Key Highlights Of Union Budget 2018 - Arun Jaitley Addresses India

February 02, 2018

Widely anticipated; Budget 2018 was recently announced. India’s Finance Minister Arun Jaitley presenting Union Budget 2018 in the Parliament. Furthermore; the budget is largely focused on uplift of agricultural sector, furthermore; with a push to healthcare and education sectors in the country.

Budget 2018 touched key points during the discussion in the session, hence; re-enacting the Long-Term Capital Gains tax, hiking of custom duty, the healthcare scheme and not making changes to the personal income tax slabs.

“Prime Minister Narendra Modi has given a clarion call to double farmers’ income by 2022, the 75th year of India’s independence,” Finance Minister Arun Jaitley said in parliament as he unveiled the Union Budget 2018 today (Source)

FM Arun Jaitley in his budget 2018 outlined various schemes to promote agriculture, organic farming, animal husbandry and fisheries, hence; it ensured that he was understood by people living in rural areas.

Furthermore; the minimum support price of all crops will be increased to at least 1.5 times of production cost. He has also announced a health care scheme to cover 10 crore poor families, therefore; 50 crore beneficiaries will get Rs. 5 lakh per family per year. Hence; making the scheme the world’s largest government-funded healthcare programme said Mr Jaitley.

India’s budget 2018 aims to lift millions of rural farmers and workers out of poverty

The Key Highlights Of Union Budget 2018-2019

Budget 2018 – Agriculture Sector

The government’s emphasis will be on generating higher incomes for farmers, hence; helping them produce more with lesser cost, therefore; in turn, earning higher income for their produce.
Jaitley stressed on the fact that India’s agricultural production is at a record high level today. Furthermore; to say 275 million tonne foodgrains and 300 million tonne fruits and vegetable have been produced in the country.
The FM said the government wants farmers to earn 1.5 times the production cost, hence; there is a minimum selling price (MSP) for the Kharif Crops has been set at 1.5 times the produce price. Furthermore; Jaitley added that the Centre will work with states to ensure that all farmer get a fair price.
Extend the facility of Kisan credit card to fisheries and for animal husbandry
Rs 10,000 crore set aside for Fisheries and Aquaculture Development Fund
Rs 10,000 crore set aside for animal husbandry infra fund

Budget 2018- Tax Sector

There is no personal income tax changes in budget 2018-19

Growth in direct taxes (till Jan 15) is 18.7 %
Surcharge of 10% on income above Rs 50 lakh but; less than Rs 1 cr to be continued next year; 15% on income above Rs 1 Crore to continue
100% tax deduction is allowed for the co-operative societies
Corporate Tax of 25% extended to companies with turnover up to Rs 250 cr in financial year 2016-17
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
Rs 7.5 lakh per senior citizen limit for investment in interest-bearing LIC schemes doubled to Rs 15 lakh
Standard deduction of Rs 40,000 allowed for transport, medical reimbursement for salaried tax payers
Govt to reduce hardships faced in realty deals; therefore; no adjustment were to be made in case circle rate does not exceed 5 pc of sale consideration.
Short term capital tax remains at 15%
Education cess increased to 4% from 3% to collect additional Rs 11,000 crore
Govt makes PAN mandatory for any entity entering into a financial transaction of Rs 2.5 lakh or more.

Budget 2018 – HealthCare Sector

An amount of Rs. 5 Lakh medical insurance cover per year for 10 crore families was announced
Aayushman Bharat programme: 1.5 lakh centres will be set up to provide health facilities closer to home hence; an amount of Rs 1,200 crore will be be allocated for this programme
Flagship National Healthcare protection scheme, with approximately 50 crore beneficiaries.
Finance minister announces setting up of one medical college for every three parliamentary constituencies, hence; 24 new government medical colleges are envisioned.
Government also will work on upgrading hospitals to medical colleges

Budget 2018 – Custom Duties

Social welfare surcharge of 10% on imported goods.
Central Board of Excise and Customs renamed as Central Board of Indirect Taxes and Customs
Import of solar tempered glass for manufacture of solar cells exempted from customs duty.
Customs duty on crude edible vegetable oils like groundnut oils safflower seed oil hiked from 12.5% to 30%; on refined edible vegetable oil from 20% to 35%
Customs duty on sunglasses, cigarette lighter, toys, bus and truck tyres, select furniture hiked.
Customs duty on imitation jewellery hiked from 15% to 20%; doubled on all watches to 20%.
Import duty on LCD/LED/OLED panels, parts of TVs hiked to 15%; duty on smart watches, wearable devices, footwear doubled to 20% hence; custom duty price will witness a great hike.

Budget 2018 – Rural Sector

8 Crore poor women will get new LPG connections.
PM Saubhagya Yojana: 4 crore poor people will get power connection.
The government will spend Rs 16,000 crore on this scheme.
Govt plans to construct 2 crore toilets in next fiscal year under Swach Bharat Mission
Government target house for all by 2022. However; there are 51 lakh houses constructed in rural areas and furthermore; 50 lakh houses in urban areas

Budget 2018- Education Sector

Govt to increase digital intensity in education. Technology to be the biggest driver in improving quality of education
Rs. 1 lakh crore allocated to revitalization and up-gradation of education sector; hence; promoting learning based research and outcomes.
By 2022, every block with more than 50 per cent ST population therefore; will have Ekalvya schools at par with Navodaya Vidyalayas
Aims to move from black board to digital board schools by 2022.
Govt will identify 1000 Btech students each years hence; providing them to do PHDs in IIT and IISc, while also teaching undergraduate students once a week at that time.

Budget 2018 – Infrastructure

India needs investment of Rs 50 lakh crore in the infrastructure sector. Construction of new tunnel in Sera Pass to promote tourism. Out of 100 smart cities 99 cities have been selected hence; there is an outlay of Rs 2.04 lakh crore

Bharatmala project: To develop 35,000 KM under phase 1 with an outlay of Rs 5.35 lakh crore
Govt to introduce pay-as-you-use system for toll payments
Railway capex has been pegged at Rs 1.48 lakh crore , up from Rs 1.31 lakh crore last year
Eliminate unmanned railway crossing
All stations with footfall of greater than 25,000 will have escalators.
Airport Authority of India (AAI) has 124 airports.
A proposal was announced to increase the number by at least 5 times 1 billion trips a year, furthermore; Rs 60 cr has been allocated to kickstart the initiative
UDAN Scheme hence; will be connecting with 64 unconnected airports across the country

The Union Budget 2018-19 reflects the government’s commitment to digitalization for the country’s development, IT industry’s apex body. “The Budget therefore; reflects the government’s commitment to digitalization as a key force for the country’s development strategy. Hence; focusing on ‘ease of living’ will spur greater use and deployment of technology across verticals.