New Delhi, Feb 1: A day after the Economic Survey was tabled in the Parliament, Finance Minister Arun Jaitely presented the Union Budget 2017-18 in Lok Sabha. All eyes with be on Jaitley as he presents the Budget post demonetisation. This is the first time that the Railway Budget is being combined with the Union Budget post independence.
Get live updates on Budget 2017 along with key highlights and announcements:
1.00 pm: Lok Sabha adjourned after FM Jaitley concludes his budget speech.
12.58 pm: Arun Jaitley ends his speech.
12.55 pm: Surcharge of 10% for those whose annual income is Rs 50 lakh to 1 crore. All those above the Rs 5 lakh tax slab, will get relief of Rs 12,500, as a rebate. A single one-page form for filing IT returns for taxable income up to Rs 5 lakh. Zero tax liability for people with annual income of Rs 3 lakh and below. 15% surcharge on incomes above Rs 1 crore to continue.
12.50 pm: Long-term capital gains tax on immovable property to apply after 2 years, instead of 3 years now. Tax cut for individual assesses from current 10 percent to 5 percent within income slab of Rs 2.5 lakh to 5 lakh.
Funding of political parties
12.42 pm: A donor could purchase bonds from authorised banks redeemable only in designated account of political party.
12.41 pm: Even 70 years after independence, India hasn't been able to come up with a transparent system of political funding. As proposed by election commission max donation to parties will be Rs 2000 in cash from any one source. Political parties continue to receive anonymous donations in cash. Political parties will be entitled to receive donations by cheque, digital mode from donors.
12.40 pm: Basic customs duty on LNG to be reduced from 5% to 2.5%. No transaction above Rs 3 lakh will be allowed in cash. Propose to limit cash exp for revenue and capital exp to Rs 10,000. Not to remove Minimum Alternative Tax in 2017-18. Propose to allow a carry forward of MAT for a period of 15 yrs as against 10 years now
12.38 pm: Profit linked deductions for startups changed from 3 out of 5 years to 3 out of 7 years. In order to make MSMEs more viable, I propose to reduce income tax for smaller companies with annual turnover of Rs 50 cr to 25%.
12.37 pm: Long-term holding period for real estate reduced to two years from the existing 3 years. Capital gains tax to be exempted, for land owners whose land was pooled for creation of state capital of Telangana.
12.35 pm: There is an urgent need to protect the poor from chit fund schemes, draft bill placed in public domain.
Rate of growth in advance tax in personal income tax in last 3 quarters of this financial year is as high as 34.8%
12.32 pm: Net tax revenue of 2013-14 at Rs 11.38 lakh crore, grew by 9% in 2014-15 and 19% in 2015-16. Advance tax growth 34.8% in last 3Qs. We will end the year with a higher growth rate of 17 percent for second year in a row.
12.30 pm: Number of people showing income of over Rs 50 lakh is only 1.72 lakh. From amongst 3.7 crore who filed tax returns, 99 lakh showed income below Rs 2.5 lakh. Deposits of over Rs 80 lakh made in 1.48 lakh bank accounts post demonetisation.
12.27 pm: We are largely a tax non-compliance society, when too many people evade taxes burden falls on those who are honest: FM
12.24 pm: Direct tax collections not commensurate with income & expenditure pattern of Indian economy. As against estimated 4.2 crore people engaged in organised sector employment, number of people filing returns are 1.74 crore.
12.23 pm: Fiscal deficit pegged at 3.2% of the GDP. Government committed to achieve 3% in the following year. Revenue deficit for next year pegged at 1.9% for 2017-18.
12.20 pm: Total expenditure of Budget has been placed at Rs 21,47,000 crores. Focus now on revenue and capital expenditure. Provision of Rs 3,000 crore under Dept of Economic Affairs to implement new schemes has been made. Defence expenditure excluding pensions- allocation of Rs 2,74,114 crore.
12.17 pm: Head post office to be utilised as centre for rendering passport services. Centralized Defence Travel System has been developed for soldiers, officers to book travel tickets. 9.3℅ increase in capital outlay for Defence Ministry. Up to Rs 86000 cr from Rs 78000 cr last year
12.16 pm: New law to confiscate assets of offenders including economic offenders being considered.
12.15 pm: Delhi and Jaipur to have solid waste management plants and five more to be set up later. Proposal to mandate all government receipts digitally under consideration. Government will support Gujarat to commemorate 100 years of Sabarmati ashram.
It's proposed to create a payment regulatory board in RBI. Chandigarh and eight districts of Haryana have been declared kerosene free.
12.14 pm: Steps will be taken to promote, & possibly mandate petrol bunks, colleges, municipalities etc to facilitate digital payments. Aadhar Pay, an app for merchants to be launched.
12.11 pm: Railway related state-run companies like IRCON and IRCTC to be listed on stock exchanges. 3.5 Crore youth will be trained under Sankalp program launched by the government.
12.09 pm: PM Mudra Yojana has contributed to funding the un-funded and under-funded. Lending target doubled at Rs 2.44 lakh crore. Over 16,000 new enterprises have come up under Stand Up India scheme.India at the cusp of a massive digital revolution. Two new schemes to promote use of BHIM app.125 lakh people have adopted the BHIM app so far. Additional 10 lakh new Point-of-Sale terminals to be issued.
12.07 pm: 1.50 lakh Gram Panchayats to get high-speed broadband with hot spots at low tariffs. On cyber security, Jaitley says a Computer Emergency Response Team will be established.
12.03 pm: Creating an ecosystem to make India a global hub for electronics manufacturing. Budget allocation for Infrastructure sector at Rs 3.96 lakh crore. Eco system to make India a global hub for electronics manufacture. Allocation of Rs 745 Crore. We have decided to abolish the FIPB in 2017-18. Transport sector allocated Rs 2.41 lakh crore and Bharat Net Project allocated Rs 10,000 crore.
11.59 am: Rs 64,000 crore will be allocated for national highways. Massive investment in other infrastructure as well. Total length of roads built from 2014-15 is about 140,000 km higher than previous 3 years
Finance Minister announces Railway Budget
11.58 am: By 2019, all coaches of Indian Railways will be fitted with bio-toilets. Railways will implement end-to-end transport solutions for certain logistics. A new Metro rail policy with focus on innovative fund raising will be announced.
Railways faces stiff competition by other modes of transport dominated by private sector. Unmanned railway level crossings to be eliminated by 2020.
11.56 am: At least 25 railway stations will be awarded for special redevelopment. 500 stations will be made physically-disabled friendly Rail safety fund with corpus of Rs 100,000 crore will be created over a period of 5 years. Service charges for booking through IRCTC will be withdrawn.
11.54 am: Rs 1,31,000 crore to be the total budget for the Railways. Focus will be on - Safety, cleanliness, development and accounting reforms.
11.53 am: Safe drinking water to cover 28,000 arsenic and Fluoride affected habitations in the next four years. For senior citizens, Aadhaar-based smart cards containing health details will be introduced. Pilot in 15 districts. Allocation for SC Rs 52393 crore, for ST Rs 31920 crore and for minorities Rs 4193 crore.
11.50 am: Two new AIIMS to be set up in Jharkhand and Gujarat. Elimination of TB by 2025. Reduce IMR from 34 in 2018 to 28 in 2019. Action plan to eliminate Kala Azar and Filariasis by 2017, Leprosy by 2018, Measles by 2020.
Legislative reforms to simplify existing labour laws - wages, ind relations, social security, safety.
11.48 am: For women and children, allocation stepped up from Rs 1.56 lakh crore to Rs 1.84 lakh crore. Focus on bringing down infant mortality and maternal mortality. Govt is also committed to take necessary steps of structural transformation of medical education and practise. We need to ensure adequate availability of specialist doctors for tertiary healthcare. More medical seats will be added.
11.47 am: Banks have already started reducing lending rates as a result of the surplus created due to demonetisation.
11.45 am: Allocation for rural, agricultural sector is Rs 1,87,223 crore, 24% higher than last year. Proposal to launch skill knowledge awareness at Rs 4000 crore to provide market training to youth. Mahila Shakti Kendras to be set up at Rs 500 crore in 14 lakh anganwadi centres. Incredible India 2.0 campaign will be launched across the world.
11..43 am: 50,000 gram panchayats to be made poverty free by 2019. Village electrification to get Rs 4814 crore, sanitation coverage for villages increased to 60%, irrigation coverage to expand. As Swami Vivekananda said 'education which does not help the common mass of people to equip themselves is it worth of the name. 100% village electrification will be achieved by May 1,2018.
11.42 am: We have proposed to introduce a system of measuring annual learning outcomes in schools.Will undertake reforms in UGC. Good quality institutes will get academic autonomy. We propose to establish National Testing Agency for entrance exams for higher education. It'll free CBSE, AICTE etc.
11.41 am: Sanitation in rural areas improved from 42 per cent in 2014 to about 60 per cent now. 50,000 gram panchayats to be made poverty free by 2019: FM.
11.39 am: Aim to complete construction 1 crore houses by 2019. Allocation up by Rs 15,000 Crore last year to 23,000 crore: FM.
11.37 am: MNREGA allocation has been increased. Highest ever allocation for MNREGA at Rs 48,000 crore. I have provided Rs 19,000 cr for the PMGSY for 2017-18, PMGSY roads work accelerated to 133 km roads/day in 2016-17 as against 73km/day during 2011-14: Jaitley.
11.35 am: Participation of women in MGNREGA has increased to 55%. Surplus liquidity in banking system will lower banking costs: Jaitley.
11.34 am: Industrialists and Assocham members watching Budget 2017.
11.32 am: Will support NABARD for Rs 63,000 functional PACs. Done in 3 years at estimated cost of Rs 1,900 cr. Assistance of upto Rs 75 lakh for cleaning and packaging of farmer produce. Availability of milk processing facility will benefit farmers. Dairy Processing Infra fund will be set up with a corpus: Jaitley.
11.29 am: Uncertainty around commodity prices, especially around crude oil, one of the major challenges. With better monsoon, agriculture is expected to grow at 4.1% in current year. Long term irrigation fund set up in NABARD. Issuance of soil health cards have gathered momentum, will setup a mini lab in krishi vigyan kendras: Arun Jaitley.
11.28 am: Rs 10 lakh crores as credit to farmers. We are committed to double incomes of farmers in 5 years. Farmers will also benefit from 60 day interest waiver in respect of loans: Arun Jaitley.
11.25 am: We have done away with planned and non planned allocation of resources to states. Our agenda for the year is Transform, Energise and Clean India: Arun Jaitley
11.24 am: Effects of demonetisation will not spill over to the next financial year. The Budget contains 3 major reforms. Merger of the Railway budget with the union budget: Arun Jaitley.
11.23 am: Overall approach for the budget has been to spend more in rural areas: FM
11.22 am: Jaitley quotes the Mahatma while saying - "A right step is never wrong." The advanced economies are expected to increase their growth from 1.6%-1.9% and emerging economies from 4.1%-4.5%: Jaitley.
11.19 am: Demonetisation a bold measure. Demonetisation will lead to better GDP. Drop in economic activity during remonetisation will only be transient. India has emerged as 6th largest manufacturing country in world, up from 9th. We are seen as growth engine of world: Jaitley.
11.17 am: We have launched a massive war against black money. According to the IMF, India is expected to be the fastest growing economy. India still stands out as bright spot among emerging markets: FM.
11.15 am: We have moved from a discretionary-based to a policy and system based administration. Our governemnt was elected amidst huge expectations of people, the underlying theme of expectations being good governance: Jaitley.
11.13 am: Focus will be on energising youth, women. Presenting budget when the world faces economic uncertainty. The government is now seen as a trusted custodian of public money. Expectations included burning issues like inflation and price rise, issue of corruption and crony capitalism: Arun Jaitely.
11.10 am: Budget presentation begins amidst ruckus in Parliament. "Remember this is the first budget in 92 years that Rail budget is combined with general budget:" Arun Jaitley.
11.09 am: Arun Jaitley begins presentation of Budget 2017-18.
11.08 am: Budget can be presented tomorrow, says Mallikarjuna Kharge.
11.06 am: Ruckus in Parliament after Speaker pays respects to former union minister E Ahamed.
11.02 am: Speaker Sumitra Mahajan makes an obituary reference for former MoS and sitting IUML MP E Ahamed. Convention to adjourn house but the same can not be allowed due to budget. The house will be adjourned tomorrow as a mark of respect for E Ahamed: LS Speaker
11.00 am: Lok Sabha convenes for Union Budget presentation.
10.54 am: We have to keep in mind that budget is a constitutional obligation, will have to be presented: Sumitra Mahajan.
10.52 am: There should be no controversy over it. It is constitutional obligation: Venkaiah Naidu.
Budget has a sanctity, we are already in the 11th hour. There should be no controversy over it.Its constitutional obligation :Venkaiah Naidu pic.twitter.com/gSrdBbyGPF— ANI (@ANI_news) February 1, 2017
10.50 am: Have to keep in mind that budget is a constitutional obligation, will have to be presented: Sumitra Mahajan.
10.42 am: Budget should not be presented today: Lalu Prasad Yadav.
10.38 am: Budget will be presented today, will formally announce shortly: Lok Sabha Speaker Sumitra Mahajan.
10.37 am: There was no need to go to the President with the budget, what is the hurry?: Deve Gowda.
10.36 am: Adjourning is the convention but this government doesn't follow conventions: Naresh Agarwal, SP
10.30 am: Arun Jaitley and his team met President Pranab Mukherjee this morning for the customary briefing on the Budget before presentation.
10.27 am: Watch me live presenting the Union Budget 2017 at 11 am, February 1, 2017: Arun Jaitley tweets
Watch me live presenting the Union Budget 2017 at 11 am, February 1, 2017 https://t.co/BtQAlBf8Zz— Arun Jaitley (@arunjaitley) February 1, 2017
10.24 am: Narendra Modi reaches Parliament for Budget Session.
10.20 am: Mallikarjun Kharge says delaying the news of E Ahamed's demise was an inhuman act.
10.17 am: Narendra Modi arrives at E Ahamed 's residence.
10.12 am: President Mukherjee gives the go ahead to present the Budget.
10.11 am: In our opinion, including JDU leaders and former PM Deve Gowda, the budget should be postponed. Its not March 31, there is a lot of time to present budget. Government can postpone it: Mallikarjun Khadge, Congress.
10.10 am: Lok Sabha will convene at 11 am with obituary to E Ahamed.
10.04 am: Cabinet meeting to be held shortly in Parliament.
10.02 am: Home Minister Rajnath Singh and Union Minister Ananth Kumar visit IUML MP E Ahamed's residence.
10.00 am: House can be adjourned after the Budget presentation. On April 19, 1954, sitting member Jujhar Pal passed away on the day of presentation of the Railway Budget, but the House proceedings were held as scheduled.
On August 31, 1974, sitting MP MB Rana passed away and then speaker GS Dhillon decided not to adjourn the House and Budget was presented when Indira Gandhi was the Prime Minister.
9.56 am: Obituary to be followed by adjournment right after Union Budget.
9.50 am: Arun Jaitley reaches Parliament ahead of Budget session. Speaker Sumitra Mahajan to visit E Ahamed's residence at 10 am.
9.41 am: Experts say that convention is to adjourn the House for a day, but adds that since Ahamed's last rites will be conducted outside Delhi tomorrow, MPs can attend Parliament today for the presentation of the Union Budget.
9.33 am: Government has spoken to all parties and arrived at a consenses. Budget likely to take place after obituary.
9.22 am: Congress leader Kamal Nath seeks adjournment of the Budget session after the demise of former Union Minister E Ahamed.
9.12 am: Budget 2017 copies reach Parliament.
9.08 am: Arun Jaitley and ministry officials with Budget 2017
8.55 am: Finance Minister Arun Jaitley arrives at Parliament ahead of Budget session.
8.40 am: MoS Finance Arjun Ram Meghwal reaches Finance Ministry.
8.36 am: Sources in the Finance Ministry tell OneIndia that the budget is unlikely to be postponed. There were rumours on Wednesday that the budget session is likely to be postponed in the wake of the death of former Union Minister E Ahamed.
8.35 am: Due to unfortunate passing away of a sitting MP, Speaker will decide if house will be adjourned:Santosh Gangwar, MoS Finance.
Normally house is adjourned on death of sitting MP, so chances are budget can be postponed for a day,but Speaker will decide:Santosh Gangwar pic.twitter.com/mp6GPAbrwF— ANI (@ANI_news) February 1, 2017
8.30 am: Speaker to decide whether the Budget presentation will be deferred or not after the demise of sitting IUML MP E Ahamed.