Union Budget 2017 : First budget where rail and general budget merged

a. Budget 2015

b. Budget 2016

c. Budget 2017

d. Budget 2018

 

This fourth budget of the Modi sarkar and the 87th budget in Independent India was presented on Feb 1, 2017.

The Budget 2017 is the first budget after introducing key changes to the budget process namely:

• Combining of the Rail Budget with the General Budget,
• Eliminating the classification of plan and non plan expenditure
• Moving the budget presentation date by one month.
• Making the base year for indexing 2001

The Budget 2017 has identified financial sector as a leading driver of the Indian economy.

• The Finance Minister announced that the Foreign Investment Promotion Board (FIPB) will be phased-out in the coming fiscal. Bill will soon be tabled in Parliament to protect the poor and vulnerable investor.
• More 90 per cent of the total FDI inflows are now through the automatic route.
• It is also proposed to allow systemically important NBFCs regulated by RBI and above a certain net worth, to be known as as Qualified Institutional Buyers (QIBs) by SEBI at equivalence with the banks and insurance companies.
• The threshold limit for audit of business entities that opt for presumptive income scheme has been stepped up from INR 1 crore to INR 2 crore.
• The threshold for the maintenance of books for individuals and HUF is proposed to rise from turnover of INR 10 lakhs to INR 25 lakhs or income from INR 1.2 lakhs to INR 2.5 lakhs.
• The Foreign Portfolio Investor (FPI) Category I and II will be exempted from indirect transfer provision as per the IT Act.
• A common application form for registration, opening of bank and demat accounts, and issue of PAN cards will be launched for Foreign Portfolio Investors/FPIs.
• Also, high net worth NBFCs can also now participate in IPOs akin to the the banks and insurance companies.
• The commodities and securities derivative markets will be further integrated by uniting the participants, brokers, and operational frameworks.
• The shares of Railway Public Sector Enterprises (PSEs) like IRCTC, IRFC, IRCON and others will be listed in stock exchanges.
• The individual insurance agents will be exempted from the TDS provision of 5 per cent being deducted from commission payable. This is after filing a self-declaration that their income is below taxable limit.
• The budget target under the Pradhan Mantri Mudra Yojana (PMMY) has been increased by double to INR 2.44 lakh crores.
• INR 10000 crores has been set aside for recapitalisation of Banks in 2017-18. The Finance Minister also given need based additional allocation.
• Also on the anvil is an integrated public sector ‘oil major,’ which will be able to match the performance of international and domestic private sector oil and gas companies.

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