Government aims for 2018–19’s fiscal deficit target of 3.3 per cent of GDP.
Revised fiscal deficit for 2017–18 was Rs 5.95 lakh crore or 3.5 per cent of GDP.
2. AGRICULTURE AND RURAL ECONOMY
· Aiming to a major relief to farmers, minimum support price (MSP) for all upcoming Kharif crops has been raised to 1.5 times the cost of production.
· The target for agricultural credit for the fiscal year 2018–19 set at Rs. 11 lakh crore, up from Rs. 10 lakh crore last fiscal 2017–18.
· To boost food processing sector, government doubled allocation from Rs 715cr to Rs 1400cr for BE 2018–19.
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3. HEALTH EDUCATION AND SOCIAL PROTECTION
Allocation of Rs 600 crore has been proposed for tuberculosis patients who are undergoing treatment.
The government will allocate Rs 5,750 crore for the National Livelihood Mission in 2018–2019 and the plan to build two crore toilets in the next fiscal year.
To give boost to education sector, government to launch a major initiative named ‘‘Revitalising Infrastructure and Systems in Education (RISE) by 2022’’ with a total investment of 1,00,000 crore in next four years.
The Finance Minister also announced the world’s largest government funded healthcare programme titled National Health Protection Scheme to cover more than 10 crore poor and vulnerable families (approximately 50 crore beneficiaries) providing coverage up to Rs. 5 lakh per family per year for secondary and tertiary care hospitalization.
4. INDUSTRY
Allocation of Rs 3,794 crore by 2022 for capital support and industry subsidy for the MSME sector. Consumers get relief with excise cut on fuel.
Excise on unbranded diesel was cut by Rs 2 to Rs 6.33 per litre and the same deduction was given from unbranded petrol top Rs 4.48 per litre.
5. RAILWAYS
Total capital expenditure for Indian Railways set at Rs 1,48,528 crore. A special railway university will also be set up in Vadodara, Gujarat.
Mumbai’s local train network will have 90 kilometers of double line tracks at a cost of over Rs.11,000 crore. 600 major stations to be redeveloped.
All station with more than 25,000 footfalls to have escalators. Wifi & CCTVs to be provided progressively on all trains & stations.
6. INFRASTRUCTURE
Government have announced the increase of budgetary allocation on infrastructure for 2018–19 to Rs.5.97 lakh crore against estimated expenditure of Rs.4.94 lakh crore in 2017–18.
7. TAXATION
The government proposes no change in personal income tax rates for salaried class. Liberalisation of presumptive income schemes for small businesses with income below Rs 2 crore, similar schemes for professionals with income below Rs 50 lakh.
Corporate tax has been reduced from 30 per cent to 25 per cent for companies with turnover up to Rs 250 crore, move to boost MSME sector.
Revision in monthly emoluments of President of India at Rs 5 lakh, Rs 4 lakh for vice president and Rs 3.5 lakh for governors. Standard deduction of Rs 40,000 for salaried taxpayers was announced.
In terms of capital gains tax, long-term capital gains are proposed to be taxed at 10 per cent exceeding one lakh. Short term capital gains tax to remain unchanged at 15 per cent.
8. DIVESTMENT
The Finance Minister announced that 2017–18 disinvestment target of Rs. 72,500 crore has been exceeded and expected receipts of Rs. 100,000 crore. The government set disinvestment target of Rs. 80,000 crore for 2018–19.
