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.
*****
DSM/KSP/GB 2017-18
.
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