Mr. Arun Jaitley, the Finance Minister of India presented the general Indian Budget 2018-19 on Thursday. This Budget is Mr. Jaitley’s fifth budget and lasts for NDA government before the government polls. This is also the first budget after one of the biggest economic reform Goods and Service Tax (GST).
Indian Budget 2018-19 Highlights
The Union Budget was led with a sensible and realistic approach on practical considerations. The idea to strengthen agriculture, rural and tribal development, health and safety, education Micro Small Medium Enterprise and Infrastructure sectors and industry can be understood.
The Government of India has sequences of structural reforms and the regime which can place India in the driving seat in the fastest growing economies of the world. India is strongly in the process to attain more than 8% growth in production and manufacturing, service, and exports with fast pacing path.
Having said that, here are the highlights of General Indian Budget 2018-19.
Agriculture and Rural
Mr. Jaitley reasserted the government’s set out to double the farmers’ wage, increase production and growth from same land. In a noteworthy help to farmers, Minimum Support Price (MSP) for all up and coming Kharif crops has been raised to 1.5 times the cost of production. On the off chance that the market costs are lower than MSP, the government would obtain the produced crops or guarantee farmers get right costs.
Agricultural market and infra store of with corpus of Rs 2,000 will be made for 22,000 Gramin rural markets and 585 APMCs (Agricultural produce market committee). Cluster improvement model of agricultural commodities, the importance to support and encouragement for organic farming.
Allocation for Food Processing Ministry has been multiplied. ‘Operation Green’ will create farmer producer organization, logistics, warehousing and so forth allotment of Rs 500 crore. Fare of agri commodity has been changed to meet India’s agricultural export capability of $100 billion.
To help bamboo division and animal husbandry, Kisan credit cards will now be available to fisheries and animal husbandry farmers. A restructured national bamboo mission with a corpus of Rs 1,290 crore will be set up. Rs 10,000 crore are allotted to set up two funds to advance fisheries and animal husbandry.
Government is also keen to encourage ideal tax assessment treatment for farmer organization. To guarantee agriculture got boost, farming and agriculture items will now be in futures markets. In a huge ticket declaration, Mr. Jaitley proposed Rs 11 lakh crore for credit for the farm sector. He additionally declared a special plan to oversee crop residue
As far as social insurance and security, gas connections will now be given to 8 crore poor ladies. In the energy coverage push, Rs 16,000 crore for PM Saubhagya Yojana was allotted for connecting 4 crore family units with free power and electricity.
The government has set an objective to build no less than 2 crore toilets under Swachh Bharat Mission. Likewise, under Housing for All by 2022 and PM Awas Yojana (rural), 51 lakh affordable housing units built in rural and 50 lakh in urban regions. Mr. Jaitley proposes devoted reasonable housing fund to meet targets.
For boosting employment openings and private enterprises, focus for loans to self improvement group for ladies has been increased to Rs 75,000 crore. Allocation to National Livelihood Mission set at Rs 5,750 crore. A total allocation of Rs 14.34 lakh crore from additional and non-budgetary resource has been assessed for housing, infrastructure and business in rural territories.
Health, Education and Social Protection
Comprehensive social security program National social help program over Rs 9,000 crore. Education in country to be dealt with without division from KG till class 12. Also goal to move from chalkboard to computerized digital board with push for advanced technology and e-education.
By 2022, each block with more than 20,000 tribals and more than 50% STs will have a unique Eklavya school. Upwards of 10 crore individuals to get Rs 5 lakh healthcare coverage for hospitalization every year. Government plans to move towards universal healthcare coverage. Allotment of Rs 600 crore has been proposed for tuberculosis patients who are experiencing treatment.
Government proposes foundation of two new Schools of Planning and Infrastructure. To address brain drain issue in the nation, another plan to recognize splendid students considering B Tech in top engineering schools and enable them a chance to contemplate and do research in IITs and Indian Institute of Science.
Chosen students to get uncommon fellowship and will be expected to teach in organizations of higher education, especially in rural zones. Mudra Yojana loaning target has been set at Rs 3 lakh crore. Mean to bring 60 crore bank accounts under Jan Dhan Yojana.
Mr. Jailtey proposes an integrated B.Ed program for teachers for enhancing nature of teachers and education. A fund for social security and insurance of widows and orphaned children is to be set up.
Assignment of Rs 1 lakh crore has been proposed for reviving and overhauling education sector. Mr. Jaitley pushes for learning based results and research. Government to set up 1.5 lakh centers under Aayushman Bharat program to give health facilities with an allocation of Rs 1,200 crore.
In a noteworthy lift to healthcare and medical education, Mr. Jaitley vows to set up at least one medical school for every three parliamentary constituencies. Additionally, PM Jivan Bima Yojana offered benefits to 5.22 crore families. Under Jan Dhan Yojana, the whole parcel of 16 crore accounts will be brought under micro insurance and pension plans.
Mr. Jaitley says 1.26 crore bank accounts opened under the Sukanya Samriddhi Scheme. A portion of Rs 52,719 crore for social incorporation of Scheduled Caste is proposed in the budget.
Mass formalization of MSME (Micro Small Medium Enterprise) industry after GST and demonetization. Mr. Jaitley has allocated Rs 3,794 crore capital help and industry subsidy by 2022 for the MSME sector. Under Mudra Yojana, Mr. Jaitley set an objective of Rs 3 lakh crore. The FM also said Rs 4.6 lakh crore was authorized under Mudra Yojana.
Consumers would get relaxation with excise cut on fuel. Excise on unbranded diesel was cut down by Rs 2 to Rs 6.33 for every liter and a same deduction was given from unbranded petrol top Rs 4.48 for every liter.
Total capital consumption for Indian Railways set at Rs 1, 48,528 crore. A special railroad university will likewise be set up in Vadodara, Gujarat. So as to cut travel times and postponements, Mr. Jaitley proposed cutting 4,267 unmanned railroad intersections. In an offer to upgrade the railroad stations’ infrastructure, all station that have a footfall of 25,000 travelers will now have lifts and escalators. To give availability in a hurry, all trains will soon be furnished with CCTVs and WiFi.
Allotments for Mumbai rail network was pegged at Rs 11,000 crore and for Bengaluru Metro, Rs 17,000 crore was allocated.
GST income will be gathered for 11 months and that would affect balance sheets. Rs 21.57 lakh crore transferred in form of net GST against the predicted Rs 21.47 lakh. Government goes for 2018-19’s fiscal deficit target of 3.3 percent of GDP. Modified fiscal deficiency for 2017-18 was Rs 5.95 lakh crore or 3.5 percent of GDP.
The government proposes no adjustment in individual income tax rates for salaried class. Mr. Jaitley said in his speech that there has been a 12.6% development indirect taxes in 2017-18; 18.7% development in indirect taxes in 2017-18. Upwards of 85.51 lakh, new taxpayer documented their tax reforms in 2017-18, as against 66.26 lakhs in 2016-17. There is a gradual increase in from 6.47 crore in 2016-17 to 8.27 crore by end of 2017.
Mr. Jaitley proposed liberalization of hypothetical income schemes for small independent business with income less than Rs 2 crore, similar plans for professional with pay less than Rs 50 lakh. Rs 90,000 crore extra income tax collection was seen in 2016-17 and 2017-18.
Corporate tax reduction has been reduced from 30 percent to 25 percent for organizations with turnover up to Rs 250 crore, move to support MSME area. Mr. Jaitley has proposed a revision in a month to month fee of President of India at Rs 5 lakh, Rs 4 lakh for Vice President and Rs 3.5 lakh for governors.
The standard deduction of Rs 40,000 for salaried citizens was declared. As far as capital gain tax, long-term capital gains are proposed to be taxed at 10 percent on investment over Rs 1 lakh. Short-term capital gain tax to stay unaltered at 15 percent.
For senior citizens, Mr. Jaitley proposed exception of interest income on bank deposit raised to Rs 50,000 for senior citizen and in addition exemption of Rs 10,000 on pay from Bank FDs and post offices. The budget proposes 10 percent tax on distributed wage by equity-oriented mutual funds and additionally 100 percent deductions for co-operative societies.
In the reality area, Mr. Jaitley recommended that should have been made when a circle is at or beneath 5 percent of sales consideration.
As far as revenue loss, Mr. Jaitley said Rs 8,000 crore revenue was lost because of the standard deduction for salaried workers. Additionally, Rs 7,000 crore forgone because of lower corporate tax on firms with turnover not surpassing over Rs 250 crore. Rs 19,000 crore was lost last fiscal as far as revenue from direct taxes.
Mr. Jaitley said that there is a need of Rs 50 lakh crore for the infrastructure sector of India. He said that construction of another passage at Sera Pass will likewise work in promoting tourism. A total 10 noticeable traveler sites will be updated as an iconic tourist place.
In the lead Bharatmala project that plans to connect India’s eastern and western ends with a 35,000 km highway and roads network, an expense was reported to the tune of Rs 5.35 lakh crore under phase 1. For toll payments on highways, Mr. Jaitley said that the government will present another new system called “pay as you use”.
Customs duty on cell phones, TVs climbed for giving a fillip to ‘Make in India’ initiative. The government likewise proposes 10 percent social welfare surcharge on imports.
Indian Budget for Employees
Government promises commitment of 12 percent in wages of new employees in all sector and industry for the coming 3 years under EPF scheme. Women contribution to EPF cut for initial three years to 8 percent.
The total expense for defence in budget 2018 is Rs 2.95 lakh crore, as indicated by PTI, up from Rs 2.74 lakh crore a year ago. Mr. Jaitley expressed his intention to support manufacturing in defence segment and declared the need to strike a balance between foreign procurement to address immediate needs and ‘Make in India’ initiative for defence sector.
Mr. Jaitley said that over the span of this government, major focus was given on modernization and improvement of operational capacities of the military forces. Government will bring another industry-friendly defence production policy 2018 for giving a lift to local production for private sector, public sector and also MSMEs. Jaitley said that the government will take initiative measures to create two defence industrial production corridors.
An assignment of Rs 3,073 crore was made for ‘Digital India’ scheme. As much as of 5 lakh WiFi hotspots will be installed to give access of broadband services to 5 crore rural people. An allotment of Rs 10,000 crore was proposed for the same.
Government will now investigate the use of Blockchain technology yet it will likewise find a way to stop the circulation of cryptographic currencies as they are not named lawful tenders as of now.
The food subsidy has been increased for the from Rs 1.4 lakh crore in 2017-18 to Rs 1.69 lakh crore in 2018-19. To honor the 150th birth commemoration of Mahatma Gandhi, Rs 150 crore has been put aside. Additionally, it has been suggested that the payments of MPs might be expanded in view of list to inflation.
Markets, Finance, and Insurance on Indian Budget
Government to support a strong environment for VCs and angel advisors. In the meantime, SEBI would make it required for large companies to meet a quarter of their debt needs from bond markets.
The disinvestment targets for FY2019 has been set for Rs 80,000 crore. The disinvestment targets for the current fiscal have been set at Rs 1 lakh crore. The government would likewise advance a scheme that would allocate unique IDs for organizations. The National Insurance Co, Oriental Insurance Co, and United Assurance Co will be merged into one entity which will then be listed. For bank recapitalization, Mr. Jaitley said it many set the way for public banks to loan an additional Rs 5 lakh crore.
Government intends to extend airport limit by as much as five times and plans to take the trip count to 1 billion every year. An initial investment of Rs 6602 crore has been put aside by ministry. Under UDAN scheme, 64 airports will be connecting the nation over to encourage low-cost flying.