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Union Budget 2018 Highlights

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Finance Minister Arun Jaitley’s delivered this government’s fifth full Union Budget 2018. Here are some highlights from this budget. Note down the Existing and New Schemes for Competitive Exam purpose.

Index:

Fiscal Situation, Taxation, Customs Duty, Agriculture, Rural Economy, Education, Health, Social Security, MSME, Petroleum and Diesel, Infrastructure, Railways, Aviation, Market, Technlogy, Miscllanious

Fiscal Situation:

  1. Fiscal deficit is 3.5% of GDP at Rs 5.95 lakh crore in 2017-18. Projecting fiscal deficit to be 3.3% of GDP in the next fiscal

Taxation:

  1. There is no change in Personal Interest rate compared to previous year.
  2. Growth in direct taxes (till Jan 15) is 18.7 %
  3. Corporate Tax of 25% extended to companies with turnover up to Rs 250 cr in financial year 2016-17
  4. Incentives for Senior citizens: Exemptions in income of Rs 10,000 from Banks FD and post offices. Senior citizens to get Rs 50,000 per annum exemption for medical insurance under Sec 80D.
  5. Education cess increased to 4% from 3% to collect additional Rs 11,000 crore

Customs Duty:

  1. Customs Duty on certain products, such as mobile phones and televisions has been increased, to provide a fillip to ‘Make in India
  2. Central Board of Excise and Customs renamed as Central Board of Indirect Taxes and Customs
  3. Import of solar tempered glass for manufacture of solar cells exempted from customs duty.
  4. Customs duty on crude edible vegetable oils like groundnut oil, safflower seed oil, sunglasses, cigarette lighter, toys, bus and truck tyres, select furniture, imitation jewellery, watches hiked.

Agriculture:

  1. Finance Minister said that 275 million tonne foodgrains and 300 million tonne fruits and vegetable have been produced in the country.
  2. The Minimum Selling Price (MSP) for the Kharif Crops has been set at 1.5 times the produce price.
  3. Agricultural market and infra fund of Rs 2000 crore fund will be set up to strengthen the market connectivity.
  4. A sum of Rs 500 cr will be allocated for Operation Green to be launched. It will promote agricultural products.
  5. Operation Green: To promote Farmer Producers Organizaions (FPOs), agri-logistics, processing facilities and professional management.
  6. Extend the facility of Kisan credit card to fisheries and for animal husbandry.
  7. Propose to launch a restructured bamboo mission with a fund of Rs 1200 crore . “Bamboo is green gold

Rural Economy:

  1. Ujjala Scheme: 8 crore poor women will get new LPG connections.
  2. PM Saubhagya Yojana: 4 crore poor people will get power connection. The government will spend Rs 16,000 crore on this scheme.
  3. Swach Bharat Mission: Govt plans to construct 2 crore toilets in next fiscal year.
  4. Pradhan Mantri Awas Yojana: Government target house for all by 2022. 51 lakh houses have been constructed affordable houses in rural and further 50 lakh houses in urban areas. 1 cr houses to be built in rural areas.

Education:

  1. Govt to increase digital intensity in education. Technology to be the biggest driver in improving quality of education.
  2. Rs. 1 lakh crore allocated to revitalisation and upgradation of education sector. Promoting learning based outcomes and research.
  3. By 2022, every block with more than 50 per cent ST population will have Ekalvya schools at par with Navodaya Vidyalayas.
  4. Aims to move from black board to digital board schools by 2022.
  5. PM reasearch fellows: Govt will identify 1000 Btech students each years and provide them to do PHDs in IIT and IISc, while also teaching undergraduate students once a week at that time.

Health:

  1. Aayushman Bharat programme: 1.5 lakh centres will be set up to provide health facilities closer to home. Rs 1,200 crore to be allocated for this programme.
  2. Flagship National Healthcare protection scheme, with approximately 50 crore beneficiaries. Up to Rs 5 lakh per family per year for secondary and tertiary care hospitalisation. World’s largest government-funded healthcare programme.
  3. Rs 600 crore allocated for tuberculosis patients, at the rate Rs 500 per month during the course of their treatment.
  4. Finance Minister announces setting up of one medical college for every three parliamentary constituencies, with 24 New government medical colleges also being envisioned. Government also will work on upgrading hospitals to medical colleges.

Social Security:

  1. PM Jivan Bima Yojana has benefited 5.22 crore families.
  2. Govt will expand PM Jan Dhan Yojana: Al 16 crore accounts will be included under micro insurance and pension schemes.
  3. Sukanya Samriddhi Scheme: 1.26 cr accounts opened till now.
  4. Social inclusion schemes for Scheduled Castes – Rs 52,719 crore and for Scheduled Tribes Rs 39,139 crore.

MSME (Micro, Small & Medium Enterprises):

  1. Rs 3,794 crore allocated to the MSME sector in the form of capital support and interest subsidy By 2022.
  2. Rs 3 lakh crore target has been set for the Mudra Yojana and Rs 4.6 lakh cr sanctioned under MUDRA Scheme.

Petroleum and Diesel Sectro:

  1. Excise on unbranded diesel cut by 2 rupees to 6.33 rupee per ltr and on unbranded petrol cut by 2 rupees to 4.48 rupee per ltr

For Employees:

  1. Govt will contribute 12% of the wages of new employees in EPF in all sectors for next 3 years.
  2. Women contribution to EPF reduced to 8% for first 3 years.

Infrastructure:

  1. Construction of new tunnel in Sera Pass to promote tourism.
  2. Out of 100 smart cities 99 cities have been selected, with an outlay of Rs 2.04 lakh crore.
  3. 10 prominent tourist sites will be made iconic tourist destinations, with an amalgamation of private funding, marketing and branding.
  4. Bharatmala project: To develop 35,000 KM under phase 1 with an outlay of Rs 5.35 lakh crore.
  5. Govt to introduce pay-as-you-use system for toll payments.

Railways:

  1. Railway capex has been pegged at Rs 1.48 lakh crore , up from Rs 1.31 lakh crore last year.
  2. All stations with footfall of greater than 25,000 will have escalators.
  3. Govt to eliminate 4267 unmanned rail crossing in broad gauge in 2 years.
  4. Allocates Rs 11,000 crore Mumbai rail network and Rs 17,000 crore for the Bengaluru metro.
  5. 150 km of additional suburban railway networks to be set up in Bengaluru at the cost of Rs 17,000 cr.

Aviation:

  1. Airport Authority of India (AAI) has 124 airports. Propose to increase the number by at least 5 times 1 billion trips a year, Rs 60 cr has been allocated to kickstart the initiative.
  2. UDAN Scheme to connect 64 unconnected airports across the country.

Market:

  1. SEBI to consider mandating large corporations to meet 1/4th of their debt needs and to mull asking large cos to meet 25% debt from bond market.
  2. RBI norms to nudge companies to access bond market for funds.

Technology:

  1. Allocation to Digital India scheme doubled to Rs 3073 cr.
  2. 5 lakh WiFi HotSpots to provide Broadband access to 5 crore rural citizens, at the cost of Rs 10,000 cr.

Miscllenious:

  1. Govt will evolve a scheme to assign a Unique ID for companies.
  2. National Insurance Co, Oriental Insurance Co and United Assurance Co to be merged into one entity and subsequently listed.
  3. Defence outlay raised to Rs 2.82 lakh crore in 2018-19 from Rs 2.67 lakh crore in current year.
  4. Food subsidy to rise to Rs 1.69 lakh crore in 2018-19 from Rs 1.4 lakh crore in current year.
  5. Emoluments for President set at Rs 5 lakh, Rs 4 lakh for Vice President, Rs 3.5 lakh for governors.

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