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.

Fiscal Situations

  • 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.

Tax Proposals

  • 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.