The
Union Minister for finance and Corporate Affairs, Shri Arun Jaitley presented the
General Budget 2017-18 in Parliament today <br><br>
Total
expenditure in Budget for 2017-18 has been placed at`21.47 lakh crores and this
is expected to have multiplier effects and lead to higher growth. <br><br>
The
total resources being transferred to the States and the Union Territories with
Legislatures is Rs. 4.11 lakh crores in 2017-18, as against Rs.3.60 lakh crores
in BE 2016-17.
defence
expenditure excluding pensions stands at Rs. 2,74,114 crore
For
the first time, a consolidated Outcome Budget, covering all Ministries and
Departments, is being laid along with the General Budget
FM:
Revenue Deficit for next year is pegged at 1.9% as against 2% mandated by the
FRBM Act.
FM:
India seen as an engine of global growth and is expected
to be one of the fastest growing major economies in 2017.
Terming
demonization a right cause, Finance Minister recalled Mahatma’s quote that “A
right cause never fails”.
FM:
Agenda is (TEC)- to transform the quality of governance, energise various
sections of society and to clean the country from evils of Corruption, black
money and non-transparent political funding.
FM:Approach
is to spend more in rural areas, on Infrastructure and poverty alleviation
while maintaining fiscal prudence.
The
Government will undertake a Mission Antyodaya to bring one crore households out
of poverty and to make 50,000 gram panchayats poverty free by 2019, the year
marking the 150th birth anniversary of Gandhiji.
Mahila
Shakti Kendras to be set up at village level
Budget
for the welfare of Women and Children stepped up from Rs. 1,56,528 crores
to
Rs 1,84,632 crores in 2017-18.
Allocation
for infrastructure development in 2017-18 is Rs.3,96,135 crores.
Railways
expenditure will be Rs. 1,31,000 crores, Rs.55,000 crores to be provided by the
Government .
Trade
Infrastructure for Export Scheme (TIES) will be launched in 2017-18.
Further
liberalisation of FDI policy is under consideration.
Government
decided to abolish the Foreign Investment Promotion Board
FIPB
in 2017-18.
An
integrated Public sector ‘oil Major’,
to
match the performance of huge international and domestic Private sector oil
and
gas companies, is proposed.
The
shares of Railway PSEs like IRCTC, IRFC and IRCON will be listed
in
stock exchanges.
The
Finance Minister announced that a new ETF with diversified CPSE stocks and
other Government holdings will be launched in 2017-18.
Rs.
10,000 crores is provided for recapitalization of Banks in 2017-18. The Finance
Minister says that an additional allocation will be provided, as may be
required.
For
the The Pradhan Mantri Mudra Yojana the lending target has been set at Rs.
2.44 lakh crores in 2017-18, doubling it from the ones in 2015-16 with priority
to be given to Dalits, Tribals, Backward Classes, Minorities and Women.
The
Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley presented
the General Budget 2017-18 in Parliament here today. This is the first of its
kind which included the Railway Budget. This year’s Union Budget also does not
have Plan and Non-plan classifications and has been advanced by a month to the
beginning of February. The Finance Minister Shri Jaitley in his Budget speech
said that the agenda is “Transform, Energise and Clean India”
(TEC)- to transform the quality of governance for better quality of life. The
aim is to energise various sections of society, especially the youth and the
vulnerable and to clean the country from the evils of corruption, black money
and non-transparent political funding. He says, the approach is to spend more
in rural areas, on infrastructure and poverty alleviation while maintaining
fiscal prudence. Economic reforms will be continued promote higher investments
and accelerate growth for the benefit of the poor and the underprivileged.
Total
expenditure in Budget for 2017-18 has been placed at Rs.21.47 lakh crores. Shri
Arun Jaitley said that this is expected to have multiplier effects and lead to
higher growth.
The
total resources being transferred to the States and the Union Territories with
Legislatures is Rs. 4.11 lakh crores, against Rs.3.60 lakh crores in BE
2016-17.
Defence
expenditure excluding pensions, is to be Rs. 2,74,114 crores.
The
Finance Minister said that he has taken into consideration the need for higher
public expenditure in the context of sluggish private sector investment and
slow global growth. He however said that he had kept in mind the recommendation
of the FRBM Committee that a sustainable debt should be the underlying basis of
prudent fiscal management. He said that considering aspects in the committee
report, the fiscal deficit for 2017-18 has been pegged at 3.2% of GDP. The
Minister said that he remains committed to achieve 3% in the following year.
Shri Jaitley also asserted that the Revenue Deficit for next year is pegged at
1.9% , against 2% mandated by the FRBM Act.
For
the first time, a consolidated Outcome Budget, covering all Ministries and
Departments, is being laid along with the Union Budget
Shri
Arun Jaitley announced that the target for agricultural
credit in 2017-18 has been fixed at a record level of Rs. 10 lakh crores. A
dedicated Micro Irrigation Fund with an initial corpus of Rs.5,000 crores with
an objective to achieve the goal, ‘per drop more crop’ besides the Long Term
Irrigation Fund with total corpus of this Fund to Rs. 40,000 crores will be set
he added.
The
Finance Minister said that a model law on contract farming would be prepared
and circulated among the States for adoption. He also said that Dairy
Processing and Infrastructure Development Fund with a corpus of Rs. 8,000
crores over 3 years would be set up in NABARD. Initially, the Fund is to start
with a corpus of Rs.2,000 crores.
Shri
Arun Jaitley announced that the Government will now undertake a
Mission Antyodaya to bring one crore households out of poverty and to make
50,000 gram panchayats poverty free by 2019, the year marking the 150th birth
anniversary of Gandhiji. He says the strategy is to utilise the existing
resources more effectively along with annual increases and a focused micro plan
for sustainable livelihood for every deprived household.
Under
the reoriented MGNREGA to support our resolve to double farmers’ income, about
10 lakh farm ponds are expected to be completed by March 2017 against the
targeted 5 lakh farm ponds. This will contribute greatly to drought proofing of
gram panchayats. The budgetary provision of Rs.38,500 crores under MGNREGA in
2016-17 has been increasedto Rs. 48,000 crores in 2017-18, the highest ever
allocation for MGNREGA, the Finance Minster added..
The
pace of construction of The Pradhan Mantri Gram Sadak Yojana (PMGSY) has
accelerated to reach 133 km roads per day in 2016-17, as against an average of
73 km during the period 2011-2014, Shri Arun Jaitley said that the government
is committed to complete the current target under PMGSY by 2019. A sum of Rs.
19,000 crores in 2017-18 for this scheme and together with the contribution of
States, an amount of Rs. 27,000 crores is to be spent on PMGSY in 2017-18.
An
allocation of Rs. 23,000 crores for Pradhan Mantri Awaas Yojana – Gramin from
crores is made in 2017-18 against Rs.15,000 in BE 2016-17. Finance Minister
said the government proposes to complete 1 crore houses by 2019 for the
houseless and those living in kutcha houses. He said the allocation for Prime
Minister’s Employment Generation Programme (PMEGP) and credit support schemes
has been increased more than 3 times.
Shri
Arun Jaitley asserted that the total allocation for the rural,
agriculture and allied sectors in 2017-18 is Rs.1,87,223 crores, which is 24%
higher than the previous year.
In
the Sector of education and skill development to benefit you several new
measures have been announced in this year’s budget . The Pradhan Mantri
Kaushal Kendras (PMKK) have presently promoted in more than 60 districts
are proposed to be extended to more than 600 districts across the country.
A
programme called SANKALP – Skill Acquisition and Knowledge Awareness for
Livelihood Promotion programme to provide market relevant training to 3.5 crore
youth with a budget of Rs. 4,000 crores has been announced . The next phase of
Skill Strengthening for Industrial Value Enhancement (STRIVE) is also be
launched in 2017-18 at a cost of Rs.2,200 crores to focus on improving the quality
and market relevance of vocational training provided in ITIs and strengthen the
apprenticeship programmes through industry cluster approach.
A
National Testing Agency is proposed to be established as an Autonomous and
self-sustained premier testing organisation to conduct all entrance
examinations for higher education institutions in the country.
Leveraging
Information technology, a platform called SWAYAM is proposed to be launched to
teach at least 350 courses by the best faculty online. This will enable
students to virtually, attend the courses taught, access high quality reading
resources; participate in discussion forums; take tests and earn academic
grades.
For
higher education reforms in UGC and for secondary education an Innovation Fund
to encourage local innovation for ensuring universal access, gender parity and
quality improvement with initial focus on 3479 educationally backward blocks
are proposed.
For
schools flexibility in curriculum to promote creativity through local
innovative content with eMphasis on science education and introduction of a
system for measuring annual learning outcomes is proposed.
Shri
Arun Jaitley announced that Mahila Shakti Kendras will be set-up at village
level with an allocation of Rs. 500 crores in 14 lakh ICDS Anganwadi Centres.
He said these Kendras are for empowering rural women with opportunities for
skill development, employment, digital literacy, health and nutrition.
Recalling
announcements made by the Prime Minister, the Finance Minister made on 31st
December, 2016 as a part of the nationwide scheme Rs. 6,000 each will be
transferred directly to the bank accounts of pregnant women who undergo
institutional delivery and to vaccinate their children.
Budget
for the welfare of Women and Children stepped up from Rs. 1,56,528 crores in BE
2016-17 to Rs 1,84,632 crores in 2017-18.
As
a part of strengthening overall health infrastructure in the country the
Finance Minister announced setting up of two new All India Institutes of
Medical Sciences in the States of Jharkhand and Gujarat. He said the Government
is committed to take necessary steps for structural transformation of the
Regulatory framework of MedicalEducation and Practice in India which includes
several steps for increasing post graduate medical seats.
The
allocation for the welfare of Scheduled Castes has been stepped up from
Rs.38,833 crores in BE 2016-17 to Rs.52,393 crores in 2017-18, representing an
increase of about 35%. The allocation for Scheduled Tribes has been increased
to Rs.31,920 crores and for Minority Affairs to Rs.4,195 crores. The Government
will introduce outcome based monitoring of expenditure in these sectors by the
NITI Aayog ,Shri Arun Jaitley.
The
Finance Minister asserted that investments in Infrastructure Sector are in line
with the agenda set for this year budget that is to transform the quality of
governance for better quality of life to people, to energise various sections
of society to enable them to unleash their true potential; and to clean the
country from the evils of corruption, black money and non-transparent political
funding.
The
Finance Minister said that accordingly a total allocation of Rs.3,96,135 crores
is made for infrastructure development in 2017-18, out of which Rs. 2,41,387
crores is for rail, roads, shipping.
The
total capital and development expenditure on Railways for 2017-18 is to be Rs.
1,31,000 crores. Out of this Rs.55,000 crores provided by the Government .
Railway lines of 3,500 kms will be commissioned in 2017-18, as against 2,800
kms in 2016-17. A Rashtriya Rail Sanraksha Kosh will be created with a
corpus of Rs. 1 lakh crores over a period of 5 years, for passenger safety.
Government will lay down clear cut guidelines and timeline for implementing
various safety works to be funded from this Kosh.
The
Finance Minister said that a new Metro Rail Policy will be announced with focus
on innovative models of implementation and financing, as well as standardisation
and indigenisation of hardware and software. He also said that a new Metro Rail
Act will be enacted by rationalising the existing laws to facilitate greater
private participation and investment in construction and operation.
For
the road sector, a Budgetery allocation of Rs. 64,900 crores is made for
2017-18 for highways against Rs. 57,976 crores in BE 2016-17. He said 2,000 kms
of coastal connectivity roads have been identified for construction and
development to facilitate better connectivity with ports and remote villages.
Shri
Arun Jaitley said that the Airport Authority of India Act will be amended to
enable effective monetisation of land assets. The resources, so raised, will be
utilised for airport upgradation. The Minister said that select airports in
Tier 2 cities will be taken up for operation and maintenance in the PPP mode.
The
Finance Minister said by the end of 2017-18, high speed broadband connectivity
on optical fibre will be available in more than 1,50,000 gram panchayats,
with wifi hot spots and access to digital services at low tariffs. He said
accordingly the budget for Bharat Net Project has been stepped up to Rs.10,000
crores in 2017-18. He pointed out that under the BharatNet Project, OFC has
already been laid in 1,55,000 kms. The Minister said that a ‘DigiGaon’
initiative will be launched to provide tele-Medicine, education and skills
through digital Technology.
The
Minister also talked of strengthening our energy sector. He said the Government
has now decided to take up the second phase of Solar Park development for
additional 20,000 MW capacities. Similarly in the second phase the government
has decided to set up two more Strategic Crude Oil Reserves one Chandikhole in
Odisha and other in Bikaner in Rajasthan besides the three set up earlier.
Shri
Arun Jaitley announced that a new and restructured Central scheme, namely,
Trade Infrastructure for Export Scheme (TIES) will be launched in 2017-18.
The
Finance Minister has announced that the government has decided to abolish the
Foreign Investment Promotion Board (FIPB) in 2017-18. He said that a roadmap
for the same will be announced in the next few months. The minister said that
this became possible as The Foreign Investment Promotion Board (FIPB) has
successfully implemented e-filing and online processing of FDI applications and
more than 90% of the total FDI inflows are now through the automatic route. In
the meantime, further liberalisation of FDI policy is under consideration and
necessary announcements will be made in due course, the minister added.
Shri
Arun Jaitley asserted that a bill will be introduced in the Parliament to
curtail the menace of illicit deposit schemes, after the draft bill, placed in
the public domain, has been finalized. He said this is part of this budget’s
and the Government’s ‘Clean India’ agenda. The Minister said that an amendment
Bill to change the Arbitration and Conciliation Act 1996 will be introduced to
streamline institutional arrangements for resolution of disputes in
infrastructure related construction contracts, PPP and public utility
contracts.
The
Minister asserted that the disinvestment policy announced in the last budget
will continue and the Government will put in place a revised mechanism and
procedure to ensure time bound listing of identified CPSEs on stock exchanges.
Shri
Arun Jaitley announced that a Computer Emergency Response Team for our
Financial Sector (CERT-Fin) will be established and it will work in close
coordination with all financial sector regulators and other stakeholders.
Other
proposals announced by the Minister are:
1.
The
commodities and Securities derivative markets will be further integrated by
integrating the participants, brokers, and operational frameworks.
2.
The
process of registration of financial market intermediaries like mutual funds,
brokers, portfolio managers, etc. will be made fully online by SEBI to improve
ease of doing business.
3.
A
common application form for registration, opening of bank and demat accounts,
and issue of PAN will be introduced for Foreign Portfolio Investors (FPIs).
SEBI, RBI and CBDT will jointly put in place the necessary systems and
procedures. This will greatly enhance operational flexibility and ease of
access to Indian capital markets.
4.
Steps
will be taken for linking of individual demat accounts with Aadhar.
5.
Presently
institutions such as banks and insurance companies are categorised as Qualified
Institutional Buyers (QIBs) by SEBI. They are eligible for participation in
IPOs with specifically earmarked allocations. It is now proposed to allow
systemically important NBFCs regulated by RBI and above a certain Net Worth, to
be categorised as QIBs. This will strengthen the IPO market and channelize more
investments.
6.
Listing
and trading of Security Receipts issued by a securitisation company or a
reconstruction company under the SARFAESI Act will be permitted in SEBI registered
stock exchanges. This will enhance capital flows in to the securitisation
industry and will particularly be helpful to deal with bank NPAs.
The
Finance Minister announced that the Government will put in place a revised
mechanism and procedure to ensure time bound listing of identified CPSEs on
stock exchanges.
He
announced that the shares of Railway PSEs like IRCTC, IRFC and IRCON will be
listed in stock exchanges.
Shri
Arun Jaitley said that government also proposes to create an integrated public
sector ‘oil major’ which will be able to match the performance of international
and domestic private sector oiland gas companies. He said the Government sees
possibilities of strengthening our CPSEs throughconsolidation, Mergers and
Acquisitions.
Rs.
10,000 crores for recapitalization of Banks in 2017-18 has been allocated.
Additional allocation will be provided, as may be required. The Minister said
that Listing and trading of Security Receipts issued by a securitization
company or a reconstruction company under the SARFAESI Act will be permitted in
SEBI registered stock exchanges. This will enhance capital flows into the
securitization industry and will particularly be helpful to deal with bank
NPAs.
For
the The Pradhan Mantri Mudra Yojana the lending target has been set at
Rs. 2.44 lakh crores in 2017-18, doubling it from the ones in 2015-16 with
priority to be given to Dalits, Tribals, Backward Classes, Minorities and
Women.
The
Finance Minister announced that a new ETF with diversified CPSE stocks and
other Government holdings will be launched in 2017-18.
Shri
Arun Jaitley said that India is now on the cusp of a massive digital
revolution. He said that earlier initiative of our Government to promote
financial inclusion and the JAM trinity were important precursors to our
current push for digital transactions. He hoped the BHIM app has launched would
unleash the power of mobile phones. The Minister said that Aadhar Pay, a
merchant version of Aadhar Enabled Payment System, will be launched shortly to
specifically benefit those who do not have debit cards, mobile wallets and
mobile phones for digital payments and financial inclusion. The minister said
that a Mission will be set up with a target of 2,500 crore digital transactions
for 2017-18 throughUPI, USSD, Aadhar Pay, IMPS and debit cards. He said there
is a proposal to mandate all Government receipts through digital means, beyond
a prescribed limit, is under consideration. The minister also pointed out that
Necessary amendments are proposed in the Finance Bill 2017 to create a
Payments Regulatory Board in the Reserve Bank Of India by replacing the
existing Board for Regulation and Supervision of Payment and Settlement
Systems. Government is also considering the option of amending the Negotiable
Instruments Act suitably to ensure that the payees of dishonoured cheques to be
able
to realise the payments.
Saying
that the Government is committed to improve the standards of public service and
transparent governance, the Finance minister announced that the fallowing
measures will be take:
Government
now proposes to utilise the Head Post Offices as front offices for rendering
passport services to people in far flung areas.
A
comprehensive web based interactive Pension Disbursement System for Defence
Pensioners will be established to receive pension proposals and make payments
centrally.
A
Centralised Defence travel System has now been developed through which travel
tickets can be booked online by oursoldiers and officers.
Government
is considering introduction of legislative changes, or even a new law, to
confiscate the assets within our country of such Economic Offenders who flee
the country,, till they submit to the jurisdiction of the appropriate legal
forum.
The
government proposes to rationalise the number of tribunals and merge tribunals
wherever appropriate.
Recalling
that Service to the people was the life-long commitment of the Father of the
Nation, Mahatma Gandhi, the Minister said that a High Level Committee under the
Chairmanship of the Prime Minister is proposed to be set up to take steps to
celebrate the 150th Birth Anniversary of the Mahatma,
The
total expenditure in Budget for 2017-18 has been placed at`21.47 lakh crores.
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DSM/KSP/GB 2017-18
.
