Budget Current Affairs - 2nd Feb 2017
For the Agriculture Sectors
- Rs. 10 lakh crore is allocated as credit to farmers, with 60 days interest
- A dedicated micro irrigation fund will be set up for NABARD.
- Dairy processing infrastructure fund will be initially created.
- Govt to set up mini labs in Krishi Vigyan Kendras for soil testing.
For the Rural Population
- To bring 1 crore households out of poverty by 2019.
- Over Rs.3 lakh crore to be spent for rural India. MGNREGA to double farmers' income.
- To allocate Rs.19,000 crore for PM Gram Sadak Yojana in 2017.
- To complete 1 crore houses for the homeless.
For the Youth
- To introduce a system of measuring annual learning outcomes.
- To set up an innovation fund for secondary education.
- To create 5000 PG seats per annum.
- To set up 100 India International Skill Development Centres across India.
For the Poor
- To set up Mahila Shakthi Kendras at village level for empowering rural women.
- Rs.52,393 crore for Scheduled Castes.
- Rs.6000 to be transferred to each pregnant woman.
- Affordable housing to be given infrastructure status.
Health Care for the Underprivileged
- Elimination of TB by 2025.
- AIIMS to be set up in Jharkhand and Gujarat.
- Aadhaar-based smartcards to monitor the health of senior citizens.
- Health sub-centres to become health wellness centres.
For the Railways
- Raksha coach for passenger safety.
- Unmanned level crossings to be eliminated by 2020.
- All trains to have bio-toilets by 2019.
- 3,500 km of railway lines to be commissioned this year.
For the Infrastructures
- Rs.39,61,354 crore has been allocated for infrastructure.
- Rs.64,000 crore allocated for highways.
- High speed Internet to be allocated to 1,50,000 gram panchayats.
For the Energy Sectors
- To set up Strategic Crude Oil Reserves.
- 100% rural electrification by May 2018.
- Trade Infrastructure for Export Scheme will be launched.
- An additional 20,000 MW to be added in the second phase of solar park development scheme.
For the Financial Sectors
- Foreign Investment Promotion Board to be abolished.
- CERT for financial sector will be formed.
- PM Mudra Yojana lending target fixed at Rs.2.44 lakh crore.
- BHIM app to unleash mobile phone revolution.
- Total expenditure for 2017-18 pegged at Rs.21.47 Lakh Crore.
- To bring down fiscal deficit to 3.2% in 2017-18.
- Plan, non-plan expenditure to be abolished.
- Revenue deficit target of 1.9% of GDP in 2017-18.
Funding of Political Parties
- Political parties can receive only Rs.2000 as donation in cash from one source. Above that, identity of the donor needs to be disclosed.
- Political parties can receive donations in cheque or electronic mode.
- Electoral bonds to be issued by the RBI.
- Holding period for long term capital gain lowered to two years Corporate tax for MSMEs with a turnover of up to Rs.50 crore to be reduced to 25%.
- To amend IT Act so that no transaction above Rs.3 lakh is permitted in cash.
Personal Income Tax
- Tax for individuals between Rs.2.5-Rs.5 lakh is reduced from 10% to 5%.
- 10% surcharge on individual income above Rs.50 lakh and up to Rs.1 crore.
- Simple one page return for people with an annual income of Rs.5 lakh (other than business income).
Universal Basic Income (Economic Survey 2016-17)
- UBI proposal a powerful idea, but not ready for implementation.
- UBI an alternative to plethora of state subsidies for poverty alleviation.
- UBI would cost between 4 and 5% of GDP
Demonetisation (Economic Survey 2016-17)
- Remonetisation will eliminate cash squeeze by April 2017.
- Supply of currency should follow 'actual demand' and not 'desirable demand'.
- Government windfall from unreturned notes should be deployed towards capital spending.
Growth (Economic Survey 2016-17)
- GDP growth rate for 2017/18 is projected at 6.75% to 7.5%. For 2016/17, it is projected at 7.1%. May be revised downwards due to demonetisation.
- Service sector to grow at 8.9% in 2016/17.
- Industrial growth rate at 5.2% in 2016/17.