Major highlights of union budget presented by Arun Jaitley today!

Union Budget 2018

With elections coming in eight states and the Lok Sabha 2019 elections coming close, Finance Minister Arun Jaitley, announced the 2018 budget that claims to better the subdued economic growth, farmer’s situation, and fiscal deficit. While the major focus of the union budget will be the rural India, health-care, ease of business and living. A brief look at the revised budget here,

Benefits Drawbacks
Rise in MSP 1.5 times the cost of production, for farmers. 10% LTCG tax on gains above Rs.1 lakh
National healthcare scheme to cover those below the poverty line, Rs.5 lakhs per year. No change in personal Income Tax slab rates
Bengaluru Metro to get Rs.17000 crore for commencement Surcharge of 10% on income above Rs.50 lakh but less than Rs.1 crore, 15% on income above Rs.1 crore to continue.
Mumbai rail Network to get Rs.1100 crore -Customs duty on crude edible vegetable oils hiked from 12.5% to 30%; on refined edible vegetable oil from 20% to 35%.

– Customs duty on perfumes, dental hygiene, after-shave, deodorants doubled to 20%.

– Imported mobile phones will be expensive due to customs duty hike

Regional Airport Construction -Customs duty on sunglasses, cigarette lighter, toys, bus and truck tyres, select furniture hiked.

-Customs duty on imitation jewelry hiked from 15% to 20%; doubled on all watches to 20%.

– Import duty on LCD/LED/OLED panels, parts of TVs hiked to 15%; duty on smartwatches, wearable devices, footwear doubled to 20%.

 

 

 

Custom duty hike to boost Make In India

 

Economic Growth

– Economic growth pegged at 7.2-7.5% for H2 FY18.

– Revised Fiscal Deficit estimate for 2017-18 is Rs.5.95 lakh crore at 3.5% of GDP

– Fiscal Deficit for FY’19 estimated at 3.3% of GDP.

Agricultural sector Growth

– Rs.2,000 crore fund for developing and upgrading agricultural marketing in 22,000 Grameen Agri Markets and 585 APMCs.

– Kisan Credit Cards extended to fisheries and animal husbandry farmers.

Employment

-The government will contribute 12% of wages of the new employees in EPF for all sectors for 3 years.

-Women employees’ contribution for first three years reduced to 8%

-An outlay of Rs 7,148 crore for textiles sector in 2018-19.

Benefits to Senior Citizens

– R. 7.5 lakh per senior citizen limit for investment in interest-bearing LIC schemes doubled to Rs.15 lakh

-Standard deduction of Rs.40,000 allowed for transport, medical reimbursement for salaried taxpayers

– Medical Expense Deduction has been raised to Rs.1 lakh.

Education

– Government to increase digital intensity in education.

-Rs.1 lakh crore allocated to revitalization and upgradation of education sector

– Government will identify 1000 B.tech students each year and provide them to do PHDs in IIT and IISc, while also teaching undergraduate students once a week at that time.

– By 2022, every block with more than 50 per cent ST population will have Ekalvya schools at par with Navodaya Vidyalayas .