Budget 2017 Highlights | FM Jaitley gives tax relief to low Income slab, MSMEs; increases expenditure for defence, agriculture

Finance Minister Arun Jaitley on Wednesday presented his fourth and perhaps the most challenging Budget that softened the blow of currency ban with tax and other sops as he sought to revive growth. 

While largely sticking to fiscal consolidation roadmap, Jaitley presented the Budget for 2017-18 amid strong headwinds caused by government decision to invalidate 86 per cent of the currency and the newly elected US President making protectionist noises.

Earlier in the day, there was a cloud of confusion over the postponement of the budget due to demise of sitting MP E Ahamed on Wednesday morning. However, the Lok Sabha Speaker Sumitra Mahajan confirmed that it will be business as usual as it is ‘our constitutional duty to present the budget’

Budget 2017 Watch Live | Read full Budget coverage

Here are the highlights of Union Budget 2017 speech: 

#GST Council finalised its recommendations; Implementation of GST likely to bring more taxes to Centre, States

#15% surcharge on incomes above Rs 1 crore to continue

#A single one-page form for filing IT returns for taxable income up to 5 lakh rupees

#Propose to reduce existing rate of taxation of those with income between 2.5 lakh to 5 lakh from 10% to 5%

#Political parties will be entitled to receive donations by cheque or in the digital mode from their donors

#Long-term capital gains tax on immovable property to apply after 2 years, instead of 3 years now

#Political parties continue to receive most funds through anonymous donations

#Political parties can receive donation upto Rs 2000 from one source

#SIT has suggested no cash transaction above Rs 3 lakhs. Govt has accepted this

#Not to remove Minimum Alternative Tax in 2017-18; Propose to allow a carry forward of MAT for a period of 15 yrs as against 10 yrs now

#Basic customs duty on LNG to be reduced from 5% to 2.5%

#Tax rate for companies with an annual turnover up to 50 crores to be reduced to 25%, to strengthen MSME sector

#Capital gains tax to be exempted, for persons holding land from which land was pooled for creation of state capital of Telangana

#AadharPay, a merchant version of Aadhaar-enabled paymfdent system to be launched shortly for those without debit cards, mobile phones

#There is an urgent need to protect the poor from chit fund schemes, draft bill placed in public domain

#Due to Demonitisation advance tax on personal Income tax increased by 34.8% (Read full story here)

#We are committed to make our taxation rate reasonable, our tax admin more fair & expand the tax base of the country

#Out of 3.7 crore who filed tax returns in 2015-16, only 24 lakh persons showed income above Rs 10 lakh

#We are largely a tax non compliance society, when too many people evade taxes burden falls on those who are honest

#4.2cr employed in organised sector, but only 1.7 cr filing returns

#Rs 1.75cr filed as taxes by individual salaried people

#FM begins tax portion of Budget speech

#FRBM review committee recommended 3% fiscal deficit for next 3 years

#Fiscal Deficit target for 2017-18 is 3.2%

#Total resources being transferred to the states & union territories with legislature is Rs 4.11 lakh crore

#Defence expenditure excluding pension at Rs 2.74 lakh crore

#Total allocation for infrastructure in budget stands at a record level Rs 3,96,135 crore in 2017-18 (Read full story here)

#Total expenditure of budget 2017-18 has been placed at Rs 21.47 lakh crore

#Aadhar enabled payment system to be launched soon;Banks have targeted to introduce additional 10 lakh Point-of-Sale terminals by Mar'17

#Govt to consider a law to confiscate domestic property of big economic offenders who flee the country

#Travel tickets can now be booked online by soldiers, officers

#Unmanned railway level crossings to be done away with by 2020

#Propose to double the lending target of Pradhan Mantri Mudra Yojana and set it up at Rs 2.44 lakh crore for 2017-18

#3.5 Crore youth will be trained under Sankalp program launched by the government

Read | Govt presents Union Budget amidst Opposition demands for deferment

#Railway related state-run companies like IRCON and IRCTC to be listed on stock exchanges

#Using space technology in a big way to plan MGNREGA works

#Total capital & developmental expenditure Rs1.31 lakh crore for Railways in 2017-18 including Rs 55,000 crore to be provided by govt

#During 2017-18, another 5 lakh ponds to be constructed, for drought-proofing

#Stand Up India to help backward classes and poor women to be launched from April

#The Foreign Investment Promotion Board has been abolished (Read full story)

#Mission Antyodaya to bring 1 crore households out of poverty, & to make 50,000 Gram Panchayats poverty-free by the 150th birth anniversary of Mahatma Gandhi

#Transport sector allocated Rs 2.41 Lakh Crore and Bharat Net Project allocated Rs 10,000 crore

#Action plan to eliminate Kala Azar & Filariasis by 2017, Leprosy by 2018, Measles by 2020 & Tuberculosis by 2025

#Railways will integrate end to end transport solutions for selected commodities through partnership

#By 2019, all coaches of Indian Railways will be fitted with Bio-toilets

#Atleast 25 stations expected to be awarded during 2017-18; 500 stations to be made differently abled-friendly by providing lifts&escalators

#A new metro rail policy will be announced, this will open up new jobs for our youth

#Service tax on tickets booked through IRCTC to be withdrawn 

#Rail safety fund with a corpus of Rs 100,000 crore to be created over a period of 5 year

#Steps will be taken to launch dedicated trains for pilgrimage and tourism

#Two new All India Institute of Medical Sciences(AIIMS) to be set up in Jharkhand and Gujarat

#Railway tracks of 3500 km,dedicated tourism trains to be commissioned in next FY

#Coverage of Fasal Bima Yojana to go up from 30% of cropped area, to 40% in 2017-18 & 50% in 2018-19

#For senior citizens, Aadhar cards giving their health condition will be introduced

#Safe drinking water to cover 28,000 arsenic & Fluoride affected habitations in the next four years

FM @arunjaitley presents #Budget2017 under ten themes https://t.co/gY7YQo5nsn pic.twitter.com/P7WRyUEGaA

— PIB India (@PIB_India) February 1, 2017

#Target for agricultural credit in 2017-18 has been fixed at a record level of 10 lakh crore rupees (Read full story here)

#Open defecation free villages are now being given priority for pipe to water supply

#To complete 1,00,00,000 houses by 2019 for houseless and those living in kaccha houses

#Merger of Railway Budget with Budget 2017 a historic step

#For youth, proposed to introduce a system of measuring annual learning; Science to be given focus

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

#As Swami Vivekananda said 'education which does not help the common mass of people to equip themselves is it worth of the name?'

#Total allocation for rural, agricultural and allied sectors for 2017-18 is Rs 187223 cr, which is 24% higher than last year

#The advancement of Budget will enable all Ministries, Departments to operationalize all schemes right from beginning of next FY

#Budget allocation to MNREGA increased to a record Rs 48,000 crore for 2017-18, from Rs 37,000 crore in 2016-17

#Dedicated micro-irrigation fund will b set up by NABARD to achieve goal of 'Per Drop More Crop'.Initial corpus will be Rs 5000 crore

#Participation of women in MNREGA has increased to 55%

#Cabinet approves extension of tenure of loans under Credit Linked Subsidy Scheme of Pradhan Mantri Awas Yojana from 15 to 20 years

#Target of agricultural loans to farmers set at record Rs 10 lakh crore in 2017-18

#Dairy processing infrastructure fund will be set up under NABARD, with fund of 8,000 crore

#Issuance of soil health cards have gathered momentum, will setup a mini lab in krishi vigyan kendras

#With better Monsoon, Agriculture is expected to grow at 4.1% in current year

#We are aware we need to do more for our people, our agenda is transform, energise and clean India, that is 'tech India'

#Pace of remonetisation has picked up &will soon reach comfortable levels; Effects of Demonetisation not expected to spill over to next yr

#Demonetisation aims to create a new normal, where the GDP would be bigger, cleaner and real

#GST and Demonetisation two tectonic policy initiatives

#Number of global reports show India has considerably improved its policies, profile and practice

#Favourable price developments reflect prudent macroeconomic management

#My approach in preparing the Budget is to spend more on rural areas, infrastructure & poverty alleviation with fiscal prudence.

#Signs of retreat from globalisation have potential to affect exports from many emerging economies, including India:

#Uncertainty around commodity prices, esp. around crude oil, second major challenge

#Budget 2017 agenda divided in 5 categories

#Current monetary place of the US Federal reserve one of 3 challenges

Read |  Finance Minister Arun Jaitley to answer queries about Union Budget on Twitter

#Demonetisation was a bold & decisive strike in a series of measures to arrive at a new normal of bigger, cleaner & real GDP

#There are positive signs, that point to a positive outlook for the next year

#Growth in a no. of emerging economies is expected to recover in 2017

#We are moving from informal to formal economy & the Government is now seen as a trusted custodian of public money.

#IMF estimates world GDP to grow at 3.1% in 2016 and 3.4% in 2017

#Energizing youth, to reap benefits of growth and employment: our focus

#India is seen as engine of global growth

#We have launched a massive war against Black Money

#The Government is now seen as a trusted custodian of public money

#Expectations included burning issues like inflation and price rise, issue of corruption & crony capitalism: FM 

#We have moved from a discretionary administration to a policy-based administration: FM

#Our Govt was elected amidst huge expectations of people, the underlying theme of expectations being good governance: FM