UNION BUDGET HIGHLIGHTS 2018
Budget 2018 has focused on rural economy, agriculture and healthcare, and announced an LTCG tax, reduction in corporate tax and no change in income tax slabs. Here are the highlights from FM Arun Jaitley’s budget speech.
Finance minister Arun Jaitley is presenting in Parliament the Union Budget 2018, the Narendra Modi government’s last full budget before the 2019 Lok Sabha elections. He has the unenvious task of balancing fiscal prudence with populism to repair the rural economy and bolster growth in the Indian economy.
Jaitley’s budget speech is expected to focus on agriculture, rural economy and unveil measures to drive private investment in the Indian economy, all the while maintaining the fiscal deficit target.
Here are the latest updates on Arun Jaitley’s budget speech in Parliament:
- Allocate 1290 Cr. for National Bamboo Mission
- Setting up an Agriculture Market Fund for Rs. 2000 Cr.
- Allocate 10000 Cr. For Fisheries and Aquaculture and Animal Husbandry fund.
- 8 Cr Families will be given Gas Connection for free under Ujwala scheme.
- 16000 Cr for PM Sabhagya yojana
- Target constructing 2Cr Toilets in FY19
- Total Amt to be spent to improve Rural Livelihood to be 14.30 Lakh Cr.
- Propose to allocate 11 Lakh Crore for Instl Credit for farm sector next FY
- Launching Prg RISE for revitalisation of Infra, Edu System with an investment of 1 lakh Cr.
- National health Protection Programme for 10 Cr Poor Families.
- Rs. 5 Lakh per family per year for 10 crore families will be allocated.
- Allocate 1200 crore for specialised health wellness centres.
- 47 Pojects under the “Namami Gange” Programme have been completed.
- Allocate Rs. 1.38 Lk Crore in FY 19 For Govt health & Educational Programmes.
- Target Mudra Loans for Rs. 3 lakh Cr Next FY
- Propose review of refinancing criteria under mudra scheme.
- Allocate 7148 Cr for Textile sector
- Women Contribution to EPF to be reduced to 8% for first 3 years.
- Highway contruction will exceed 9000 km by end of FY18
- 35000 KM to be completed under Bharat mala with outlay of 5.35 Lakh cr.
- Railway Capex for FY19 at 1.48 Lakh Cr.
- Allocate 17000 Cr for Bengaluru Metro Network.
- Allocate 11000 Cr for Mumbai Rail Network
- SEBI to Mull asking large Cos to meet 25% debt from Market.
- RBI Norms to nudge Cos to acess bond market for fundraising.
- All means to be curb illegitimate transactions funds by Cryptocurriencies in India.
- FY 19 Disinvestment target at 80000 Cr.
- National Insurance, United India Ins & Oriental Ins to Be merge,Listed.
- Gold monetisation policy to be revamped to make it investment friendly.
- To Set up comprehensive gold policy: To revamp Gold monetisation scheme.
- Law to be introduced to fix MPs salary every 5 years indexed to Infin.
- Total fiscal deficit 3.3% estimated this year.
- Committed to 3% fiscal deficit FY 19 onwards.
- Total Revised expenditure of 21.57 Lk Cr. This FY.
- Growth in Direct Taxes @ 18.57%
- 100 % deduction of Farmer producer companies
- Footwear & Leather industry to get benefit under direct tax.
- Reduced corporate rates i.e 25% has been extended to all companies having turnover less than 250 Cr.
- No Changes in Personal slab rates.
- Standard Deduction of 40000 Salaried taxpayers in lieu of Transport and Medical Exp.
- Deduction for Senior citizen increased to 50000 for Medical Exp., 1L for Critical illness.
- Tax on Long Term Capital Gain above Rs. 1L @ 10% with no indexation.
- Capital gains Tax has been reintroduced, with certain caveats, @ 10 % on gains arising of amount exceeding Rs. 1 Lakh on Investments.
- However, capital gains made on shares until 31st Jan will be grandfathered. Short term capital gains (STCG) remains unchanged @ 15%.
- Proposed to Amend Income Tax act for electronic assessment.