Finance Minister Jaitley’s Budget 2017: Will India Fight Corruption & Black Money with Financial Planning?
Amidst criticism, anticipation and opposition, Finance Minister Arun Jaitley is all set to present Budget 2017 in India today. With this budget, Jaitley seeks to improve the declining GDP of India after Prime Minister Narendra Modi scrapped out high value currency in November last year.
Even the Death of a Sitting Member of Parliament Couldn’t Stop Jaitley from Introducing Budget Today
On a tragic note the annual budget will be introduced despite the death of a sitting MP, E Ahamed. Usually, the Parliament adjourns a day after the death of a sitting members. However, this time, the speaker made an exception. This is one of the first of firsts– this year’s budget is a combination of Railway budget and the general budget. It’s for the first time that the government is introducing it early, that is in February.
Here are top Highlights of the Day.
Budget 2017 Top Highlights: Finance Minister Arun Jaitely
8:22 am: House is informed of the death of E. Ahamad.
9:01 am: Lok Sabha Speaker Sumitra Mahajan decides that budget will be introduced in Lok Sabha today. According to Mahajan, “The situation is inevitable because should the budget leak by chance, it can cause political chaos”.
9:10: The printed copies of Budget 2017 reaches Parliament.
9:15 am: Finance Minister Arun Jaitley meets President Pranab Mukherjee.
9:28 am: The government sought consensus from all parties and political leaders.
9:47 am: Arun Jaitley arrives in the Parliament.
9:49 am: Lok Sabha Speaker Sumitra Mahjahan Visited late E. Ahamad’s residence to offer her condolance.
10:02 am: A cabinet meeting was held in the Parliament.
10:07 am: Congress Leaders accuse BJP government of not adjourning the session. The demand adjournment of today’s session.
10:15 am: Congress leader Mallikarjun Kharge charges at the government.
10:16 am: PM Narendra Modi arrives at E Ahamed’s residence.
10:19 am: Finance Minister Arun Jaitley tweets about the Budget.
Watch me live presenting the Union Budget 2017 at 11 am, February 1, 2017 https://t.co/BtQAlBf8Zz
— Arun Jaitley (@arunjaitley) February 1, 2017
10:25 am: Subhash Kashyap, a Constitution expert says that postponement of budget after the papers reach the Parliament is neither correct nor possible.
10: 30am: HD Deve Gowda says that Postponement of budget is no big deal.
10:35 am: The members of the Parliament decided that the budget will be presented today.
10:52 am: Venkaiah Naidu presents his view on budget 2017. Budget has a sanity. We’re already in the eleventh hour. We can’t delay it further.
Arun Jaitley’s Speech on Budget 2017-18:
“Emerging market economies face 3 challenges: Fed rate hike, uncertainty of oil price, protectionism”.
“BJP Government has ensured fiscal consolidation without cutting back on public investments”.
” According to IMF, India is expected to be among fastest growing major economies this year”.
“Demonetisation of high denomination notes was a bold and decisive measure”.
“The Budget 2017-2018 contains 3 major reforms”.
“Goal is poverty alleviation but with fiscal prudence”.
“The Effects of Demonetisation are not expected to spill to the next year”.
“My approach in preparing the Budget 2017 is to spend more on rural areas, infrastructure and poverty alleviation with fiscal prudence.”
“Focus of budget is to spend more in rural areas, infrastructure and poverty alleviation, yet maintain best standards of fiscal prudence.”
“The advanced economies are expected to increase their growth from 1.6%-1.9% and emerging economies from 4.1%-4.5%.”
“FDI increase was 36% despite 5% fall in global FDI flow.”
“Our government was elected amid huge expectations of people, the underlying theme of expectations being good governance.”
“Current account deficits are under control, the government will focus on youth empowerment and skill development”.
“Demonetisation has increased the landing capacity of Indian banks. India’s condition has improved in terms of Ease of Doing business”.
“Farmers will get 5 times more income in the coming days”.
“A loan amount of 10 lakh crores assigned to the farmers”.
“Advanced Economy growth: 1.6 to 1.9%. Emerging economy growth: 4.1 to 4.5%”
“Rs 10 lakh Agri Credit for Kharif and Rabi Crop Season”
“Rs 1900 crores for digitalisation of government centres”
“Irrigation fund: Rs 20,000 crores. Agriculture sector is expected to grow by 4.1%”
“Rs 8000 crores for Dairy Processing”
“Crop Insurance fund Rs 9000 crore”
“Rs 48,000 crores allotted to MNREGA funds, E-Nam will get Rs 75 Lakh”
“Government will aim to uplift the conditions of 1 crore families below poverty line”
“Rural Programmes allotted with Rs 3 lakh crores budget. Government to eliminate poverty from 50,000 gram panchayats by 2019″
” Prime Minister’s Gram Sadak Yojana (village streets scheme” will get Rs 19,000 crores”
“Rs 23000 crores allotted to Prime Minister’s Awaas Yojana (housing Scheme)”.
“Rural Agriculture to get Rs. 1.87 crores funds whereas Deendayal Yojana will be allotted Rs 45000 crores”
“Government will try to achieve 100% rural electrification. A separate innovation fund will be made for promoting Secondary Education”.
Allocation for scheduled castes from Rs 38,800 to Rs 52,000.
Two new centres of medical sciences in Jharkhand and Gujarat.
Additional 5,000 PG seats for medical sciences.
Affordable housing to get infrastructure status.
Safe drinking water to cover 28,000 arsenic and fluoride affected habitations in the next four years.
For youth, we propose to introduce a system of measuring annual learning; science will be given focus.
Good quality institutions will have more autonomy. Colleges will be given autonomous status.
Total allocation for rural, agricultural and allied sectors for 2017-18 is Rs 187223 crore, which is 24% higher than last year.
Dedicated micro-irrigation fund will b set up by NABARD to achieve goal of ‘Per Drop More Crop’.Initial corpus will be Rs 5000 crore.
Open defecation free villages are now being given priority for pipe to water supply.
One crore house by 2019. PM Ayas Yojana allocation for 2017-18 will be Rs 23,000, up from Rs 15,000 crore in last budget. 100% village electrification by May 1, 2018.
Budget allocation to MNREGA increased to a record Rs 48,000 crore for 2017-18, from Rs 37,000 crore in 2016-17. Five lakh ponds target achieved for 2016/17. Another five lakh ponds to be taken up in 2017/18 for drought proofing of villages.
Participation of women in MNREGA has increased to 55%
Target of agricultural loans to farmers set at record Rs 10 lakh crore in 2017/18.
GST, demonetisation two tectonic policy initiatives
We have witnessed historic and impactful economic reform and policymaking
Number of global reports show India has considerably improved its policies, profile and practice
Three challenges in current global scenario: Monetary stance of US FED Reserve, commodity prices specially crude oil and retreat from globalisation
A model law on contract farming will be circulated among states for consultation.
Dairy processing infrastructure fund will be set up under NABARD, with fund of 8,000 crore.
Issuance of soil health cards have gathered momentum, will setup a mini lab in Krishi Vigyan Kendras.
With better monsoon, agriculture is expected to grow at 4.1% in current year.
Uncertainty around commodity prices, especially around crude oil, is one of the major challenges.
India continues to stand as a bright spot in the world economic landscape.
Signs of retreat from globalisation have potential to affect exports from many emerging economies, including India.
Uncertainty around commodity prices, especially around crude oil, second major challenge.
Current monetary plance of the US Federal reserve one of three challenges.