Indian Union Budget 2018-19 Updates
Union Budget for the year 2018-19 is presented by Finance Minister Arun Jaitley on February 1st, 2018. The Union Budget 2018 will come into force from April 1st, 2018.
What is Union Budget?
The Union Budget of India is also known as the Annual Financial Statement in the Article 112 of the constitution of India. The government usually presents the Union Budget in the parliament on the first day of February. The Union Budget is presented by Finance Minister of India. The Union Budget will be presented with the Finance bill and the Appropriation bill and it must be passed to the two houses in the parliament i.e Upper house and Lower house before coming in to effect from April 1, in the start of the financial year of India.
The first Union Budget was presented to the parliament by R.K. Shanmukham Chetty on November 26, 1947. Usually, the Union Budget was made an announcement at 5:00 pm on the last working day in the month of February until the year 1999. In the year 1999 Yashwanth Sinha who was the finance minister of NDA government led by Atal Bihari Vajpayee changed the timings of the budget from evening 5:00 pm to 11 am in the morning.
Again in the year, 2017 Arun Jaitley the finance minister of NDA government led by Narendra Modi made an announcement on the change of Union Budget presentation. He said that the budget will be presented on February 1 of every year instead of last working day of February. A railway budget was presented separately after 92 years which was merged into Union budget.
Highlights of Union Budget for the financial year of 2018 – 19
- Custom Duties
- Rural Economy
- Social Security
- Petroleum/ Diesel Sector
- Employee Centric Scheme
- Defence and other Miscellaneous
Union Budget 2018 Highlights
- For senior citizens, exemption of interest income on bank deposits raised to Rs 50,000.
- The standard deduction of Rs 40,000 allowed for transport, medical reimbursement for salaried taxpayers.
- Rs 7.5 lakh per senior citizen limit for investment in interest-bearing LIC schemes doubled to Rs 15 lakh
- Cash payments exceeding Rs 10,000 by trusts and institutions will be disallowed in a bid to curb cash economy.
- Education cess increased to 4 pc from 3 pc to collect additional Rs 11,000 Cr.
- Tax on distributed income of equity oriented mutual funds at the rate of 10 percent announced.
- GST revenue will be received only for 11 months, that will have an effect on balance sheets
- PAN card is made mandatory by the government for a financial transaction of Rs 2.5 lakh or more.
- Emphasis on generating higher income for farmers; want to help farmers produce more with lesser cost, and in turn, earn higher income for their produce.
- Government proposes to launch ‘Operation Greens’ along the lines of Operation Flood’.
- Agri-Market Development Fund with a corpus of 2000 crore to be set up for developing agricultural markets.
- The focus is on low-cost farming, higher MSP
- Minimum support price has been set at 1.5 times the production cost for Kharif crops.
- A sum of Rs 500 cr will be allocated for Operation Green to be launched. It will promote agricultural products
- Kisan credit card facility extended to fisheries and animal husbandry sectors.
- Put forth the proposal to hike institutional credit for agriculture to Rs 11 lakh crore for 2018-19.
- Institutional credit to agriculture to be raised to Rs 11 lakh cr in 2018-19.
India Union Budget 2018
- Central Board of Excise and Customs renamed as Central Board of Indirect Taxes and Customs
- Customs duty on perfumes, dental hygiene, after-shave, deodorants, room deodorizers, preparations for use on hair doubled to 20 pc.
- Import duty on fruit juice raised from 30 pc to 50 pc.
- Duties on petrol, diesel rejigged; basic excise duty lowered by Rs 2 per litre, Rs 6 additional excise duty abolished, but Rs 8 a litre road cess introduced.
- Import duty on LCD/LED/OLED panels, parts of TVs hiked to 15 pc; duty on smartwatches, wearable devices, footwear doubled to 20 pc.
- Customs duty on imitation jeweller hiked from 15 pc to 20 pc; doubled on all watches to 20 pc.
- Customs duty on sunglasses, cigarette lighter, toys, bus and truck tyres, select furniture hiked.
- Import of solar tempered glass for the manufacture of solar cells exempted from customs duty.
- Customs duty on crude edible vegetable oils like groundnut oil, safflower seed oil hiked from 12.5 pc to 30 pc; on refined edible vegetable oil from 20 pc to 35 pc.
- Customs duty on mobile phones to be hiked to 20 percent from 15 percent
- Exports expected to grow by 15 pct in 2017-18.
- Govt to launch Prime Minister’s Research Fellow Scheme which will identify 1000 B.Tech students to do PhD at IITs.
- Two new schools of planning and architecture to be set up; 18 more in IITs and NIITs.
- Govt to set up 24 new medical colleges and hospitals by upgrading district level ones.
- Rs. 1 lakh crore allocated to revitalization and upgradation of the education sector. Promoting learning based outcomes and research.
- By 2022, every block with more than 50 percent ST population will have Ekalvya schools.
Budget 2018 India – Union Budget 2018
- Cooking gas being given free to poor under PMUY, 4 cr unconnected being provided electricity connection, stent prices slashed.
- Food processing sector growing at 8 pc; allocation for food processing ministry being doubled to Rs 1400 Cr.
- A proposal made to hike target of providing free LPG connections to 8 crores to poor women.
- Under Swachh Bharat Mission, Centre plans to construct 2 crores more toilets.
- Rs 16,000 cr to be spent on providing electrical connection to 4 cr poor households.
- 1 cr houses to be built under Pradhan Mantri Awas Yojana in rural areas.
- Govt to substantially increase allocation under national livelihood mission to Rs 5,750 cr in next fiscal.
- The Govt will launch flagship National Health Protection scheme to cover 10 crores poor and vulnerable, people
- Govt to establish a dedicated affordable housing fund under National Housing Bank for priority sector lending.
- 5 lakh WiFi hotspots to provide broadband access to 5 cr rural people.
- 10 cr families will be provided Rs 5 lakh cover per family per year for treatment.
- Aayushman Bharat programme: 1.5 lakh centres will be set up to provide health facilities closer to home.
- Rs 1,200 crore is allocated for Aayushman Bharat programme.
- Flagship National Healthcare protection scheme, with approximately 50 crore beneficiaries.
- Up to Rs 5 lakh per family per year for secondary and tertiary care hospitalization. It makes the World’s largest government-funded healthcare programme.
- Around 5.22 crore families have benefited with PM Jivan Bima Yojana.
- Govt will expand PM Jan Dhan Yojana: Al 16 crore accounts will be included under micro insurance and pension schemes
- 1.26 cr accounts opened under Sukanya Samriddhi Scheme
- Social inclusion schemes for Scheduled Castes – Rs 52,719 crore.
Union Budget 2018 -19
- Gross budgetary support for Railways hiked to over Rs 3 lakh crore in 2018-19 from Rs 2.73 lakh crore in 2017-18.
- All stations with a footfall of greater than 25,000 will have escalators.
- More stations and trains will progressively be built with WiFi and CCTV camera
- Govt to eliminate 4267 unmanned rail crossing in broad gauge in 2 years
- Allocates Rs 11,000 crore Mumbai rail network and Rs 17,000 crore for Bengaluru metro.
- An additional suburban railway network for a distance of 150 km will be set up in Bengaluru with an estimated cost of Rs. 17,000 crores.
- Allocation of money to Digital India scheme doubled to Rs 3073 cr
- At the cost of Rs, 10,000 cr government plans to provide 5 lakh WiFi HotSpots to e Broadband access to 5 crore rural citizens.
- Government will take measures to stop cryptocurrency circulation, as it is not considered legal tender
- There will be a Blockchain Technology Usage by the government.
- India needs an investment of 50 crores in the infrastructure sector.
- To promote tourism the construction of new tunnels will be made at Sera Pass.
- 99 Cities have been selected out of India top 100 cities and they will have a development with an outlay of Rs. 2.04 lakh crores.
- With Private funding, marketing and branding 10 top prominent tourist sites will be selected for iconic tourist destinations.
- Rs 2.35 lakh crores have been allocated under phase 1 to develop 35,000 KM Bharatmala Project.
- The government will introduce pau-as-use systems at all toll plazas in India to make toll payments.
Union Budget 2018 Highlights
Small and Medium Enterprises (MSME):
- The government has allocated Rs. 3,794 crores to the MSME Sector in the form of capital support and interest.
- By 2022 Ekalvya Schools will have more than 50 percent of ST population in comparison with Navodaya Vidyalaya’s.
- A target of Rs 3 lakh crore has been set for Mudra Yojana.
- Under MUDRA Scheme Rs 4.6 Lakh crores have been sanctioned.
- The government made a proposal to the increase the number of trips by aeroplanes to 1 billion with is five times of current trips. Rs 60 cr has been allocated for this.
- The government introduced UDAN Scheme to connect 64 unconnected airports across India.
Employee Centric Schemes
- For the next 3 years, the government will contribute 12% of wages to new employees in EPF in all sectors.
- The contribution of Women to EPF has been reduced to 8% for the first three years.
Petroleum/ Diesel Sector:
- Excise on Unbranded diesel is cut by 2 rupees to 6.33 rupee/ltr.
- Excise on Unbranded petrol is cut by 2 rupees to 4.48 rupee/ltr.
- Government plans to assign a Unique ID for corporates with the help of Aadhar.
- Government revises divestment target for the current year to Rs 1 lakh Crore for FY 18.
- National Insurance Co, Oriental Insurance Co and United Assurance to be merged into one entity.
Union Budget 2018
- Recapitalisation will pave a way for public banks to lend an additional Rs 5 lakh crore.
- Rs 7,148 crores is allocated for the textile sector.
Defence and other Miscellaneous:
- Defense outlay raised to Rs 2.82 lakh crore in 2018-19 from Rs 2.67 lakh crore in current year.
- Food subsidy to rise to Rs 1.69 lakh crore in 2018-19 from Rs 1.4 lakh crore in current year.
- Emoluments for President set at Rs 5 lakh, Rs 4 lakh for Vice President, Rs 3.5 lakh for governors
- Emoluments for Parliamentarians: Law for increase in pay based on index to inflation
- Govt earmarks Rs. 150 cr to commemorate 150 years of birth of Mahatma Gandhi.
Read our article to know more about Union Budget 2018 in detailed. Hope the article on Union Budget 2018 will be useful for candidates who are preparing for all types of competitive exams.
The main highlight of the Union Budget for the financial year of 2017 -18 is Demonetisation.
Get complete detailed information about 2017-18 union budget from – Union Budget 2017-18