Hon’ble Finance Minister’s presentation of Union Budget in the Parliament on 01st Feb 2018 at 11:00 AM IST. Finance Minister Arun Jaitley has made a big announcement for farmers right at the start of Budget 2018, saying the MSP for crops will be 1.5 times the production cost. He adds that the government’s focus will shift from Ease of Doing Business to Ease of Living for poorest of the poor. Breaking with tradition, Jaitley is delivering the speech both in Hindi and English.
This is the Narendra Modi government’s first post-GST and last pre-poll Budget and is expected to provide Income Tax and Corporate tax relief along with farm sops. Jaitley’s fifth Union Budget is arguably his toughest yet as he seeks to address farm distress, create jobs and boost growth while sticking to fiscal prudence and negotiating a tricky GST twist. This Budget is being keenly watched to see what Arun Jaitley does to boost growth in Asia’s third largest economy.
There is no change in Income Tax slabs but the government has hoped to woo the middle class by boosting its take-home pay via Rs 40,000 standard deduction against travel and medical expenses. Among the things that will cost more are mobile phones with a hike in custom duty. Jaitley has vowed to keep fiscal deficit at 3.3%. The President’s salary will go up to Rs 5 lakh a month, the Vice-President’s salary will rise to Rs 4 lakh per month and the Governor’s pay will rise to Rs 3.5 lakh a month. Jaitley also announced a Rs 150 crore fund to celebrate the 150th anniversary of Mahatma Gandhi.
As per Budget 2018, Bengaluru Metro will get Rs 17,000 crore and Rs 11,000 crore will be allocated to Mumbai rail network. Jaitley has also increased the earmarked allocation for Scheduled Castes (Rs 56,000 crore) and Scheduled Tribes (Rs 39,000 crore) in Budget 2018. He announced the National Health Protection Scheme, the world’s largest government-funded universal healthcare programme, in his Budget speech. In the beginning, Jaitley announced higher MSP for farmers and an operation green to boost produce. He said that the government’s focus will shift from Ease of Doing Business to Ease of Living for poorest of the poor. Breaking with tradition, Jaitley is delivering the speech both in Hindi and English. This is the Narendra Modi government’s first post-GST and last pre-poll Budget.
Live Budget 2018 Updates
Feb 1, 2018 12:59 pm (IST):
Lok Sabha has been adjourned after Finance Minister Arun Jaitley’s Budget 2018 speech. The urban middle-class citizen is not happy with the budget as the Income Tax slabs have remained the same and mobile phones are set to increase in prices. A silver lining, though, seems to be the new healthcare scheme but details of it are ambiguous.
- HEALTH/POLLUTION: To provide 500,000 rupees per family annually for medical reimbursement under National Health Protection Scheme. Finance minister says the plan will protect 500 million poor people and will be world’s largest health protection scheme. To implement special schemes for governments around Delhi to address air pollution. Removal of crop residue to be subsidized in order to tackle the problem of pollution due to burning of crop residue.
- FINANCE MINISTER COMMENTS: “We are now a $2.5 trillion economy, and we are firmly on path to achieve 8 percent plus growth soon”. “We are not only focussing on ‘Ease of Doing Business’ but also ‘Ease of Living'”. “Government to take all steps to eliminate use of cryptocurrencies which are being used to fund illegitimate transactions”.
- INFRASTRUCTURE: To spend 14.34 trillion Indian rupees ($225.50 billion) on rural infrastructure. BANKING/LENDING: To soon announce measures to address bad loans of small and medium enterprises. Proposes setting up 3 trillion rupees plan for lending for small enterprises.
- AGRICULTURE: Finance minister says will focus on strengthening rural, agriculture economy. Sets 10 trillion rupees to 11 trillion rupees credit for “agricultural activities”. Minimum support price of all crops to be increased to at least 1.5 times of production cost. Export of agriculture commodities to be liberalised.
- FISCAL DEFICIT: Targets 2018/19 fiscal deficit at 3.3 percent of GDP, estimates current year at 3.5 percent.
- GROWTH: Estimates 7.2 to 7.5 percent GDP growth in second half of current fiscal year. Finance minister says “firmly on path to achieve 8 percent plus growth soon”.
- EXPENDITURE: Estimates 1.38 trillion rupees expenditure on health, education and social security. Railway capital expenditure set at 1.49 trillion rupees for 2018/19.
Feb 1, 2018 12:53 pm (IST):
“Custom duties on import of mobile phone parts to be increased to 20% from existing 15%. This will boost jobs in the sector in India,” says Finance Minister Arun Jaitley.
Feb 1, 2018 12:49 pm (IST):
“Customs duty on mobile phones increased to 15%. Amendments to customs act being introduced to ease cross-border trade. Now pre-notice consultation to be introduced and penalties if timelines are not adhered to,” says Finance Minister Arun Jaitley.
Feb 1, 2018 12:47 pm (IST):
“Long-term capital gains taxed from listed equities exceeding one lakh at 10 percent. Short-term capital gains taxed at 15 percent to continue for a one-year hold period,” says Finance Minister Arun Jaitley.
Feb 1, 2018 12:43 pm (IST):
Relief on tax for senior citizens from income coming from bank interest increased from 10,000 to 30,000. Fixed Deposit/Post office interest to be exempt till Rs 50,000 80D benefit enhanced to Rs 50,000 (from 30,000).
Feb 1, 2018 12:41 pm (IST):
HIGHLIGHTS FOR RAILWAY SECTOR | India moving towards optimum electrification of railway. Over 3,600 km of track renewal is being targeted in 2018-19. Railway Capital Expenditure is set at Rs. 1.48 lakh crore. More than 4,200 unmanned level crossings to be eliminated in two years. All stations and trains to have WiFi. Rs 17,000 crore allocated for Bengaluru Metro. Rs. 11,000 crore allocated for Mumbai rail network
Feb 1, 2018 12:39 pm (IST):
“FAILED! FM fails the fiscal consolidation test. FD limit of 3.2 per cent in 2017-18 breached and estimated at 3.5. For 2018-19 also, against 3.0, he has fixed FD at 3.3. This failure will have serious consequences,” says former Finance Minister P Chidambaram.
Feb 1, 2018 12:36 pm (IST):
Government dashes middle-class hopes and salaried taxpayers as there have been no changes in personal Income Tax slabs. Standard deduction of Rs 40,000 with respect to transport reimbursements.
Feb 1, 2018 12:33 pm (IST):
“100% tax deduction for the first five years to companies registered as farmer producer companies with a turnover of Rs 100 crore and above. 12.6% growth in direct taxes in 2017-18; 18.7% growth in indirect taxes in 2017-18. Employment-based tax incentives will be extended to footwear and leather industry. Be incentivising MSMEs, we propose to extend the benefits of corporate tax by bringing down the tax rate to 25% for firms that reported turnover up to Rs 250 crore,” says Finance Minister Arun Jaitley.
Feb 1, 2018 12:29 pm (IST):
HIGHLIGHTS FOR DEFENCE SECTOR | Finance Minister places on record the government’s appreciation of the service provided by the Armed Forces. The government will set up two industrial defence industrial development corridors in 2018-19. It will bring out an industry-friendly defence production policy. The FM did not give details of the Budget allocations for the armed forces
Feb 1, 2018 12:28 pm (IST):
“Revised fiscal deficit estimate for 2017-18 is 3.5% of GDP, fiscal deficit of 3.3% expected for 2018-19. GST revenue for only 11 months, instead of the usual 12 months, is 21.5 lakh crore. Tax buoyancy for 2017-18 is at 2.11%. Number of tax payers has increased from 6.47 lakh crores to 8.27 lakh crores,” says Finance Minister Arun Jaitley.
Feb 1, 2018 12:25 pm (IST):
“The salaries of President, vice president and Governors will be increased. RS 5 lakh for President, Rs 4.5 lakh for VP and Rs 3.5 lakh for governors. Salaries of Members of Parliament will also be raised. A new law will be introduced that will automatically revise MPs’ emoluments every five years, indexed to inflation,” says Finance Minister Arun Jaitley.
Feb 1, 2018 12:23 pm (IST):
“National Logistics Portal as a single online window will link all stakeholders, to be developed by Department of Commerce. Government insurance companies to be merged into a single entity, and subsequently listed in the stock exchange, as part of the disinvestment programme. Rs 80,000 crore disinvestment target for 2018-19, target for 2017-18 has been exceeded and will reach Rs 1 lakh crore,” says Finance Minister Arun Jaitley.
Feb 1, 2018 12:20 pm (IST):
“Aadhaar has provided identity to Indians. The government will involve a scheme to assign every enterprise a unique ID just like Aadhaar. The Department of Investment and Public Asset Management will come up with debt Exchange Traded Fund. Gold monetisation scheme being revamped so that people can open gold deposit accounts in a hassle-free manner,” says Finance Minister Arun Jaitley.
Feb 1, 2018 12:19 pm (IST):
“Cash payment at toll plaza is being done away with. The government will introduce a toll system based on Pay as You Use module. We will also bring out an industry-friendly defence production policy. Two industrial defence industrial development corridors to be constructed,” says Finance Minister Arun Jaitley.
Feb 1, 2018 12:15 pm (IST):
“Niti Aayog will establish a national program to direct efforts in artificial intelligence. The Department of Science will launch a national program for cyberspace. The allocation of Digital India has been doubled and the government proposes to set up 5 lakh WiFi hotspots. The government does not consider cryptocurrency as legal tender and will work towards eliminating illicit transactions going on through crypto assets,” says Finance Minister Arun Jaitley.
Feb 1, 2018 12:11 pm (IST):
“The Airport Authority of India has 124 airports. We propose to expand this capacity by five times to handle close to 1 Billion trips each year. UDAN will connect 56 unserved airports and 36 unserved heliports. We are ensuring that even those citizens who wear Hawaii chappal can fly in a hawai jahaj (aeroplane),” says Finance Minister Arun Jaitley.
Feb 1, 2018 12:08 pm (IST):
“We are eliminating over 4,267 unmanned level crossings in the next two years. All railway stations and trains will have WiFi and 150 kilometres of additional suburban corridors in being planned. RS 17,000 crore is being set aside for Bengaluru Metro. UDAN will connect 56 unserved airports and 36 unserved heliports. Rs 11,000 crore is being allocated for Mumbai Suburban Railways,” says Finance Minister Arun Jaitley.
Feb 1, 2018 12:04 pm (IST):
HIGHLIGHTS FROM MSMEs AND EMPLOYMENT | Rs 3,794 crore given to MSMEs last year for mass formalisation. The government will soon announce measures to address non-performing assets of MSMEs. Tax burden on MSMEs will also be reduced. Rs. 3 lakh crore for lending under Mudra to be allocated in FY 19. Govt will fund 12% of wages for new employees of EPF. Women to contribute only 8% to PF in first three years.
Feb 1, 2018 12:03 pm (IST):
HIGHLIGHTS FROM HEALTH SECTOR | National Health Protection Scheme, the world’s largest government-funded universal healthcare programme, announced. Health and wellness centres to bring healthcare closer and more accessible to people. National Health Policy to have Rs 1,200 crore allocation. Rs 600 crore corpus set up to help TB patients.
Feb 1, 2018 12:02 pm (IST):
“The Bharatmala project has been approved and we are confident of completing 9000 km of highway construction. Large part of capex (capital expenditure) is designated to capacity creation. In Railways, 18,000 kms of doubling of tracks would eliminate capacity constraints. We are moving towards optimum electrification of railway. Over 3,600 km of track renewal is being targeted in 2018-19,” says Finance Minister Arun Jaitley.
Feb 1, 2018 11:58 am (IST):
HIGHLIGHTS FOR EDUCATION SECTOR | Integrated BEd program to start soon, with teachers training as the main focus. Rs 1 lakh crore to be invested over the next 4 years for a new drive to boost Research and Development. Tech to be the biggest driver in education sector with increased digital intensity and a mission to move from blackboard to digital boards. Government to set up special Railway University at Vadodara, Gujarat.
Feb 1, 2018 11:57 am (IST):
“Creation of job opportunities has been at the core of policy-making. The government will fund 12% of wages for new employees of Employees’ Provident Fund in all sectors. Take home salary of new women employees to go up in the formal sector. Only 8% PF to be cut in first three years. There is no change in EPF,” says Finance Minister Arun Jaitley.
Feb 1, 2018 11:52 am (IST):
“Mass formalization of MSME sector is happening after demonetisation and GST. Rs 3,794 crore is was set aside for MSME last year for mass formalisation. The government will soon announce measures to address non-performing assets of MSMEs. Tax burden on MSME will also be reduced. Rs 3 lakh crore for lending under is being allocated in FY 19 for PM’s MUDRA Yojana,” says Finance Minister Arun Jaitley.
Feb 1, 2018 11:49 am (IST):
“PM Jeevan Beema Yojana has benefitted more than 2 crore families. The Jan Dhan Yojana will be extended to all 60 crore bank accounts. Our government has increased allocation for SC-ST earmarked programmes: Rs 56,000 crore for SCs and Rs 39,000 crore for STs. By 2022, every block with more than 50% ST population and at least 20,000 tribal people will have ‘Ekalavya’ school at par with Navodaya Vidyalas,” says Finance Minister Arun Jaitley.
Feb 1, 2018 11:47 am (IST):
“We are allocating Rs 1 Lakh crore in the next four years to boost Research and Development. We are also coming up with a specialised railway university at Vadodara. Demographic dividend realisation is impossible without proper healthcare. Health and wellness centres to bring healthcare closer and more accessible to people. Rs 1200 crores earmarked for this flagship program under the National Health Policy 2017. Healthcare protection is at a new aspirational level. We are now launching a new national health protection scheme – Rashtriya Samaj Beema Yojana. This will have 50 crore beneficiaries and 10 crore families will get 5 lakh per year for their families to cover secondary and tertiary hospital expenses. This is the world’s largest government-funded healthcare program. A Rs 600 crore corpus is being set up to help Tuberculosis patients. This will build a new India in 2022 and enhance productivity and will also generate lakhs of jobs for women. We are progressing towards Universal Health Coverage,” says Finance Minister Arun Jaitley.
Feb 1, 2018 11:43 am (IST):
“Rs 14.34 lakh crore rupees to be spent for rural infrastructure. The allocation for National Livelihood Mission is being increased to Rs 5000 crore. Loans to women self-help groups of women to be increased to 75,000 cr by March 19. Focus of the govt next year will be to provide better livelihood in the rural areas. We now propose to treat education holistically with integration from Class 2 to Class 12. Digital intensity in education will be increased. We will take education from blackboards to digital boards. There will be integrated BEd program to start soon. With teachers training as the main focus,” says Finance Minister Arun Jaitley.
Feb 1, 2018 11:38 am (IST):
“In order to tackle the problem of pollution due to burning of crop residue, the subsidy is being removed. The government will work to subsidize the cost of machinery to be procured for combating rising air pollution levels by government of Delhi, Haryana, Punjab for in situ management of the problem. On the other hand, Ujjawala Yojana target is being extended to 8 crore women living below the poverty line. It was earlier at 5 crore. The women will receive a free gas connection. Swachh Bharat has constructed more than 6 crore toilets. 2 crore more toilets is the target in the next two years,” says Finance Minister Arun Jaitley.
Feb 1, 2018 11:33 am (IST):
The government will extend a favourable tax arrangement for farmer organisations. The details will be provided later,” says Finance Minister Arun Jaitley. He has ended his section on agriculture, it was about 20 minutes-long. The markets have reacted positively with Sensex close to 36,130 at 11 am as Finance Minister Arun Jaitley began his Budget 2018 speech, NSE Nifty is close to 11,100.
Feb 1, 2018 11:27 am (IST):
A fund for fishery, aquaculture development and animal husbandry will be set up with a total corpus to be Rs 10,000 crore. We will also allocate Rs 1290 crore for a bamboo mission, as it is green gold. Rs 500 crore is being set aside for Operation Green,” says Finance Minister Arun Jaitley, who is switching between both English and Hindi during his speech.
Feb 1, 2018 11:24 am (IST):
Operation green has been launched on the lines of operation flood. Sum of Rs 500 crore has been allocated for this purpose. This operation will help farmers generate produce. We also propose to extend kisaan credit cards to live stock farmers,” says Finance Minister Arun Jaitley, who has now sat down after standing up and delivering the speech for 10 minutes.
Feb 1, 2018 11:22 am (IST):
“Agricultural corpus worth Rs 2000 crore will be set up. 470 APMCs have been connected to eNAM network, the rest to be connected by March 2018. Allocation for food processing has been doubled from Rs 700 crore to Rs 1400 crore. Allocation is being doubled to boost food processing; specialized agro-processing and financial institutions to be promoted by the Government. Cluster-model approach to be adopted for agricultural production,” says Finance Minister Arun Jaitley.
Feb 1, 2018 11:18 am (IST):
“We have placed the emphasis on higher income for farmers. Farm and non-farm employment for farmers’ remain the focus. Agriculture produce is on a record high. The government is working on farmers getting 50% more price than cost price. This will go forth to double farmer’s income by 2022. We don’t work in bits and pieces. We intend to promote MSP so that farmers get complete MSP. The govt will fix a structure in consultation with Niti Aayog and state governments to ensure farmers get MSP even when market prices are lower. MSP for Kharif cost will be 1.5 times the cost of produce,” says Finance Minister Arun Jaitley.
Feb 1, 2018 11:16 am (IST):
“Ujjawala yojana has provided crores of free LPG, Saubhagya Yojana has provided power to 4 crore families. Awas Yojana has worked towards providing interest rate relief to mid-level sections. We have worked sincerely without political costs. Direct Benefit Transfer is a global success story. We have controlled stent prices and there has been a production-centric thrust by the government. We have also provided free dialysis facilities for the poor,” says Finance Minister Arun Jaitley.
Feb 1, 2018 11:10 am (IST):
“When our government took over, our nation was considered a part of the fragile five. We have transformed the nation into the fastest growing economy in the world. We are a $2.5 Trillion economy. As a result of measures taken by the government, there is a premium on honesty. India achieved an average growth of 7.5% growth in the last 3 years. We are the third-largest economy in terms of purchasing power parity and seventh largest economy in the world in terms of growth. Manufacturing sector is back on track and services sector, which is India’s backbone, is performing well. This year’s budget will particularly concentrate on agriculture and rural economy. We will also focus on promoting education and healthcare,” says Finance Minister Arun Jaitley.
Feb 1, 2018 11:06 am (IST):
Lok Sabha paid tributes to sitting member Chintaman Vanga, who died on January 30. The norm, usually is to adjourn the session when a sitting member dies but as today is the Union Budget, there has been a break from tradition.
Feb 1, 2018 11:02 am (IST):
Parliament Session Begins. This is the Narendra Modi government’s first post-GST and last pre-poll Budget. Budget 2018, to be presented by Finance Minister Arun Jaitley, is expected to provide Income Tax and Corporate tax relief along with farm sops. Markets are upbeat ahead of the Budget speech with the Sensex opening at 36,127.20 points, while the Nifty opened at 11,067.25. Breaking with tradition, Jaitley will deliver the Budget speech in Hindi this time.
Feb 1, 2018 11:00 am (IST):
Here’s the Budget team of CBDT with Hon’ble Union Finance Minister Sh. Arun Jaitley along with MOS(Finance) Sh. SP Shukla & MOS (Finance & Shipping) Sh. Pon Radhakrishnan & Finance Secretary Dr Hansmukh Adhia.