Dear Aspirants,
It is very important for you to get updates on The Union Budget 2018-19. This will be the last full Union Budget to be presented by Finance Minister Arun Jaitley in the session of Parliament and it will be unlike his previous four such exercises because of the complete overhaul of the indirect tax regime affected by implementing the Goods and Services Tax (GST) last year.
The Budget, to be the last for this government in view of the general elections due in the first half of 2019, may have two main components: The first part deals with new schemes and outlays for various existing schemes and sectors for the coming fiscal, while the second contains announcements on direct and indirect taxes. With the implementation of single tax regime GST, this year's budget is believed to take into account only those items that still remain outside the purview of GST. It is highly expected that 2018-19 budget could contain changes in customs and excise duties on these remaining products, which for most others have been subsumed under GST. For the rest, you'll have to watch this space for the review of Union Budget 2018-19.
Top Developments
1. No
changes in personal income tax slabs.
2. Salaried
tax payers to get a standard deduction of Rs.40,000 in lieu of transport
allowance and "other medical expenses"
3. Rs.2,000 crore fund for development of agri
markets
4. All
senior citizens will now be able to claim benefit of a deduction of Rs.50,000 for any medical insurance.
5. For
critical illnesses, the deduction has been increased to ₹1,00,000.
6. Free
power connections to 4 crore homes under the Saubhagya Yojana
7. 8 crore
free gas connection for poor women through Ujjwala Yojana
8. Govt.
to implement Minimum Support Price for all crops; It is hiked to 1.5 times of
production costs
9. Govt to
contribute 12% of wages of new employees for all sectors.
10. New flagship National Health Protection Scheme,
providing a health insurance cover of Rs.5
lakh per family per year announced
11. Railway
capex for the year 2018-19 set at Rs.1.48
lakh crore
12.Disinvestment
target for this year set at Rs.80,000 crore
13.Automatic
revision of emoluments Parliamentarians every five years, pegged to inflation
- As
per the FM in the Union Budget, India is expected to become the fifth
largest economy very soon.
- The
Growth rate is expected between 7.2-7.5% in the second half of 2017-18.
- Exports
are expected to grow 15% in 2018.
- As
per the FM, India is a Rs2.5 trillion economy.
- Minimum
Support Price (MSP) of all crops shall increase to at least 1.5 times that
of the production cost.
- The
government will set up a fund of Rs 2,000 crore for developing
agricultural markets.
- Our
focus is on productive and gainful on-farm and non-farm employment for
farmers and landless families, says Jaitley.
- MSP
for Kharif cost will be 1.5 times the cost of production.
- As
per the FM, APMCs will be linked with ENAM.
- The
government will develop 22,000 Gramin agricultural markets.
- The
cluster-model approach will be adopted for agricultural production.
- Allocation
in food production sector doubled to Rs 1400 crore.
- Operation
Green will be launched for agriculture and the Minister allocates Rs500 crore
for this.
- Agricultural
corpus worth Rs 2000 crore will be set up. 470 APMCs have been connected
to eNAM network, the rest to be connected by March 2018.
- A
fund for the fishery, aquaculture development and animal husbandry will be
set up with a total corpus to be Rs 10,000 crore. We will also allocate Rs
1290 crore for a bamboo mission, as it is green gold.
- In
all, we are providing Rs 10 lakh crore to Rs 11 lakh crore as credit for
agricultural activities.
- Jaitley
proposes to increase the target of providing free LPG connections to 8
crore to poor women.
- Ujjwala
Yojana, the free LPG connection scheme expanded to eight crore households.
- Six
crore toilets have been built already, and in the next year, two crore
additional toilets will be constructed.
- The
government will provide 4 crore electricity connections to the poor under
Saubhagya Yojana.
- Kisan
credit card to be extended to fisheries,animal husbandry farmers.
- The
government will establish a dedicated affordable housing fund.
- Loans
to self-help groups will increase to Rs75,000 crore.
- Govt.
allocated Rs5,750 crore to National Livelihood Mission and Rs2,600 crore
to the groundwater irrigation scheme.
- 24
new government medical colleges.
- Government
is implementing a comprehensive social security scheme.
- Govt.
will initiate an integrated B-Ed programme for teachers.
- Government
proposes to launch the Revitalising of Infrastructure and Systems of
Education (RISE) by next year.
- Govt.
proposed to set up two new full-fledged schools of planning and
architecture.
- 18
new schools of planning and architecture will be set up in the IITs and
NITs.
- Rs.
1 lakh crore over 4 years for initiative for Infrastructure Devt. in
education.
- 2
major initiatives as part of Ayushman Bharat program.
- National
health protection scheme to cover 10 cr poor families. Health cover of up
to 5 lakh per family per year for poor & vulnerable. National health
protection scheme to benefit 50 crore people.
- 24
new govt medical college & hospitals.
- Rs.
600 crore for nutritional support to all TB patients.
- Rs.
1200 crore for health and wellness centres.
- Loans
to women self-help groups of women to be increased to 75,000 cr by March
19.
- Govt.
is launching a new national health protection scheme – Rashtriya
Samaj Beema Yojana. This will have 50 crore beneficiaries and 10
crore families will get 5 lakh per year for their families to cover
secondary and tertiary hospital expenses. This is the world's
largest government-funded healthcare program.
- A
Rs 600 crore corpus is being set up to help Tuberculosis patients. This
will build a new India in 2022 and enhance productivity and will also
generate lakhs of jobs for women.
- PM
Jeevan Beema Yojana benefitted more than 2 crore families.
- Jan
Dhan Yojana will be extended to all 60 crore bank accounts.
- The
government increased allocation for SC-ST earmarked programmes: Rs
56,000 crore for SCs and Rs 39,000 crore for STs.
- By
2022, every block with more than 50% ST population and at least 20,000
tribal people will have 'Ekalavya' school at par with
Navodaya Vidyalas.
- The
government will announce measures to address non-performing assets of
MSMEs.
- As
per the FM, Rs. 3 lakh crore for lending under is being allocated in FY 19
for PM's MUDRA Yojana.
- Smart
city Mission and AMRUT discussed.
- Smart
city command control centre discussed.
- Govt
to contribute 12% of wages of new employees to EPF for 3 yrs.
- Rs.
7148 crore allocation for the textile sector.
- Govt.
will launch a scheme for Galvanising Organic Bio-Agro Resources
Dhan (GOBARDHAN).
- Under
the Smart City mission, 99 cities selected with the outlay of Rs. 2.04
lakh crores.
- EPF
contribution has been reduced to 8% for the first 3 years of employment
and 12% government contribution to EPF in sectors employing a large number
of people, however, there will be no changes in employer contribution.
- 10
tourist cities to be developed into iconic tourist destinations.
- 600
railway stations to be redeveloped.
- Over
3600 km railway track renovation targeted in the current year.
- Scheme
for revitalizing school infrastructure, with an allocation of 1 lakh crore
rupees over four years. Called RISE - Revitalizing Infrastructure
in School Education.
- The
Bharatmala project has been approved and we are confident of completing
9000 km of highway construction.
- In
Railways, 18,000 kms of doubling of tracks would eliminate capacity
constraints.
- We
are moving towards optimum electrification of the railway. Over 3,600 km
of track renewal is being targeted in 2018-19.
- 150
km additional suburban railway network at the cost of Rs. 40,000
cr.
- Regional
air connectivity scheme shall connect 56 unserved airports.
- Airport
capacity to be hiked to handle 1 billion trips per year.
- Training
for 50 lakh youth by 2020.
- Govt.
to eliminate over 4,267 unmanned level crossings in the next two
years.
- All
railway stations and trains will have WiFi and 150 kilometres of
additional suburban corridors in being planned.
- Rs.
17,000 crore is being set aside for Bengaluru Metro.
- UDAN will
connect 56 unserved airports and 36 unserved heliports.
- Rs
11,000 crore is being allocated for Mumbai Suburban Railways.
- 5
lakh WiFi spots to be installed for benefit of 5 crore rural
citizens.
- As
per the FM, The Airport Authority of India has 124 airports.
- The
government announced AMRUT program to focus on water supply to all
households in 500 cities. Water supply contracts for 494 projects worth
19,428 core will be awarded.
- Proposal
for railway university in Vadodara.
- Niti
Aayog to establish a national program to direct efforts in artificial
intelligence.
- Department
of Science will launch a national program for cyberspace.
- Allocation
of Digital India has been doubled and the government proposes to set up 5
lakh WiFi hotspots.
- Government
does not consider cryptocurrency as legal tender and will work towards
eliminating illicit transactions going on through crypto assets.
- Disinvestment
target of Rs. 80,000 crore for 2018-19.
- Bank
recap to help banks lend additional Rs. 5 lakh crores.
- 24
Public Sector Units to be divested.
- The
government will involve a scheme to assign every enterprise a unique ID
just like Aadhaar.
- The
Department of Investment and Public Asset Management will come up with
debt Exchange Traded Fund.
- Gold
monetisation scheme to be revamped.
- Govt
revised fiscal deficit for 2017-18 was Rs 5.95 lakh crore or 3.5% of GDP.
Jaitley projects deficit of 3.3% of GDP next fiscal.
- National
Logistics Portal as a single online window will link all stakeholders, to
be developed by Department of Commerce.
- Government
insurance companies to be merged into a single entity, and subsequently
listed in the stock exchange, as part of the disinvestment programme.
- Target
for 2017-18 has been exceeded and will reach Rs 1 lakh crores.
- Salaries
of President, VP and Governors will be increased. Rs. 5 lakh for
President, Rs 4.0 lakh for VP and Rs 3.5 lakh for governors. Salaries
of Members of Parliament will also be raised.
- A
new law will be introduced that will automatically revise MPs' emoluments
every five years, indexed to inflation.
- Govt.
announced a Rs 150 crore fund to celebrate the 150th anniversary of
Mahatma Gandhi.
- Rs
11,000 crores will be allocated to Mumbai rail network.
- GST
revenue for only 11 months, instead of the usual 12 months, is 21.5 lakh
crore.
- Tax
buoyancy for 2017-18 is at 2.11%.
- Number
of tax payers has increased from 6.47 lakh crores to 8.27 lakh crores.
- Government
to set up two industrial defence industrial development corridors in
2018-19.
- 100%
tax deduction for farmer production firms with 100 cr turnover.
- 100%
tax deduction for the first five years to companies registered as farmer
producer companies with a turnover of Rs 100 crore and above.
- 12.6%
growth in direct taxes in 2017-18.
- 18.7%
growth in indirect taxes in 2017-18.
- Employment-based
tax incentives will be extended to footwear and leather industry.
- The
benefits of corporate tax by bringing down the tax rate to 25% for firms
that reported turnover up to Rs 250 crores.
- No
change in income tax slabs, but assesses can avail
of a standard deduction of Rs40,000.
- Long
term capital gains over Rs. 1 lakh to be taxed at the rate of 10%.
- Railway
Capital Expenditure is set at Rs. 1.48 lakh crore.
- All
stations and trains to have WiFi.
- Relief
on tax for senior citizens from income coming from bank interest
increased from 10,000 to 30,000.
- Fixed
Deposit/Post office interest to be exempt till Rs 50,000 {80D
benefit enhanced to Rs 50,000 (from 30,000)}.
- Short-term
capital gains taxed at 15% to continue for a one-year hold period.
- Standard
deduction of Rs 40,000 with respect to transport reimbursements.
- Standard
deduction is in lieu of travel and medical expense reimbursement, which
amounts to Rs 30,000. So the actual tax benefit would Rs 10,000 for each
taxpayer.
- Customs
duty increased on mobile phones from 15% to 20%.
- 4%
health and education cess; currently it's 3%.
- Estimates
1.38 trillion rupees expenditure on health, education and social security.
Railway capital expenditure set at 1.49 trillion rupees for 2018/19.
No comments:
Post a Comment