Budget 2018: Increase In Custom Duty On Mobiles & TV

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Update: Finance minister Arun Jaitley concludes his Budget speech.

  • Sensex at 35,526.23, down by 438.79 points.
  • Propose to increase the health and education cess to 4%
    Propose to tax long term capital gains exceeding Rs 1 lakh in listed stock at 10%.
  • Rs 50,000 additional benefit to senior citizens for investment in mediclaim.
  • A standard deduction of additional Rs 40,000 for salaried employees. This move will benefit 2.5 crore taxpayers.
  •  No changes in the structure of income tax of individuals.
  •  Rs 7000 crore will be the revenue foregone for the reduced corporate tax on MSMEs.
  • I propose to extend the benefit of the reduced corporate rate of 25% for companies with reported turnover of up to Rs 250 crore: FM
  • 100% tax deduction for the first five years to companies registered as farmer producer companies with a turnover of Rs. 100 crore and above.
  • 41% more returns were filed this year, which shows that more people have joined the tax net.
  • Demonetisation was received by honest taxpayers as ‘Imaandaari ka utsav’.
  • Finance minister Arun Jaitley says govt to take steps to eliminate illegal use of cryptocurrencies.
  • 2017-18: Expenditure bill is Rs 21.57 lakh crore; Fiscal deficit 3.5% for 2017-18
  • Automatic revision of emoluments for MPs every five years.
  • Emoluments of President, Vice President and Governor being revised: Rs 5 lakh; 4 lakh; Rs 3.5 lakh per month respectively.
  • Exceeded the disinvestment target and collected Rs 1 lakh crore: FM.
  • The government insurance companies to be merged into a single entity, and subsequently listed in the stock exchange, as part of the disinvestment programme.
  • The government will assign every enterprise in India a unique ID on the lines of Aadhaar.
  • The government has identified 372 basic business reform actions. Each state will take up these reforms.
  • We will explore the use of blockchain.
  • Rs 5.97 lakh crore allocated for infrastructure spending in India.
  • 5 lakh WiFi hotspots to be set up in rural areas to provide easy Internet access.
  • Redevelopment of 600 major railway stations has been taken up; Mumbai transport system is being expanded; suburban network of 160 km planned for Bengaluru…
  • The government proposes to revamp the system of sanctioning of loans to SMEs. The information required for sanctioning the loan will be linked with GSTN and all required information can be fetched from GSTN Portal. It will help to grant the loans quickly and will help in reducing processing time.
  • UDAN will connect 56 unserved airports and 31unserved helipads in India.
  • An institute is coming up at Vadodara to train people for the bullet train programme.
  • AMRUT programme will focus on water supply to all households in 500 cities. Water supply contracts for 494 projects worth 19,428 core awarded.
  • Rs 1,48,528 crore is the capital expenditure for the Indian Railways for 2018-19.
  • Bharatmala project approved for better road connectivity at Rs 5.35 lakh crore.
  • Women’s contribution reduced to 8% towards PF in the first 3 years for new EPF accounts… The government will contribute 12% of EPF contribution for new employees in all sectors.
  • The government is slowly but steadily progressing towards universal health coverage.
  • Announce allocation of Rs. 56,619 crore for SC welfare and Rs. 39,135 crore for ST welfare
  • 70 lakh farming jobs have been created this year, shows an independent study.
  • 3 lakh crore allocated for PM MUDRA Yojana.
  • Healthcare stocks trading higher after the government said it proposed to cover 100 million families via healthcare protection scheme. Apollo Hospital Ltd rose 4.1%, Thyrocare Technologies Ltd 2.6%, Healthcare Global Enterprises Ltd rose 3%.
    Mass formalization of MSME sector is happening after demonetization and GST.
  • Total 187 projects sanctioned under the Namami Gange programme.
  • 24 new government medical colleges and hospitals to be set up by upgrading existing district hospitals.
  • Rs 600 crore for nutritional support to TB patients.
  • One medical college per every three constituency.
  • Total 187 projects sanctioned under the Namami Gange programme.
  • 24 new government medical colleges and hospitals to be set up by upgrading existing district hospitals.
  • Rs 600 crore for nutritional support to TB patients.
  • One medical college per every three constituency.
  • Have decided to take healthcare protection to a new aspirational level. Launching a flagship National Health Protection Scheme to cover 10 crore poor and vulnerable families, benefiting approximately 50 crore. Providing Rs 5 lakh per family per year for medical reimbursement, under National Health Protection Scheme. This will be world’s largest health protection scheme.
  • National health protection scheme for 10 crore poor families with 50 crore beneficiaries by providing Rs 5 lakh per family per year for secondary and tertiary care hospitalisation. This is the world’s largest health programme.
  •  Rs 1200 crore for the flagship programme in health wellness centres.
  •  Eighteen new schools of planning and architecure will be set up… I propose railway university in Vodadara.
  •  Eklavya schools to be started for Scheduled Tribe population… Scheme for revitalizing school infrastructure, with an allocation of 1 lakh crore rupees over four years. Called RISE – Revitalizing Infrastructure in School Education.
  •  Propose to launch a scheme to revitalise research-based education with Rs 1 lakh crore in the next four years.
  • Integrated B.Ed programme to be initiated for teachers, to improve quality of teachers.
    Technology will be the biggest driver in improving education.
  • Rs 14.34 lakh crore to be spent for providing livelihood to rural India through infrastructure building.
  • Loans to self help groups will increase to Rs 75,000 crore by March 2019.
  • We aim that by 2022, all poor people have a house to live in.
  • In the next financial year, we target the construction of two crore toilets.
  • Removal of crop residue to be subsidised in order to tackle the problem of pollution due to burning of crop residue.
  • Ujwala will give 8 crore women new LPG connections.
  • Special scheme to address air pollution in Delhi-NCR region.
  • Credit for agricultural activities is up from Rs 10 lakh crore to Rs 11 lakh crore .
  • Fishery and aquaculture and animal husbandry funds with a total corpus of Rs 10,000 crore.
  • Agri-Market Development Fund with a corpus of Rs 2000 crore to be set up for developing agricultural markets.
  • Restructured National Bamboo Mission to be launched with an allocation of Rs 1290 crore to promote bamboo sector in a holistic manner.
  • Grameen Agricultural Market (GRAM) will provide farmers a means to sell directly to buyers.
  • Rs 500 crore announced for Operation Green.
  • Allocation to food processing ministry is being doubled from Rs 715 crore to Rs 1400 crore.
  • Cluster-model approach to be adopted for agricultural production.
  • The focus is on low-cost farming, higher MSP. Emphasis is on generating farm and non-farm employment for farmers.
  • 470 APMCs have been connected to eNAM network, the rest to be connected by March 2018… Agri-Market Development Fund with a corpus of 2000 crore to be set up for developing agricultural markets.
  • Desh mein krishi utpadan record star par hai, 2022 tak kisaano ki aay dugni karenge.
    Agri-related stocks gain after it is said MSP for all crops to be increased by 1.5 times.
  • Kaveri Seeds Co Ltd rose 2.4%, Jain Irrigation Systems Ltd 2.1%, Escorst Ltd rose 5%, Mahindra & Mahindra Ltd rose 2.2%.
  • The government will ensure payment of full MSP even if farmers sell below MSP.
    The Minimum Support Price of all crops shall be increased to at least 1.5 times that of the production cost.
  • Our government has ensured that services and benefits reach people directly. The direct benefit transfer in India is the biggest such exercise in the world.
  • Maximum governance, minimum government has ensured India has climbed 42 places in the ease of doing business… We are now working toward easing of living in India
  • Budget 2018 will focus on agriculture and rural economy, health, infra, senior citizens: FM
  • This year’s budget will focus on strengthening rural and agricultural economy.
    India grew at an average of 7.5% in the first three years since 2014. It is now a 2.5 trillion dollar economy.
  • All the structural reforms will help the economy in the short and long-term… India is expected to become the fifth largest economy very soon.
  • Our government has implemented structural reforms.
  • India stands out as the fastest growing economy in the world… There is a premium on honesty.
  • Finance minister Arun Jaitley begins his Budget speech.
  • The Cabinet has approved the Union Budget 2018.

Update: Finance Minister Arun Jaitley arrived at the Ministry of Finance (North Block) on Thursday morning ahead of the presentation of the Union Budget 2018-19.

Update: Finance Minister Arun Jaitley left from his residence to proceed towards the Ministry of Finance in North Block on Thursday morning, ahead of the presentation of the Union Budget 2018-19.

New Delhi: Finance Minister Arun Jaitley will present the Union Budget 2018 at 11 am today, the last full-year Budget before the 2019 general elections. Before that elections are due in eight states this year and the budget is expected to focus on farmers, the rural poor and small businesses. To keep investors’ confidence, Prime Minister Narendra Modi’s government will need to be seen containing the fiscal deficit, while also increasing spending in key areas of a slowing economy.

10 point cheat sheet to Budget 2018:

1. The government may tweak income tax slabs and rates in today’s budget to bring down burden on individuals, according to a survey by tax and advisory firm Ernst & Young.

2. Arun Jaitley has already made it clear that the agriculture sector will be the top priority for the government in this year’s budget as the government attempts to address farmer distress ahead of the key state and national elections.

3. The budget will be watched closely for the fiscal deficit target for the next year. The Economic Survey, which was tabled on Monday, called for a pause in fiscal consolidation, leading to concerns that the government could widen its fiscal deficit targets for 2018-19.

4. Markets will be focused on how much the government widens its fiscal deficit beyond the 3 per cent of gross domestic product (GDP) projected for 2018-19. A Reuters poll showed most economists expect a 3.2 per cent deficit as the government looks to increase investments in areas like agriculture.

5. A modest widening of that nature would calm investors worried that the government may slip away from its judicious spending. But a deficit above 3.2 percent could hit shares and send bond yields up by 20-25 basis points, depending on the size of the blowout, on fears of populist policy ahead of next year’s elections.

6. A prudent budget could also soothe the Reserve Bank of India, which holds a policy review on February 6 and 7 amid worries it could raise rates in coming months after inflation hit a 17-month high in December, well above its 4 percent target.

7. While investors expect some spending to support an economy that’s expected to post its weakest growth in four years, they will want to see such stimulus is well-financed. Growth was impacted by the launch of the goods and service tax last year and a shock move to ban high value currency notes in late 2016, which hit tax revenues and increased the chances of a fiscal deficit shortfall.

8. An expected pickup in growth next fiscal year and state asset sales estimated to raise 1 trillion rupees ($15.74 billion) should boost tax revenues.

9. The government is also expected to stay on course with its focus on building highways and modernising the railways. Mr Jaitley had allocated a record Rs. 3.96 lakh crore to infrastructure sector in last year’s Budget.

10. Experts don’t see the possibility of a big cut in corporate tax rate for India Inc given the fiscal constraints. In his Budget speech of 2015-16, Mr Jaitley had said proposed reduction of the rate of corporate tax from 30 per cent to 25 per cent over the next four years.

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