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New Delhi : Union Finance and Corporate Affairs Minister Arun Jaitley presented General Budget 2018-19 in Parliament on February 1, 2018. The budget is guided by mission to strengthen agriculture, rural development, health, education, employment, MSME and infrastructure sectors. The budget has kept the income tax rates and slabs unchanged.
The Government says a series of structural reforms will propel India among the fastest growing economies of the world adding the country is firmly on course to achieve over 8 % growth as manufacturing, services and exports were back on good growth path. Jaitley said Fiscal Deficit is pegged at 3.5 % and projected it to be at 3.3 % for 2018-19.
The MSP for all unannounced kharif crops will be one and half times of their production cost like majority of rabi crops while the Institutional Farm Credit has been raised to Rs 11 lakh crore in 2018-19 from Rs 8.5 lakh crore in 2014-15. Altogether 22,000 rural haats to be developed and upgraded into Gramin Agricultural Markets to protect the interests of 86% small and marginal farmers.
Jaitley said “Operation Greens” were launched to address price fluctuations in potato, tomato and onion for benefit of farmers and consumers. Two New Funds of Rs 10,000 crore announced for Fisheries and Animal Husbandary sectors while the Re-structured National Bamboo Mission gets Rs 1,290 crore. Loans to Women Self Help Groups (SHGs) will increase to Rs 75,000 crore in 2019 from Rs 42,500 crore last year. Higher targets for Ujjwala, Saubhagya and Swachh Mission will cater to lower and middle class in providing free LPG connections, electricity and toilets, he said, according to a PIB release.
The outlay on health, education and social protection will be Rs 1.38 lakh crore. Tribal students will get Ekalavya Residential School in each tribal block by 2022. Welfare fund for SCs has got a boost.
World‟s largest Health Protection Scheme covering over 10 crore poor and vulnerable families launched with a family limit up to Rs 5 lakh for secondary and tertiary treatment. The allocation for infrastructure is Rs 5.97 lakh crore.
Ten prominent sites to be developed as Iconic tourist destinations. NITI Aayog will initiate a national programme on Artificial Intelligence(AI) while Centres of excellencewill be set up on robotics, AI, Internet of things etc. Disinvestment crossed target of Rs 72,500 crore and reach Rs 1,00,000 crore.
Hundred percent deduction proposed to companies registered as Farmer Producer Companies with an annual turnover up to Rs 100 crore on profit derived from such activities for five years from 2018-19. The deduction of 30 % on emoluments paid to new employees Under Section 80-JJAA to be relaxed to 150 days for footwear and leather industry to create more employment.
There will be no adjustment in respect of transactions in immovable property where Circle Rate value does not exceed 5 % of consideration. The budget has proposed to extend reduced rate of 25% currently available for companies with turnover of less than Rs 50 crore (in Financial Year 2015-16) to companies reporting turnover up to Rs 250 crore in Financial Year 2016-17. It will benefit micro, small and medium enterprises.
Standard Deduction of Rs 40,000 in place of present exemption for transport allowance and reimbursement of miscellaneous medical expenses will benefit 2.5 crore salaried employees and pensioners.