Highlights of Union Budget – 2018

Highlights of Union Budget – 2018

  • Current Indian economy is of 2.5 trillion USD
  • Fiscal deficit for 2017-18 is 3.5% of GDP
  • Projected fiscal deficit for 2018-19 is 3.3% of GDP
  • GDP for year 2018-19 to be seen at 7.4%
  • Disinvestments targets are Rs. 80,000 Crs. For FY 18-19
  • Export expected to grow at 15% in FY18
  • MSMEs sector gets Rs 3,794 crore in the form of capital support and interest subsidy.
  • Government to evolve a scheme to assign a Unique ID for companies

Taxation:

  • No changes proposed in the personal income tax rates applicable to individuals
  • Tax payer base has risen from 6.47 crore in 2014-15 to 8.27 crore in 2016-17
  • Government has proposed to tax long term capital gains exceeding Rs 1 lakh at 10% without indexation
  • For senior citizens, exemption of interest income on bank deposits raised to Rs 50,000 from Rs. 10,000
  • 80D limits for Sr. citizen increase from Rs. 30,000 to Rs. 50,000 (Mediclaim)
  • Custom duty on mobile phones increased to 20% from 15%
  • Corporate Tax rate cut to 25% for MSME companies with turnover of Rs 250 crore
  • Government has proposed 100% tax rebate for farmer producer companies having a turnover of Rs. 100 crore
  • Government has proposed to introduce tax on distributed income by equity oriented mutual funds at 10%
  • Contribution of 8.33% to EPF for new employees by the government for 3 years and 12% government contribution to EPF in sectors employing large number of people
  • Standard deduction of Rs 40,000 for salaried employees in lieu of transport and medical expenses

Airway & Railway:

  • UDAN (Ude Desh ka Aam Naagrik) scheme will connect 56 unserved airports and 31 unserved helipads
  • Redevelopment of 600 major railway stations has been taken up; Mumbai transport system is being expanded; suburban network of 160 km is planned for Bengaluru
  • All railway stations with more than 25,000 footfall to have escalators. All railway stations and trains to have Wi-Fi and CCTVs progressively

Food processing:

  • Allocation for food processing ministry is being doubled to Rs 1,400 crore from Rs. 715 crore.
  • Food processing industry growing at average 8% per annum

Government Scheme:

  • Government plans to construct 2 crore more toilets under Swachh Bharat Mission
  • Government proposes to increase the target of providing free LPG connections to 8 crore to poor women
  • Government has allocated Rs. 1200 crore allocated for health wellness centres. Rs 5 lakh per family per year for 10 crore poor families. The world’s largest government funded program
  • 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
  • Rs 16,730 crore allocated for rural sanitation

Tourism:

  • Proposal to develop 10 prominent tourist destinations as Iconic tourism destinations

Agriculture:

  • Government has proposed to raise institutional credit for agriculture to Rs. 11 lakh crore for 2018-19
  • Agri-Market Development Fund with a corpus of Rs. 2000 crore to be set up for developing agricultural markets
  • Minimum support price has been set at 1.5 times the production cost for kharif crops

Defence:

  • Government has proposed 2 defence industrial corridors in the country to promote domestic production in both public and private sectors

Education and healthcare

  • 24 new government medical colleges and hospitals to be set up by upgrading existing district hospitals
  • Government to set up 2 new full-fledged Schools of Planning and Architecture

 

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