Key Features of Union Budget Presented by Finance Minister Arun Jaitley on 1st Feb 2017

1. Key Features of Budget 2017-18

2. Introduction
 Union budget was presented before Parliament By
Hon’ble Finance Minister Arun Jaitely on 1st Feb,
2017
 The Budget size was 21.47 Lakh Crore
 3 Major Reforms in Budget were
 Budget Advance to 1st Feb.
 Merger of Rail And Union Budget
 Removal of Plan and Non-Plan classification of
expenditure
 The Agenda was “Transform, Energize and Clean
India (TCE).”
 Transform the Quality of Governance and Life of People
 Energize Various Section of Society and
 Clean Country from Evil of Corruption, Black Money and
Non-transparent Political Funding.

3. Indian Economy
 CPI based Inflation brought under control from
6% in July 2016 to 3.4% December 2016
 CAD decline from 1% to 0.3%of GDP in first half
of 2016-17
 FDI grew 36% in H1 of 2016-17 despite 5%
reduction in Global FDI Inflows
 Foreign Reserve reached to $361 Billion level
 The Indian Economy has been Robust to Mild
Shocks
 IMF and World Bank has forecasted Good
Growth In Indian GDP

4. GDP Growth Rate
3.90%
5.60%
6.60%
7.20%
7.60%
7.10%
6.75%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
2008-09 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
GDP Growth Rate

5. Budget Financial
Particulars Actual 15-16 Budget Estimate 16-17 Budget Estimate 17-18
Receipts
Revenue 1257992 1444156 1600203
Total Receipts 1257992 1444156 1600203
Expenditure
Capital 253022 247032 309801
Revenue 1537761 1731037 1836934
Total Expenditure 1790783 1978069 2146735
Fiscal Deficit 532791 533904 546332
Fiscal Deficit (% of
GDP)
3.90% 3.50% 3.20%
Rs. In Crore

6. Sources of Funds
2017-18
Tax Revenue- 87.66%
Non- Tax Revenue- 12.34%
(Includes Non-Debt Capital
and Borrowings) 19.75%
23.45%
11.11%
17.28%
12.34%
12.34%
3.73%
2017-18
Income Tax
Corporation Tax
Customs
Union Excise Duty
Service Tax and Other Taxes
Non-Tax Revenue
Non-Debt Capital Receipt

7. Application of Funds
Centrally Sponsered
Scheme
10%
Central Sector
Scheme
11%
Interest Payment
18%
Defense
9%Subsidies
10%
Finance Commision
And Other Transfer
5%
States' Share of
Taxes and Duties
24%
Other Expenditure
13%
2017-18
Classification of Plan and Non-plan
Expenditure has been Abolished

8. 2010 2011 2012 2013 2014 2015 2016 2017
Fiscal deficit 4.18483 3.73591 5.16269 4.9019 5.02863 5.10817 5.32783 5.46532
As % of GDP 6.79% 4.87% 5.79% 4.85% 4.43% 4.04% 3.92% 3.20%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
As%ofGDP
Rs.inLakhCrore
Trajectory of Fiscal Deficit
Fiscal deficit As % of GDP
2010 2011 2012 2013 2014 2015 2016 2017
Gross Tax Revenue 6.21377.89178.84910.33411.34112.414 14.5 15.158
As % of GDP 10.08%10.28%9.93%10.22%9.99%9.81%10.68%8.87%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
0
2
4
6
8
10
12
14
16
As%ofGDP
Rs.inLakhCrore
Taxation Income
Gross Tax Revenue As % of GDP
2010 2011 2012 2013 2014 2015 2016 2017
Total borrowings 4.16 3.7 4.36 4.67 4.75 4.9 4.8 3.5
4.16
3.7
4.36
4.67 4.75 4.9 4.8
3.5
0
1
2
3
4
5
6
Rs.inLakhCrore
Government Borrowing
Total borrowings

9. Priorities and Roadmap
 10 Focused Areas of Budget
 Farmers:- Committed to Double the income in 5
years
 Record 10 Lakh Crore target for Agri Credit
 60 days Interest Waiver
 Computerisation and Integration of all 63000 Agri. Credit
Society with core banking System
 Rural Population:- Providing Employment & Basic
Infrastructure.
 Aims to Bring 1 Cr Household out of Poverty by 2019
 MNREGA allocation to highest ever 48000 Cr in 17-18
 100% Village Electrification by 1st May, 2018
 Total Allocation for Rural, Agriculture and Allied Sector Rs.
187223 Cr.

10. Priorities and Roadmap
 Youth:- Energizing the through Education, Skill and Job
 To Introduce a System of Measure Annual Learning Outcome
in our Schools
 SWAYAM Platform, Leveraging IT to be launched with at least
350 Online Courses.
 The Poor and The Underprivileged:-Strengthening the
System of Social Security, Health Care, and Affordable
Housing
 National Housing Bank will Refinance Individual Housing
Loans about 20000 Cr in 17-18
 To Create additional 5000 Post Graduate seats per annum to
ensure adequate availability of specialist Doctors
 Two New AIMS to be set up in Jharkhand and Gujrat.
 Allocation for Scheduled Tribes has been increased to 31920
Cr
 For Senior Citizen, Aadhar Based Smart Card containing their
Health details will be Introduced

11. Priorities and Roadmap
 Infrastructure:- For Efficiency, Productivity and
Quality of Life
 For Transportation Sector including Rail, Roads, Shipping
provision of 241387 Cr has been made
 Total Capital and Development Expenditure of Railways has
been pegged 131000 Cr
 By 2019 all Coaches of Railways will have Bio-Toilets
 Road Sector Allocation is increased to 64900 Cr
 Select Airport in Tier 2 cities will be Taken up for Operation
 Second Phase of Solar Park Development to be taken up
for Additional 20000 MW Capacity

12. Priorities and Roadmap
 Financial Sector:- Growth & Stability by Stronger
Institutions
 FIPB to be Abolished and Liberalisation of FDI Policy
 Lending target under Pradhan Mantri Mudra Yojana to be 2.44
Lakh Cr
 Digital Economy:- For Speed, Accountability and
Transparency
 Aadhar Pay, A merchant version of Aadhar Enabled Payment
System will be launched
 Public Services:- Effective Governance and Efficient
Service delivery through People’s Participation
 To Utilise the Head Post Offices as Front Offices for Rendering
Passport Services
 The Government e-market place which is functional for
Procurement of Goods And Services

13. Priorities and Roadmap
 Prudent Fiscal Management:- To Ensure Optimal
Deployment of Resources and Preserve Fiscal
Stability
 Steeped up Allocation of Capital Expenditure by 25.4% over
the Previous Year
 Total Resources being transferred to States’ and Union
Territories is Rs. 4.11 Lakh Cr against 3.60 Lakh Cr in Last
Year
 Fiscal Deficit is targeted 3.2% of GDP in Current Year and
3% of GDP in Next Year
 Tax Administration:- Honoring The Honest

14. 9.8 Cr Person
are in
Employment
4.2 Cr in
Organised
Salaried Sector
1.74 Cr Filed
Return
2.46 Cr not
Filed Return
5.6 Cr in
Informal Sector
Only 1.81 Cr
people have
Filed Return
13.94 Lakh
Companies Are
Registered
Only 5.97 Lakh
Companies Filed
Return
2.76 lakh
Companies
Showed Loss or
Zero Profir
1 Lakh Companies
Showed Profit Less
than 1 Cr
28667 Companies
Showed Profit in
Between 1 Cr to 10
Cr
Only 7781
companies Showed
Profit Above 10 Cr
7.97 Lakh
Companies Didn’t
Filed Return
Car Sold During Year -1.25 Cr
People Flew Abroad – 2 Cr

15. Tax Proposal
 India has Low Tax-to-GDP Ratio
 Rate of growth of Advance tax in Personal I-T is 34.8% in last
three quarters of this financial year
 Holding period for long term capital gain lowered to 2 years
 Small And Medium Enterprises having turnover upto 50 Crore
will be Taxed @25%
 Limit of cash donation by charitable trust reduced to Rs 2,000
from Rs 10,000
 Tax rate For 2.5 Lakh to 5 Lakh will be 5% instead of 10%
 All other categories of tax payers in subsequent brackets will
get benefit of Rs 12,500
 People filing I-T returns for the first time will not come under
govt. scrutiny
 10% surcharge on individual Income above Rs. 50 lakh
 15% Surcharge on Individual Income Above Rs. 1 Cr

16. Other Announcements
 Promoting Digital Economy
 No transaction above Rs 3 lakh to be permitted in cash
 Ease of Doing Business
 Threshold limit for Audit of Business who opted for
Presumptive income scheme is increased from 1 Cr to 2 Cr
 Threshold for maintenance of Books for Individuals and HUFs
is Increased from turnover of 10 lakhs to 25 lakhs or income
from 1.2 Lakhs to 2.5 Lakhs
 Transparency in Electoral Funding
 Maximum Amount of Cash Donation can be received by
Political Party if Ceased to Rs. 2000
 Every Political Party would have to file a Return within
Prescribed time
 Goods and Service Tax
 The Extensive reach out efforts to trade and industry for GST
will Start from 1st April 2017 to make them Aware of the
taxation System

17. Summary
 Fiscal Deficit estimated to be 3.20%
 Borrowing will be Rs. 546332 Cr
 Corporate tax rate for MSME has been reduced to 25%
 Tax rate on income upto Rs. 5 lakh has been reduced
to 5%
 Capital Expenditure has been increased by 25.4% from
previous year