Budget 2017 – Some of the Highlights

The Indian finance minister, Arun Jaitley presented the Union Budget for the fiscal year 2017-18 on 1^st February 2017. Much of it was as expected; some of it was unexpected. We look at some of the highlights of the budget, how it makes a difference to us, whom it impacts most and how much:

The tax slab between two point five and five lakh rupees is reduced from 10% to 5%. This rebate also goes out to senior citizens and non resident Indians. In addition, there will be some relief in the National Pension scheme and there will also be rationalization of deduction under 80CCD for self employed individuals – to increase the gross upper limit from 10 to 20%.

While conceding that demonetisation would have an impact on the economy and people, the Finance Minister said that it would lead to higher GDP growth in the long run and that the spill over impacts would not be felt in the next fiscal year.

Irrigation funding doubles from 20,000 crores to 40,000 crores, NABARD fund will increase and program for issuance of soil cards will be taken forward.

Cigarettes, gutka and pan masalas will become more expensive since excise and health cess applied to these will increase. Custom duty on silver and silver items will increase so importing silver will be costlier. Some mobile phones will become more expensive.

There is a 500 crore allocation for Mahila Shakti Kendras and Rs 6000 for pregnant women (as announced earlier by the PM in his new year speech) - special allocation for women and children. Two AIIMS, one each in Gujarat and Jharkhand to be set up and health sub centers to be changed into health wellness centres.

Corporate tax is reduced from 30% to 25% for companies with specified turnovers. All transactions above Rs 3 lakh will not be permitted to be in cash. Special incentives are announced for the electronics manufacturing sector. A special scheme is set up to boost infrastructure and over 2 lakh crores is set aside for infrastructural development of the transportation sector, covering Indian railways and Shipping industry. Changes were perceived as being positive, which is why the stock market saw a significant upward swing in wake of the budget.

This year the rail budget was merged with the general budget. It was announced that service charge on online booking will reduce, and there will be other benefits on reserved second class and sleeper tickets.