A ‘path breaking’ budget which gives a much needed impetus to the agriculture sector, the backbone of the Indian economy. Allocations such as Rs 500 crore for Operation Green, a corpus of Rs 10,000 crore for the Fisheries and Aquaculture Infrastructure Development Fund and the Animal Husbandry Infrastructure Fund, Rs 11 lakh crore for institutional credit for farm sector among others would help distressed farmers get necessary funding.
Plan and Policy
Plan & Policy
The government hastried to address the shortage of labour in textiles and leather sectors by providing incentives. The government has increased allocation for textiles and the industry wants speedy disbursal of incentives. Reduced corporate tax for companies with less than Rs 250 crore turnover will benefit both textile and leather companies.
The rural centric budget has taken yet another step towards ensuring cleaner fuel poor households and cut the use of polluting firewood and liquid fuel as medium of cooking.
Government assurance to set up a mechanism to buy surplus solar power from commoners enthused all but the industry expressed concerns over proposed 70 per cent safeguard duty on solar equipment in the Budget.
“Generation of solar electricity is harvesting of sun by the farmers using their lands. Government of India will take necessary measures and encourage state governments to put in place a mechanism that their surplus solar power is purchased by the distribution companies or licencees at reasonably remunerative rates,” Finance Minister Arun Jaitley said in his Budget speech.
This is a prudent budget that is directionally on track, with a focused gaze on the social, academic and economic front, in the spirit of inclusive growth. It endeavours to strike a balance between fiscal priorities and growth.
Finance minister Arun Jaitley on Thursday said the Union budget blends fiscal prudence with economic necessities.
Eying an election next year, India’s government announced massive spending for rural areas and projected economic growth above 8 percent in an annual budget on Thursday that won broad approval from economists, though bond and share markets fell.
The government will borrow Rs 4.07 lakh crore from the market in 2018-19, around Rs 73,000 crore lower than the current fiscal.
As per the revised estimate, the net borrowing for the current fiscal was steeply raised to Rs 4.79 lakh crore as against the Budget estimate of Rs 3.5 lakh crore.
At the same time, gross borrowing has been pegged at Rs 5.99 lakh crore for 2017-18, marginally higher from Budget estimate of Rs 5.8 lakh crore.
However, gross borrowing for the next fiscal has been raised to Rs 6.05 lakh crore.
For every rupee in the government coffer, 19 paise will come from market borrowing and other liabilities in 2018-19, even as it will spent 18 paise towards interest payment.
According to the Budget 2018-19 presented in Parliament today by Finance Minister Arun Jaitley, 70 paise will come from direct and indirect taxes for the every rupee earned.
On the expenditure side, the biggest component is states' share of taxes and duties at 24 paise and interest payment of 18 paise.
The government will revamp the 'Gold Monetisation Scheme' and come out with a comprehensive policy on the precious metal, Finance Minister Arun Jaitley today said.
The revamping of the scheme is aimed at enabling people to open a hassle-free gold deposit account.
The minister also said that the government will establish a consumer-friendly and trade efficient system of regulated gold exchanges in the country.