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2017 Union budget of India

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2017 (2017) Union Budget of India
Emblem of India
Submitted toParliament of India
Presented1 February 2017
Passed1 February 2017
Parliament16th (Lok Sabha)
PartyBharatiya Janata Party (BJP)
Finance ministerArun Jaitley
Total revenue₹2,146,735 crore (equivalent to ₹30 trillion or US$350 billion in 2023)[1]
Total expenditures₹2,531,762 crore (equivalent to ₹36 trillion or US$420 billion in 2023) (grand total)[2]
Program Spending₹2,146,734 crore (equivalent to ₹30 trillion or US$350 billion in 2023) (through budget)[3]
Debt payment₹523,078 crore (equivalent to ₹7.3 trillion or US$86 billion in 2023)[3]
Deficit₹546,532 crore (equivalent to ₹7.7 trillion or US$90 billion in 2023)[4] (3.2%)[4] (Fiscal deficit) ₹321,163 crore (equivalent to ₹4.5 trillion or US$53 billion in 2023)[4] (1.9%)[4] (Revenue deficit)
Websitehttp://www.indiabudget.nic.in Official Site
‹ 2016
2018›

The 2017 Union Budget of India is the[5][6][7]

  • Annual Financial Statement (AFS) mandated by Article 112 of Constitution of India
  • Demands for Grants mandated by Article113 of Constitution of India
  • Appropriation Bill mandated by Article 114(3) of Constitution of India
  • Finance Bill mandated by Article110(a) of Constitution of India
  • and other documents presented as per the provisions of the Fiscal Responsibility and Budget Management Act, 2003. for the financial year 2017 – 2018.

It was presented before the parliament on 1 February 2017 by the Finance Minister of India, Arun Jaitley with 21.47 lakh crore rupees (US$336.39 billion) budget size.[8][9][10][11][12]

The Finance Minister of India started speech by quoting "Madam Speaker, On this auspicious day of Vasant Panchami, I rise to present the Budget for 2017-18. Spring is a season of optimism. I extend my warm greetings to everyone on this occasion."[13]

In his speech the Finance Minister of India, Arun Jaitley has quoted that the Agenda for 2017-18 is "Transform, Energise and Clean India" – TEC India.[14] He further went to explain that TEC India means to[15]

  • Transform the quality of governance and quality of life of our people
  • Energise various sections of society, especially the youth and the vulnerable, and enable them to unleash their true potential
  • Clean the country from the evils of corruption, black money and non-transparent political funding.

The printing of the budget documents began with a traditional Halwa ceremony in January 2017.32

It's the first budget after major changes in the economy like Goods and Services Tax (India) and 2016 Indian banknote demonetisation.

Railway budget

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Railway budget will be merged with the Union budget and classification of plan and non-plan expenditure has been done away with starting from the year 2017 by Narendra Modi led Government of India.[16][17]

Key points

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  • Existing rate of taxation for individual assesses between income of 2.5 lakhs to 5 lakhs reduced to 5%.
  • After rebates, zero tax liability for people with income of 3 lakhs.[18]
  • All other categories will also get uniform benefit of Rs 12,500.
  • Surcharge of 10% of tax payable on categories of individuals whose annual taxable income is between 50 lakhs and 1 crore[19]
  • More than 1 crore: 15 percent surcharge[20]
  • One page Income tax return to be filed for persons having Taxable income up to 5 lakhs other than income from Profits and Gains from Business or profession(PGBP).
  • Maximum limit for audit of specified assesses who opt for presumptive income (Section 44AD of Income Tax Act) scheme increased from 1 crore to 2 crores.
  • No transaction above 3 lakhs through cash is permitted subject to certain exceptions[21]
  • To promote transparency in electoral funding, maximum donation of 2000 rupees in cash is restricted from one person.[21][22]
  • Foreign Investment Promotion Board (FIPB) will be abolished[23][24]
  • Allocation of Rs 23,000 crore to the Pradhan Mantri Gramin Awas Yojana[25][26]
  • The Finance Minister of India has stated that "Consumer price index inflation is expected to remain within RBI’s mandated range of 2% to 6%".[27]
  • The Foreign direct investment increased from 1,07,000 crores in the first half of last year to 1,45,000 crores in the first half of 2016–17.[28]
  • As stated by finance minister Foreign-exchange reserves have reached 361 billion US Dollars as on 20 January 2017.[29]
  • Rs 48,000 crore allocated towards the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)[30]

Finance Bill

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Finance Minister Arun Jaitley presented Finance Bill on 21 March 2017. He has suggested major overhaul in the bill. 40 changes have been suggested by him in the existing legislations. Some of the major changes are

  • The cash transaction limit will be brought down to Rs. 2 lakh from the erstwhile Rs. 3 lakh limit.
  • Aadhaar card should become mandatory for filing IT returns.
  • PAN Card would only be issued upon producing the Aadhar card.
  • The disclosure of political donations made by companies will be made mandatory.

References

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  1. ^ "Receipts" (PDF). Ministry of Finance, Government of India. Retrieved 29 January 2018.
  2. ^ "SUMMARY OF EXPENDITURE" (PDF). Ministry of Finance, Government of India. Retrieved 29 January 2018.
  3. ^ a b "Expenditure of Government of India" (PDF). Ministry of Finance, Government of India. Retrieved 29 January 2018.
  4. ^ a b c d "Debt and Deficit Statistics" (PDF). Ministry of Finance, Government of India. Retrieved 29 January 2018.
  5. ^ "THE CONSTITUTION OF INDIA". lawmin.nic.in. Archived from the original on 2 April 2012. Retrieved 1 February 2017.
  6. ^ "BUDGET IN PARLIAMENT". www.parliamentofindia.nic.in. Retrieved 1 February 2017.
  7. ^ "KEY TO BUDGET DOCUMENTS" (PDF). Archived from the original (PDF) on 15 February 2017.
  8. ^ "Union Budget 2017: Rs 2.74 lakh crore allocated towards defence spending". Indian Express. February 2017. Retrieved 1 February 2017.
  9. ^ "Total expenditure of Rs. 21.47 lakh crore in Budget 2017-18, fiscal deficit pegged at 3.2%". NetIndian. February 2017. Retrieved 1 February 2017.
  10. ^ "Live: Budget 2017: Union Budget 2017 Updates, Analysis | Budget 2017 highlights". The Economic Times. Retrieved 1 February 2017.
  11. ^ "Highlights of Union Budget 2017-18". The Hindu. Retrieved 1 February 2017.
  12. ^ "Budget: Rs 55,000 Cr for Railways; Focus on Safety, Infrastructure". The Quint. Retrieved 1 February 2017.
  13. ^ Rajya Sabha TV (1 February 2017), FULL SPEECH: Finance Minister Arun Jaitley's Budget Speech | Union Budget 2017-18, retrieved 1 February 2017
  14. ^ "Union Budget 2017: Highlights". The Times of India. Retrieved 1 February 2017.
  15. ^ Rajya Sabha TV (1 February 2017), FULL SPEECH: Finance Minister Arun Jaitley's Budget Speech | Union Budget 2017-18, retrieved 1 February 2017
  16. ^ "Budget challenges", Live Mint, 29 January 2017
  17. ^ "In Budget, fencing of Delhi-Howrah, Mumbai routes to improve speed", The Indian Express, 29 January 2017
  18. ^ "Budget: Cash Transactions Over Rs 3 Lakh to Invite 100% Penalty", The Quint, 2 February 2017
  19. ^ "Union Budget 2017-18: Income Tax rate halved to 5 per cent for Rs 2.5-5 lakh slab", India Today, 1 February 2017
  20. ^ Union Budget 2017 Highlights
  21. ^ a b "Union Budget 2017: Highlights". The Times of India. Retrieved 1 February 2017.
  22. ^ "Budget: Cash Donations to Political Parties Capped at Rs 2,000", The Quint, 2 February 2017
  23. ^ "Budget 2017: Government Decides To Abolish FIPB", Bloomberg Quint, 1 February 2017
  24. ^ "Govt to abolish Foreign Investment Promotion Board: Finance Minister", Business Standard, 1 February 2017
  25. ^ "Union Budget 2017: PMAY's allocation increases to Rs 23,000 crore", The Financial Express, 1 February 2017
  26. ^ "Budget 2017 Will Kickstart The Housing Sector, Says Deepak Parekh", Bloomberg Quint, 1 February 2017
  27. ^ Rajya Sabha TV (1 February 2017), FULL SPEECH: Finance Minister Arun Jaitley's Budget Speech | Union Budget 2017-18, retrieved 1 February 2017
  28. ^ Rajya Sabha TV (1 February 2017), FULL SPEECH: Finance Minister Arun Jaitley's Budget Speech | Union Budget 2017-18, retrieved 1 February 2017
  29. ^ Rajya Sabha TV (1 February 2017), FULL SPEECH: Finance Minister Arun Jaitley's Budget Speech | Union Budget 2017-18, retrieved 1 February 2017
  30. ^ "Budget 2017: Highest Ever Allocation For MGNREGA At Rs 48,000 Crore, Says Jaitley", Bloomberg Quint, 1 February 2017
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