Highlights of the Union Budget 2018

Highlights of the Union Budget 2018

Highlights of the Union Budget 2018

Budget 2018

Here are some of the highlights from the Union Budget 2018-19 presented by the Finance Minister Arun Jaitley in the Parliament on February 1, 2018.



— No changes to income tax to individuals

— Standard deduction of Rs 40,000 allowed for salaried class

— For senior citizens, exemption of interest income on bank deposits raised to Rs 50,000

— 85.51 lakh new taxpayers have filed returns for FY17

— 8.5 million new taxpayers have filed returns for FY17

— Women contribution to EPF to be reduced to 8% for 1st 3 years

— 12% of wages of new employees and EPF (Employees Provident Fund) for all sectors for next 3 years, also facility of fixed term employment will be extended to all sectors

— Health and Education Cess: At present 3% cess Proposal: Increase cess by 1% Exiting 3% cess will be replaced by 4%

— Large corporations to be nudged to meet 25% funding requirement from bond markets

— Propose to introduce tax on distributed income by equity-oriented mutual funds at 10%

— Proposal: Increase custom duty on certain items. Mobile phone 15% to 20%.

— To help cashew processing industry, Customs Duty has been reduced from 5% to 2.5%

— Propose to amend income tax act for electronic assessments

— Benefit of reduced corporate tax rate of 25% to companies with up to Rs 250 crore in financial year 2017

— Government to set up PM Research Fellow Scheme; 1000 B-Tech students to be selected

— Long-term capital gains exceeding Rs 1 lakh from sale of equities (stocks) to be taxed at 10% without allowing benefit of indexation if the share is sold after January 31, 2018

— Contribution of 8.33% to EPF for new employees by the govt for three years and 12% govt contribution to EPF in sectors employing a large number of people.

Long-Term Capital Gains

– Tax on Long-Term Capital Gains exceeding Rs. 1 lakh at the rate of 10 percent, without allowing any indexation benefit. However, all gains up to 31 January, 2018 will be grandfathered.

– Proposal to introduce tax on distributed income by equity-oriented mutual funds at the rate of 10 percent.

— Short-term Capital Gains Tax continues to be 15%

– Proposal to roll out E-assessment across the country to almost eliminate person to person contact leading to greater efficiency and transparency indirect tax collection.

— Long-term capital gains exceeding Rs 1 lakh from sale of equities (stocks) to be taxed at 10% without allowing benefit of indexation if the share is sold after January 31, 2018.

– Proposal to increase cess on personal income tax and corporation tax to 4 percent from present 3 percent.

Economic Growth

GDP and Economic Growth

— Propose 100% tax rebate for farmer producer companies having a turnover of Rs 100 crore

— GDP to grow at 7.2% – 7.5% in the second half of 2017-18

— We are now a $ 2.5 trillion economy, and we are firmly on path to achieve 8% plus growth soon

— Target Mudra loans for Rs 3 lakh crore next FY

— Government has ended policy paralysis. India was in fragile five group. Today, India is one of the fastest growing economies in the world

— Non-performing assets and stressed accounts to be checked by government

— India is now a $ 2.5 trillion economy, and is firmly on path to achieve 8% plus growth soon

— Demonetization has widened tax base

— 100% tax deduction for the first five years to companies registered as farmer producer companies with a turnover of Rs. 100 crore and above

— Tax buoyancy more than expected, thanks to greater compliance

— Aim to lower central govt. debt-to-GDP ratio to 40%

— Indian economy was among fragile five in 2014 and today we are among the fastest growing economies of the world.

— Manufacturing sector is back on growth path, services sector is seeing high growth rate

— Rs 14.34 lakh crore rupees to be spent for rural infrastructure

— Structural reforms will help economy achieve greater goals in short as well as long-term

— Direct Benefit Transfer (DBT) has reduced corruption and cost of delivery

— 6.3% GDP growth has signalled turnaround in economy

— The government has made all time high allocation towards infrastructure

— PM personally reviews targets and achievements in Infrastructure segment

— Need investment of Rs 50 lakh crore for Infrastructure sector

— We are allocating natural resources in a more transparent manner; there is a premium on honesty now.

— Jaitley proposes creating infrastructure for aquaculture, fisheries and animal husbandry with an allocation of Rs. 10,000 crore.


Focus on Agriculture

— The Minimum Support Price of all crops shall be increased to at least 1.5 times that of the production cost.

— Grameen Agricultural Market (GRAM) will provide farmers a means to sell directly to buyers

— Niti Aayog to establish a national programme to direct efforts towards Artificial Intelligence, including research and development of its applications.

— Proposed to raise institutional credit for agriculture to Rs 11 Lakh Crore for 2018-19

— This year’s Budget focuses on agriculture, health, senior citizens, infra creation, working with states to improve education

— Govt. focusing on ease of living now; PM has articulated the vision of minimum government, maximum governance.

— Government aims to double farm income by 2022

— Agri-Market Development Fund with a corpus of Rs 2000 crore to be set up for developing agricultural markets

— India to launch ‘Operation Green’ to reduce price fluctuation in potatoes and tomatoes, vegetables

— Kisan credit cards for fisheries and animal husbandry

— To help cashew processing industry: Custom Duty has been reduced from 5% to 2.5%

— Women self-help groups will be encouraged to take up organic agriculture

— Proposed to raise institutional credit for agriculture to Rs 11 Lakh Crore for 2018-19

— Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJBY) to be expanded to all poor households.

— 24 new govt medical colleges and hospitals to be set up by upgrading existing district hospitals.


Education, Jobs and Career

— 70 lakh formal jobs being created in this year

— Railway University to be set up in Vadodara

— Proposed Rs 1 trillion for revitalization of infrastructure and education

— 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 Vidayalas

— Most travel blocks will have ‘Eklavya’ residential school by 2022

— Two new planning & architecture schools to be set up in IITs

— Govt. will be setting up two new full-fledged Schools of Planning and Architecture

— Creation of job opportunities has been at the core of the policy planning

— Launch of national apprentice scheme

Roadway and its Expansion

– Confident of completing highways of 9,000 kilometers in 2017-2018

— NHAI to organize road assets in to a special purpose vehicle and then raise capital

Railway and its Expansion

— Much of the Railway Budget to invest on capacity building. 18,000 Km doubling of railway lines, 4,000 Km electrification of existing lines is planned in the coming year.

— Redevelopment of 600 major railways stations have been undertaken

— Bengaluru to get suburban rail network of over 100 km. Rs.17,000 crore for Bengaluru Metro

— All trains to be progressively provided with Wi-Fi, CCTV and other state-of-the-art amenities

— Government to eliminate 4,267 unmanned rail crossings at broad gauge network

— Focus on safety: Maintenance of tracks has been given special attention

Other Amendments

— Technology will be the biggest driver to improve quality of education. Move from ‘Black Board to Digital Board’

— Government to purchase surplus solar electricity

— SME loan sanctioning will be linked with GSTN

— Govt. to take all steps to weed out cryptocurrencies

— From ease of doing business, our govt has moved to ease of living for the poor and middle class

— The mass formalization of MSME sector is happening after demonetization and GST

— Measures to address the NPA of the MSME will be brought soon

— Three insurance companies to be merged, Rs 80,000 crore disinvestment target for next fiscal


— Rs 1 lakh crore disinvestment target this fiscal 2017-18 and Rs 80000 crore in 2018-19

— Government to set up dedicated affordable housing under National Housing Bank

— Allocate Rs 16,000 cr to Pradhan Mantri Saubhagya Yojana

— Airlines have ordered 900 new aircraft

— India’s airport capacity to be increased five times to handle 1 billion passengers

— UDAN (Ude Desh ka Aam naagrik) scheme will connect 56 unserved airports and 31 unserved helipads

— Salary of President increased to Rs 5 lakh, for Vice President to Rs 4 lakh and Governors Rs 3.5 lakh

— Law to be introduced to fix MPs’ salary every 5 years indexed to inflation

— Government to set up comprehensive gold policy; to revamp Gold Monetisation Scheme

— AMRUT programme to focus on water supply to all households in 500 cities. Water supply contracts for 494 projects worth 19,428 core awarded

— 42 mega food parks will be established

— Allocation in Ministry of Food Processing Industries and is being doubled to boost food processing; specialized agro-processing and financial institutions to be promoted by Government

— 800 crore poor women to receive free gas connection

— 80 million poor families to get LPG connections under the Ujjwala Yojana

— 400 crore poor people to receive electircity: Rs 17 crore being spent on this effort

— Benefits to the poor have been targeted more effectively with the use of technology

— 470 APMCs have been connected to #eNAM network, the rest to be connected by March 2018

— Special scheme to address air pollution in NCT, UP, Punjab and Harayana

— 10 tourist sites to become iconic sites

— Allocation of Rs 600 crore for nutritional support to all tuberculosis patients

— Access to portable drinking water, toilets are govt’s priorities

— Open defecation free India is the goal

— 99 cities selected for urbanisation

— 6 crore toilets been set up in rural areas

— 187 projects sanctioned under the ‘Namami Gange’ programme

— Government committed to further enhancing public investment

— Allocation of Rs. 56,619 crore for SC welfare and Rs. 39,135 crore for ST welfare

— Government to allocate Rs 7,148 crore to textile sector

— Propose an outlay of INR 7,148 Cr for the textile sector



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