மத்திய அரசின் 2018-2019 நிதிநிலை அறிக்கை!- முழு விபரம்! -வீடியோ.

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Budget 2018-2019

Speechof
ArunJaitley
MinisterofFinance

February1,2018

SectionI
Governance,EconomyandDevelopment

Madam Speaker,
1. IrisetopresenttheBudgetfor2018-19.
2. Madam,fouryearsago,wepledgedtothepeopleofIndiatogivethisnationanhonest,cleanandtransparentGovernment.WepromisedaleadershipcapableoftakingdifficultdecisionsandrestoringstrongperformanceofIndianeconomy.Wepromisedtoreducepoverty,expediteinfrastructurecreationandbuildastrong,confidentandaNewIndia.WhenourGovernmenttookover,Indiawasconsideredapartoffragile5;anationsufferingfrompolicyparalysisandcorruption.Wehavedecisivelyreversedthis.TheGovernment,ledbyPrimeMinister,ShriNarendraModi,hassuccessfullyimplementedaseriesoffundamentalstructuralreforms.Withtheresult,Indiastandsoutamongthefastestgrowingeconomiesoftheworld.
3. The journey of economic reforms during the past few years has been challenging but rewarding. As a result of the reforms undertaken by the Government, foreign direct investment has gone up. Measures taken by the Government have made it much easier to do business in India. Natural resources are now allocated in a transparent and honest manner. There is a premium on honesty. There was a time when corruption was common-place. Today, our people, especially our youths, are curious to lead their lives honestly.The indirect tax system, with introduction of Goods and Services Tax, has been made simpler. Benefits to the poor have been targeted more effectively with use of digital technology. The demonetization of high value currency has reduced the quantum of cash currency and circulation in India. It has increased the taxation base and spurred greater digitization of the economy. The Insolvency and Bankruptcy Code (IBC) has changed the lender-debtor relationship. The recapitalized banks will now have a greater ability to support growth. All these structural reforms in the medium and long run will help Indian economy achieve stronger growth for a long time.
4. IndianeconomyhasperformedverywellsinceourGovernmenttookoverinMay,2014.Indiaachievedanaveragegrowthof7.5%infirstthreeyearsofourGovernment.Indianeconomyisnow2.5trilliondollareconomy–seventhlargestintheworld.Indiaisexpectedtobecomethefifthlargesteconomyverysoon.OnPurchasingPowerParity(PPP)basis,wearealreadythethirdlargesteconomy.
5. Indiansociety,polityandeconomyhadshownremarkableresilienceinadjustingwiththestructuralreforms.GDPgrowthat6.3%inthesecondquartersignaledturnaroundoftheeconomy.Wehopetogrowat7.2%to7.5%inthesecondhalf.IMF,initslatestUpdate,hasforecastthatIndiawillgrowat7.4%nextyear.Manufacturingsectorisbackongoodgrowthpath.Theservices,mainstayofourgrowth,havealsoresumedtheirhighgrowthratesof8%plus.Ourexportsareexpectedtogrowat15%in2017-18.Wearenowfirmlyoncoursetoachievehighgrowthof8%plus.
6. Wehavetakenupprogrammestodirectthebenefitsofstructuralchangesandgoodgrowthtoreachfarmers,poorandothervulnerablesectionsofoursocietyandtouplifttheunder-developedregions.Thisyear’sBudgetwillconsolidatethesegainsandparticularlyfocusonstrengtheningagricultureandruraleconomy,provisionofgoodhealthcaretoeconomicallylessprivileged,takingcareofseniorcitizens,infrastructurecreationandworkingwiththeStatestoprovidemoreresourcesforimprovingthequalityofeducationinthecountry.
7. PrimeMinisterShriNarendraModihasalwaysstressedimportanceofgoodgovernance.Hehasarticulatedthevisionof‘‘MinimumGovernmentandMaximumGovernance’’.ThisvisionhasinspiredGovernmentagenciesincarryingouthundredsofreformsinpolicies,rulesandprocedures.ThistransformationisreflectedinimprovementofIndia’srankingby42placesinlastthreeyearsintheWorldBank’s‘EaseofDoingBusiness’withIndiabreakingintotop100forthefirsttime.Iwouldliketocongratulateallthosewhoworkedtoachievethis.
8. Now, our Government has taken Ease of Doing business further by stress on ‘Ease of Living’ for the common men of this country, especially for those belonging to poor & middle class of the society. Good governance also aims at minimum interference by the government in the life of common people of the country.
9. Government is providing free LPG connections to the poor of this country through UjjwalaYojana. Under SaubhagyaYojna 4 crore household are being provided with electricity connections. More than 800 medicines are being sold at lower price through more than 3 thousand Jan AushadhiCentres. Cost of stents have been controlled. Special scheme for free dialysis of poor have been initiated. Persons belonging to poor and middle class are also being provided a great relief in interest rates on housing schemes. Efforts are being made to provide all government services, whether bus or train tickets or individual certificates on line. These include passports which may be delivered at doorstep in two or three days or Company registration in one day time and these facilities have benefited a large section of our country. Certificate attestation is not mandatory, interviews for appointment in Group C and Group D posts have been done away with. These measures have saved time and money of lakhs of our youth. Our Government by using modern technology is committed to provide a relief to those who suffer because of rigid rules and regulations.
10. Madam,whileundertakingthesereformsandprogrammes,wehaveworkedsincerelyandwithoutweighingthepoliticalcosts.OurGovernmenthasensuredthatbenefitsreacheligiblebeneficiariesandaredeliveredtothemdirectly.Manyservicesandbenefitsarebeingdeliveredtothepeopleattheirdoorstepsorintheiraccounts.Ithasreducedcorruptionandcostofdeliveryandhaseliminatedmiddlemenintheprocess.DirectBenefitTransfermechanismofIndiaisthebiggestsuchexerciseintheworldandisaglobalsuccessstory.
SectionII
Investment,ExpenditureandPolicyInitiatives
AgricultureandRuralEconomy
11. MyGovernmentiscommittedforthewelfareoffarmers.Fordecades,country’sagriculturepolicyandprogrammehadremainedproductioncentric.Wehavesoughttoeffectaparadigmshift.HonourablePrimeMinistergaveaclarioncalltodoublefarmers’incomeby2022whenIndiacelebratesits75thyearofindependence.Ouremphasisisongeneratinghigherincomesforfarmers.Weconsideragricultureasanenterpriseandwanttohelpfarmersproducemorefromthesamelandparcelatlessercostandsimultaneouslyrealizehigherpricesfortheirproduce.Ouremphasisisalsoongeneratingproductiveandgainfulon-farmandnon-farmemploymentforthefarmersandlandlessfamilies.
12. Madam Speaker, as a result of the hardwork of our country’s farmers agriculture production in our country is at a record level. Doing the year 2016-17 we achieved a record food grain production of around 275 million tonnes and around 300 million tonnes of fruits and vegetables.
13. Madam Speaker, in our party’s manifesto it has been stated that the farmers should realize at least 50 per cent more than the cost of their produce, in other words, one and a half times of the cost of their production. Government have been very much sensitive to this resolutions and it has declared Minimum support price (MSP) for the majority of rabi crops at least at one and a half times the cost involved. Now, we have decided to implement this resolution as a principle for the rest of crops. I am pleased to announce that as per pre-determined principle, Government has decided to keep MSP for the all unannounced crops of kharifat least at one and half times of their production cost. I am confident that this historic decision will prove an important step towards doubling the income of our farmers.
14. Our Government works with the holistic approach of solving any issue rather than in fragments. Increasing MSP is not adequate and it is more important that farmers should get full benefit of the announced MSP. For this, it is essential that if price of the agriculture produce market is less than MSP, then in that case Government should purchase either at MSP or work in a manner to provide MSP for the farmers through some other mechanism. NitiAyog, in consultation with Central and State Governments, will put in place a fool-proof mechanism so that farmers will get adequate price for their produce.
15. Forbetterpricerealization,farmersneedtomakedecisionsbasedonpriceslikelytobeavailableafteritsharvest.Governmentwillcreateaninstitutionalmechanism,withparticipationofallconcernedMinistries,todevelopappropriatepoliciesandpracticesforpriceanddemandforecast,useoffuturesandoptionsmarket,expansionofwarehousedepositorysystemandtotakedecisionsaboutspecificexportsandimportsrelatedmeasures.
16. MadamSpeaker,lastyear,Ihadannouncedstrengtheningof
e-NAMandtoexpandcoverageofe-NAMto585APMCs.470APMCshavebeenconnectedtoe-NAMnetworkandrestwillbeconnectedbyMarch,2018.
17. Morethan86%ofourfarmersaresmallandmarginal.TheyarenotalwaysinapositiontodirectlytransactatAPMCsandotherwholesalemarkets.Wewilldevelopandupgradeexisting22,000ruralhaatsintoGraminAgriculturalMarkets(GrAMs).IntheseGrAMs,physicalinfrastructurewillbestrengthenedusingMGNREGAandotherGovernmentSchemes.TheseGrAMs,electronicallylinkedtoe-NAMandexemptedfromregulationsofAPMCs,willprovidefarmersfacilitytomakedirectsaletoconsumersandbulkpurchasers.
18. AnAgri-MarketInfrastructureFundwithacorpusof`2000crorewillbesetupfordevelopingandupgradingagriculturalmarketinginfrastructureinthe22000GrameenAgriculturalMarkets(GrAMs)and585APMCs.
19. Taskofconnectingalleligiblehabitationswithanall-weatherroadhasbeensubstantiallycompleted,withthetargetdatebroughtforwardtoMarch,2019fromMarch2022.Itisnowtimetostrengthenandwidenitsambitfurthertoincludemajorlinkrouteswhichconnecthabitationstoagriculturalandruralmarkets(GrAMs),highersecondaryschoolsandhospitals.PrimeMinisterGramSadakYojanaPhaseIIIwillincludesuchlinkages.
20. For several years, we have been stating that India is primarily an agriculture based country. As India is primarily an agriculture based country, our districts can specialize in some or other agricultural produce and be known for it. But special attention is lacking in this regard. There is a need to develop cluster based model in a scientific manner for identified agriculture produces in our districts in the same manner as we have developed model for industrial sector.
21. Cultivationofhorticulturecropsinclustersbringadvantagesofscalesofoperationsandcanspurestablishmentofentirechainfromproductiontomarketing,besidesgivingrecognitiontothedistrictsforspecificcrops.TheMinistryofAgriculture&Farmers’WelfarewillreorientitsongoingSchemesandpromoteclusterbaseddevelopmentofagri-commoditiesandregionsinpartnershipwiththeMinistriesofFoodProcessing,CommerceandotheralliedMinistries.
22. OurGovernmenthaspromotedorganicfarminginabigway.OrganicfarmingbyFarmerProducerOrganizations(FPOs)andVillageProducers’Organizations(VPOs)inlargeclusters,preferablyof1000hectareseach,willbeencouraged.WomenSelfHelpGroups(SHGs)willalsobeencouragedtotakeuporganicagricultureinclustersunderNationalRuralLivelihoodProgramme.
23. Ourecologysupportscultivationofhighlyspecializedmedicinalandaromaticplants.Indiaisalsohometoalargenumberofsmallandcottageindustriesthatmanufactureperfumes,essentialoilsandotherassociatedproducts.OurGovernmentshallsupportorganizedcultivationandassociatedindustry.Iproposetoallocateasumof`200croreforthispurpose.
24. FoodProcessingsectorisgrowingatanaveragerateof8%perannum.PrimeMinisterKrishiSampadaYojanaisourflagshipprogrammeforboostinginvestmentinfoodprocessing.AllocationofMinistryofFoodProcessingisbeingdoubledfrom`715crorein
RE2017-18to`1400croreinBE2018-19.Governmentwillpromoteestablishmentofspecializedagro-processingfinancialinstitutionsinthissector.
25. Tomato,onionandpotatoarebasicvegetablesconsumedthroughouttheyear.However,seasonalandregionalproductionoftheseperishablecommoditiesposeachallengeinconnectingfarmersandconsumersinamannerthatsatisfiesboth.MyGovernmentproposestolaunchan‘‘OperationGreens’’onthelinesof‘‘OperationFlood’’.‘‘OperationGreens’’shallpromoteFarmerProducersOrganizations(FPOs),agri-logistics,processingfacilitiesandprofessionalmanagement.Iproposetoallocateasumof`500croreforthispurpose.
26. India’sagri-exportspotentialisashighasUS$100billionagainstcurrentexportsofUS$30billion.Torealizethispotential,exportofagri-commoditieswillbeliberalized.Ialsoproposetosetupstate-of-the-arttestingfacilitiesinallthefortytwoMegaFoodParks.
27. I propose to extend the facility of Kisan Credit Cards to fisheries and animal husbandry farmers to help them meet their working capital needs. Small and marginal farmers will get more benefits.
28. Bamboois‘GreenGold’.Weremovedbamboogrownoutsideforestareasfromthedefinitionoftrees.Now,IproposetolaunchaRe-structuredNationalBambooMissionwithanoutlayof`1290croretopromotebamboosectorinaholisticmanner.
29. Manyfarmersareinstallingsolarwaterpumpstoirrigatetheirfields.GenerationofsolarelectricityisharvestingofSunbythefarmersusingtheirlands.GovernmentofIndiawilltakenecessarymeasuresandencourageStateGovernmentstoputinplaceamechanismthattheirsurplussolarpowerispurchasedbythedistributioncompaniesorlicenceesatreasonablyremunerativerates.
30. OurGovernmentsetupaLongTermIrrigationFund(LTIF)inNABARDformeetingfundingrequirementofirrigationworks.ScopeoftheFundwouldbeexpandedtocoverspecifiedcommandareadevelopmentprojects.
31. Lastyear,IhadannouncedsettingupofMicroIrrigationFund(MIF)forfacilitatingexpansionofcoverageundermicroirrigationandDairyProcessingInfrastructureDevelopmentFund(DPIDF)tohelpfinanceinvestmentindairyinginfrastructure.ItisnowtimetoexpandsuchfocusedinvestmentFunds.I,now,announcesettingupaFisheriesandAquacultureInfrastructureDevelopmentFund(FAIDF)forfisheriessectorandanAnimalHusbandryInfrastructureDevelopmentFund(AHIDF)forfinancinginfrastructurerequirementofanimalhusbandrysector.TotalCorpusofthesetwonewFundswouldbe`10,000crore.
32. OurGovernmenthasbeensteadilyincreasingthevolumeofinstitutionalcreditforagriculturesectorfromyear-to-yearfrom`8.5lakhcrorein2014-15to`10lakhcrorein2017-18.Inowproposetoraisethisto`11lakhcrorefortheyear2018-19.
33. Presently,lesseecultivatorsarenotabletoavailcroploans.Consequently,asignificantproportionofarablelandremainsfallowandtenantcultivatorsareforcedtosecurecreditfromusuriousmoneylenders.NITIAayog,inconsultationwithStateGovernments,willevolveasuitablemechanismtoenableaccessoflesseecultivatorstocreditwithoutcompromisingtherightsofthelandowners.
34. GovernmentwillextendafavourabletaxationtreatmenttoFarmerProducersOrganisations(FPOs)forhelpingfarmersaggregatetheirneedsofinputs,farmservices,processingandsaleoperations.
IshallgivedetailsinPartBofmyspeech.
35. AirpollutionintheDelhi-NCRregionhasbeenacauseofconcern.AspecialSchemewillbeimplementedtosupporttheeffortsofthegovernmentsofHaryana,Punjab,UttarPradeshandtheNCTofDelhitoaddressairpollutionandtosubsidizemachineryrequiredforin-situmanagementofcropresidue.
36. Madam Speaker, the present top leadership of this country has reached at this level after seeing poverty at close quarters. Our leadership is familiar with the problems being faced by the SC, ST,Backward Classes and economically weaker sections of the society. People belonging to poor and middle class are not case studies for them, on the other hand they themselves are case study.
37. The Lower and Middle Class have been the focus of our Government during the last three years. This Government is continuously striving to alleviate all the small and major problems of the poor.
38. We launched Prime Minister’s Ujjwala Scheme to make poor women free from the smoke of wood.Initially our target was to provide free LPG connections to about 5 crore poor women. But in view of the pace of implementation of Ujjwala scheme and its popularity among the women, we propose to increase the target of providing free connection to 8 crore poor women.
39. Our Government has launched Prime Minister SaubhagyaYojana for providing electricity to all households of the country. Under this scheme, four crores poor households are being provided with electricity connection free of charge. We are spending `16000 crore under this scheme. You can very well imagine our anxiety and restlessness even with one hour power cut. Think about those women and children whose houses will not get electricity. Their life is going to change because of PradhanMantriSaubhagyaYojana.
40. Swachh Bharat Mission has benefited the poor. Under this mission, Government has already constructed more than 6 crore toilets. The positive effect of these toilets is being seen on the dignity of ladies, education of girls and the overall health of family.Government is planning to construct around 2 crore toilets.
41. Madam Speaker, a roof for his family is another concern of the poor. Far from the Benami properties earned by corruption, the poor only desire to have a roof, a small house by his earning of honesty. Our Govt. is helping them so that they may fulfil the dream of their own house. We have fixed a target that every poor of this country may have his own house by 2022. For this purpose Prime Minister AwasYojana has been launched in rural and urban areas of the country. Under Prime Minister Awas Scheme Rural, 51 lakhs houses in year 2017-18 and 51 lakh houses during 2018-19 which is more than one crore houses will be constructed exclusively in rural areas. In urban areas the assistance has been sanctioned to construct 37 lakh houses.
42. MyGovernmentwillalsoestablishadedicatedAffordableHousingFund(AHF)inNationalHousingBank,fundedfromprioritysectorlendingshortfallandfullyservicedbondsauthorizedbytheGovernmentofIndia.
43. LoanstoSelfHelpGroupsofwomenincreasedtoaboutRupees42,500crorein2016-17,growing37%overpreviousyear.TheGovernmentisconfidentthatloanstoSHGswillincreaseto`75,000crorebyMarch,2019.IproposetosubstantiallyincreaseallocationofNationalRuralLivelihoodMissionto`5750crorein2018-19.
44. GroundwaterirrigationschemeunderPrimeMinisterKrishiSinchaiYojna-HarKhetkoPaniwillbetakenupin96deprivedirrigationdistrictswherelessthan30%ofthelandholdingsgetsassuredirrigationpresently.Ihaveallocated`2600croreforthispurpose.
45. Asmyproposalsoutlinedindicate,focusoftheGovernmentnextyearwillbeonprovidingmaximumlivelihoodopportunitiesintheruralareasbyspendingmoreonlivelihood,agricultureandalliedactivitiesandconstructionofruralinfrastructure.Intheyear2018-19,forcreationoflivelihoodandinfrastructureinruralareas,totalamounttobespentbytheMinistrieswillbe`14.34lakhcrore,includingextra-budgetaryandnon-budgetaryresourcesof`11.98lakhcrore.Apartfromemploymentduetofarmingactivitiesandselfemployment,thisexpenditurewillcreateemploymentof321crorepersondays,3.17lakhkilometersofruralroads,51lakhnewruralhouses,1.88croretoilets,andprovide1.75crorenewhouseholdelectricconnectionsbesidesboostingagriculturalgrowth.DetailsareinAnnexureI.
Health,EducationandSocialProtection
46. MyGovernment’sgoalistoassistandprovideopportunitytoeveryIndiantorealizeherfullpotentialcapableofachievinghereconomicandsocialdreams.OurGovernmentisimplementingacomprehensivesocialsecurityandprotectionprogrammetoreacheveryhouseholdofold,widows,orphanedchildren,divyaanganddeprivedaspertheSocio-EconomicCasteCensus.AllocationonNationalSocialAssistanceProgrammethisyearhasbeenkeptat`9975crore.
47. WehavemanagedtogetchildrentoSchoolbutthequalityofeducationisstillacauseofseriousconcern.WehavenowdefinedlearningoutcomesandNationalSurveyofmorethan20lakhchildrenhasbeenconductedtoassessthestatusontheground.Thiswillhelpindevisingadistrict-wisestrategyforimprovingqualityofeducation.Wenowproposetotreateducationholisticallywithoutsegmentationfrompre-nurserytoClass12.
48. Improvementinqualityofteacherscanimprovethequalityofeducationinthecountry.WewillinitiateanintegratedB.Ed.programmeforteachers.Trainingofteachersduringserviceisextremelycritical.WehaveamendedtheRighttoEducationActtoenablemorethan13lakhuntrainedteacherstogettrained.
49. Technologywillbethebiggestdriverinimprovingthequalityofeducation.Weproposetoincreasethedigitalintensityineducationandmovegraduallyfrom‘‘blackboard’’to‘‘digitalboard’’.Technologywillalsobeusedtoupgradetheskillsofteachersthroughtherecentlylauncheddigitalportal‘‘DIKSHA’’.
50. TheGovernmentiscommittedtoprovidethebestqualityeducationtothetribalchildrenintheirownenvironment.Torealisethismission,ithasbeendecidedthatbytheyear2022,everyblockwithmorethan50%STpopulationandatleast20,000tribalpersons,willhaveanEkalavyaModelResidentialSchool.EkalavyaschoolswillbeonparwithNavodayaVidyalayasandwillhavespecialfacilitiesforpreservinglocalartandculturebesidesprovidingtraininginsportsandskilldevelopment.
51. Tostepupinvestmentsinresearchandrelatedinfrastructureinpremiereducationalinstitutions,includinghealthinstitutions,Iproposetolaunchamajorinitiativenamed‘‘RevitalisingInfrastructureandSystemsinEducation(RISE)by2022’’withatotalinvestmentof`1,00,000croreinnextfouryears.HigherEducationFinancingAgency(HEFA)wouldbesuitablystructuredforfundingthisinitiative.
52. OurGovernmenthastakenmajorinitiativeofsettingupInstitutesofEminence.Therehasbeentremendousresponsetothisinitiativebyinstitutionsbothinpublicandprivatesectors.Wehavereceivedmorethan100applications.WehavealsotakenstepstosetupaspecializedRailwaysUniversityatVadodara.
53. Weproposetosetuptwonewfull-fledgedSchoolsofPlanningandArchitecture,tobeselectedonchallengemode.Additionally,18newSPAswouldbeestablishedintheIITsandNITsasautonomousSchools,alsoonchallengemode.
54. TheGovernmentwouldlaunchthe‘‘PrimeMinister’sResearchFellows(PMRF)’’Schemethisyear.Underthis,wewouldidentify1,000bestB.TechstudentseachyearfrompremierinstitutionsandprovidethemfacilitiestodoPh.DinIITsandIISc,withahandsomefellowship.Itisexpectedthatthesebrightyoungfellowswouldvoluntarilycommitfewhourseveryweekforteachinginhighereducationalinstitutions.
55. Now I come to the Health Sector. ºÉ´ÉäǣɴÉxiÉÖ: ºÉÖÉÊJÉ‍xÉ, ºÉ´ÉäǺÉÆiÉÖ: ÉÊxÉ®ÉàɪÉÉis the guiding principle of my Government. Only Swasth Bharat can be a Samriddha Bharat. India cannot realize its demographic dividend without its citizens being healthy.
56. I am pleased to announce two major initiatives as part of ‘‘Ayushman Bharat’’programme aimed at making path breaking interventions to address health holistically, in primary, secondary and tertiary care system covering both prevention and health promotion.
57. TheNationalHealthPolicy,2017hasenvisionedHealthandWellnessCentresasthefoundationofIndia’shealthsystem.These1.5lakhcentreswillbringhealthcaresystemclosertothehomesofpeople.Thesecentreswillprovidecomprehensivehealthcare,includingfornon-communicablediseasesandmaternalandchildhealthservices.Thesecentreswillalsoprovidefreeessentialdrugsanddiagnosticservices.
Iamcommitting`1200croreinthisbudgetforthisflagshipprogramme.IalsoinvitecontributionofprivatesectorthroughCSRandphilanthropicinstitutionsinadoptingthesecentres.
58. MadamSpeaker,weareallawarethatlakhsoffamiliesinourcountryhavetoborroworsellassetstoreceiveindoortreatmentinhospitals.Governmentisseriouslyconcernedaboutsuchimpoverishmentofpoorandvulnerablefamilies.PresentRashtriyaSwasthyaBimaYojana(RSBY)provideannualcoverageofonly`30,000topoorfamilies.SeveralStateGovernmentshavealsoimplemented/supplementedhealthprotectionschemesprovidingvaryingcoverage.MyGovernmenthasnowdecidedtotakehealthprotectiontomoreaspirationallevel.
59. WewilllaunchaflagshipNationalHealthProtectionSchemetocoverover10crorepoorandvulnerablefamilies(approximately50crorebeneficiaries)providingcoverageupto5lakhrupeesperfamilyperyearforsecondaryandtertiarycarehospitalization.Thiswillbetheworld’slargestgovernmentfundedhealthcareprogramme.Adequatefundswillbeprovidedforsmoothimplementationofthisprogramme.
60. Madam Speaker, these two far-reaching initiatives under the Ayushman Bharat will build a New India 2022 and ensure enhanced productivity, well being and avert wage loss and impoverishment. These Schemes will also generate lakhs of jobs, particularly for women. The Government is steadily but surely progressing towards the goal of Universal Health Coverage.
61. TBclaimsmoreliveseveryyearthananyotherinfectiousdisease.Itaffectsmainlypoorandmalnourishedpeople.MyGovernmenthas,therefore,decidedtoallocateadditional`600croretoprovidenutritionalsupporttoallTBpatientsattherateof`500permonthforthedurationoftheirtreatment.
62. Inordertofurtherenhanceaccessibilityofqualitymedicaleducationandhealthcare,wewillbesettingup24newGovernmentMedicalCollegesandHospitalsbyupgradingexistingdistricthospitalsinthecountry.Thiswouldensurethatthereisatleast1MedicalCollegeforevery3ParliamentaryConstituenciesandatleast1GovernmentMedicalCollegeineachStateofthecountry.
63. Ourresolveofmakingourvillagesopendefecationfreeisaimedatimprovingthelifeofourvillagers.WewilllaunchaSchemecalledGalvanizingOrganicBio-AgroResourcesDhan(GOBAR-DHAN)formanagementandconversionofcattledungandsolidwasteinfarmstocompost,fertilizer,bio-gasandbio-CNG.
64. PradhanMantriJeevanJyotiBeemaYojana(PMJJBY)hasbenefitted5.22crorefamilieswithalifeinsurancecoverof`2lakhonpaymentofapremiumofonly`330/-perannum.Likewise,underPradhanMantriSurakshaBimaYojana,13crore25lakhpersonshavebeeninsuredwithpersonalaccidentcoverof`2lakhonpaymentofapremiumofonly`12perannum.TheGovernmentwillworktocoverallpoorhouseholds,includingSC/SThouseholds,undertheseinamissionmode.
65. TheGovernmentwillexpandthecoverageunderPrimeMinisterJanDhanYojanabybringingallsixtycrorebasicaccountswithinitsfoldandundertakemeasurestoprovideservicesofmicroinsuranceandunorganizedsectorpensionschemesthroughtheseaccounts.
66. Ourcommitmenttowards‘‘BetiBachaoBetiPadhao’’isunflinching.SukanyaSamriddhiAccountSchemelaunchedinJanuary2015hasbeenagreatsuccess.UntilNovember,2017morethan1.26croreaccountshavebeenopenedacrossthecountryinthenameofgirl-childsecuringanamountof`19,183crore.
67. CleaningtheGangaisworkofnationalimportanceanditisourfirmcommitment.Memberswillbehappytolearnthatthisworkhasgatheredspeed.Atotalof187projectshavebeensanctionedundertheNamamiGangeprogrammeforinfrastructuredevelopment,riversurfacecleaning,ruralsanitationandotherinterventionsatacostof
`16,713crore.47projectshavebeencompletedandremainingprojectsareatvariousstagesofexecution.All4465GangaGrams–villagesonthebankofriver-havebeendeclaredopendefecationfree.
68. Togivefocusedattentionandtoachieveourvisionofaninclusivesociety,theGovernmenthasidentified115aspirationaldistrictstakingvariousindicesofdevelopmentinconsideration.TheGovernmentaimsatimprovingthequalityoflifeinthesedistrictsbyinvestinginsocialserviceslikehealth,education,nutrition,skillupgradation,financialinclusionandinfrastructurelikeirrigation,ruralelectrification,potabledrinkingwaterandaccesstotoiletsatanacceleratedpaceandinatimeboundmanner.Weexpectthese115districtstobecomemodelofdevelopment.
69. EconomicandsocialadvancementofhardworkingpeopleofScheduledCastes(SCs)andScheduledTribes(STs)hasreceivedcoreattentionofGovernment.OurGovernmentincreasedtotalearmarkedallocationforSCsin279programmesfrom`34,334crorein2016-17to`52,719croreinRE2017-18.Likewise,forSTs,earmarkedallocationwasincreasedfrom`21,811crorein2016-17to`32,508crorein
RE2017-18in305programmes.Iproposeanearmarkedallocationof`56,619croreforSCsand`39,135croreforSTsinBE2018-19.
70. Government’sestimatedschematicbudgetaryexpenditureonhealth,educationandsocialprotectionfor2018-19is`1.38lakhcroreagainstestimatedexpenditureof`1.22lakhcroreinBE2017-18.DetailsareinAnnexureII.Thisexpenditureislikelytogoupbyatleast`15,000crorein2018-19onaccountofadditionalallocationduringtheyearandextrabudgetaryexpenditure,includingthroughHigherEducationFinancingAgency.
Medium,SmallandMicroEnterprises(MSMEs)andEmployment
71. Medium,SmallandMicroEnterprises(MSMEs)areamajorengineofgrowthandemploymentinthecountry.Ihaveprovided
`3794croretoMSMESectorforgivingcreditsupport,capitalandinterestsubsidyandinnovations.MassiveformalizationofthebusinessesofMSMEsistakingplaceinthecountryafterdemonetizationandintroductionofGST.ThisisgeneratingenormousfinancialinformationdatabaseofMSMEs’businessesandfinances.ThisbigdatabasewillbeusedforimprovingfinancingofMSMEs’capitalrequirement,includingworkingcapital.
72. ItisproposedtoonboardpublicsectorbanksandcorporatesonTradeElectronicReceivableDiscountingSystem(TReDS)platformandlinkthiswithGSTN.OnlineloansanctioningfacilityforMSMEswillberevampedforpromptdecisionmakingbythebanks.Governmentwillsoonannouncemeasuresforeffectivelyaddressingnon-performingassetsandstressedaccountsofMSMEs.ThiswillenablelargerfinancingofMSMEsandalsoconsiderablyeasecashflowchallengesfacedbythem.InordertoreducetaxburdenonMSMEsandtocreatelargernumberofjobs,IwillbeannouncingsometaxmeasuresinPartBofmyspeech.
73. MUDRAYojanalaunchedinApril,2015hasledtosanctionof`4.6lakhcroreincreditfrom10.38croreMUDRAloans.76%ofloanaccountsareofwomenandmorethan50%belongtoSCs,STsandOBCs.Itisproposedtosetatargetof`3lakhcroreforlendingunderMUDRAfor2018-19afterhavingsuccessfullyexceededthetargetsinallpreviousyears.
74. Non-BankFinanceCompanies(NBFCs)steppedupfinancingofMSMEsafterdemonetization.NBFCscanbeverypowerfulvehiclefordeliveringloansunderMUDRA.RefinancingpolicyandeligibilitycriteriasetbyMUDRAwillbereviewedforbetterrefinancingofNBFCs.
75. UseofFintechinfinancingspacewillhelpgrowthofMSMEs.AgroupintheMinistryofFinanceisexaminingthepolicyandinstitutionaldevelopmentmeasuresneededforcreatingrightenvironmentforFintechcompaniestogrowinIndia.
76. VentureCapitalFundsandtheangelinvestorsneedaninnovativeandspecialdevelopmentalandregulatoryregimefortheirgrowth.Wehavetakenanumberofpolicymeasuresincludinglaunching‘‘Start-UpIndia’’program,buildingveryrobustalternativeinvestmentregimeinthecountryandrollingoutataxationregimedesignedforthespecialnatureoftheVCFsandtheangelinvestors.WewilltakeadditionalmeasurestostrengthentheenvironmentfortheirgrowthandsuccessfuloperationofalternativeinvestmentfundsinIndia.
77. Creatingjobopportunitiesandfacilitatinggenerationofemploymenthasbeenatthecoreofourpolicy-making.Duringthelastthreeyears,wehavetakenanumberofstepstoboostemploymentgenerationinthecountry.Thesemeasuresinclude:-
• Contributionof8.33%ofEmployeeProvidentFund(EPF)fornewemployeesbytheGovernmentforthreeyears.
• Contributionof12%toEPFfornewemployeesforthreeyearsbytheGovernmentinsectorsemployinglargenumberofpeopleliketextile,leatherandfootwear.
• Additionaldeductiontotheemployeesof30%ofthewagespaidfornewemployeesundertheIncomeTaxAct.
• LaunchofNationalApprenticeshipSchemewithstipendsupportandsharingofthecostofbasictrainingbytheGovernmenttogivetrainingto50lakhyouthby2020.
• Introducingsystemoffixedtermemploymentforapparelandfootwearsector.
• Increasingpaidmaternityleavefrom12weeksto26weeks,alongwithprovisionofcrèches.
78. Thesemeasureshavestartedshowingresults.Anindependentstudyconductedrecentlyhasshownthat70lakhformaljobswillbecreatedthisyear.
79. Tocarryforwardthismomentum,IamhappytoannouncethattheGovernmentwillcontribute12%ofthewagesofthenewemployeesintheEPFforallthesectorsfornextthreeyears.Also,thefacilityoffixedtermemploymentwillbeextendedtoallsectors.
80. Toincentivizeemploymentofmorewomenintheformalsectorandtoenablehighertake-homewages,IproposetomakeamendmentsintheEmployeesProvidentFundandMiscellaneousProvisionsAct,1952toreducewomenemployees’contributionto8%forfirstthreeyearsoftheiremploymentagainstexistingrateof12%or10%withnochangeinemployers’contribution.
81. TheGovernmentissettingupamodelaspirationalskillcentreineverydistrictofthecountryunderPradhanMantriKaushalKendraProgramme.306PradhanMantriKaushalKendrahavebeenestablishedforimpartingskilltrainingthroughsuchcenters.
82. TheGovernmenthadapprovedacomprehensivetextilesectorpackageof`6000crorein2016toboosttheapparelandmade-upsegments.I,nowproposetoprovideanoutlayof`7148croreforthetextilesectorin2018-19.

InfrastructureandFinancialSectorDevelopment
83. Infrastructureisthegrowthdriverofeconomy.Ourcountryneedsmassiveinvestmentsestimatedtobeinexcessof`50lakhcroreininfrastructuretoincreasegrowthofGDP,connectandintegratethenationwithanetworkofroads,airports,railways,portsandinlandwaterwaysandtoprovidegoodqualityservicestoourpeople.
84. Wehavemadeanall-timehighallocationtorailandroadsectors.Wearecommittedtofurtherenhancepublicinvestment.Provisionofkeylinkageslikecoalforpower,powerforrailwaysandrailwayrakesforcoalhavebeenrationalizedandmadeveryefficient.PrimeMinisterpersonallyreviewsthetargetsandachievementsininfrastructuresectorsonaregularbasis.UsingonlinemonitoringsystemofPRAGATIalone,projectsworth9.46lakhcrorehavebeenfacilitatedandfasttracked.
85. TosecureIndia’sdefences,wearedevelopingconnectivityinfrastructureinborderareas.RohtangtunnelhasbeencompletedtoprovideallweatherconnectivitytotheLadakhregion.ContractforconstructionofZozilaPasstunnelofmorethan14kilometerisprogressingwell.InowproposetotakeupconstructionoftunnelunderSelaPass.Forpromotingtourismandemergencymedicalcare,Governmentwillmakenecessaryframeworkforencouraginginvestmentinseaplaneactivities.
86. Urbanizationisouropportunityandpriority.MyGovernmenthasrolledouttwointerlinkedprogrammes–SmartCitiesMissionandtheAMRUT.
87. SmartCitiesMissionaimsatbuilding100SmartCitieswithstate-of-the-artamenities.Iamhappytoinformthat99Citieshavebeenselectedwithanoutlayof`2.04lakhcrore.TheseCitieshavestartedimplementingvariousprojectslikeSmartCommandandControlCentre,SmartRoads,SolarRooftops,IntelligentTransportSystems,SmartParks.Projectsworth`2350crorehavebeencompletedandworksof`20,852croreareunderprogress.TopreserveandrevitalizesouloftheheritagecitiesinIndia,NationalHeritageCityDevelopmentandAugmentationYojana(HRIDAY)hasbeentakenupinamajorway.
88. Indiaisblessedwithanabundanceoftouristattractions.ItisproposedtodeveloptenprominenttouristsitesintoIconicTourismdestinationsbyfollowingaholisticapproachinvolvinginfrastructureandskilldevelopment,developmentoftechnology,attractingprivateinvestment,brandingandmarketing.Inaddition,touristamenitiesat100AdarshmonumentsoftheArchaeologicalSurveyofIndiawillbeupgradedtoenhancevisitorexperience.
89. TheAMRUTprogrammefocusesonprovidingwatersupplytoallhouseholdsin500cities.Statelevelplansof`77,640crorefor500citieshavebeenapproved.Watersupplycontractsfor494projectsworth`19,428croreandsewerageworkcontractfor272projectscosting`12,429crorehasbeenawarded.
90. Reformsarebeingcatalyzedbythesemissions.482citieshavestartedcreditrating.144citieshavegotinvestmentgraderating.
91. MyMinistrywillleveragetheIndiaInfrastructureFinanceCorporationLimited(IIFCL)tohelpfinancemajorinfrastructureprojects,includinginvestmentsineducationalandhealthinfrastructure,onstrategicandlargersocietalbenefitconsiderations.
92. OurGovernmenthasscalednewheightsindevelopmentofRoadInfrastructuresector.WeareconfidenttocompleteNationalHighwaysexceeding9000kilometerslengthduring2017-18.AmbitiousBharatmalaPariyojanahasbeenapprovedforprovidingseamlessconnectivityofinteriorandbackwardareasandbordersofthecountrytodevelopabout35000kmsinPhase-Iatanestimatedcostof`5,35,000crore.Toraiseequityfromthemarketforitsmatureroadassets,NHAIwillconsiderorganizingitsroadassetsintoSpecialPurposeVehiclesanduseinnovativemonetizingstructureslikeToll,OperateandTransfer(TOT)andInfrastructureInvestmentFunds(InvITs).
93. StrengtheningtherailwaynetworkandenhancingRailways’carryingcapacityhasbeenamajorfocusoftheGovernment.Railways’Capexfortheyear2018-19hasbeenpeggedat`1,48,528crore.AlargepartoftheCapexisdevotedtocapacitycreation.18,000kilometersofdoubling,thirdandfourthlineworksand5000kilometersofgaugeconversionwouldeliminatecapacityconstraintsandtransformalmostentirenetworkintoBroadGauge.
94. TherehasalsobeensignificantimprovementintheachievementofphysicaltargetsbyRailwaysaswell.Wearemovingfasttowardsoptimalelectrificationofrailwaynetwork.4000kilometersaretargetedforcommissioningduring2017-18.
95. WorkonEasternandWesterndedicatedFreightCorridorsisinfullswing.Adequatenumberofrollingstock–12000wagons,5160coachesandapproximately700locomotivesarebeingprocuredduring2018-19.AmajorprogrammehasbeeninitiatedtostrengtheninfrastructureattheGoodsshedsandfasttrackcommissioningofprivatesidings.
96. A‘SafetyFirst’policy,withallocationofadequatefundsunderRashtriyaRailSanrakshaKoshiscornerstoneofRailways’focusonsafety.Maintenanceoftrackinfrastructureisbeinggivenspecialattention.Over3600kmsoftrackrenewalistargetedduringthecurrentfiscal.Othermajorstepsincludeincreasinguseoftechnologylike‘‘FogSafe’’and‘‘TrainProtectionandWarningSystem’’.Adecisionhasbeentakentoeliminate4267unmannedlevelcrossingsinthebroadgaugenetworkinthenexttwoyears.
97. Redevelopmentof600majorrailwaystationsisbeingtakenupbyIndianRailwayStationDevelopmentCo.Ltd.Allstationswithmorethan25000footfallswillhaveescalators.Allrailwaystationsandtrainswillbeprogressivelyprovidedwithwi-fi.CCTVswillbeprovidedatallstationsandontrainstoenhancesecurityofpassengers.Moderntrain-setswithstate-of-the-artamenitiesandfeaturesarebeingdesignedatIntegratedCoachFactory,Perambur.Firstsuchtrain-setwillbecommissionedduring2018-19.
98. Mumbai’stransportsystem,thelifelineoftheCity,isbeingexpandedandaugmentedtoadd90kilometersofdoublelinetracksatacostofover`11,000crore.150kilometersofadditionalsuburbannetworkisbeingplannedatacostofover`40,000crore,includingelevatedcorridorsonsomesections.Asuburbannetworkofapproximately160kilometersatanestimatedcostof`17,000croreisbeingplannedtocatertothegrowthoftheBengalurumetropolis.
99. FoundationfortheMumbai-Ahmedabadbullettrainproject,India’sfirsthighspeedrailprojectwaslaidonSeptember14,2017.AnInstituteiscomingupatVadodaratotrainmanpowerrequiredforhighspeedrailprojects.
100. Inthelastthreeyears,thedomesticairpassengertrafficgrewat18%perannumandourairlinecompaniesplacedordersformorethan900aircrafts.RegionalconnectivityschemeofUDAN(UdeDeshkaAamNagrik)initiatedbytheGovernmentlastyearshallconnect56unservedairportsand31unservedhelipadsacrossthecountry.Operationshavealreadystartedat16suchairports.ºÉ®BÉEÉ®BÉEÉÒ<ºÉ{ÉcãɺÉäc´ÉÉ<ÇSÉ{{ÉãÉ{ÉcxÉxÉä´ÉÉãÉäxÉÉMÉÉÊ®BÉE£ÉÉÒc´ÉÉ<ÇVÉcÉVÉàÉäªÉÉjÉÉBÉE®®cäcé*AirportAuthorityofIndia(AAI)has124airports.Weproposetoexpandourairportcapacitymorethanfivetimestohandleabilliontripsayearunderanewinitiative-NABHNirman.BalancesheetofAAIshallbeleveragedtoraisemoreresourcesforfundingthisexpansion.
101. OureffortstosetupaCoalitiononDisasterResilientInfrastructurefordevelopinginternationalgoodpractices,appropriatestandardsandregulatorymechanismforresilientinfrastructuredevelopmentaremovingwell.Iproposetoallocate`60crorestokickstartthisinitiativein2018-19.
102. TheGovernmentandmarketregulatorshavetakennecessarymeasuresfordevelopmentofmonetizingvehicleslikeInfrastructureInvestmentTrust(InvIT)andRealInvestmentTrust(ReITs)inIndia.TheGovernmentwouldinitiatemonetizingselectCPSEassetsusingInvITsfromnextyear.
103. Inthecurrentyear,weincluded,inthescopeofharmonizedlistofinfrastructure,ropewaystopromotetourism,logisticsparksandexpandedthescopeofrailwaysinfrastructuretoincludedevelopmentofcommerciallandaroundrailwaystations.
104. ReserveBankofIndiahasissuedguidelinestonudgeCorporatesaccessbondmarket.SEBIwillalsoconsidermandating,beginningwithlargeCorporates,tomeetaboutone-fourthoftheirfinancingneedsfromthebondmarket.
105. Corporatebondsrated‘BBB’orequivalentareinvestmentgrade.InIndia,mostregulatorspermitbondswiththe‘AA’ratingonlyaseligibleforinvestment.Itisnowtimetomovefrom‘AA’to‘A’graderatings.Thegovernmentandconcernedregulatorswilltakenecessaryaction.
106. WewilltakereformmeasureswithrespecttostampdutyregimeonfinancialsecuritiestransactionsinconsultationwiththeStatesandmakenecessaryamendmentstheIndianStampAct.
107. InternationalFinancialServiceCentre(IFSC)atGiftCity,whichhasbecomeoperational,needsacoherentandintegratedregulatoryframeworktofullydevelopandtocompetewithotheroffshorefinancialcentres.TheGovernmentwillestablishaunifiedauthorityforregulatingallfinancialservicesinIFSCsinIndia.
108. Globaleconomyistransformingintoadigitaleconomythankstodevelopmentofcuttingedgetechnologiesindigitalspace–machinelearning,artificialintelligence,internetofthings,3Dprintingandthelike.InitiativessuchasDigitalIndia,StartUpIndia,MakeinIndiawouldhelpIndiaestablishitselfasaknowledgeanddigitalsociety.NITIAayogwillinitiateanationalprogramtodirectoureffortsintheareaofartificialintelligence,includingresearchanddevelopmentofitsapplications.
109. Combiningcyberandphysicalsystemshavegreatpotentialtotransformnotonlyinnovationecosystembutalsooureconomiesandthewaywelive.Toinvestinresearch,trainingandskillinginrobotics,artificialintelligence,digitalmanufacturing,bigdataanalysis,quantumcommunicationandinternetofthings,DepartmentofScience&TechnologywilllaunchaMissiononCyberPhysicalSystemstosupportestablishmentofcentresofexcellence.IhavedoubledtheallocationonDigitalIndiaprogrammeto`3073crorein2018-19.
110. TaskofconnectingonelakhgrampanchayatthroughhighspeedopticalfibernetworkhasbeencompletedunderphaseIoftheBharatnetproject.Thishasenabledbroadbandaccesstoover20croreruralIndiansinabouttwolakhfiftythousandvillages.TheGovernmentalsoproposestosetupfivelakhwi-fihotspotswhichwillprovidebroadbandaccesstofivecroreruralcitizens.Ihaveprovided`10000crorein2018-19forcreationandaugmentationofTelecominfrastructure.
111. Toharnessthebenefitofemergingnewtechnologies,particularlythe‘FifthGeneration’(5G)technologiesanditsadoption,theDepartmentofTelecomwillsupportestablishmentofanindigenous5GTestBedatIIT,Chennai.
112. Distributedledgersystemortheblockchaintechnologyallowsorganizationofanychainofrecordsortransactionswithouttheneedofintermediaries.TheGovernmentdoesnotconsidercrypto-currencieslegaltenderorcoinandwilltakeallmeasurestoeliminateuseofthesecrypto-assetsinfinancingillegitimateactivitiesoraspartofthepaymentsystem.TheGovernmentwillexploreuseofblockchaintechnologyproactivelyforusheringindigitaleconomy.
113. ThesystemoftollpaymentsphysicallybycashatroadtollplazasisbeingfastreplacedwithFastagsandotherelectronicpaymentsystemstomakeroadtravelseamless.NumberofFastagshasgoneupfromabout60,000inDecember,2016tomorethan10lakhnow.FromDecember,2017allclass‘‘M’’and‘‘N’’vehiclesarebeingsoldonlywiththeFastags.TheGovernmentwillcomeoutwithapolicytointroducetollsystemon‘‘payasyouuse’’basis.
114. Inordertocreateemploymentandaidgrowth,Government’sestimatedbudgetaryandextrabudgetaryexpenditureoninfrastructurefor2018-19isbeingincreasedto`5.97lakhcroreagainstestimatedexpenditureof`4.94lakhcrorein2017-18.DetailsareinAnnexureIII.
BuildingInstitutionsandImprovingPublicServiceDelivery
115. OurarmedforceshaveplayedastellarroleinmeetingthechallengeswehavebeenfacingonourbordersaswellasinmanagingtheinternalsecurityenvironmentbothinJammuandKashmirandtheNorthEast.IwouldliketoplaceonrecordourappreciationfortheeffortsandthesacrificesmadebythethreeservicesindefendingtheinterestsoftheNation.
116. EversincetheNDAGovernmenthasassumedofficein2014,lotofemphasishasbeengiventomodernizingandenhancingtheoperationalcapabilityoftheDefenceForces.AnumberofinitiativeshavebeentakentodevelopandnurtureintrinsicdefenceproductioncapabilitytomaketheNationself-reliantformeetingourdefenceneeds.Ensuringadequatebudgetarysupportwillbeourpriority.
117. Wehaveopenedupprivateinvestmentindefenceproductionincludingliberalizingforeigndirectinvestment.Wewilltakemeasurestodeveloptwodefenceindustrialproductioncorridorsinthecountry.TheGovernmentwillalsobringoutanindustryfriendlyDefenceProductionPolicy2018topromotedomesticproductionbypublicsector,privatesectorandMSMEs.
118. AadharhasprovidedanidentitytoeveryIndian.Aadharhaseaseddeliveryofsomanypublicservicestoourpeople.Everyenterprise,majororsmall,alsoneedsauniqueID.TheGovernmentwillevolveaSchemetoassigneveryindividualenterpriseinIndiaa
uniqueID.
119. TocarrythebusinessreformsforeaseofdoingbusinessdeeperandineveryStateofIndia,theGovernmentofIndiahasidentified372specificbusinessreformactions.AllStateshavetakenupthesereformsandsimplificationsinamissionmodeconstructivelycompetingwitheachother.EvaluationofperformanceunderthisProgrammewillnowbebasedonuserfeedback.
120. CapitaloftheFoodCorporationofIndiawillberestructuredtoenhanceequityandtoraiselong-termdebtformeetingitsstandingworkingcapitalrequirement.
121. BudgetingofGovernmentofIndia’scontributioninequityanddebtofthemetroventuresfloatedbytheStateGovernmentswillbestreamlined.
122. DepartmentofCommercewillbedevelopingaNationalLogisticsPortalasasinglewindowonlinemarketplacetolinkallstakeholders.
123. TheGovernmenthasapprovedlistingof14CPSEs,includingtwoinsurancecompanies,onthestockexchanges.TheGovernmenthasalsoinitiatedtheprocessofstrategicdisinvestmentin24CPSEs.ThisincludesstrategicprivatizationofAirIndia.
124. ProcessofacquisitionofHindustanPetroleumCorporationbytheONGChasbeensuccessfullycompleted.ThreepublicsectorgeneralinsurancecompaniesNationalInsuranceCompanyLtd.,UnitedIndiaAssuranceCompanyLimitedandOrientalIndiaInsuranceCompanyLimitedwillbemergedintoasingleinsuranceentityandwillbesubsequentlylisted.
125. TheGovernmentintroducedExchangeTradedFundBharat-22toraise`14,500crore,whichwasover-subscribedinallsegments.DIPAMwillcomeupwithmoreETFoffersincludingdebtETF.
126. 2017-18BudgetEstimatesfordisinvestmentwerepeggedatthehighesteverlevelof`72,500crore.IamhappytoinformtheHousethatwehavealreadyexceededthebudgetestimates.Iamassumingreceiptsof`1,00,000crorein2017-18.Iamsettingthedisinvestmenttargetof`80,000crorefor2018-19.
127. Bankrecapitalizationprogramhasbeenlaunchedwithbondsof`80,000crorebeingissuedthisyear.Theprogrammehasbeenintegratedwithanambitiousreformagenda,undertherubricofanEnhancedAccessandServiceExcellence(EASE)programme.Thisrecapitalizationwillpavethewayforthepublicsectorbankstolendadditionalcreditof`5lakhcrore.
128. ItisproposedtoallowstrongRegionalRuralBankstoraisecapitalfromthemarkettoenablethemincreasetheircredittoruraleconomy.
129. NationalHousingBankActisbeingamendedtotransferitsequityfromtheReserveBankofIndiatotheGovernment.IndianPostOfficesAct,ProvidentFundActandNationalSavingCertificateActarebeingamalgamatedandcertainadditionalpeoplefriendlymeasuresarebeingintroduced.ToprovidetheReserveBankofIndiaaninstrumenttomanageexcessliquidity,ReserveBankofIndiaActisbeingamendedtoinstitutionalizeanUncollateralizedDepositFacility.SecuritiesandExchangeBoardofIndia,Act1992,SecuritiesContracts(Regulation)Act1956,andDepositoriesAct1996,arebeingamendedtostreamlineadjudicationproceduresandtoprovideforpenaltiesforcertaininfractions.TheseproposalsareintheFinanceBill.
130. Foreasieraccess,linkstoallDetailedDemandforGrantswillbeprovidedatindia.gov.in.TheGovernmentwillalsoconsiderfeasibilityofprovidingdisclosedfiscalinformationinamachinereadableform.
131. TheGovernmentistransformingmethodofdisposalofitsbusinessbyintroductionofe-officeandothere-governanceinitiativesincentralMinistriesandDepartments.TheseinitiativesarelistedinAnnexureIV.
132. TheGovernmentwillformulateacomprehensiveGoldPolicytodevelopgoldasanassetclass.TheGovernmentwillalsoestablishasystemofconsumerfriendlyandtradeefficientsystemofregulatedgoldexchangesinthecountry.GoldMonetizationSchemewillberevampedtoenablepeopletoopenahassle-freeGoldDepositAccount.
133. OutwardDirectInvestment(ODI)fromIndiahasgrowntoUS$15billionperannum.TheGovernmentwillreviewexistingguidelinesandprocessesandbringoutacoherentandintegratedOutwardDirectInvestment(ODI)policy.
134. Hybridinstrumentsaresuitableforattractingforeigninvestmentsinseveralnicheareas,especiallyforthestartupsandventurecapitalfirms.TheGovernmentwillevolveaseparatepolicyforthehybridinstruments.
135. TheemolumentsofthePresident,theVicePresidentandtheGovernorswerelastrevisedwitheffectfrom1stJanuary,2006.Theseemolumentsareproposedtoberevisedto`5lakhforthePresident,
`4lakhsfortheVicePresidentandto`3.5lakhpermonthfortheGovernors.
136. TherehasbeenapublicdebatewithregardtotheemolumentspaidtotheMembersofParliament.Presentpracticeallowstherecipientstofixtheirownemolumentswhichinvitescriticism.Iam,therefore,proposingnecessarychangestorefixthesalary,constituencyallowance,officeexpensesandmeetingallowancepayabletoMembersofParliamentwitheffectfromApril1,2018.Thelawwillalsoprovideforautomaticrevisionofemolumentseveryfiveyearsindexedtoinflation.IamsureHon’bleMemberswillwelcomethisinitiativeandwillnotsuffersuchcriticisminfuture.
137. Ourcountrywillcommemorate150thbirthanniversaryofMahatmaGandhi,FatheroftheNation,from2ndOctober,2019to2ndOctober2020.TheGovernmentandthePeopleofIndiawillrededicatethem,throughtheiractions,totheidealsthattheMahatmataughtandlivedby.ANationalCommittee,chairedbythePrimeMinister,whichincludesChiefMinistersofalltheStates,representativesfromacrossthepoliticalspectrum,Gandhians,thinkersandeminentpersonsfromallwalksoflife,hasbeenconstitutedtoformulateaCommemorationProgramme.MyGovernmenthasearmarked`150crorefortheyear2018-19fortheactivitiesleadingtotheCommemoration.
SectionIII-FiscalManagement
138. Inowturntothefiscalsituationfor2017-18andfiscalestimatesfor2018-19.
139. In2017-18,CentralGovernmentwillbereceivingGSTrevenuesonlyfor11months,insteadof12months.Thiswillhavefiscaleffect.TherehasalsobeensomeshortfallinNon-Taxrevenuesonaccountofcertaindevelopments,includingdefermentofspectrumauction.Apartofthisshortfallhasbeenmadeupthroughhigherdirecttaxrevenuesandbiggerdisinvestmentreceipts.
140. TotalRevisedEstimatesforexpenditurein2017-18are`21.57lakhcrore(netofGSTcompensationtransferstotheStates)asagainsttheBudgetEstimatesof`21.47lakhcrore.
141. OurGovernmentassumedofficeinMay,2014whenfiscaldeficitwasrunningatveryhighlevels.FiscalDeficitfor2013-14was4.4%ofGDP.ThePrimeMinisterandtheGovernmenthavealwaysattachedutmostprioritytoprudentfiscalmanagementandcontrollingfiscaldeficit.AsHon’bleMemberswouldrecall,weembarkedonthepathofconsistentfiscalreductionandconsolidationin2014.FiscalDeficitwasbroughtdownto4.1%in2014-15to3.9%in2015-16,andto3.5%in2016-17.RevisedFiscalDeficitestimatesfor2017-18are`5.95lakhcroreat3.5%ofGDP.IamprojectingaFiscalDeficitof3.3%ofGDPfortheyear2018-19.
142. InordertoimpartunquestionablecredibilitytotheGovernment’scommitmentfortherevisedfiscalglidepath,IamproposingtoacceptkeyrecommendationsoftheFiscalReformandBudgetManagementCommitteerelatingtoadoptionoftheDebtRuleandtobringdownCentralGovernment’sDebttoGDPratioto40%.GovernmenthasalsoacceptedtherecommendationtouseFiscalDeficittargetasthekeyoperationalparameter.NecessaryamendmentproposalsareincludedintheFinanceBill.

PART B

Madam Speaker,
143. I shall now present my tax proposals.
144. The attempts made by our Government for reducing the cash economy and for increasing the tax net have paid rich dividends. The growth rate of direct taxes in the financial years 2016-17 and 2017-18 has been significant. We ended the last year with a growth of 12.6% in direct taxes and in the current year, the growth in direct taxes up to 15th January, 2018 is 18.7%. The average buoyancy in personal income tax of seven years preceding these two years comes to 1.1. In simple terms tax buoyancy of 1.1 means that if nominal GDP growth rate of the country is 10%, the growth rate of personal income tax is 11%. However, the buoyancy in personal income tax for financial years 2016-17 and 2017-18 (RE) is 1.95 and 2.11 respectively. This indicates that the excess revenue collected in the last two financial years from personal income tax compared to the average buoyancy pre 2016-17 amounts to a total of about `90,000 crores and the same can be attributed to the strong anti-evasion measures taken by the Government.
145. Similarly, there has been huge increase in the number of returns filed by taxpayers. In financial year 2016-17, 85.51 lakhs new taxpayers filed their returns of income as against 66.26 lakhs in the immediately preceding year. By including all filers as well as persons who did not file returns but paid tax by way of advance tax or TDS, we can derive the figure of Effective Taxpayer Base. This number of effective tax payer base increased from 6.47 crores at the beginning of F.Y.14-15 to 8.27 crores at the end of F.Y.16-17. We are enthused by this success of our measures and we pledge to continue to take all such measures in future by which the black money is contained and the honest taxpayers are rewarded. Demonetization was received well by honest taxpayers as “imandarikautsav” only for this reason.
146. Madam Speaker, recognising the need for facilitating compliance, Government had liberalized the presumptive income scheme for small traders and entrepreneurs with annual turnover of less than `2 crores and introduced a similar scheme for professionals with annual turnover of less than `50 lakhs with the hope that there would be significant increase in compliance. Under this scheme, 41% more returns were filed during this year which shows that many more persons are joining the tax net under simplified scheme. However, the turnover shown is still not encouraging. The Department has received 44.72 lakh returns for assessment year
2017-18 from individual, HUF and firms with a meagre average turnover of `17.97 lakhs and an average tax payment of `7,000/- only. The tax compliance behaviour of professionals is no better; the department has received 5.68 lakh returns under the presumptive income scheme for assessment year 2017-18 with average gross receipts of `5.73 lakhs only. Average tax paid by them is only `35,000/-.
Tax incentive for promoting post-harvest activities of agriculture
147. Madam Speaker, at present, hundred per cent deduction is allowed in respect of profit of co-operative societies which provide assistance to its members engaged in primary agricultural activities. Over the last few years, a number of Farmer Producer Companies have been set up along the lines of co-operative societies which also provide similar assistance to their members. In order to encourage professionalism in post-harvest value addition in agriculture, I propose to allow hundred per cent deduction to these companies registered as Farmer Producer Companies and having annual turnover up to `100 crores in respect of their profit derived from such activities for a period of five years from financial year 2018-19. This measure will encourage “Operation Greens” mission announced by me earlier and it will give a boost to SampadaYojana.
Employment generation
148. Currently, a deduction of 30% is allowed in addition to normal deduction of 100 % in respect of emoluments paid to eligible new employees who have been employed for a minimum period of 240 days during the year under section 80-JJAA of the Income-tax Act. However, the minimum period of employment is relaxed to 150 days in the case of apparel industry. In order to encourage creation of new employment,
I propose to extend this relaxation to footwear and leather industry. Further, I also propose to rationalise this deduction of 30% by allowing the benefit for a new employee who is employed for less than the minimum period during the first year but continues to remain employed for the minimum period in subsequent year.
Incentive for real estate
149. Currently, while taxing income from capital gains, business profits and other sources in respect of transactions in immovable property, the consideration or circle rate value, whichever is higher, is adopted and the difference is counted as income both in the hands of the purchaser and seller. Sometimes, this variation can occur in respect of different properties in the same area because of a variety of factors including shape of the plot and location. In order to minimize hardship in real estate transaction,
I propose to provide that no adjustment shall be made in a case where the circle rate value does not exceed 5% of the consideration.
Incentivising micro, small and medium entrepreneurs
150. In the Union Budget, 2017, I had announced the reduction of corporate tax rate to 25% for companies whose turnover was less than `50crore in financial year 2015-16. This benefitted 96% of the total companies filing tax returns. Towards fulfilment of my promise to reduce corporate tax rate in a phased manner, I now propose to extend the benefit of this reduced rate of 25% also to companies who have reported turnover up to `250 crore in the financial year 2016-17. This will benefit the entire class of micro, small and medium enterprises which accounts for almost 99% of companies filing their tax returns. The estimate of revenue forgone due to this measure is `7,000 crores during the financial year 2018-19. After this, out of about 7 lakh companies filing returns, about 7,000companies which file returns of income and whose turnover is above `250 crores will remain in 30% slab. The lower corporate income tax rate for 99% of the companies will leave them with higher investible surplus which in turn will create more jobs.
Relief to salaried taxpayers
151. The Government had made many positive changes in the personal income-tax rate applicable to individuals in the last three years. Therefore,
I do not propose to make any further change in the structure of the income tax rates for individuals. There is a general perception in the society that individual business persons have better income as compared to salaried class. However, income tax data analysis suggests that major portion of personal income-tax collection comes from the salaried class. For assessment year 2016-17, 1.89 croresalaried individuals have filed their returns and have paid total tax of `1.44 lakhcrores which works out to average tax payment of `76,306/- per individualsalaried taxpayer. As against this, 1.88 crores individual business taxpayers including professionals, who filed their returns for the same assessment year paid total tax of `48,000 crores which works out to an average tax payment of `25,753/- per individualbusiness taxpayer. In order to provide relief to salaried taxpayers, I propose to allow a standard deduction of `40,000/- in lieu of the present exemption in respect of transport allowance and reimbursement of miscellaneous medical expenses. However, the transport allowance at enhanced rate shall continue to be available to differently- abled persons. Also other medical reimbursement benefits in case of hospitalization etc., for all employees shall continue. Apart from reducing paper work and compliance, this will help middle class employees even more in terms of reduction in their tax liability. This decision to allow standard deduction shall significantly benefit the pensioners also, who normally do not enjoy any allowance on account of transport and medical expenses. The revenue cost of this decision is approximately `8,000 crores. The total number of salaried employees and pensioners who will benefit from this decision is around 2.5 crores.
Relief to senior citizen
152. A life with dignity is a right of every individual in general, more so for the senior citizens. To care of those who cared for us is one of the highest honours. To further the objective of providing a dignified life, I propose to announce the following incentives for senior citizens:
• Exemption of interest income on deposits with banks and post offices to be increased from `10,000/- to `50,000/- and TDS shall not be required to be deducted on such income, under section 194A. This benefit shall be available also for interest from all fixed deposits schemes and recurring deposit schemes.
• Raising the limit of deduction for health insurance premium and/ or medical expenditure from `30,000/- to `50,000/-, under section 80D. All senior citizens will now be able to claim benefit of deduction up to `50,000/- per annum in respect of any health insurance premium and/or any general medical expenditure incurred.
• Raising the limit of deduction for medical expenditure in respect of certain critical illness from, `60,000/- in case of senior citizens and from `80,000/- in case of very senior citizens, to `1 lakh in respect of all senior citizens, under section 80DDB.
These concessions will give extra tax benefit of `4,000 crores to senior citizens. In addition to tax concessions, I propose to extend the PradhanMantriVayaVandanaYojana up to March, 2020 under which an assured return of 8% is given by Life Insurance Corporation of India. The existing limit on investment of `7.5 lakh per senior citizen under this scheme is also being enhanced to `15 lakh.
Tax incentive for International Financial Services Centre (IFSC)
153. The Government had endeavoured to develop a world class international financial services centre in India. In recent years, various measures including tax incentives have been provided in order to fulfil this objective. To further this objective, I propose to provide two more concessions for IFSC. In order to promote trade in stock exchanges located in IFSC, I propose to exempt transfer of derivatives and certain securities by non-residents from capital gains tax. Further, non-corporate taxpayers operating in IFSC shall be charged Alternate Minimum Tax (AMT) at concessional rate of 9% at par with Minimum Alternate Tax (MAT) applicable for corporates.
Further Measures to control cash economy:
154. Currently, the income of trusts and institutions is exempt if they utilise their income towards their objects in accordance with the relevant provisions of the Income-tax Act. However, there is no restriction on these entities for incurring expenditure in cash. In order to have audit trail of the expenses incurred by these entities, it is proposed that payments exceeding `10,000/- in cash made by such entities shall be disallowed and the same shall be subject to tax. Further, in order to improve TDS compliance by these entities, I propose to provide that in case of non-deduction of tax, 30% of the amount shall be disallowed and the same shall be taxed.
Rationalisation of Long Term Capital Gains (LTCG)
155. Madam Speaker, currently, long term capital gains arising from transfer of listed equity shares, units of equity oriented fund and unit of a business trust are exempt from tax. With the reforms introduced by the Government and incentives given so far, the equity market has become buoyant. The total amount of exempted capital gains from listed shares and units is around `3,67,000crores as per returns filed for A.Y.17-18. Major part of this gain has accrued to corporates and LLPs. This has also created a bias against manufacturing, leading to more business surpluses being invested in financial assets. The return on investment in equity is already quite attractive even without tax exemption. There is therefore a strong case for bringing long term capital gains from listed equities in the tax net. However, recognising the fact that vibrant equity market is essential for economic growth, I propose only a modest change in the present regime.
I propose to tax such long term capital gains exceeding `1 lakh at the rate of 10% without allowing the benefit of any indexation. However, all gains up to 31st January, 2018 will be grandfathered. For example, if an equity share is purchased six months before 31st January, 2018 at `100/- and the highest price quoted on 31st January, 2018 in respect of this share is `120/-, there will be no tax on the gain of `20/- if this share is sold after one year from the date of purchase. However, any gain in excess of `20 earned after 31st January, 2018 will be taxed at 10% if this share is sold after 31st July, 2018. The gains from equity share held up to one year will remain short term capital gain and will continue to be taxed at the rate of 15%. Further,
I also propose to introduce a tax on distributed income by equity oriented mutual fund at the rate of 10%. This will provide level playing field across growth oriented funds and dividend distributing funds. In view of grandfathering, this change in capital gain tax will bring marginal revenue gain of about `20,000 croresin the first year. The revenues in subsequent years may be more.
Health and Education Cess
156. Madam Speaker, at present there is a three per cent cess on personal income tax and corporation tax consisting of two per cent cess for primary education and one per cent cess for secondary and higher education. In order to take care of the needs of education and health of BPL and rural families, I have announced programs in Part A of my speech. To fund this, I propose to increase the cess by one per cent. The existing three per cent education cesswill be replaced by a four per cent “Health and Education Cess” to be levied on the tax payable. This will enable us to collect an estimated additional amount of `11,000 crores.
E-assessment.
157. We had introduced e-assessment in 2016 on a pilot basis and in 2017, extended it to 102 cities with the objective of reducing the interface between the department and the taxpayers. With the experience gained so far, we are now ready to roll out the E-assessment across the country, which will transform the age-old assessment procedure of the income tax department and the manner in which they interact with taxpayers and other stakeholders. Accordingly, I propose to amend the Income-tax Act to notify a new scheme for assessment where the assessment will be done in electronic mode which will almost eliminate person to person contact leading to greater efficiency and transparency.
158. My other tax proposals on direct tax are listed in Annexure 5 of my speech.
Indirect Tax.
159. On the Indirect Taxes side, this is the first budget after the roll out of the Goods and Service Tax. Excise duties to a large extent and service tax have been subsumed in GST, along with corresponding duties on imports. Hence, my budget proposals are mainly on the customs side.
160. In this budget, I am making a calibrated departure from the underlying policy in the last two decades, wherein the trend largely was to reduce the customs duty. There is substantial potential for domestic value addition in certain sectors, like food processing, electronics, auto components, footwear and furniture. To further incentivise the domestic value addition and Make in India in some such sectors, I propose to increase customs duty on certain items. I propose to increase customs duty on mobile phones from 15% to 20%, on some of their parts and accessories to 15% and on certain parts of TVs to 15%. This measure will promote creation of more jobs in the country. Details of changes made in rates of customs duty as well as certain changes made in the excise duty structure are given in Annexure 6to my speech.
161. To help the cashew processing industry, I propose to reduce customs duty on raw cashew from 5% to 2.5%.
162. I propose to abolish the Education Cess and Secondary and Higher Education Cess on imported goods, and in its place impose a Social Welfare Surcharge, at the rate of 10% of the aggregate duties of Customs, on imported goods, to provide for social welfare schemes of the Government. Goods which were hitherto exempt from Education Cesses on imported goods will, however, be exempt from this Surcharge. In addition, certain specified goods, mentioned in the Annexure 6 to my speech will attract the proposed Surcharge at the rate of 3% of the aggregate duties of customs only.
163. I also propose to make certain changes to the Customs Act, 1962, to further improve ease of doing business in cross border trade, and to align certain provisions with the commitments under the Trade Facilitation Agreement. To smoothen dispute resolution processes and to reduce litigation, certain amendments are being made, to provide for pre-notice consultation, definite timelines for adjudication and deemed closure of cases if those timelines are not adhered to.
164. With the roll out of GST, I propose to change the name of Central Board of Excise and Customs [CBEC] to Central Board of Indirect Taxes and Customs (CBIC). The necessary changes in law for this are proposed in the Finance Bill.
165. Madam, while making the proposals in this year’s Budget, we have been guided by our mission to especially strengthen agriculture, rural development, health, education, employment, MSME and infrastructure sectors of Indian economy. I am sure the New India which we aspire to create now will emerge. Swami Vivekanand had also envisioned decades ago in his Memoirs of European Travel, ‘‘You merge yourselves in the void and disappear, and let new India arise in your place. Let her arise – out of the peasants’ cottage, grasping the plough; out of the huts of the fisherman. Let her spring from the grocer’s shop, from beside the oven of the fritter-seller. Let her emanate from the factory, from marts, and from markets. Let her emerge from groves and forests, from hills and mountains’’.
166. With these words, Madam Speaker, I commend the Budget to the House.

Annexure I
(as referred in para 45)

Budgetary & Non-Budgetary Resources on Agriculture & other Livelihood
Programmes in Rural Area
(`crore)
Name of Scheme Infrastructure/ Livelihood / Both 2018-19 targets
Physical Target Financial Target
GBS EBR Total
M/o Water Resources, River Development & Ganga Rejuvenation
PMKSY-AIBP Infrastructure 48 AIBP priority Projects by December 2019 15000 15000
PMKSY-HKKP (CADWM) Infrastructure Utilisation of irrigation potential of 15 lakh Hectare 2300 2300
Other Schemes of MoWR,RD&GR Both 1461 1461
Sub-total MoWR,RD&GR 3761 15000 18761
Department of Agriculture, Cooperation & Farmers Welfare
PradhanMantriFasalBimaYojna Livelihood 98 million ha Gross Crop Area 13000 13000
Interest Subsidy for short term credit to Farmers Livelihood 15000 15000
PradhanMantriKrishiSinchayeeYojana Infrastructure Irrigation projects covering 17.2 lakh ha 4000 4000
Livelihood 15 lakh beneficiaries
National Food Security Mission Livelihood 1.81 lakh beneficiaries 1500 1500
Sub Mission on Agricultural Mechanization Infrastructure 62466 centres for Agriculture Machinery and equipment, Farm Machinery Banks, Hi-Tech Productive Equipment 1100 1100
Livelihood 17.81 lakh beneficiaries
RashtriyaKrishiVikasYojana (RKVY) Infrastructure 10,45,878 Cold Storage, Godowns, Glass Houses, Custom Hiring Centers, Soil/ Seed Testing Labs, etc. 3100 3100
Livelihood 116.99 lakh beneficiaries
Mission for Integrated Development of Horticulture Infrastructure 3,30,436 centres 1599 1599
Other Schemes of D/o AC&FW Both 2912 2912
Sub-total of D/o AC&FW 42211 42211
Ministry of Food Processing
Scheme for Mega Food Parks Infrastructure 12 Mega Food Parks 390 1170 1560
Livelihood Direct & indirect employment to 95000 persons in 2017-18 & 2018-19
Scheme for Cold Chain and Value Addition Infrastructure Infrastructure 101 projects 220 880 1100
Livelihood Direct: 12000 & indirect: 63000 employment in 2017-18 & 2018-19
Other Schemes of M/o Food Processing Both 210 640 850
Sub-total of M/o Food Processing 820 2690 3510
Department of Agriculture, Research and Education
DARE Livelihood Production of 21960 tons Seeds, 255 lakh nos. planting material, 132.5 lakh nos. Animal resources 7800 7800
1.60 lakh Frontline demonstration
450 Farm level trainings
20 lakh Human Resources development
Infrastructure/ Basic amenities development in 98 SAUs, 681 existing KVKs & 59 new KVKs
Sub-total of DARE 7800 7800
Ministry of Drinking Water & Sanitation
Swachh Bharat Mission (Gramin) Infrastructure (a) 1.88 crore Household toilets (b) Employment: 16.92 crorePersondays 15343 15000 30343
Livelihood
National Rural Drinking Water Programme (NRDWP) Infrastructure Infrastructure creation through Piped Water Supply Schemes and Community Water Purification Plants -84000 habitats 7000 7000

Livelihood Livelihood generation – 84000
Sub-total of M/o DWS 22343 15000 37343
Ministry of Rural Development/ Department of Rural Development
PradhanMantriAwaasYojana – Gramin (PMAY-G) Both 49 lakh houses, 46.55 croreMandays 21000 12000 33000
PradhanMantri Gram SadakYojana (PMGSY) Both 57,000 km roads & 28.35 croreMandays 19000 19000
Mahatma Gandhi National Rural Employement Guarantee Programme (MGNREGA) Infrastructure 8552 AWC, 2.60 lakh Kms. of Rural Roads, 1.83 lakh Vermi/NADEP Compost, 675 Food Storage Godowns, 8340 GP Bhawan/Bharat NirmanSeva Kendra 55000 55000
Livelihood I. Cattle Shed/ Poultry Shelter/ Piggery shed -99648
II. Land Development -1.65 lakh
230 crPersondays
National Livelihood Mission-Aajeevika -NRLM Livelihood under NRLM including MKSP, SVEP, Skill Development 9 lakh nos. of new SHGs to be formed 5750 5750
Number of MahilaKisan to be supported- 5 lakh
Value Chain Development Project-15
Number of SVEP enterprises-25000
Number of Trainess to be Skilled – 4 lakh
Sub-total of D/o Rural Development 100750 12000 112750
Ministry of Rural Development/ Department of Land Resources
1. Watershed Development Component of PradhanMantriKrishiSinchayeeYojana (WDC-PMKSY) Infrastructure 1.30 lakh nos.Water Harvesting Structures to be created/rejuvenated 2146 2146
1.81 lakhs ha area to be brought under protective irrigation
Livelihood 3. No. of farmers benefitted -5.01 lakh
Other Schemes of D/o Land Resources 250 250
Sub-total of D/o Land Development 2396 2396
Ministry of Power
DeenDayalUpadhyaya Gram JyotiYojana (DDUGJY) Infrastructure (i) Intensive electrification of villages – 1 lakh nos.
(ii) Feeder segregation including new 11 KV Lines – 1 lakh Circuit Km
(iii) Commissioning of Substations (New & Augmentation) – 600 nos. 3800 15000 18800
PradhanMantriSahajBijliHarGharYojana (Saubhagya) Electricity connections to Households – 175 lakh nos. 2750 2750
Sub-total of M/o Power 6550 15000 21550
Ministry of Micro, Small & Medium Enterprises
Prime Minister’s Employment Generation Programme (PMEGP) Livelihood 49000 projects
294000 Employment 1260 1260
Other Schemes of MSME Both 1648 1648
Sub-total of MSME 2908 2908
Ministry of Panchayati Raj
Fourteenth Finance Commission (FFC) Grant to Gram Panchayats for the period 2015-2020 Both Works at Gram Panchayat level in focus areas of Health & Sanitation, Drinking Water, Rural Electrification, Maintenance of Community Assets, etc 45069 45069
Other Schemes of M/o Panchayati Raj Both 348 348
Sub-total of M/o Pachayati Raj 45417 45417
Ministry of Skill Development & Entrepreneurship
PMKVY 2.0 Livelihood 18 lakh beneficiaries 1171 1171
Sub-total of M/o Skill Development 1171 1171
Department of Financial Services
Agriculture Credit Livelihood 1100000 1100000
Micro Irrigation Fund 2000 2000
Rural Infrastrucure Development Fund (RIDF) Infrastructure 28000 28000
NABARD Infrastructure Development Assistance (NIDA) 3500 3500
Dairy Infra Development Fund (DIDF) 2000 2000
Fisheries & Aquaculture Infra Development (FIDF) 1000 1000
Agri-market Infrastructure 2000 2000
Sub-total D/o Financial Services 1138500 1138500
Total 236127 1198190 1434317

Note: The above allocations are specific for infrastructure and livelihood development in agri and Rural sector

Annexure II
(As referred in Para 70)

Schematic outlays under Education, Health and
Social Protection Sectors
(Schematic Outlays)
Ministry/Department/Scheme Name 2017-18 2018-19

Health & Family Welfare 47,353 52,800

CSS+CS in Health 34,657 39,199
of which
PMSSY 3,975 3,825
National AIDS and STD Control programmme 2,000 2,100
National Rural Health Mission 21,189 24,280
National Urban Health Mission 752 875
Human Resoruces for Health & Medical Education 4,025 4,225
Tertiary care programme 725 750
RSBY 1,000 2,000

AYUSH 1,429 1,626
CSS+CS 509 576
of which
NAM 441 504

Health Research 1,500 1,800

School Education 46,356 50,000
CSS+CS 38,981 42,391
of which
SSA 23,500 26,129
RMSA 3,830 4,022
Mid day meal 10,000 10,500

Higher Education 33,330 35,010
CS+CSS 5,526 8,512
of which
RashtriyaUchchatarShikshaAbhiyan (RUSA) 1,300 1,400
Interest subsidy and contribution for guarantee fund 1,950 2,150
HEFA 250 2,750
e-ShodhSindu 240 180
Technical Education- Quality Improvement Programme 260 275
Scholarship for College and University Students 320 340
Programme for Apprenticeship Training -Scholarships &Stipentes 110 125
World Class Institutions 50 250
Setting up of virtual class room 75 90
Madan Mohan Malviya National Mission on Teachers and Teaching 120 120
ABs 26,896 25,339
of which
Indian Institutes of Technology 7,856 6,326
IIM 1,030 1,036

Rural Development
National Social Assistance Program 9,500 9,975

Social Justice 6,908 7,750
CS+CSS 6,836 7,670
of which
Prematric Scholarship (SC) 50 125
Post-matric scholarship (SC) 3,348 3,000
Special Central Assistance to SC sub schemes 800 1,000
Post-matric scholarship for OBC 885 1,100
Pre-matric scholarship for OBC 142 232
National fellowship for SCs 230 300

Empowerment of Persons with Disability 855 1,070
CS+CSS 559 744
of which
Assistance to Disabled Persons for purchase/ fitting of Aids and appliances 150 220
Schemes for Implementation of Persons with Disability Act 207 300

Department of Women and Child Development 22,095 24,700
CSS 21,844 24,454
of which
Anganwadi Services 15,245 16,335
Schemes for Adolescent girls 460 500
PradhanMantriMatruVandanaYojana 2,700 2,400
Nirbhaya Fund Schemes 500 500
Child Protection Scheme 648 725
National Nutrition Mission 1,500 3,000
Mission for protection and empowerment of women (Umbrella) 1,089 1,366

Minority Affairs 4,195 4,700
CS+CSS 3,969 4,460
of which
Education Empowerment 2,054 2,453
Skill Development & Livelihood 635 602
MSDP 1,200 1,320

TOTAL of Schemes (CS+CSS) 1,22,381 1,37,981

Demand/Ministry-wise
Total featured above, except for
MoRD 1,64,020 1,79,457

Annexure III
(As referred in Para 114)
Capital Outlay on Infrastructure Sector
`crore
RE 2017-18 BE 2018-19
Ministry/Deptt. Scheme/CPSEs GBS IEBR GBS IEBR
1. Ministry of Coal (10) i) Coal India Limited 0 8500 0 9500
ii) NLC India Limited 0 4578 0 4299
iii) SingareniColleries Co. Ltd. 0 1400 0 2000
Total 0 14478 0 15799
2. Ministry of Development of North Eastern Region (23) i)Central Pool of Resources for North East and Sikkim 175 0 310 0
ii) Construction/ Improvement of Roads of Economic Importance 5 0 40 0
iii) North East Road Sector Develop. Scheme- Programme Component 150 0 250 0
Total 330 0 600 0
3. Ministry of New and Renewable Energy (67) i) Indian Renewable Energy Development Agency 0 9287 0 10099
ii) Solar Energy Corporation of India 50 179 0 217
Total 50 9466 0 10317
4. Ministry of Petroleum and Natural Gas (72) i) Payment to Indian Strategic Petroleum Reserve Ltd. (ISPRL) for Crude Oil Reserve 1121 0 701 0
ii) PhulpurDhamraHaldia Pipeline Project 400 0 1674 0
iii) National Seismic Programme 10 0 1300 0
iv) Bharat Petroleum Corporation Ltd. 0 7800 0 7400
v) Chennai Petroleum Corp. Ltd. 0 865 0 1010
vi) Engineers India Ltd. 0 0 0 1356
vii) Gas Authority of India Ltd. 0 3309 0 4722
viii) Hindustan Petroleum Corp. Ltd. 0 7110 0 8425
ix) Indian Oil Corp. Ltd. 0 18849 0 22862
x) Mangalore Refineries and Petrochemicals Ltd. 0 1138 0 744
xi) Numaligarh Refinery Ltd. 0 375 0 428
xii) Oil and Natural Gas Corp. Ltd. 0 37218 0 32077
xiii) Oil India Ltd. 0 4263 0 4300
xiv) Oil Natural Gas Corp. Videsh Ltd. 0 6393 0 5886
Total 1531 87319 3675 89210
5. Ministry of Power (74) i) 220 KV Transmission line from Srinagar to Leh via Kargil 500 0 500 0
ii) Damodar Valley Corp. Ltd. 0 1057 0 1606
iii) National Hydro Electric Power Corp. Ltd. 350 3173 482 2258
iv) National Thermal Power Corp. Ltd. 0 28000 0 22300
v) North Eastern Electric Power Corp. Ltd. 1 1212 267 122
vi) Power Finance Corp. Ltd. 0 4000 0 0
vii) Power Grid Corp. of India Ltd. 0 25000 0 25000
viii) SatlujJalVidyut Nigam Ltd. 0 609 0 935
ix) Tehri Hydro Development Corp. Ltd. 32 1267 52 1248
Total 883 64318 1301 53469
Ministry of Civil Aviation (9) Airport Authority of India 150 2543 0 4086
Total 150 2543 0 4086
Department of Telecommunication (14) Defence Spectrum – Optical Fibre Cable based network for Defence Services 3755 0 4500 0
Investment in CPE (Bharat Broadband Network Ltd.) 0 9786 0 16986
Total 3755 9786 4500 16986
Ministry of Defence (Misc) (19) Works executed by Border Roads Development Board 2708 0 2785 0
Coast Guard Organisation 2200 2700
Total 4908 0 5485 0
Ministry of Railways (80) Capital Outlay on Indian Railways 40000 34900 53060 38500
Indian Railway Finance Corporation 45100 54940
Total 40000 80000 53060 93440
Department of Atomic Energy (4) Nuclear Power Corporation of India Ltd. 1435 7785 1665 5656
Total 1435 7785 1665 5656
Ministry of Housing And Urban Affairs (56) MRTS and Metro Projects 17810 1477 14924 1897
Housing And Urban Develpoment Corporation 0 13716 0 13040
PMAY (Urban) 6043 0 6500 25000
Total 23853 15193 21424 39937
Ministry of Road Transport and Highways (81) Investment in NHAI 23892 59279 29663 62000
Roads And Bridges 26967 0 29762 0
Total 50858 59279 59425 62000
Ministry of Shipping (87) Sagarmala 125 0 250 0
VoChidambaranar Port Trust 163 342
Jawaharlal Nehru Port Trust 1569 2065
Mumbai Port Trust 410 432
DeenDayal Port Trust Kandla 347 458
Kamarajar Port Trust 325 250
Cochin Shipyard Limited 351 495
Total 125 3165 250 4042
Ministry of Steel (93) Ferro Scrap Nigam limited 0 28 0 23
KIOCL 0 2024 0 1782
Manganese Ore India Limited 0 272 0 279
MECON Limited 0 5 0 5
MSTC Limited 0 33 0 49
NMDC Limited 0 3324 0 3778
RashtriyaIspatnigam Limited 0 1570 0 1400
Steel Authority Of India Limited 0 4200 0 4000
Total 0 11428 0 11294
Department of Higher Education (58) HEFA 250 0 2750 28000
Total 250 0 2750 28000
Ministry of Electronics & Information Technology Digital India 1426 3073 5700
Total 1426 3073 5700

Grand Total 129554 364759 157208 439935
494313 597143

Annexure IV
(As referred in para 131)

E-office and E-governance initiatives in central Ministries and Departments

1. A web-based Government Integrated Financial Management Information System (GIFMIS), administered by Controller General of Accounts, for budgeting, accounting, expenditure and cash management for more effective fiscal management of Government.
2. A Non Tax Receipt Portal (NTRP) to provide one stop services for depositing fees, fines and other non-tax dues into Government account;
3. Project ‘e-Vidhan’ to digitize and make the functioning of all State Legislatures paperless.
4. A Central Public Procurement Portal to provide a single point access for all information on procurement. Around 3.5 lakh contractors and vendors are registered on this platform. In November, 2017 alone, electronic bids for over one lakh tenders valued at around two lakh forty thousand crore were invited through this Portal.
5. The Government E-Marketplace (GeM) to facilitate procurement at the right price, in right quality and quantity in a transparent and efficient manner. Third version of the GeM platform (GeM 3.0) will be launched on 26th January, 2018. The platform has seventy eight thousand buyers, fifty six thousand sellers, three lakh seventy five thousand products and twelve services. Besides facilitating transaction of the value of `3000crore in about two lakh transactions, it could achieve savings of more than 25% over the base price.
6. E-Courts, to bring about universal computerization of all Districts and Subordinate Courts, use of cloud computing and availability of e-services like e-filing and e-payments as well.
7. A National Judicial Data Grid to provide an online platform for information relating to judicial proceedings and decisions from over sixteen thousand computerized Courts and Subordinate Courts in the country. An e-Courts Services App has also been launched to provide litigant centric services.
8. e-Panchayats platform to provide a suite of core common applications to address various aspects of panchayats functioning from internal core functions of planning, budgeting, implementation, accounting, monitoring and social audit to delivery of services like issue of certificates, licenses etc.

Annexure V to Part B of Budget Speech
Other changes in Direct Taxes:
1. It is proposed that the provision of section 79 of the Income-tax Act (the Act) regarding restriction on shareholding for the purpose of carry forward loss shall not apply in case of change of shareholding pursuant to an approved resolution plan under IBC, 2016 where an opportunity of being heard has been given to the Principal Commissioner or Commissioner.
2. In respect of companies where an application under Insolvency and Bankruptcy Code (IBC), 2016 has been admitted, it is proposed to provide that for the purpose of computation of Minimum Alternative Tax (MAT) the aggregate amount of unabsorbed depreciation and brought forward loss shall be allowed to be reduced from the book profit.
3. It is proposed to provide that the insolvency resolution professional shall verify the return of income in case of a company where an application under IBC, 2016 has been admitted.
4. It is proposed to provide that provisions of MAT shall not apply in respect of foreign companies having income solely from businesses referred to in sections 44B, 44BB, 44BBA and 44BBB of the Act provided such income has been offered to tax at the rates specified in these sections.
5. It is proposed to extend the benefit of exemption for withdrawal up to 40% from National Pension System Trust (NPS) to all subscribers and not only to employees.
6. It is proposed to provide that in a case where premium for health insurance for multiple years has been paid in one year, the deduction shall be allowed proportionately over the years for which the benefit of health insurance is available.
7. In order to encourage start-ups, the definition of ‘eligible business’ for a start-up is proposed to be aligned with the modified definition notified by DIPP. It is further proposed to extend the incorporation date for a start-up for availing benefit under section 80-IAC of the Act to 31st March, 2021 from 31st March, 2019 and rationalise the condition of turnover for availing the benefit.
8. It is proposed to rationalise the provisions of section 56(2)(x) of the Act to provide that the receipt of any property by a wholly-owned Indian subsidiary from its holding company and by an Indian holding company from its subsidiary shall be exempt from tax.
9. It is proposed to provide that trading in agricultural commodity derivatives on a recognized stock exchange shall not be treated as a speculative transaction even if no Commodities Transaction Tax (CTT) has been paid in respect of those derivative transactions.
10. Considering the strategic nature of the transactions, it is proposed to provide that income arising to a non-resident from royalty or fees for technical services received from National Technical Research Organisation shall be exempt from tax.
11. It is proposed to provide that the exemption of sale of leftover stock of crude oil shall also apply in respect of termination of the contract or arrangement in respect of a foreign company participating in a strategic oil reserve.
12. It is proposed to provide that in addition to notifying any authority, Board, Trust or Commission under section 10(46) of the Act, the Government can also notify any class of such persons.
13. It is proposed to provide similar tax regime as available to equity oriented funds to Fund of Funds investing only in exchange traded funds which only invest in listed equity shares of domestic companies.
14. It is proposed to provide that no adjustments shall be made under section 143(1)(vi) of the Act while processing the return filed for the assessment year 2018-2019 and subsequent assessment years.
15. It is proposed to provide that no expenditure or allowance or set off of any loss shall be allowed in respect of undisclosed income determined by the Assessing Officer under section 115BBE of the Act.
16. It is proposed to provide that every entity, not being an individual, which enters into any financial transaction of an amount aggregating to Rs.2.50 Lakh or more in a financial year shall be required to apply for a permanent account number (PAN). It is also proposed that directors, partners, principal officers, office bearer or any person competent to act on behalf of such entities shall also apply for PAN.
17. In view of the proposed amendment in the Customs Act creating a new custom Authority for Advance Ruling, it is proposed to provide that the Authority for Advance Ruling constituted under the Income-tax Act shall act as an Appellate Authority in respect of the rulings given by the customs Authority for Advance Ruling. It is also proposed to provide that when the authority is dealing with an application relating to Income-tax Act, the revenue member shall be from income-tax.
18. It is proposed to make the order passed by the Commissioner of Income-tax (Appeals) under section 271J of the Act appealable before Appellate Tribunal.
19. It is proposed to enhance the penalty from `100/- to `500/- and from `500/- to `1000/- under section 271FA of the Act.
20. It is proposed to provide that prosecution shall lie against companies for non-filing of return irrespective of the fact that whether any tax is payable or not.
21. It is proposed to mandate that in order to avail benefit of any deduction under Chapter VIA-C, the persons have to file return within due date specified under section 139(1) of the Act.
22. It is proposed to provide that if stock-in-trade is converted into capital asset, the fair market value of the same on the date of conversion shall be taken into account for computing business income.
23. It is proposed to rationalise the existing provision relating to investment in capital gain bonds by providing that the exemption shall be available only in respect of long-term capital gains arising out of sale of immoveable property and investment in the bond shall be for a minimum period of 5 year from the existing 3 years.
24. It is proposed to amend section 9 of the Act to align the scope of “business connection” with the modified dependent agent permanent establishment rule as per Multilateral Instrument signed by the Government.
25. It is proposed to amend section 9 of the Act to provide that significant economic presence of a non-resident shall constitute “business connection” with India. It is also proposed to define the phrase ‘significant economic presence’.
26. It is proposed to provide that compensation received in connection with termination or modification of business contract and employment contract shall be taxable.
27. It is proposed to provide that in respect of heavy goods vehicles (more than 12 tonnes), the presumptive income under section 44AE of the Act shall be computed at the rate of `1000 per tonne per month.
28. In order to provide statutory backing and certainty to Income Computation and Disclosure Standards (ICDS), it is proposed to amend the provisions of Chapter IV-D of the Act relating to computation of business income and Chapter XIV of the Act.
29. It is proposed to provide that TDS at the applicable rate shall be made in respect of interest exceeding `10,000 from newly introduced 7.75% GOI Savings (Taxable) Bonds, 2018.
30. It is proposed to provide that in the case of an amalgamated company, accumulated profits for the purpose of determining dividend shall also include the accumulated profits of the amalgamating company on the date of amalgamation.
31. It is proposed to provide that deemed dividend under section 2(22)(e) of the Act shall be subject to dividend distribution tax at the rate of 30% without grossing up.
32. It is proposed to provide that the concessional tax rate of 25% for new domestic companies engaged in manufacturing shall be subject to the special rates in respect of specified income provided under Chapter XII of the Act.
33. It is proposed to rationalise the provisions relating to filing of Country-by-Country Report by providing the time-limits and the definition of ‘agreement’.
34. It is proposed to amend Finance Act, 2013 to rationalise levy of Commodities Transaction Tax (CTT) on options in commodity futures.
35. It is proposed to amend the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 to rationalise the designations of authorities competent to grant approval for penalty and prosecution.

Annexure VI to Part B of Budget Speech
INDIRECT TAXES
1. PROPOSALS INVOLVING CHANGE IN CUSTOMS DUTY RATES:
Chapter/ heading/ sub-heading/ Tariff item Commodity Rate of Duty
From To
I. Incentivizing domestic value addition, ‘Make in India’
A. Reduction in Customs duty on inputs and raw materials to reduce costs
Food processing
1 0801 31 00 Cashew nuts in shell [Raw cashew] 5% 2.5%
Capital goods and Electronics
2 8483 40 00, 8466 93 90,
8537 10 00 Ball screws, linear motion guides, CNC systems for manufacture of all types of CNC machine tools falling under headings 8456 to 8463 7.5% 2.5%
3 70 Solar tempered glass or solar tempered [anti-reflective coated] glass for manufacture of solar cells /panels/modules 5% Nil
B. Changes in Customs duty to address the problem of duty inversions in certain sectors
Medical Devices
4 Any Chapter Raw materials, parts or accessories for the manufacture of Cochlear Implants 2.5% Nil
C. Changes in Customs duty to provide adequate protection to domestic industry
Food Processing
5 2009 11 00
2009 12 00
2009 19 00 Orange fruit juice 30% 35%
6 2009 21 00 to
2009 90 00 Other fruit juices and vegetable juices 30% 50%
7 2009 81 00, 2009 90 00 Cranberry juice 10% 50%
8 2106 90 Miscellaneous Food preparations (other than soya protein) 30% 50%
Perfumes and toiletry preparations
9 3303 Perfumes and toilet waters 10% 20%
10 3304 Beauty or make-up preparations and preparations for the care of the skin (other than medicaments), including sunscreen or suntan preparations; manicure or pedicure preparations 10% 20%
11 3305 Preparations for use on the hair 10% 20%
12 3306 Preparations for oral or dental hygiene, including denture fixative pastes and powders; yarn used to clean between the teeth (dental floss), in individual retail packages 10% 20%
13 3307 Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, depilatories and other perfumery, cosmetic or toilet preparations, not elsewhere specified or included, prepared room deodorizers, whether or not perfumed or having disinfectant properties 10% 20%
Automobile and automobile parts
14 8407, 8408, 8409,
8483 10 91, 8483 10 92,
8511, 8708, 8714 10 Specified parts/accessories of motor vehicles, motor cars, motor cycles 7.5% / 10% 15%
15 8702, 8703, 8704, 8711 CKD imports of motor vehicle, motor cars, motor cycles 10% 15%
16 8702, 8704 CBU imports of motor vehicles 20% 25%
17 4011 20 10 Truck and Bus radial tyres 10% 15%
Textiles
18 5007 Silk Fabrics 10% 20%
Footwear
19 6401, 6402, 6403, 6404, 6405 Footwear 10% 20%
20 6406 Parts of footwear 10% 15%

Diamonds, precious stones and jewellery
21 71 Cut and polished colored gemstones 2.5% 5%
22 71 Diamonds including lab grown diamonds-semi processed, half-cut or broken; non-industrial diamonds including lab-grown diamonds (other than rough diamonds), including cut and polished diamonds 2.5% 5%
23 7117 Imitation Jewellery 15% 20%
Electronics / Hardware
24 8517 12 Cellular mobile phones 15% 20%
25 3919 90 90, 3920 99 99, 3926 90 91, 3926 90 99, 4016 99 90, 7318 15 00, 7326 90 99,
8504, 8506, 8507,
8517 70 90, 8518,
8538 90 00, 8544 19, 8544 42, 8544 49 Specified parts and accessories of cellular mobile phones 7.5%/ 10% 15%
26 8504 90 90/ 3926 90 99 PCBA of charger/adapter and moulded plastics of charger/adapter of cellular mobile phones Nil 10%
27 Any Chapter Inputs or parts for manufacture of:
a) PCBA, or
b) moulded plastics
of charger/adapter of cellular mobile phones Applicable rate Nil
28 8517 62 90 Smart watches/wearable devices 10% 20%
29 8529 10 99
8529 90 90 LCD/LED/OLED panels and other parts of LCD/LED/OLED TVs 7.5%/ 10% 15%
30 8529/4016 12 specified parts for manufacture of LCD/LED TV panels Nil 10%
31 70 Preform of silica for use in the manufacture of telecommunication grade optical fibres or optical fibre cables Nil 5%
Furniture
32 9401 Seats and parts of seats [except aircraft seats and parts thereof] 10% 20%
33 9403 Other furniture and parts 10% 20%
34 9404 Mattresses supports;articles of bedding and similar furnishing 10% 20%
35 9405 Lamps and lighting fitting, illuminated signs, illuminated name plates and the like [except solar lanterns or solar lamps] 10% 20%
Watches and Clocks
36 9101, 9102 Wrist watches, pocket watches and other watches, including stop watches 10% 20%
37 9103 Clocks with watch movements 10% 20%
38 9105 Other clocks, including alarm clocks 10% 20%
Toys and Games
39 9503 Tricycles, scooters, pedal cars and similar wheeled toys; dolls’ carriages; dolls; other toys; puzzles of all kinds 10% 20%
40 9504 Video game consoles and machines, articles for funfair, table or parlor games and automatic bowling alley equipment 10% 20%
41 9505 Festive, carnival or other entertainment articles 10% 20%
42 9506 [except 9506 91] Articles and equipment for sports or outdoor games, swimming pools and paddling pools [other than articles and equipment for general physical exercise, gymnastics or athletics] 10% 20%
43 9507 Fishing rods, fishing-hooks and other line fishing tackle; fish landing nets, butter fly nets and similar nets; decoy birds and similar hunting or shooting requisites 10% 20%
44 9508 Roundabouts, swings, shooting galleries and other fairground amusements; travelling circuses, traveling menageries and travelling theatres 10% 20%
Miscellaneous items
45 3406 Candles, tapers and the like 10% 25%
46 4823 90 90 Kites 10% 20%
47 9004 10 Sunglasses 10% 20%
48 9611 Date, sealing or numbering stamps, and the like 10% 20%
49 9613 Cigarette lighters and other lighters, whether or not mechanical or electrical, and parts thereof other than flints and wicks 10% 20%
50 9616 Scent sprays and similar toilet sprays, and mounts and heads therefor; powder-puffs and pads for the application of cosmetic or toilet preparations 10% 20%
II Rationalization measures
Edible oils of vegetable origin
1 1508, 1509,
1510,1512,
1513, 1515 Crude edible vegetable oils like Ground nut oil, Olive oil, Cotton seed oil, Safflower seed oil, Saffola oil, Coconut oil, Palm Kernel/Babassu oil, Linseed oil, Maize corn oil, Castor oil, Sesame oil, other fixed vegetable fats and oils. 12.5% 30%
2 1508, 1509,
1510,1512,
1513, 1515,
1516 20,
1517 10 21,
1517 90 10,
1518 00 11,
1518 00 21,
1518 00 31 Refined edible vegetable oils, like Ground nut oil, Olive oil, Cotton seed oil, Safflower seed oil, Saffola oil, Coconut oil, Palm Kernel/Babassu oil, Linseed oil, Maize corn oil, Castor oil, Sesame oil, other fixed vegetable fats and oils, edible margarine of vegetable origin, Sal fat; specified goods of heading 1518 20% 35%
Refractory Items
3 6815 91 00 Other articles of stone containing magnesite, dolomite or chromite 10% 7.5%
4 6901 Bricks, blocks, tiles and other ceramic goods of siliceous fossil meals or of similar siliceous earths 10% 7.5%
5 6902 Refractory bricks, blocks, tiles and similar refractory ceramic constructional goods, other than those of siliceous fossil meals or similar siliceous earths 5% 7.5%
6 6903 Other refractory ceramic goods 5% 7.5%
III Social Welfare Surcharge
1 Any chapter Levy of Social Welfare Surcharge on imported goods [other than those mentioned at S. No. 3 to 6 below] to finance education, housing and social security — 10% of the aggregate duties of customs
2 Any chapter Abolition of Education Cess and Secondary and Higher Education Cess on imported goods 3% of the aggregate duties of Customs
[2% + 1%] Nil
3 2710 Exemption from Social Welfare Surcharge on motor spirit commonly known as petrol and high speed diesel oil — 3% of the aggregate duties of Customs
4 7106 Silver (including silver plated with gold or platinum), unwrought or in semi-manufactured form, or in powder form — 3% of the aggregate duties of Customs
5 7108 Gold (including gold plated with platinum), unwrought or in semi-manufactured form, or in powder form — 3% of the aggregate duties of Customs
6 Any Chapter Specified goods hitherto exempt from Education Cess and Secondary and Higher Education Cess on imported goods — Nil
IV Road and Infrastructure Cess
1 2710 Levy of Road and Infrastructure Cess on imported motor spirit commonly known as petrol and high speed diesel oil — Rs. 8 per litre
2 2710 Exemption from additional duty of customs leviable under section 3(1) of the Customs Tariff Act, 1975 in lieu of the proposed Road and Infrastructure cess on domestically produced motor spirit commonly known as petrol and high speed diesel oil — Nil
3 2710 Abolition of Additional Duty of Customs [Road Cess] on imported motor spirit commonly known as petrol and high speed diesel oil Rs. 6 per litre Nil
4 Additional duty of customs under sections 3(1) of the Customs Tariff Act, 1975 in lieu of basic excise duty

2710 (i) Motor spirit commonly known as petrol Rs. 6.48 per litre Rs. 4.48 per litre
2710 (ii) High speed diesel oil Rs. 8.33 per litre Rs. 6.33 per litre

2. AMENDMENTS TO THE CUSTOMS TARIFF ACT, 1975 WITH NO CHANGES IN EFFECTIVE RATES OF DUTIES
S. No. Amendment
A Amendment in the Customs Tariff Act, 1975
1 Amendment to the section 3 so as to insert subsections 8A and 10A to provide for valuation of warehoused goods, which are sold to another person before clearance for home consumption or export, for the purposes of Integrated Tax and Goods and Services Tax Compensation Cess
B Import duty – First Schedule to the Customs Tariff Act, 1975
1 The tariff rate of customs duty for the specified medical devices is being increased from 7.5% to 10%. The effective rate of import duty on such medical devices will, however, remain unchanged.

2 The tariff rate of customs duty for Lithium-ion batteries is being increased from 10% to 20%. The effective rate of import duty on Lithium-ion batteries [other than Lithium-ion batteries for cellular mobile phones] will, however, remain unchanged at 10%.

C Export duty – Second Schedule to the Customs Tariff Act, 1975
1 To insert a new Note to specify Nil rate of duty in respect of all other goods which are not covered under column (2) of the Schedule.
2 Introduction of 20% Tariff rate of Export Duty on Electrodes of a kind used for furnaces. The effective rate of Export duty on such electrodes will, however, remain Nil.

3. MAJOR AMENDMENTS IN THE CUSTOMS ACT, 1962
S. No Amendment
A. For facilitating trade
1 Defining scope of Assessment and introducing “risk based selection” for verifying Self-Assessment [Section 2(2), 17 of Customs Act]
2 Establishing single point of reference for importers, exporters and Officers with regard to Regulatory Controls imposed by various Ministries, Departments and Agencies [Section 11 of Customs Act]
3 Facilitating imports and exports meant for Repair, Manufacture and further Processing with full or partial duty exemptions [Section 25A and Section 25B of Customs Act]
4 Appointing a new Customs Advance Ruling Authority with Appellate mechanism [Sections 28E to 28M of Customs Act]
5 Providing legal basis for clearance by Customs Automated System [Sections 45, 47, 51, 60, 68 and 69 of Customs Act]
6 Introducing an electronic Cash ledger on the lines similar to provisions in CGST Act [Section 51A of Customs Act ]
7 Introducing a new chapter for conduct of Audit [Section 99A of Customs Act ]
8 Inserting a new section to provide for simplified and different procedures as part of Trade Facilitation [Section 143AA of Customs Act]
9 Introducing a new section for exchange of information with competent authorities of other countries [Section 151B of Customs Act]
B. For reducing litigation
10 Providing for pre-notice consultation, issue of supplementary show cause notices on receipt of additional information but within present limitation period, time bound Adjudication and deemed closure of cases [Section 28 of Customs Act]
11 Providing for closure of cases without imposition of redemption fine in cases of voluntary payment of all dues [Section 125 of Customs Act]
C. For improving compliance
12 Expanding the scope of the Customs Act to any offence or contravention committed under the said Act outside India [Section 1 of Customs Act]
13 Introducing provisions for controlled delivery for certain goods to be notified [Section 109A of Customs Act]

4. PROPOSALS INVOLVING CHANGE IN EXCISE DUTY RATES:
Commodity Rate of Duty
From To
I Motor spirit commonly known as petrol and high speed diesel oil
1. Levy of Road and Infrastructure Cess on motor spirit commonly known as petrol and high speed diesel oil — Rs. 8 per litre
2. Abolition of Additional Duty of Excise [Road Cess] on motor spirit commonly known as petrol and high speed diesel oil Rs. 6 per litre Nil
3. Basic excise duty on:
(i) Unbranded Petrol Rs. 6.48 per litre Rs. 4.48 per litre
(ii) Branded petrol Rs. 7.66 per litre Rs. 5.66 per litre
(iii) Unbranded diesel Rs. 8.33 per litre Rs. 6.33 per litre
(iv) Branded diesel Rs. 10.69 per litre Rs. 8.69 per litre
4. Infrastructure Cess on
(i) 5% ethanol blended petrol,
(ii) 10% ethanol blended petrol and
(iii) bio-diesel, up to 20% by volume,
subject to the condition that appropriate excise duties have been paid on petrol or diesel and appropriate GST has been paid on ethanol or bio-diesel used for making such blends — Nil
5. Infrastructure Cess on petrol and diesel manufactured in and cleared from 4 specified refineries located in the North-East — Rs. 4 per litre

Note: “Basic Excise Duty” means the excise duty set forth in the First Schedule to the Central Excise Tariff Act, 1985.
5. MISCELLANEOUS
S. No. Amendment
A. Renaming of Central Board of Excise and Customs as the Central Board of Indirect Taxes and Customs
Name of Central Board of Excise and Customs is being changed to Central Board of Indirect Taxes and Customs with consequential amendments in the following Acts: –
i. The Central Boards of Revenue Act, 1963 (54 of 1963)
ii. The Customs Act, 1962 (52 of 1962)
iii. The Central Goods and Services Tax Act, 2017 (12 of 2017)

-எஸ்.சதிஸ் சர்மா.