Highlights of Union Budget 2018-2019 | AIB
Finance Minister Arun Jaitley’s presented his government’s fifth and last full Budget for the financial year 2018-19, amid economic growth slowdown, challenging fiscal situation and farmers crisis. He opened his speech by highlighting the government’s economic reforms initiated in the last four years and its accomplishments.
Jaitley said that this year’s Budget would focus on strengthening agriculture and rural economy and the govt committed to double the farmer’s income by 2022, the administration of Niti Aayog would also devise a mechanism to ensure that the farmers get the minimum support price.
The Finance Minister further said that the country has grown on an average of 7.5% in the first 3 years of the current govt and has become a USD 2.5 trillion economy. “We hope our economy to grow at 7.2 to 7.5% in the second half of the current fiscal year.” Jaitley further stated that India has already 7th largest economy in the world and it is expected to grow 5th largest economy soon.
The finance minister budget mostly centered on upcoming elections in 8 states this year and the General Election next year, all of which put strong demands on it. Did he manage to balance populist demands? Read the highlights from Budget speech.
- All taxpayers above 5 lakh rupees to get the benefit of 12,500 rupees across the board.
- No corporate tax reduction for large companies.
- 5% TDS On Insurance Agents Removed.
- A single one-page form for filing IT returns for taxable income up to 5 lakh rupees.
- Tax on income from 2.5 lakh to 5 lakh reduced from 10% to 5%.
- Amendment to RBI Act proposed to enable electoral bonds.
- Time period of revising tax return to be reduced to 12 months.
- No proposal to withdraw MAT. However, carry-forward to be extended to 15 years from 10, says Jaitley.
- Political parties will be entitled to receive donations in cheque or digital payment, every political party to file IT returns.
- Total expenditure for 2017-18 at Rs 21,47,000 crore, Capital expenditure up by 25.4% over previous year.
- Political Funding: Maximum amount of cash donations any political party can receive will be Rs 2000 from any one source.
- No transaction above Rs 3 lakhs to be permitted in cash.
- The tax rate for companies with an annual turnover up to 50 crores to be reduced to 25%, to strengthen MSME sector.
- Basic customs duty on LNG to be reduced from 5% to 2.5%.
- To protect the poor from chit fund schemes, draft bill placed in public domain.
- To make MSMEs more viable, income tax for smaller companies to be reduced.
- Profit-linked deduction available to Startups for 3 years out of 5 years will be available for 3 years out of 7 years.
- Capital gains tax to be exempted, for persons holding land from which land was pooled for the creation of state capital of Telangana.
- The holding period for gain from immovable property reduced to two years.
- Net Tax Revenue Growth At 17% For Last 2 Years.
- Abolished Foreign Investment Promotion Board (FIPB).
- Because of efforts made by the government, growth in personal income tax at 34% in first 3 quarters of the year.
- Revenue Deficit target at 1.9% of GDP.
- 95 crore individuals showed income between Rs 2.5 lakh to Rs 5 lakh.
- As against 4.2 cr people working in the organized sector, only 1.74 cr file annual tax returns.
- Only 1.72 lakh showed income above Rs 50 lakh, says Arun Jaitley.
- Aadhar-enabled payment system AadharPay to be launched.
- Fiscal deficit pegged at 3.2 percent of GDP.
- Defence allocation of Rs 2.74 lakh crore.
- Pradhan Mantri Kaushal Kendras to be extended to more than 600 districts across the country: FM.
- State-run companies like IRCON and IRCTC to be listed in markets.
- Total resource transfer to States and UTs with legislature at Rs 4.11 lakh crore up from Rs 3.6 lakh crore in BE 16-17.
- The total allocation for rural, agricultural & allied sectors for 2017-18 a record 1,87,223 cr, up by 24%.
- The health insurance scheme to cover 500 million beneficiaries of 100 million families. FM Jaitley announces a cover of up to Rs 5 lakh per year.
- For education sector, the government proposes revitalizing infrastructure, opening schools for the ST populations as well as promoting programmes for teachers, to improve quality education for students: Arun Jaitley.
- Finance Minister says allocate Rs 2,600 underground water irrigation plan in 96 districts.
- Govt’s budget for health, education and social security increased to Rs 1.38 lakh crore for 2018-19 from Rs 1.22 lakh crore in current fiscal.
- Innovation Fund for secondary education to be created.
- Web based pension distribution system for defense pensioners.
- Road sector budget increased from 57,676 cr rupees in 2016-17 to 64,900 crore rupees in 2017-18.
- The total expenditure of this year’s budget is 21 lakh 47 thousand crore rupees.