  • ovt focusing on ease of living now
  • Cooking gas being given free to poor under PMUY, 4 crore unconnected being provided electricity connection, stent prices slashed: FM
  • Direct Benefit Transfer is a global success story
  • Emphasis on generating higher income for farmers; want to help farmers produce more and realise higher prices.