The Union Finance Minister Sh. Arun Jaitley has presented his last full budget 2018-19 of current government on 1st February 2018. Here are some of the highlights of the budget which can be useful for RBI Grade B exam:
- Farmers to get a minimum of 50% over their cost of production
- The government has decided to fix Minimum Support Price on majority of rabi crops at 1.5 times the cost of production
- Development and Up gradation of 22000 rural haats into Gramin Agricultural Markets (GraMs) to help 86% of farmers and access market facilities.
- Kisan Credit Cards to Fisheries and Animal Husbandry Farmers.
- Agri-Market Infra Fund of Rs 2000 crore for GraMs/Rural Haats and 585 e-NAM centres
- Encouragement will be provided to Farmers Producer Organisations and Village Producer Organisations in large clusters.
- Operations Greens launched to address price fluctuations in Tomato, Onion and Potato for the benefit of Farmers and Consumers
- Allocation doubled for food procession industries.
- Liberalization of agricultural commodities exports
- Re-structured National Bamboo Mission with allocations of Rs 1290 crore
- Allocation of Rs 10000 crore for the joint animal husbandry and fisheries & aquaculture
- Higher allocation of Rs 11 lakh crore of credit to be provided to agriculture
- Mechanism to be brought in for purchase of surplus power from solar water pumps
- Setting up of Fisheries and Aquaculture Infrastructure Development Fund (FAIDF) for fisheries sector and Animal Husbandry Infra Development fund for animal husbandry (AHIDF)
- National livelihood scheme gets Rs 5,750 crore
- Allocation to Digital India scheme doubled to Rs 3073 cr
- 5 lakh WiFi HotSpots to provide Broadband access to 5 crore rural citizens, at the cost of Rs 10,000 cr
- Government will take measures to stop cryptocurrency circulation, as it is not considered legal tender
- Government will explore the usage of Blockchain technology
- To construct a tunnel under Sela Pass
- Ten prominent tourist sites to be developed into Iconic tourism destination
- Tourist amenities at 100 Adarsh monuments to be upgraded
- To raise equity from market for infrastructure by NHAI
- NHAI to use innovative monetizing structures like Toll, Operate, Transfer (TOT) and Infrastructure Investment funds (InvITs)
- To expand airport capacity more than 5 times under NABH Nirman to handle a billion trips a year
- Introduction of toll system on “pay as you use”
- Infrastructure expenditure gets a boost from Rs 4.94 lakh crore to Rs 5.97 lakh crore
- Out of 100 smart cities 99 cities have been selected, with an outlay of Rs 2.04 lakh crore
- Quality of education to be improved treated education holistically from pre-nursery to class 12
- 13 lakh untrained teachers to be trained
- ‘Black Board’ to ‘Digital Board’ technology enabled quality education
- Ekalavya Model Residential Schools in all tribal blocks by 2022
- Revitalizing Infrastructure and System in Education (RISE) with an investment of Rs 1 lakh crore in 4 years
- Set up a specialized railway university in Vadodara
- Setting up of two new Schools of Planning and Architecture (SPA)
- 18 news SPAs to be established in IITs and NITs
- Prime Minister’s Research Fellows (PMRF) to promote 1000 B.Tech students doing Ph.D in IIT and IISc
- Under Ayushman Bharat Initiative, Comprehensive Health Care through 1.5 lakh wellness centres. They will also provide Non Communicable Diseases and Mother & Child Health services along with free essential drugs and diagnostics services
- National Health Protection Scheme to cover 10 crore poor and vulnerable families. The coverage upto Rs 5. Lakh per family for secondary and tertiary care hospitalization
- Nutritional support to all TB Patients
- 24 new government medical colleges and hospitals to be set up by upgrading existing district hospitals. To ensure one medical college for every three parliamentary constituencies.
- Rs 600 crore allocated for tuberculosis patients, at the rate Rs 500 per month during the course of their treatment
- To ease cash flow challenges, a Trade Electronic Receivable discounting System (TReDs) introduced
- Government to contribute 12% EPF of the wages of new employees in EPF for all sectors in the next three years
- 10 lakh formal jobs to be created this year
- Increased allocation of Rs 7148 crore for textile sector
- Rs 3 lakh crore target has been set for the Mudra Yojana
- GOBAR DHAN – Galvanizing Organic Bio-Agro Resources Dhan, for management and conversion of cattle dung and solid waste in farms to compost, fertilizer, bio-gas and bio-CNG.
Public Service Delivery
- Two defence industrial production corridors to be developed
- Industry friendly defence production policy to promote domestic production
- Restructuring of Food Corporation of India
- Every Industrial enterprise to get unique ID
- National Logistics Portal to be developed as a single window online marketplace
- Three public sector general insurance companies to be merged as single entity
Economy & Financial Markets
- ‘A’ grade ratings to be eligible for investment
- Fiscal Deficit to be kept at 3.3% in 2018-19
- Central government debt to GDP ratio to be brought down to 40%
- Loans to Women Self Help Groups will increase to Rs.75,000 crore in 2019 from 42,500 crore last year.
- Government revises divestment target for the current fiscal to Rs 1 lakh crore for FY 18
Housing for All
- Affordable housing fund to be established in National Housing Bank
- Housing to all the poor by 2022
- Housing target fixed for more than 1 crore houses in rural and 37 lakh houses in urban areas
- Target of providing electricity connection to 4 crore houses under Saubhagya Scheme
- Standard deduction reintroduced upto Rs 40000 for salaried class
- Exemption of interest on deposits raised to Rs 50000 from Rs 10000 for senior citizens
- Increase in deduction of health insurance premium to Rs 50000 from Rs 30000 for senior citizens
- 100% income tax deduction of profit to Farm Producer Companies having turnover upto Rs 100 crore for period of 5 years
- Reduced tax rate for companies to 25% for those having gross receipt up to 250 crore
- Relaxation in the minimum period of employment for Footwear and Leather industries to facilitate trade
- The Alternate Minimum Tax (AMT) payable by non-corporate entities operating in International Finance Service Centre (GIFT City) to be reduced to 9%
- Introduction of “risk based selection” for verifying self-assessment under Customs Act
- Appointing a new Customs Advance Ruling Authority with Appellate mechanism
- To control cash economy, payments exceeding Rs 10,000 in cash made by trusts and institutions to be disallowed and would be subject to tax
- Tax on Long Term Capital Gains exceeding Rs 1 lakh at the rate of 10%, without allowing any indexation benefit. However, all gains up to 31st January, 2018 will be grandfathered.
- Proposal to introduce tax on distributed income by equity oriented mutual funds at the rate of 10%.
- Proposal to increase cess on personal income tax and corporation tax to 4% from present 3%
- 18000 kms of doubling, third and fourth line works and 5000 kms gauge conversion for capacity creation
- To achieve optimal electrification of railway network, 4000 kms are targeted
- ‘Safety First Policy’ to cover maintenance of track infrastructure and 3600 kms of track renewal.
- Redevelopment of 600 major railway stations to be taken up
- Elimination of 4267 unmanned level crossings in next two years
- All stations with more than 25000 footfall to have escalators
- CCTVs to be provided at all stations and on trains to enhance security of passengers
- Mumbai transport system expanded by adding 90 kms of double line track and 150 kms of additional suburban network
- Bengaluru to get a suburban network of 160 kms at an estimated cost of Rs 17000 crore
- NITI Aayog to initiate a national programme on Artificial Intelligence (AI) and centres of excellence will be set up on robotics, AI, Internet of things etc.
- Comprehensive Gold Policy on the anvil to develop yellow metal as an asset class.
- Proposed to extend Pradhan Mantri Vaya Vandana Yojana up to March, 2020
- Defence outlay raised to Rs 2.82 lakh crore in 2018-19 from Rs 2.67 lakh crore in current year
- Emoluments for President set at Rs 5 lakh, Rs 4 lakh for Vice President, Rs 3.5 lakh for governors
- Government earmarks Rs 150 cr to commemorate 150 years of birth of Mahatma Gandhi