Union budget 2017 2018

1. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
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UNION BUDGET 2017-2018
By
Parvathi.V
Accounts Department

2. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
HIGHLIGHTS
In the last two and half years administration has moved from
discretionary, favouritism based to transparency based
Inflation brought under control. CPI-based inflation declined from 6% in
July 2016 to 3.4% in December, 2016
Economy has moved on a high growth path. India’s Current Account Deficit
declined from about 1% of GDP last year to 0.3% of GDP in the first half of
2016-17. FDI grew 36% in 2016-17 over 2015-16, despite 5%
reduction in global FDI inflows. Foreign exchange reserves have reached
361 billion US Dollars as on 20th January, 2017
War against black money launched
Government continued on path of fiscal consolidation, without
compromising on public investment.
International Monetary Fund forecasts, India to be one of the fastest
growing major economies in 2017

3. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
TRANSFORMATIONAL
REFORMS IN LAST YEAR
Passage of the Constitution Amendment Bill for GST
and the progress for its introduction
Demonetisation of high denomination bank notes
Enactment of the Insolvency and Bankruptcy Code;
Amendment to the RBI Act for inflation targeting;
"The preamble in the RBI Act, as amended by the
Finance Act, 2016, now provides that the primary
objective of the monetary policy is to maintain
price stability, while keeping in mind the objective
of growth, and to meet the challenge of an
increasingly complex economy,”
Enactment of the Aadhar bill for disbursement of
financial subsidies and benefits.

4. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Demonetization
• Demonetisation is expected to have a
transient impact on the economy.
• It will have a great impact on the
economy and lives of people .
• Demonetisation is a bold and decisive
measure that will lead to higher GDP
growth.
• The effects of demonetisation will not
spillover to the next fiscal.

5. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Key Features of Budget
2017-2018
• The 2017 Union Budget, presented by Finance Minister Arun
Jaitley on Wednesday1st February , was broadly focused on
10 themes —
a. Farming sector
b. Rural population
c. Youth
d. Poor and underprivileged health care,
e. Infrastructure
f. The financial sector for stronger institutions,
g. Speedy accountability
h. Public services
i. Prudent fiscal management
j. Tax administration for the honest.

6. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Agriculture sector
• Sowing farmers should feel secure against natural calamities.
• A sum of Rs. 10 lakh crore is allocated as credit to farmers, with
60 days interest waiver.
• NABARD fund will be increased to Rs. 40,000 crore.
• Coverage under Fasal Bima Yojana scheme will be increased from
30% of cropped area in 2016-17 to 40% in 2017-18 and 50% in
2018-19 for which a budget provision of 9000 crore has been
made
• Government will set up mini labs in Krishi Vigyan Kendras for soil
testing.
• A dedicated micro irrigation fund will be set up for NABARD with
Rs 5,000 crore initial corpus.

7. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Agriculture sector
• Irrigation corpus increased from Rs 20,000 crore to Rs
40,000 crore.
• Issuance of soil cards has gained momentum.
• Dedicated Micro Irrigation Fund in NABARD to achieve per
drop more crop with an initial corpus of 5,000 crores
• Coverage of National Agricultural Market (e-NAM) to be
expanded from 250 markets to 585 APMCs. Assistance up to
` 75 lakhs will be provided to every NAM
• A model law on contract farming to be prepared and
circulated among the States for adoption
• Dairy Processing and Infrastructure Development Fund to be
set up in NABARD with a corpus of 2000 crores and will be
increased to 8000 crores over 3 years

8. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Rural population
• The government targets to bring 1 crore households out of poverty by
2019.
• During 2017-18, five lakh farm ponds will be taken up under the
MGNREGA.
• Over Rs 3 lakh crore will be spent for rural India. MGNREGA to double
farmers' income.
• Will take steps to ensure participation of women in MGNREGA up to 55%.
• Space technology will be used in a big way to ensure MGNREGA works.
• The government proposes to complete 1 crore houses for those without
homes.
• Will allocate Rs. 19,000 crore for Pradhan Mantri Gram Sadak Yojana in
2017-18.
• The country well on way to achieve 100% rural electrification by March
2018.
• Swachh Bharat mission has made tremendous progress; sanitation
coverage has gone up from 42% in Oct 13 to 60% now.
•

9. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Youth
• To introduce a system of measuring annual learning outcomes in
schools
• Innovation Fund for Secondary Education proposed to encourage
local innovation for ensuring universal access, gender parity and
quality improvement to be introduced in 3479 educationally
backward districts.
• Colleges will be identified based on accreditation.
• Pradhan Mantri Kaushal Kendras to be extended to more than 600
districts across the country. 100 India International Skills Centres
will be established across the country.

10. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Youth
• Skill Acquisition and Knowledge Awareness for Livelihood
Promotion programme (SANKALP) to be launched at a cost of `
4000 crores. SANKALP will provide market relevant training to 3.5
crore youth
• Next phase of Skill Strengthening for Industrial Value
Enhancement (STRIVE) will also be launched in 2017-18 at a cost of
` 2,200 crores
• A scheme for creating employment in the leather and footwear
industries along the lines in Textiles Sector to be launched.
• Incredible India 2.0 Campaign will be launched across the world to
promote tourism and employment.

11. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
POOR AND THE
UNDERPRIVILEGED
• Mahila Shakti Kendra will be set up with an allocation of ` 500 crores in
14 lakh ICDS Anganwadi Centres. This will provide one stop convergent
support services for empowering rural women with opportunities for
skill development, employment, digital literacy, health and nutrition
• Under Maternity Benefit Scheme ` 6,000 each will be transferred
directly to the bank accounts of pregnant women who undergo
institutional delivery and vaccinate their children
• Affordable housing to be given infrastructure status
• National Housing Bank will refinance individual housing loans of
about ` 20,000 crore in 2017-18
• Government has prepared an action plan to eliminate Filariasis by
2017, Leprosy by 2018, Measles by 2020 and Tuberculosis by 2025 is
also targeted
• Health sub centres, numbering 1.5 lakh, willl be transformed into
health wellness centres. 

12. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
POOR AND THE
UNDERPRIVILEGED
To create additional 5,000 Post Graduate seats per annum to ensure
adequate availability of specialist doctors to strengthen Secondary and
Tertiary levels of health care.
Two new All India Institutes of Medical Sciences to be set up in Jharkhand
and Gujarat
Propose to amend the Drugs and Cosmetics Rules to ensure availability of
drugs at reasonable prices and promote use of generic medicines
The allocation for Scheduled Castes has been increased by 35% compared
To 2016-17. The allocation for Scheduled Tribes has been increased to
31,920 crores and for Minority Affairs to ` 4,195 crores
For senior citizens, Aadhar based Smart Cards containing their health
details will be introduced

13. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
INFRASTRUCTURE
• In the road sector, Budget allocation for highways increased from
57,976 crores in 2016-17 to ` 64,900 crores in 2017-18
• 2,000 kms of coastal connectivity roads have been identified for
construction and development
• By the end of 2017-18, high speed broadband connectivity on optical
fibre will be available in more than 1,50,000 gram panchayats, under
• BharatNet. A DigiGaon initiative will be launched to provide
• tele-medicine, education and skills through digital technology
• For creating an eco-system to make India a global hub for electronics
• manufacturing a provision of `745 crores in 2017-18 in incentive
• schemes like M-SIPS and EDF.
• A new and restructured Central scheme with a focus on export
• infrastructure, namely, Trade Infrastructure for Export Scheme (TIES) will
• be launched in 2017-18

14. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Financial sector
• FDI policy reforms - more than 90% of FDI inflows are now automated.
• Bill on resolution of financial firms will be introduced in this session of
Parliament.
• Foreign Investment Promotion Board will be abolished.
• Revised mechanism to ensure time-bound listing of CPSEs.
• Computer emergency response team for financial sector will be formed.
• Pradhan Mantri Mudra Yojana lending target fixed at Rs 2.44 lakh crore for
2017-18.
• Digital India - BHIM app will unleash mobile phone revolution. The
government will introduce two schemes to promote BHIM App - referral
bonus for the users and cash back for the traders.
• Negotiable Instruments Act might be amended.
• DBT to LPG consumers , Chandigarh is kerosene-free, 84 government
schemes are on the DBT platform.
• Head post office as the central office for rendering passport service.
• Easy online booking system for Army and other defence personnel.

15. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
• PUBLIC SERVICE
The Government e-market place which is now functional for
procurement of goods and services.
• To utilise the Head Post Offices as front offices for rendering
passport services.
• To rationalise the number of tribunals and merge tribunals
wherever appropriate.
• Commemorate both Champaran and Khordha revolts
appropriately.
• Energy sector
• A strategic policy for crude reserves will be set up.
• Rs. 1.26,000 crore received as energy production based
investments.
• Trade infra export scheme will be launched 2017-18.

16. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Funding of political parties
The maximum amount of cash donation for a political party will
be Rs. 2,000 from any one source.
Political parties will be entitled to receive donations by cheque or
digital mode from donors.
An amendment is being proposed to the RBI Act to enable
issuance of electoral bonds .A donor can purchase these bonds
from banks or post offices through cheque or digital transactions.
They can be redeemed only by registered political parties.
Defence sector
The defence sector gets an allocation of Rs. 2.74,114 crore.

17. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Tax Proposals
• India’s tax to GDP ratio is not favourable.
• Out of 13.14 Lakh registered companies, only 5.97 Lakh firms have
filed returns for 2016-17.
• Proportion of direct tax to indirect tax is not optimal.
• Individuals numbering 1.95 crore showed an income between Rs.
2.5 Lakh to Rs. 5 Lakh.
• Out of 76 lakh individual assesses declaring income more than Rs.
5 Lakh, 56 Lakh are salaried.
• Only 1.72 lakh people showed income of more than Rs. 50 lakh a
year.
• Between November 8 to December 30, deposits ranging from Rs. 2
Lakh and Rs. 80 Lakh were made in 1.09 crore accounts.
• The limit of cash donation by charitable trusts is reduced to Rs
2,000 from Rs 10,000.
• Net revenue loss in direct tax could be Rs. 20,000 crore.

18. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
.Existing rate of tax for individuals between Rs. 2.5- Rs 5
lakh is reduced to 5% from 10%.
All other categories of tax payers in subsequent will get a
benefit of Rs 12,500.
Simple one page return for people with an annual income of
Rs. 5 lakh other than business income.
People filing I-T returns for the first time will not come under
any government scrutiny.
Ten % surcharge on individual income above Rs. 50 lakh and
up to Rs 1 crore 15 surcharge on individual income above Rs.
1 crore
Personal income tax

19. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Fiscal Situation
• Total expenditure is Rs. 21, 47,000 crore.
• Plan, non-plan expenditure to be abolished; focus will be on capital
expenditure, which will be 25.4 %.
• Rs. 3,000 crore under the Department of Economic Affairs for
implementing the Budget announcements.
• Expenditure for science and technology is Rs. 37,435 crore.
• Total resources transferred to States and Union Territories is Rs 4.11
lakh crore.
• Recommended 3% fiscal deficit for three years with a deviation of
0.5% of the GDP.
• Revenue deficit is 1.9 %
• Fiscal deficit of 2017-18 pegged at 3.2% of the GDP. Will remain
committed to achieving 3% in the next year