Budget 2018 Highlights
Much awaited Union #’Budget 2018′ has been announced yesterday by Finance Minister. As expected key areas were Infrastructure, healthcare, education and agriculture. Auto Sector has also been benefited to some extent specially the tyre companies who gained on announcement of increase in import duty on imported tyres in India. Companies Like JK tyre and Apollo who have high exposure in truck and heavy vehicle tyres will surely find themselves in ease. Agriculture and rural theme will continue to prevail in coming days also.
Following are some major highlights of the Union Budget 2018:
- First of all the Government has launched “Operation Greens” to deal price fluctuations in potato, tomato and onion for benefit of farmers and consumers.
- Two more new Funds of Rs10,000 crore announced for Fisheries and Animal Husbandary sectors. and
- Women Self Help Groups will get higher loans as the limit increased from Rs. 42,500 crores to Rs.75,000 crores.
- Target raised for Ujjwala, Saubhagya and Swachh Mission in order to meet the needs of middle class in providing free LPG connections, electricity and toilets.
- Outlay on health, education and social protection will be 1.38 lakh crore.
- Launched Health Protection Scheme covering over 10 crore poor families with a limit upto 5 lakh rupees for secondary and tertiary treatment for each family.
- Fiscal Deficit target at 3.3 % for 2018-19.
- Allocated Rs. 5.97 lakh crore for infrastructure.
- Ten distinguishable sites to be developed as Iconic tourist destinations.
- NITI Aayog will initiate a national programme on Artificial Intelligence.
- To set up centres of excellence on robotics, Artificial Intelligence, Internet of things etc.
- Disinvestment target to reach Rs 1,00,000 crore as compared to of Rs 72,500 crore during last year.
- Comprehensive Gold Policy to be set up in order to revamp Gold monetization scheme.
- For companies registered as Farmer Producer Companies with an annual turnover upto Rs. 100 crore, a deduction of 100 percent is proposed on profit earned from such activities, for five years from 2018-19.
- Allocated Rs 17,000 crore for Bengaluru metro network and Rs 11,000 crore for Mumbai rail Network.
- Allocated Rs 1,290 crore to National Bamboo Mission.
- Proposal to extend Kisan Credit Card to fisheries & animal husbandry farmers.
- Target to construct 2 crore Toilets in FY19.
- Allocated Rs 16,000 crore to Pradhan Mantri Saubhagya Yojana.
- Allocated Rs. 373 crores to Digital India programme which is double from last year.
- President salary raised to Rs 5 lakh.
- Corporate tax for companies with turnover up to Rs 250 crore reduced to 25%.
- Government will aim to lower debt to GDP ratio to 40%.
- No change in Personal income tax slab.
- Standard deduction of Rs 40,000 for salaried taxpayers in place of present exemption for transport allowance and reimbursement of miscellaneous medical.
- Raised deduction for senior citizens with critical illness to Rs 1 lakh.
- For companies registered as Farm producers with revenue of Rs. 100 crores, a 100% tax deduction is proposed.
- Rs 19,000 crore revenue loss on Direct tax.
- Long-term capital gains tax of 10% for over Rs 1 lakh investment.
- Short-term capital gains tax remains same as 15%.
- Proposal to set up two (2) defence industrial production corridors.
- Proposed tax on distributed income by equity oriented mutual funds at the rate of 10 percent.
- Proposal to increase cess on personal income tax and corporation tax to 4 percent from present 3 perce
- Raised custom duty on luxurious cars to 25%
- Allocated Rs 3,794 crore capital support and industry subsidy by 2022 for the MSME sector.
- Excise duty on Unbranded Petrol & diesel cut by Rs. 2. The basic excise duty on branded diesel was also reduced from Rs. 10.69 per litre to Rs. 8.69 per litre.
Catch full action on the Budget on Govt. site : http://www.indiabudget.gov.in/