Indian Finance Minister Arun Jaitley | Credit: Reuters
Finance minister Arun Jaitley on Thursday lowered the government’s fiscal deficit target for the current financial year in the annual budget and proposed a number of measures to boost the agriculture sector and enhance social security.
In his budget speech, Jaitley also imposed a long-term capital gains tax but left individual income tax rates unchanged.
Here are the highlights:
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Fiscal deficit for 2017/18 eased to 3.5% of GDP from 3.2% targeted earlier.
Fiscal deficit target for 2018/19 at 3.3% of GDP.
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Sets disinvestment target of Rs 80,000 crore for 2018-19; FY18 goal of Rs 72,500 crore exceeded.
To list 14 state-run companies; to merge National Insurance, United India Insurance and Oriental Insurance.
Venture capital funds and angel investors: More steps in offing to strengthen Alternative Investment Fund industry.
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Salaried taxpayers: No change in personal income tax. Standard deduction of Rs 40,000 for transport, medical allowance.
Long-term capital gains tax on equities at 10% on over Rs 1 lakh. Government expects Rs 20,000 crore as revenue from this tax.
Short-term capital gains to be taxed at 15% now.
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MSME tax benefits: Corporate tax for companies with turnover of up to Rs 250 crore for 2016-17 cut to 25%.
Senior citizens: Deduction under health insurance premium increased to Rs 50,000 for all and Rs 1 lakh for those with critical illnesses. Interest income exemption increased to Rs 50,000 from Rs 10,000.
Launching flagship health protection scheme—Ayushman Bharat—for 10 crore families (50 crore beneficiaries). This will provide Rs 5 lakh per family per year for secondary and tertiary care hospitalisation.
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Benefits for farmers: Minimum support price for all rabi crops to be 150% of production cost. Institutional credit to farm sector raised to Rs 11 lakh crore.
Proposal to set up an agricultural market fund of Rs 2,000 crore.
Proposes to invest Rs 1 trillion to develop premium education infrastructure over next four years.
Govt to establish a dedicated affordable housing fund
under National Housing Bank for priority sector lending.
Allocates Rs 9,975 crore for social security schemes.
Allocates Rs 2.04 lakh crore for 99 Smart Cities.
Budget sets capex for railways at Rs
1.48 lakh crore.
Budget sets Rs 5.97 trillion on infrastructure
and extra budgetary allocation.
Increases custom duty on mobile phones from 15% to 20%.
Government to take action to eliminate use of cryptocurrencies for illegal activities.
Government to explore blockchain technology for ushering in a digital economy.
NITI Aayog to establish a national programme for artificial intelligence.
Finance minister Arun Jaitley on Thursday lowered the government’s fiscal deficit target for the current financial year in the annual budget and proposed a number of measures to boost the agriculture sector and enhance social security.
