Key highlights of Union Budget 2017-18

On February 1, 2017, Finance Minister, Mr. Arun Jaitley presented with Union Budget 2017-18 in the Lok Sabha today. The budget was in effect driven towards increased expenditure while the general verdict is more a welfare. There have been some positive aspects in the budget that make it a strong budget.

We present the key highlights from the Union Budget, at relevant to the education Sector and the youth of the country as well as the farming sector, the rural population, the poor and underprivileged health care, infrastructure, the financial sector for stronger and big institution, speed accountability, public services, prudent fiscal management and tax administration.



n last one year.

• Transform, Energize and Clean India , #TECIndia , our agenda for the next year
• Advancement of budget will enable all ministries, departments to operationalise all schemes right from beginning of next fiscal
• Demonetization aims to create a new normal, where the GDP would be bigger, cleaner and real
• Effects of demonetization not expected to spill over to next year
• Firmly believe that GST, Demonetization, built on JAM, will have an epoch-making impact on the lives of our people
• Demonetization aims to create a new normal, where the GDP would be bigger, cleaner and real
• Recalls #MahatmaGandhi’s words: ’ A right cause never fails’
• 3 challenges in current global scenario and monetary stance of US FED Reserve, Commodity prices specially crude oil & retreat from globalization
• We have moved from a discretionary administration to a policy-based administration
• Expectations included burning issues like inflation and price rise, issue of corruption & crony capitalism
• Our government was elected amidst huge expectations of people, the underlying theme of expectations being good governance
• Hope to resolve all issues regarding GST via consultations
• We are moving from informal to formal economy and the Government is now seen as a trusted custodian of public money
• Sluggish growth replaced by high growth and war on black money launched. More steps will be taken to benefit farmers and the weaker sections
• Monetary policy to be expansionary in major economies. Uncertainty around commodity prices especially oil to have impact on emerging economies.
• CAD declined from 1 percent last year to 0.3 percent in first half of current fiscal. Protectionism is increasing
• 36 percent increase in FDI flow, forex reserves at $361 billion in January enough to cover 12 months needs
• We are seen as engine of global growth and IMF sees India to grow fastest in major economies
• Demonetization was a continuation of series of measures taken by government in 2 years. It is bold and decisive measure.
• Government took two tectonic policy initiatives – passage of GST Bill and demonetization
• Effects of demonetization not expected to spill over to the next year. GDP will be bigger, cleaner after demonetization
• Only transient impact on economy due to demonetization, and long term benefit include higher GDP growth and tax revenue
• Merger of Railways Budget with General Budget brings focus on a multi-modal approach for development of railways, highways and inland water transport
• Demonetization will help in transfer of resources from tax evaders to government
• Functional autonomy of the railways to be maintained. Pace of remonetisation has picked up; demonetization effects will not spill over to next year.
• World Bank expects GDP growth rate at 7.6 percent in Financial Year 2018 and 7.8 percent in Financial Year 2019. Our agenda for next year is to transform, energize and clean India
• Spend more in rural areas, infrastructure, poverty alleviation, while maintaining fiscal prudence as guiding principle of Union Budget.
• Budget presentation advanced to help begin implementation of schemes before onset of monsoon
• Committed to double farm income in 5 years. Plan, non-plan classification of expenditure done away with in the Budget for 2017-18 to give a holistic picture

• Mini labs by qualified local entrepreneurs to be set up for soil testing in all 648 krishi vigyan kendras in the country
• Demonetization was a bold and decisive strike in a series of measures to arrive at a new norm of bigger, cleaner and real GDP
• Space technology to be used for monitoring MNREGA implementation
• 100 percent electrification of villages to be completed by May 2018
• Rs 27,000 crore on to be spend on PMGSY; 1 crore houses to be completed by 2017-18 for the homeless
• Sanitation coverage in villages has increased from 42 percent in October 2016 to 60 percent, a rise of 18 percent
• We propose to provide safe drinking water to 28,000 arsenic and fluoride affected habitations.
• To construct one crore houses by 2019 for homeless. PM Awas Yojana allocation raised from Rs 15,000 crore to Rs 23,000 crore
• Rs 500 crore allocated to set up Mahila Shakti Kendras and allocation raised from Rs 1.56 lakh crore to Rs 1.84 lakh crore for women and child welfare
• Two new AIIMS to be set up Jharkhand and Gujarat
• New rules regarding medical devices will be devised to reduce their cost
• 35 percent increase in allocation for Supreme Court to Rs 52,393 crore
• Railway tariffs to be fixed on the basis of cost, social obligation and competition.
• Budget allocation for highways stepped up to Rs 64,000 crore in financial year 2018 from Rs 57,676 crore
• Over 90 percent of FDI proposals are now processed through automatic route. FIPB will be abolished.
• Second phase of solar power development to be taken up with an aim of generating 20,000 MW
• Rs 2,74,114 crore allocated for defense expenditure, excluding pension and this includes Rs 86,000 crore for defense capital.