|The Union Budget was presented by the Finance Minister, Mr. Arun Jaitley in Lok Sabha The budget was later tabled in the Upper House.
Some key Budget highlights are given below:
Expenditure: The government proposes to spend Rs 21,46,735 crore in 2017-18, which is 6.6% above the revised estimates of last year.
Receipts: The receipts (other than net borrowings) are expected to increase by 8.1% to Rs 16,00,203 crore, owing to revenue from income tax, customs and disinvestment receipts.
GDP growth: The government has assumed a nominal GDP growth rate of 11.75% (i.e., real growth plus inflation) in 2017-18. The nominal growth estimate for 2016-17 is 11.9%.
Deficits: Revenue deficit is targeted at 1.9% of GDP, compared to 2.1% in the revised estimates of 2016-17, and fiscal deficit is targeted at 3.2% of GDP, same as the revised estimate of 3.2% in 2016-17.
Ministry allocations: Among the ten highest allocations to ministries, the highest percentage increase is observed in the Ministries of Road Transport & Highways (23.7%), followed by Health and Family Welfare (23.1%).
We have prepared a statistical document presenting the state of the Indian Economy in 2016-17. The document can be accessed by clicking here.
Key Proposals in the Finance Bill:
· Tax Personal income tax: The income tax rate for individuals with income between Rs 2.5 lakh to Rs 5 lakh is reduced from 10% to 5%. An additional surcharge of 10% will be levied on individuals whose income is within the range of Rs 50 lakh and one crore rupees.
· Corporation tax: Income tax on companies whose annual turnover is less than Rs 50 crore is reduced from 30% to 25%.
· Presumptive tax: Currently, certain taxpayers whose annual turnover is less than two crore rupees may pay a presumptive tax of 8%. The tax rate has been decreased to 6% for the turnover generated through cheque or electronic means.
· Electoral bonds: For political parties to avail income tax benefits on voluntary donations, donations in cash cannot exceed Rs 2,000. Further, political parties would not be required to maintain the information of donors, if the donation is made in the form of electoral bonds, issued by the Reserve Bank of India (RBI).
· Limit on cash transactions: Cash transactions above three lakh rupees will not be permitted.