5 Feb 2018

Budget 2018 Highlights

Finance feed by:

CA Rahul Khatuwala
B.com,CA
CA in Practice    •    100% (2 votes)   •    16 Year 4 Month  experience

• Govt, had promised to take difficult decision, Govt, has implemented series of structured reforms, FDI has gone up, ease of business improved
• GST has improved tax collection
• May become world's fifth largest economy soon
• GDP growth seen at 7.2% - 7.5% in second half
• Budget will focus farm and rural economy
• FY19 Budget to focus on rural, Infra education
• Govt says focusing on ease of living of the poor
• Emphasis is on generating higher income for farmers
• Focus on farm, non-farm employment
• Proposes to ensure cost plus 50% for all monsoon crops
• Support price of all crops to be increased
• Agri mkt Infra fund to be set up with Rs20bn corpus
• Will develop 22000 rural agriculture markets
• Allocation Food processing for Rs14bn
• Exports of Agri commodities to be liberalized, proposes to liberalize exports of farm commodities
• Encourage states to buy extra Solar Electricity
• To spend Rs100bn on Aqua, animal husbandry infra
• Proposes Govt. support in air population fight in NCR
• Raises spending on housing for poor
• Aim to provide house to every poor by 2022
• To spend Rs14.34tn in 2018-2019 for Rural India
• Increase Agri credit from Rs10tn
• To spend Rs14.34tln for rural livelihood in FY19
• Aim 51lakh for affordable housing
• Invest Rs1tln on education Infra over 4 years
• Allocated Rs11tln for Agri Credit activities
• Committing Rs12bn to healthcare in India
• Starting National healthcare protection scheme
• Proposes to cover 100mn via healthcare protection scheme
• National Healthcare with Rs 5lakh per family cover
• Plan 1Govt medical colleges and Hospital to be set up
• Govt. said to target FY19 Fiscal deficit at 3.3% GDP
• GOVT, TO EXPAND COVERAGE OF Jan Dhan Yojana
• Govt. said to target FY19 Budget gap 3.3% vs. 3.5% in FY18
• Proposes to allocate Rs566.2bn for scheduled castes
• Government to soon announce measures to address NPA in MSME
• Proposes Rs3tln under mudra lending programs for MSMES
• Govt. to contribute 12% of salary of new hires in EPF
• Govt approves Rs60 for textiles from Rs71bn textiles industries
• Need Rs50tln investment in Infra – positive for Infrastructure
• Proposes expanding border roads for defense boost plan 99 smart cities with outlay of Rs2.04tln
• Railway capex pegged at Rs1.5 tln in FY19
• NHAI to consider taking road assets into SPV
• AIM to complete 9000km highway construction in FY18
• AIM to electrify 4000kms of railways lines in FY19
• Re-development of stations
• Mumbai transport systems being expanded for Rs110bn
• Udaan to connect 56 unserved airports, 31 heliports, 16 unserved airports are already operational
• SEBI will help corporate raise more funds via bonds
• To allocate Rs30.73bn under digital India program
. Plan for 5lakh WIFI rural hotspots
• To raise budgetary spend in Infra to Rs5.97 Tln
• Government said to propose L/T capital gains tax on equity - Bloomberg
• 3 state -run -run insurance companies to be merged an listed
• Aim Rs80bn divestment target for FY19
• Expects Rs1tln from share sales in FY18 via divestment
• Government sets FY19 deficit at 3.5% of GDP, budget deficit target 3.3% of GDP
• Budget gap 3.5% of GDP vs. 3.2% goal
• Direct tax growth in FY18 has been significant
• 41% MORE TAX RETURNS WERE FILED THIS YEAR, effective tax payers up Rs82.7mn people
• To allow 100% deduction to some farmer’s producer companies, tax break for farmer producer companies with Rs1bn turnover
• Corporate tax 25% who have a turnover Rs2.5bn
• No plan to make changes to Individual Income tax
• Plan to standard deduction of Rs40000 for salaried people
• Exemption of interest income to increase for retires
• I-T relief for Rs40000 for travel allowance
• Long term capital gains - Proposes 10% long term capital gain above Rs1lakh, All capital gains up to Jan 31 2018 to be grandfathered, Long term capital gains tax effective immediately
• To propose tax on distributed income
• Short term capital gain tax continued at 15%
• Rising customs duty on mobile phone to 20% from 15%
• Proposes to raise customs duty on some TV parts

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