Lok Sabha Debates
The Minister Of Finance And Minister Of Corporate Affairs Presented A Statement ... on 1 February, 2018
Sixteenth Loksabha an> Title: The Minister of Finance and Minister of Corporate Affairs presented a statement of the estimated receipts and expenditure of the Government of India for the year 2018-19.
THE MINISTER OF FINANCE AND MINISTER OF CORPORATE AFFAIRS (SHRI ARUN JAITLEY): Madam Speaker, I rise to present the Budget for 2018-19.
Madam, four years ago, we pledged to the people of India to give to this nation an honest, clean and transparent Government. We promised a leadership capable of taking difficult decisions and restoring strong performance of Indian economy. We promised to reduce poverty, expedite infrastructure creation and build a strong, confident and New India. When our Government took over, India was considered a part of fragile 5; a nation suffering from policy paralysis and corruption. We have decisively reversed this. The Government, led by Prime Minister, Shri Narendra Modi, has successfully implemented a series of fundamental structural reforms. With the result, India stands out as among the fastest growing economies of the world.
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 easier to do business in India. Natural resources are now allocated in a transparent and honest manner. There is a premium on honesty. एकसमयथाजबभ्रष्टाचारशिष्टाचारकाअंगबनगयाथा।आजहमारेनागरिक, विशेषरूपसेनवयुवकवर्ग, ईमानदारीकाजीवनव्यतीतकरनेकोतत्परहैं।The indirect tax system, with the introduction of the Goods and Services Tax, has been made simpler. Benefits to the poor has been targeted more effectively with the use of digital technology. The demonetization of high value currency has reduced the quantum of cash currency in circulation in India. It has increased the taxation base and spurred greater digitization of the Indian 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 will help the Indian economy achieve stronger growth in the medium and long term Indian economy has performed very well since our Government took over in May, 2014. India achieved an average growth of 7.5% in the first three years of our Government. Indian economy is now a 2.5 trillion dollar economy – seventh largest in the world. India is expected to become the fifth largest economy very soon. On Purchasing Power Parity (PPP) basis, we are already the third largest economy.
Indian society, polity and economy have shown remarkable resilience in adjusting with structural reforms. The GDP growth at 6.3% in the second quarter signalled a turnaround of the economy. We hope to grow at 7.2% to 7.5% in the second half. The IMF, in its latest Update, has forecast that India will grow at 7.4% next year. Manufacturing sector is back on the growth path. The services, which is the mainstay of our growth, have also resumed their high growth rates at 8% plus. Our exports are expected to grow at about 15% in 2017-18. We are now firmly on course to achieve a high growth of 8% plus.
We have taken up programmes to direct the benefits of structural changes and good growth to the reach farmers, poor and other vulnerable sections of our society to uplift the under-developed regions. This year’s Budget will consolidate these gains and particularlyfocus on strengtheningagriculture and rural economy, provision for good health to economically less privileged, taking care of senior citizens, infrastructurecreation and working with the States to provide more resources for improving the quality of education in the country.
The Prime Minister Shri Narendra Modi has always stressed the importance of good governance. He has articulated the vision of ‘‘Minimum Government and Maximum Governance’’. This vision has inspired Government agencies in carrying out hundreds of reforms in policies, rules and procedures. This transformation is reflected in the improvement of India’s ranking by 42 places in the last three years in the World Bank’s ‘Ease of Doing Business’ with India breaking into the top 100 for the first time. I would like to congratulate all those who worked to achieve this.
हमारीसरकारअब“ईज ऑफडूइंगबिजनेस” सेआगेबढ़करदेशकेजनसामान्य, विशेषकरगरीबऔरमध्यमवर्गकीजिंदगीकोआसानबनानेकेलिए, उनकी“ईज ऑफलिविंग” परजोरदेरहीहै।गुडगवर्नेंसकाआधारभीयहीहैकिदेशकेआमनागरिककेजीवनमेंसरकारीदखलकमसेकमहो।
उज्ज्वलायोजनाकेमाध्यमसेसरकार देशकेकरोड़ोंगरीबोंकोमुफ्तगैसकनेक्शनदेरहीहै।सौभाग्ययोजनाकेजरिएचारकरोड़घरोंकोबिजलीकनेक्शनसेजोड़ाजारहाहै।3 हजारसेज्यादाजनऔषधिकेन्द्रोंमें800 सेज्यादादवाइयांकमकीमतपरबेचीजारहीहैं।स्टेंटकीकीमतनियंत्रितकीगईहै।गरीबोंकेलिएमुफ्तडायलिसिसकेलिएविशेषयोजनाशुरूकीगईहै।गरीबोंऔरमध्यमवर्गकोआवासयोजनाओंकीब्याजदरोंमेंबड़ीराहतदीजारहीहै।सरकारीसेवाएं, चाहेबस-ट्रेन काटिकटहोयाकईतरहकेप्रमाण-पत्र, सभीकोऑनलाइनउपलब्धकरानेकाप्रयासकियाजारहाहै।दोसेतीनदिनकेभीतरघरपरआनेवालापासपोर्टहो,या एकदिनमेंरजिस्टरहोनेवालीकंपनी, इससेदेशकेबड़ेवर्गकोलाभपहुंचाहै।सर्टिफिकेटअटेस्टेडकरानेकीबाध्यताखत्मकरनेऔरग्रुपसीवडीकीनौकरीमेंइंटरव्यूखत्मकिएजानेसेलाखोंनौजवानोंकेसमयऔरपैसेकीबचतहुईहै।यहसरकारअनावश्यकनियमों-कायदों केसाथसंघर्षकररहेहरव्यक्तिकोआधुनिकतकनीककाउपयोगकरतेहुएराहतदेनेकेलिएप्रतिबद्धहै।
Madam, while undertaking these reforms and programmes, we have worked sincerely and without weighing the political costs. Our Government has ensured that the benefits reach the eligible beneficiariesand are delivered to them directly. Many services and benefits are being delivered to the people at their doorsteps or in their accounts. It has reduced corruption and the cost of delivery and has eliminated the middlemen in the process. The Direct Benefit Transfer mechanism of India is the biggest such exercise in the world and is a global success story.
Agriculture and Rural Economy My Government is committed for the welfare of the farmers. For decades, the country’s agriculture policy and programme has remained production centric. We had sought to effect a paradigm shift. The hon. Prime Minister gave a clarion call to double the farmers’ income by 2022 when India celebrates its 75th year of independence. Our emphasis is on generating higher incomes for farmers. We consider agriculture as an enterprise and want to help the farmers to produce more from the same land parcel at lesser cost and simultaneously realize higher prices for their produce. Our emphasis is also on generating productive and gainful on-farm and non-farm employment for farmers and the landless families.
अध्यक्षमहोदया, देशकेकिसानोंकेअथकपरिश्रमकापरिणामहैकिआजदेशकाकृषिउत्पादनरिकार्डस्तरपरहै।वर्ष2016-17 मेंलगभग275 मिलियनटनखाद्यान्नऔरलगभग300 मिलियनटनफलोंएवंसब्जियोंकाऐतिहासिकउत्पादनहुआहै।
अध्यक्षमहोदया, हमारेदलकेघोषणा-पत्र मेंयहसंकल्पहैकिकृषिकोलाभकारीबनानेकेलिएकिसानभाईयोंकोउनकीउत्पादनकीलागतसेकम-से-कम50 परसेन्टसेअधिकअर्थातलागतसेडेढ़गुनादाममिले।सरकारइससंकल्पकेप्रति संवेदनशीलरहीहै।रबीकीअधिकांशअधिघोषितफसलोंकान्यूनतमसमर्थनमूल्यलागतसेकमसेकमडेढ़गुनातयकियाजाचुकाहै।अबहमनेबचीहुईअधिघोषितफसलोंकेलिएभीइससंकल्पकोएकसिद्धांतकीतरहलागूकरनेकाफैसलालियाहै।मुझेयहघोषणाकरतेहुएअत्यंतप्रसन्नताकाअनुभवहोरहाहैकितयकियेगएसिद्धांतकेअनुसार, सरकारनेआगामीखरीफकीसभीअधिघोषितफसलोंकान्यूनतमसमर्थनमूल्यउत्पादनलागतकेकम-से-कमडेढ़गुनाकरनेकाफैसलालियाहै।मेराविश्वासहैकियहऐतिहासिकनिर्णयकिसानभाइयोंकीआयदोगुनीकरनेकीदिशामेंएकमहत्वपूर्णकदमसाबितहोगा।
हमारीसरकारकिसीभीविषयकोटुकड़ों-टुकड़ों मेंनहीं, वरनसमग्रताकेसाथसुलझानेकीअप्रोचकेसाथकामकरतीहै।न्यूनतमसमर्थनमूल्यबढ़ादेनाहीपर्याप्तनहींहै।यहअधिकमहत्वपूर्णहैकिघोषितMSP कापूरालाभकिसानोंकोमिले।इसकेलिएयहआवश्यकहैकियदिबाजारमेंदामMSP सेकमहोंतोयातोसरकारMSP परखरीदीकरेयाकिसीअन्यव्यवस्थाकेअंतर्गतयहसुनिश्चितकरेकिकिसानकोपूराMSP मिले।NITI आयोग, केन्द्रएवंराज्यसरकारोंकेसाथचर्चाकरएकपुख्ताव्यवस्थातैयारकरेगा, जिससेकिसानोंकोउनकीफसलकेउचितदामदिलवायेजासकेंगे।
For better price realization, farmers need to make decisions based on prices likely to be available after its harvest. Government will create an institutional mechanism, with participation of all concerned Ministries, to develop appropriate policies, practices for price and demand forecast, use of futures and options market, expansion of warehouse depository system and to take decisions about specific exports and imports related measures.
Madam Speaker, last year, I had announced strengtheningof e-NAM and to expand the coverage of the e-NAM to 585 APMCs. 470 APMCs have been connected to e-NAM network and rest will be connected by March, 2018.
More than 86% of our farmers are small and marginal. They are not always in a position to directly transact at APMCs and other wholesale markets. We will develop and upgrade existing 22,000 rural haats into Gramin Agricultural Markets (GrAMs). In these GrAMs, physical infrastructure will be strengthened using MGNREGA and other Government Schemes. These GrAMs, electronicallylinked to e-NAMs and exempted from regulations of APMCs and will provide farmers directly to make direct sale to consumers and bulk purchasers.
An Agri-Market InfrastructureFund with a corpus of rupees 2000 crore will be set up for developing and upgrading the agricultural marketing infrastructure in the 22000 Grameen Agricultural Markets (GrAMs) and 585 APMCs.
The task of connecting all eligible habitations with all-weather road has been substantiallycompleted, and with the target date brought forward to March, 2019 from March 2022. It is now time to strengthen and widen its ambit further to include major link routes which connect habitations to agricultural and rural markets (GrAMs), higher secondary schools and hospitals. The Pradhan Mantrir Gram Sadak Yojana Phase III will include such linkages.
हमवर्षोंसेयहकहतेरहेहैंकिभारतएककृषिप्रधानदेशहै।जैसेभारतएककृषिप्रधानदेशहैवैसेहीदेशकेजिलेभीकिसीनकिसीविशिष्टकृषिउत्पादनकेलिएजानेजासकतेहैं।लेकिनहमनेइसपरविशेषध्यानअबतकनहींदियाहै।जैसेउद्योगजगतमेंक्लस्टरबेस्डविकासकामॉडलअपनायागयावैसेहीहमारेजिलोंमेंविशेषकृषिउत्पादकोचिह्नितकर, उन्हेंवैज्ञानिकतरीकेसेक्लस्टरमॉडलपरविकसितकरनेकीआवश्यकताहै।
Cultivation of horticulture crops in clusters brings advantages of scales of operations and can spur establishmentof the entire chain from production to marketing, besides giving recognition to the districts for specific crops. The Ministry of Agriculture & Farmers’ Welfare will reorient the ongoing Schemes and promote the cluster based development of agri-commodities and regions in partnership with the Ministries of Food Processing, Commerce and other allied Ministries.
Our Government has promoted organic farming in a big way. Organic farming with Farmer Producer Organizations (FPOs) and Village Producers’ Organizations (VPOs) in large clusters, preferably of 1000 hectares each, will be encouraged. Women Self Help Groups (SHGs) will also be encouraged to take up organic agriculture in clusters under the National Rural Livelihood Programme.
Our ecology supports cultivation of highly specialized medicinal and aromatic plants. India is also home to a large number of small and cottage industries which manufacture perfumes, essential oils and other associated products. Our Government shall support organized cultivation and associated industry. I propose to allocate a sum of Rs.200 crore for this purpose.
Food Processing sector is growing at an average rate of 8% per annum. Prime Minister Krishi Sampada Yojana is our flagship programme for boosting the investment in food processing. Allocationof Ministryof FoodProcessing is being doubled from Rs.715 crore in RE 2017-18 to Rs.1400 crore in BE 2018-19. The Government will promote the establishment of specialized agro-processing financial institutions in this sector.
Tomato, onion and potato are basic vegetables consumed throughout the year. However, seasonal and regional production of these perishable commodities pose a serious challenge in connecting farmers and consumers in a manner that satisfies both. My Government proposes to launch an ‘‘Operation Greens’’ on the lines of ‘‘Operation Flood’’. ‘‘Operation Greens’’ shall promote Farmer Producers Organizations (FPOs), agri-logistics, processing facilities and professional management. I propose to allocate a sum of Rs.500 crore for this purpose….(Interruptions)
India’s agri-exports potential is as high as US $ 100 billion against current exports of US $ 30 billion. To realize this potential, export of agri-commodities will be liberalized. I also propose to set up state-of-the-art testing facilities in all the forty two Mega Food Parks….(Interruptions)
HON. SPEAKER: Do not worry.
SHRI ARUN JAITLEY: I propose to extend the facility of Kisan Credit Cards to fisheries and animal husbandry farmers to help them meet their working capital needs. इसव्यवस्थासेछोटेऔरसीमांतकिसानोंकोअधिकलाभमिलेगा।
Bamboo is ‘Green Gold’. We have removed bamboo grown outside the forest areas from the definition of trees. Now, I propose to launch a Re-structured National Bamboo Mission with an outlay of Rs.1290 crore to promote bamboo sector in a holistic manner.
Many farmers are installing solar water pumps to irrigate their fields. Generation of solar electricity is harvesting of Sun by the farmers using their lands. Government of India will take necessary measures and encourage the State Governments to put in place a mechanism that their surplus solar power is purchased by the distribution companies or licencees at reasonably remunerative rates.
Our Government set up a Long Term Irrigation Fund (LTIF) in NABARD for meeting the funding requirement of irrigation works. Scope of the Fund would be expanded to cover specified command area development projects.
Last year, I had announced setting up of the Micro Irrigation Fund (MIF) for facilitating expansion of coverage under micro irrigation and Dairy Processing Infrastructure Development Fund (DPIDF) to help finance investment in dairy farming. It is now time to expand such focused investment Funds. I, now, announce setting up a Fisheries and Aquaculture Infrastructure Development Fund (FAIDF) for fisheries sector and an Animal Husbandry Infrastructure Development Fund (AHIDF) for financing infrastructure requirement of animal husbandry sector. The total Corpus of these two new Funds would be Rs.10,000 crore.
Our Government has been steadily increasing the volume of institutional credit for agriculture sector on a year-to-year from Rs.8.5 lakh crore in 2014-15 to Rs.10 lakh crore in 2017-18. I now propose to raise this amount to Rs.11 lakh crore for the year 2018-19.
Presently, lessee cultivators are not able to avail crop loans. Consequently, a significant proportion of the arable land remains fallow and tenant cultivators are forced to secure credit from usurious money lenders. NITI Aayog, in consultation with the State Governments, will evolve a suitable mechanism to enable access of lessee cultivators to credit without compromising the rights of the land owners.
Government will extend a favourable taxation treatment to Farmer Producers Organisations (FPOs) for helping farmers aggregate their needs of inputs, farm services, processing and sale operations. I shall give the details of this in Part B of my speech Air pollution in the Delhi-NCR region has been a cause of concern. A special Scheme will be implemented to support the efforts of the governments of Haryana, Punjab, Uttar Pradesh and the NCT of Delhi to address air pollution and to subsidize machinery required for an in-situ management of the crop residue.
अध्यक्षमहोदया, देशकावर्तमानशीर्षनेतृत्वगरीबीकोबहुतकरीबसेदेखकर, गरीबीमेंजीकरयहांतकपहुंचाहै।एससी/एसटी वर्गोंकी, पिछड़ोंकी, आर्थिकरूपसेकमजोरवर्गकीजोचिंताएंहोतीहैं, उनसेभली-भांति परिचितहै।गरीबऔरमध्यमवर्गउनकेलिएकेसस्टडीनहीं, बल्किवोखुदहीएककेसस्टडीहै।
पिछलेतीनवर्षोंमेंसरकारकीयोजनाओंकेकेन्द्रमेंगरीबरहाहै, मध्यमवर्गरहाहै।येसरकारगरीबकीछोटी-छोटी चिंताओंऔरबड़ी-बड़ी समस्याओंकोदूरकरनेकेलिएलगातारकोशिशकरतीरहीहै।
गरीबमहिलाओंकोलकड़ीकेधुएंसेमुक्तिमिले, इसकेलिएप्रधानमंत्रीजीनेउज्ज्वलायोजनाशुरूकीथी।शुरूआतमेंहमनेपांचकरोड़गरीबमहिलाओंकोमुफ्तगैसकनेक्शनकालक्ष्यरखाथा।लेकिनइसयोजनाकीगतिकोदेखकरऔरमहिलाओंमेंइसकीलोकप्रियताकोदेखतेहुएहमइसकालक्ष्यबढ़ानेजारहेहैं।अबसरकारउज्ज्वलायोजनाकेतहतआठकरोड़गरीबमहिलाओंकोमुफ्तगैसकनेक्शनदेगी।
देशमेंहरगरीबकेघरमेंरोशनीपहुंचे, इसकेलिएसरकारद्वारा‘प्रधानमंत्रीसौभाग्ययोजना’ कीशुरूआतकीगईहै।इसयोजनाकेतहतदेशकेचारकरोड़गरीबकेघरोंकोबिनाकोईशुल्कलिएबिजलीकनेक्शनसेजोड़ाजारहाहै।इसयोजनापर16 हजारकरोड़रुपयेखर्चकिएजारहेहैं।घरमेंएकघंटाबिजलीनहोतोहमलोगइधर-उधर दौड़नेलगतेहैं, टीवीकैसेचलेगा, मोबाइलकैसेचार्जहोगा, लैपटॉपकाक्याहोगा, यहसोचनेलगतेहैं।अबआपउनलोगोंकीसोचिए, उनमहिलाओं, उनबच्चोंकेबारेमेंसोचिए, जिनकेघरोंमेंअबबिजलीपहुंचेगीतोकिसतरहसेउनकीजिन्दगी ‘प्रधानमंत्रीसौभाग्ययोजना’ बदलनेजारहीहै।
गरीबकोसरकारके‘स्वच्छ भारतमिशन’ सेबड़ालाभपहुंचाहै।इसमिशनकेतहतसरकारअबतक6 करोड़सेज्यादाशौचालयोंकानिर्माणकराचुकीहै।इनशौचालयोंकासकारात्मकप्रभावनारीकीगरिमा, बेटियोंकीशिक्षाऔरपूरेपरिवारकीस्वास्थ्यसुरक्षापरस्पष्टरूपसेपड़रहाहै।अगलेवित्तीयवर्षमेंहमारालगभग2 करोड़शौचालयबनानेकालक्ष्यहै।
अध्यक्षमहोदया, गरीबकीएकचिंतारहीहै- सिरकेऊपरअददछतकी।भ्रष्टाचारकरकेजुटाईगईबेनामीसंपत्तिसेदूर, गरीबतोबसईमानदारीकीकमाईसेएकछत, एकछोटा-सा मक़ानचाहताहै।गरीबअपनेघरकासपनापूराकरसके, इसकेलिएहमारीसरकारउसकीपूरीमददकररहीहै।हमनेलक्ष्यरखाहैकिवर्ष2022 तकदेशकेहरगरीबकेपासउसकाअपनाघरहो।इसकेलिएग्रामीणऔरशहरीइलाकोंमें‘प्रधानमंत्रीआवासयोजना’ शुरूकीगईहै।‘प्रधानमंत्रीआवासयोजना- ग्रामीण’ केतहतवर्ष2017-18 में51 लाखऔरवर्ष2018-19 में51 लाख, यानिएककरोड़सेज्यादाघरसिर्फग्रामीणइलाकोंमेंबनाएजाएंगे।शहरीक्षेत्रोंमें37 लाखमक़ानबनानेकेलिएमददस्वीकृतकीगईहै।
My Government will also establish a dedicated Affordable Housing Fund (AHF) in the National Housing Bank, funded from priority sector lending shortfall and fully serviced bonds authorized by the Government of India.
Loans to Self Help Groups of women increased to about Rs.42,500 crore in 2016-17, growing 37% over the previous year. The Government is confident that loans to SHGs will increase to Rs.75,000 crore by March, 2019. I propose to substantially increase allocation of National Rural Livelihood Mission to Rs.5750 crore in 2018-19.
Ground water irrigation scheme under Prime Minister Krishi Sincha iYojna- Har Khet ko Pani will be taken up in 96 deprived irrigation districts where less than 30% of the land holdings gets assured irrigation presently. I have allocated Rs.2600 crore for this purpose.
As my proposals outlined indicate, the focus of the Government next year will be to provide a maximum livelihood opportunities in the rural areas by spending more on livelihood, agriculture and allied activities and construction of rural infrastructure. In the year 2018-19, for creation of livelihood and infrastructure in rural areas, a total amount to be spent by the Ministries will be Rs.14.34 lakh crore, including from extra-budgetary and non-budgetary resources of Rs.11.98 lakh crore. Apart from employment due to farming activities and self employment, this expenditure will create employment of 321 crore person days, 3.17 lakh kilometers of rural roads, 51 lakh new rural houses, 1.88 crore toilets, and provide 1.75 crore new household electricity connections besides boosting agricultural growth. Details are given in Annexure I of this speech, which have been laid on the Table.
Health, Education and Social Protection My Government’s goal is to assist and provide opportunity to every Indian to realize her full potential capable of achieving her economic and social dreams. Our Government is implementing a comprehensive social security and protection programme to reach every household of old, widows, orphaned children, divyaang and deprived as per the Socio-Economic Caste Census. Allocation on National Social Assistance Programme this year has been kept at Rs.9975 crore.
We have managed to get children to school but the quality of education is still a cause of concern. We have now defined learning outcomes and National Survey of more than 20 lakh children has been conducted to assess the status on the ground. This will help in devising a district-wise strategy for improving the quality of education. We now propose to treat education holistically without segmentation from pre-nursery to Class 12.
Improvement in the quality of teachers can improve the quality of education in the country. We will initiate an integrated B.Ed. programme for teachers. Training of teachers during the service is extremely critical. We have amended the Right to Education Act to enable more than 13 lakh untrained teachers to get trained.
Technology will be the biggest driver in improving the quality of education. We propose to increase the digital intensity in education and move gradually from ‘‘black board’’ to ‘‘digital board’’. Technology will also be used to upgrade the skills of teachers through the recently launched digital portal ‘‘DIKSHA’’.
The Government is committed to provide the best quality education to the tribal children in their own environment. To realise this, it has been decided that by the year 2022, every block with more than 50% Scheduled Tribe population and at least 20,000 tribal people, will have an Ekalavya Model Residential School. Ekalavya schools will be on par with NavodayaVidyalayas and will have special facilities for preserving local art and culture besides providing training in sports and skill development.
To step up investments in research and related infrastructure in premier educational institutions, including health institutions, I propose to launch a major initiative called ‘‘Revitalising Infrastructure and Systems in Education (RISE) by 2022’’ with a total investment of Rs.1,00,000 crore in next four years. Higher Education Financing Agency (HEFA) would be suitably structured for funding this initiative.
Our Government has taken major initiative of setting up Institutes of Eminence. There has been tremendous response to this initiative by institutions both in public and private sectors. We have received more than 100 applications. We have taken steps to set up a specialized Railways University at Vadodara.
We propose to set up two new full-fledged Schools of Planning and Architecture, to be selected on a challenge mode. Additionally, 18 new Schools of Planning and Architecture would be established in the IITs and NITs as autonomous Schools, also on a challenge basis.
The Government would also launch the ‘‘Prime Minister’s Research Fellows (PMRF)’’ Scheme this year. Under this scheme, we would identify 1,000 best B.Tech students each year from premier institutions and provide them with facilities to do Ph.D in IITs and the Indian Institutes of Science, with a handsome fellowship. It is expected that these bright young fellows would voluntarily commit few hours every week for teaching in higher educational institutions.
Now, I come to the Health Sector. सर्वेभवन्तु: सुखिन, सर्वेसंतुनिरामयाis 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.
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.
The National Health Policy, 2017 has envisioned Health and Wellness Centres as the foundation of India’s health system. These 1.5 lakh centres will bring health care system closer to the homes of people. These centres will provide a comprehensive health care, including for non-communicable diseases and maternal and child health services. These centres will also provide free essential drugs and diagnostic services. I am committing Rs.1200 crore in this budget for this flagship programme. I also invite contribution of private sector through CSR and philanthropic institutions in adopting these centres.
Madam Speaker, we are all aware that lakhs of families in our country have to borrow or sell assets to receive indoor treatment in hospitals. Government is seriously concerned about the impoverishment of poor and vulnerable families. Presently, RashtriyaSwasthyaBima Yojana (RSBY) provides annual coverage of only Rs.30,000 to poor families. Several State Governments have also implemented and supplemented health protection schemes providing varying coverage. My Government has now decided to take health care protection to a new aspirational level.
Madam, this is very important. We are now launching a flagship National Health Protection Scheme to cover over 10 crore poor and vulnerable families – this is approximately 50 crore beneficiaries – by providing them a coverage up to 5 lakh rupees per family per year for secondary and tertiary care hospitalization. This will be the world’s largest government funded health care programme. Adequate funds will be provided for smooth implementation of this programme.
मैडम,10 करोड़परिवारयानि50 करोड़लोगोंकोपाँचलाखरुपयेप्रतिवर्षहॉस्पिटलाइजेशन कीसुविधायहसरकारउपलब्धकरवाएगी।
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. यानिकीइस50 करोड़रुपयेकीजोसुविधाहै, उसकोइसएक्स्पेरीमेन्टकोदेखनेकेबादआगेभीएक्स्पैन्डकियाजाएगा।
Tuberculosis claims more lives every year than any other infectious disease. It affects mainly poor and malnourished people. My Government has, therefore, decided to allocate additional Rs.600 crore to provide nutritional support to all TB patients at the rate of Rs.500 per month for the duration of their treatment.
In order to further enhance accessibility of quality medical education and health care, we will be setting up 24 new Government Medical Colleges and Hospitals by upgrading existing district hospitals in the country. This would ensure that there is at least one Medical College for every three Parliamentary Constituencies and at least one Government Medical College in each State of the country.
Our resolve of making our villages open defecation free is aimed at improving the quality life of our villagers. We will launch a Scheme called Galvanizing Organic Bio-Agro Resources Dhan (GOBAR-DHAN) for management and conversion of cattle dung and solid waste in farms to compost, fertilizer, bio-gas and bio-CNG.
Pradhan Mantri Jeevan Jyoti Beema Yojana (PMJJBY) has benefitted 5.22 crore families with a life insurance cover of Rs.2 lakh on payment of a premium of only Rs.330/- per annum. Likewise, under Pradhan Mantri Suraksha Bima Yojana, 13 crore 25 lakh people have been insured with personal accident cover of Rs. 2 lakh on payment of a premium of only Rs.12 per annum. The Government will work to cover all poor households, including Scheduled Caste/ Scheduled Tribe households, under these in a mission mode.
The Government will expand the coverage under Prime Minister Jan Dhan Yojana by bringing all sixty crore bank accounts within its fold and undertake measures to provide services of micro insurance and unorganized sector pension schemes through these accounts.
Our commitment towards ‘‘Beti Bachao Beti Padhao’’ is unflinching. Sukanya Samriddhi Account Scheme launched in January 2015 has been a great success. Until November, 2017 more than 1.26 crore accounts have been opened across the country in the name of girl-child securing an amount of Rs.19,183 crore.
Cleaning the Ganga is a work of national importance and it is our firm commitment. Members will be happy to learn that this work has gathered speed. A total of 187 projects have been sanctioned under the Namami Gange programme for infrastructure development, river surface cleaning, rural sanitation and other interventions at a cost of Rs.16,713 crore. A number of 47 projects have been completed and remaining projects are at various stages of execution. All 4465 Ganga Grams – villages on the bank of river – have been declared open defecation free.
To give focused attention and to achieve our vision of an inclusive society, the Government has identified 115 aspirational districts taking various indices of development in consideration. The Government aims at improving the quality of life in these districts by investing in social services like health, education, nutrition, skill upgradation, financial inclusion and infrastructure like irrigation, rural electrification, potable drinking water and access to toilets at an accelerated pace and in a time bound manner. We expect these 115 districts to become model of development.
Economic and social advancement of hard working people of Scheduled Castes (SCs) and Scheduled Tribes (STs) has received core attention of Government. Our Government increased total earmarked allocation for SCs in 279 programmes from Rs.34,334 crore in 2016-17 to Rs.52,719 crore in RE 2017-18. Likewise, for STs, earmarked allocation was increased from Rs.21,811 crore in 2016-17 to Rs.32,508 crore in RE 2017-18 in 305 programmes. I propose an earmarked allocation of Rs.56,619 crore for SCs and Rs.39,135 crore for STs in BE 2018-19.
Government’s estimated schematic budgetary expenditure on health, education and social protection for 2018-19 is Rs.1.38 lakh crore against estimated expenditure of Rs.1.22 lakh crore in BE 2017-18. Details are on Annexure II, which have been laid on the Table. This expenditure is likely to go up by at least Rs.15,000 crore in 2018-19 on account of additional allocation during the year and extra budgetary expenditure, including through Higher Education Financing Agency.
Medium, Small and Micro Enterprises (MSMEs) and Employment Medium, Small and Micro Enterprises (MSMEs) are a major engine of growth and employment. I have provided Rs.3794 crore to MSME Sector for giving credit support, capital and interest subsidy and innovations. Massive formalization of the businesses of MSMEs is taking place in the country after demonetization and introduction of GST. This is generating an enormous amount of financial information database of MSMEs’ businesses and finances. This big data base will be used for improving financing of MSMEs’ capital requirement, including working capital.
It is proposed to onboard public sector banks and corporates on Trade Electronic Receivable Discounting System (TReDS) platform and link this with GSTN. Online loan sanctioning facility for MSMEs will be revamped for prompt decision making by the banks. Government will soon announce measures for effectively addressing non-performing assets and stressed accounts of MSMEs. This will enable larger financing of MSMEs and also considerably ease cash flow challenges faced by them. In order to reduce tax burden on MSMEs and to create larger number of jobs, I will be announcing some tax measures in Part B of my speech.
MUDRA Yojana launched in April, 2015 has led to sanction of Rs.4.6 lakh crore in credit from 10.38 crore MUDRA loans. 76% of loan accounts are of women and more than 50% belong to SCs, STs and OBCs. It is proposed to set a target of Rs.3 lakh crore for lending under MUDRA for 2018-19 after having successfully exceeded the targets in all previous years.
Non-Bank Finance Companies (NBFCs) stepped up financing of MSMEs after demonetization. NBFCs can become a very powerful vehicle for delivering loans under MUDRA. Refinancing policy and eligibility criteria set by MUDRA will be reviewed for better refinancing of NBFCs.
Use of Fintech in financing space will help growth of MSMEs. A group in the Ministry of Finance is examining the policy and institutional development measures needed for creating right environment for Fintech companies to grow in India.
Venture Capital Funds and the angel investors need an innovative and special developmental and regulatory regime for their growth. We have taken a number of policy decisions including launching of ‘‘Start-Up India’’ program, building a very robust alternative investment regime in the country and rolling out a taxation regime designed for the special nature of the VCFs and the angel investors. We will take additional measures to strengthen the environment for their growth and successful operation of alternative investment funds in India.
Creation of job opportunities and facilitating generation of employment has been at the core of our policy-planning. During the last three years, we have taken a number of steps to boost employment generation in the country. These measures include:-
· Contribution of 8.33% of Employee Provident Fund (EPF) for new employees by the Government for three years.
· Contribution of 12 per cent to EPF for new employees for three years by the Government in sectors employing large number of people like textile, leather and footwear.
· Additional deduction to the employees of 30 per cent of the wages paid for new employees under the Income Tax Act.
· Launch of National Apprenticeship Scheme with stipend support and sharing of the cost of basic training by the Government to give training to 50 lakh youth by 2020.
· Introducing system of fixed term employment for apparel and footwear sector.
· Increasing paid maternity leave from 12 weeks to 26 weeks, along with provision of crèches.
These measures have started showing results. An independent study conducted recently has shown that 70 lakh formal jobs will be created this year.
To carry forward this momentum, I am happy to announce that the Government will contribute 12 per cent of the wages of the new employees in the EPF for all the sectors for next three years. Also, the facility of fixed term employment will be extended to all sectors.
To incentivize employment of more women in the formal sector and to enable higher take-home wages, I propose to make amendments in the Employees Provident Fund and Miscellaneous Provisions Act, 1952 to reduce women employees' contribution to eight per cent for first three years of their employment against the existing rate of 12 per cent or 10 per cent with no change in employers' contribution.
The Government is setting up a model aspirational skill centre in every district of the country under Pradhan Mantri Kaushal Kendra Programme. 306 Pradhan Mantri Kaushal Kendras have been established for imparting skill training through such centers.
The Government had approved a comprehensive textile sector package of Rs. 6000 crore in 2016 to boost the apparel and made-up segments. I now propose to provide an outlay of Rs. 7148 crore for the textile sector in 2018-19.
Infrastructure and Financial Sector Development Infrastructure is the growth driver of economy. Our country needs massive investments estimated to be in excess of Rs. 50 lakh crore in infrastructure to increase growth of GDP, connect and integrate the nation with a network of roads, airports, railways, ports and inland waterways and to provide good quality services to our people.
We have made an all-time high allocation to rail and road sectors. We are committed to further enhance public investment. Provision of key linkages like coal for power, power for railways and railway rakes for coal have been rationalized and made very efficient. Prime Minister personally reviews the targets and achievements in infrastructure sectors on a regular basis. Using online monitoring system of PRAGATI alone, projects worth Rs. 9.46 lakh crore have been facilitated and fast tracked.
To secure India’s defences, we are developing connectivity infrastructure in border areas. Rohtang tunnel has been completed to provide all weather connectivity to the Ladakh region. Contract for construction of Zozila Pass tunnel of more than 14 kilometers is progressing well. I now propose to take up construction of a tunnel under Sela Pass. For promoting tourism and emergency medical care, Government will make necessary framework for encouraging investment in sea plane activities.
Urbanization is our opportunity and priority. My Government has rolled out two interlinked programmes – Smart Cities Mission and the AMRUT.
Smart Cities Mission aims at creating 100 Smart Cities with state-of-the-art amenities. I am happy to inform that 99 Cities have been selected with an outlay of Rs. 2.04 lakh crore. These Cities have started implementing various projects like Smart Command and Control Centre, Smart Roads, Solar Rooftops, Intelligent Transport Systems, Smart Parks. Projects worth Rs. 2350 crore have been completed and works of Rs. 20,852 crore are under progress. To preserve and revitalize soul of the heritage cities in India, National Heritage City Development and Augmentation Yojana (HRIDAY) has been taken up in a major way.
India is blessed with an abundance of tourist attractions. It is proposed to develop ten prominent tourist sites into Iconic Tourism destinations by following a holistic approach involving infrastructure and skill development, development of technology, attracting private investment, branding and marketing. In addition, tourist amenities at 110 Adarsh Monuments of the Archaeological Survey of India will be upgraded to enhance visitor experience.
The AMRUT programme focuses on providing water supply to all households in 500 cities. State level plans of Rs. 77,640 crore for 500 cities have been approved. Water supply contracts for 494 projects worth Rs. 19,428 crore and sewerage work contracts for 272 projects costing Rs. 12,429 crore have been awarded.
Reforms are being catalyzed by these missions. 482 cities have started credit rating. 142 cities have got investment grade rating.
My Ministry will leverage the India Infrastructure Finance Corporation Limited (IIFCL) to help finance major infrastructure projects, including investments in educational and health infrastructure, on strategic and larger societal benefit considerations.
Our Government has scaled new heights in development of Road Infrastructure sector. We are confident to complete National Highways exceeding 9000 kilometers length during 2017-18. The ambitious Bharatmala Project has been approved for providing seamless connectivity of interior and backward areas and borders of the country to develop about 35000 kilometres in Phase-I at an estimated cost of Rs. 5,35,000 crore. To raise equity from the market for its mature road assets, NHAI will consider organizing its road assets into Special Purpose Vehicles and use innovative monetizing structures like Toll, Operate and Transfer (TOT) and Infrastructure Investment Funds (InvITs).
Strengthening the railway network and enhancing Railways’ carrying capacity has been a major focus of the Government. Railways’ Capex for the year 2018-19 has been pegged at Rs. 1,48,528 crore. A large part of the capex is devoted to capacity creation. 18,000 kilometers of doubling, third and fourth line works and 5000 kilometers of gauge conversion would eliminate capacity constraints and transform almost the entire network into broad gauge.
There has also been significant improvement in the achievement of physical targets by Railways as well. We are moving fast towards optimal electrification of railway network. 4000 kilometers are targeted for commissioning during 2017-18.
Work on Eastern and Western Dedicated Freight Corridors is in full swing. Adequate number of rolling stock – 12000 wagons, 5160 coaches and approximately 700 locomotives are being produced during 2018-19. A major programme has been initiated to strengthen infrastructure at the goods sheds and fast track commissioning of private sidings.
A ‘Safety First’ policy, with allocation of adequate funds under Rashtriya Rail SanrakshaKosh is cornerstone of Railways’ focus on safety. Maintenance of track infrastructure is being given special attention. Over 3600 kilometers of track renewal is targeted during the current fiscal. Other major steps include increasing use of technology like ‘‘Fog Safe’’ and ‘‘Train Protection and Warning System’’. A decision has been taken to eliminate 4267 unmanned level crossings in the broad gauge network in the next two years.
12 00 hrs Redevelopment of 600 major railway stations is being taken up by Indian Railway Station Development Company Ltd. All stations with more than 25,000 footfalls will have escalators. All railway stations and trains will be progressively provided with wi-fi. CCTVs will be provided at all stations and on trains to enhance security of passengers. Modern train-sets with state-of-the-art amenities and features are being designed at Integrated Coach Factory, Perambur. First such train-set will be commissioned during 2018-19.
Mumbai’s transport system, the lifeline of the City, is being expanded and augmented to add 90 kilometers of double line tracks at a cost of over Rs. 11,000 crore. 150 kilometers of additional suburban network is being planned at a cost of over Rs. 40,000 crore, including elevated corridors on some sections. A suburban network of approximately 160 kilometers at an estimated cost of Rs. 17,000 crore is being planned to cater to the growth of the Bengaluru metropolis.
Foundation for the Mumbai-Ahmedabad bullet train project, India’s first high speed rail project, was laid on September 14, 2017. An institute is coming up at Vadodara to train the manpower required for high speed rail projects.
In the last three years, the domestic air passenger traffic grew at 18 per cent per annum and our airline companies placed orders for more than 900 aircrafts. Regional connectivity scheme of UDAN (UdeDesh ka AamNagrik) initiated by the Government of India last year shall connect 56 unserved airports and 31 unserved helipads across the country. Operations have already started at 16 such airports. सरकारकीइसपहलसेहवाईचप्पलपहननेवालेनागरिकभीअबहवाईजहाजकीयात्राकरनेलगेहैं।Airport Authority of India (AAI) now has 124 airports. We propose to expand our airport capacity more than five times to handle one billion trips a year under a new initiative - NABH Nirman. Balance sheet of AAI shall be leveraged to raise more resources for funding this expansion.
Our efforts to set up a Coalition on Disaster Resilient Infrastructure for developing international good practices, appropriate standards and regulatory mechanism for resilient infrastructure development is moving well. I propose to allocate Rs. 60 crores for kick-starting this initiative in 2018-2019.
The Government and the market regulators have taken necessary measures for development of monetizing vehicles like Infrastructure Investment Trust (InvIT) and Real Investment Trust (ReITs) in India. The Government of India would initiate monetizing select CPSE assets using InvITs from next year.
In the current year, we included, in the scope of harmonized list of infrastructure, ropeways to promote tourism, logistics parks and expanded the scope of railways infrastructure to include development of commercial land around th railway stations.
The Reserve Bank of India has issued guidelines to nudge Corporates to access the bond market. SEBI will also consider mandating, beginning with large Corporates, to meet about one-fourth of their financing needs from the bond market.
Corporate bonds rated ‘BBB’ or equivalent are investment grade. In India, most regulators permit bonds with the ‘AA’ rating only as eligible for investment. It is now time to move from ‘AA’ to ‘A’ grade ratings. The Government and the concerned regulators will take necessary action.
We will take reform measures with respect to stamp duty regime on financial securities transactions in consultation with the States and make necessary amendments in the Indian Stamp Act.
International Financial Service Centre (IFSC) at Gift City, which has become operational, needs a coherent and integrated regulatory framework to fully develop and to compete with other offshore financial centres. The Government will establish a unified authority for regulating all financial services in the IFSCs in India.
Global economy is transforming into a digital economy thanks to the development of cutting edge technologies in digital space – machine learning, artificial intelligence, internet of things, 3D printing and the like. Initiatives such as the Digital India, Start Up India, Make in India would help India establish itself as a knowledge and digital society. NITI Aayog will initiate a national program to direct our efforts in the area of artificial intelligence, including research and development of its applications.
Combining cyber and physical systems have great potential to transform not only innovation ecosystems but also our economies and the way of life. To invest in research, training and skilling in robotics, artificial intelligence, digital manufacturing, big data analysis, quantum communication and internet of things, the Department of Science and Technology will launch a Mission on Cyber Space in support of establishment of centres of excellence. I have doubled their allocation on the Digital India programme to Rs. 3,073 crore in 2018-2019.
The task of connecting one lakh Gram Panchayats through high-speed optical fibre network has been completed under phase I of the Bharatnet programme. This has enabled broadband access to cover 20 crore rural Indians in about two lakh fifty thousand villages. The Government also proposes to setup five lakh wi-fi hotspots, which will provide broadband access to five crore rural citizens. I have provided Rs. 10,000 crore in 2018-2019 for creation and augmentation of this telecom infrastructure.
To harness the benefits of emerging new technologies, particularly, the ‘Fifth Generation’ (5G) technologies and its adoption, the Department of Telecom will support the establishment of an indigenous 5G Test Bed at IIT, Chennai.
Distributed ledger system or the block chain technology allows organization of any chain of records or transactions without the need of intermediaries. The Government does not consider crypto-currencies as legal tender or coin and will take all measures to eliminate the use of these crypto-assets in financing illegitimate activities or as a part of the payment system. The Government will explore use of block chain technology proactively for ushering in a digital economy.
The system of toll payments physically by cash at road toll plazas is being fast replaced with Fastags and other electronic payment systems to make roads seamless. Number of Fastags have gone up from about 60,000 in December, 2016 to more than 10 lakh now. From December, 2017 all class ‘‘M’’ and ‘‘N’’ vehicles are being sold only with the Fastags. The Government of India will come out with a policy to introduce toll system on ‘‘pay as you use’’ basis.
In order to create employment and aid growth, Government’s estimated budgetary and extra budgetary expenditure on infrastructure for 2018-2019 is being increased to Rs. 5.97 lakh crore as against an estimated expenditure of Rs. 4.94 lakh crore in 2017-2018. Details are given in the Annexure III, which have been laid on the Table.
Our armed forces have played a stellar role in meeting the challenges we have been facing on the borders as well as managing the internal security environment of both Jammu and Kashmir and the North East. I would like to place on record our appreciation for the efforts and the sacrifices made by the three services in defending the interests of the Nation.
Ever since the NDA Government assumed office, a lot of emphasis was given to modernizing and enhancing the operational capability of the Defence Forces. A number of initiatives have been taken to develop and nurture intrinsic defence production capable of making the Nation self-reliant for meeting our defence needs and ensuring adequate budgetary support to our priority.
We have opened up private investment in the defence production including liberalizing Foreign Direct Investment. We have taken measures to develop two defence industrial production corridors in the country. The Government will bring out an industry-friendly Defence Production Policy in 2018 to promote the domestic production by public sector, private sector and the MSMEs.
Aadhaar has provided an identity to every Indian. Aadhaar has eased delivery of so many public services to our people. Every enterprise, major or small, also needs a unique ID. The Government will evolve a Scheme to assign every individual enterprise in India a unique ID.
To carry on the business reforms for ease of doing business deeper and in every State of India, the Government of India has identified 372 basic business reform actions. Each State will take up these reforms and simplifications in a mission mode constructively competing with each other. Evaluating the performance under this Programme will now be based on the feedbacks.
Capital of the Food Corporation of India is being restructured to enhance equity and to raise a long-term debt for meeting its standard working requirement.
Budgeting of the Government of India’s contribution in equity and debt of the metro ventures floated by the State Governments will be streamlined.
The Department of Commerce will be developing a National Logistics Portal as a single window online market place to link all stakeholders.
The Government of India has approved the listing of 14 CPSEs, including two insurance companies, on the stock exchanges. The Government has initiated a process of strategic disinvestment of 24 CPSEs. This will include the strategic privatization of the Air India.
Process of acquisition of the Hindustan Petroleum Corporation by the ONGC has been successfully completed. Three public sector general insurance companies, namely, National Insurance Company Ltd., United India Assurance Company Limited and Oriental India Insurance Company Limited will be merged into a single insurance entity and will be subsequently listed.
The Government of India introduced the Exchange Traded Fund Bharat-22 to raise Rs. 14,500 crore, which was over-subscribed in all segments. DIPAM will continue with more ETF offers including a debt ETF.
The 2017-2018 Budget Estimates for disinvestment were pegged at the highest ever level of Rs. 72,500 crore. I am happy to inform this House that we have already exceeded this target. I am assuming a receipt of Rs. 1,00,000 crore from disinvestment for 2017-2018. I am setting a disinvestment target of Rs. 80,000 crore for 2018-2019.
Bank recapitalization program has been launched with bonds of Rs. 80,000 crore being issued this year. The programme has been integrated with an ambitious reform agenda, under the rubric of an Enhanced Access and Service Excellence (EASE) programme. This recapitalization will pave the way for public sector banks to lend an additional Rs. 5 lakh crore.
It is proposed to allow strong Regional Rural Banks to raise capital from the market to enable them to increase its credit to the rural economy.
The National Housing Bank Act is being amended to transfer its equity from the Reserve Bank of India to the Government of India. The Indian Post Offices Act, Provident Fund Act and National Saving Certificate Act are being amalgamated and certain additional people-friendly measures are being introduced.To provide the Reserve Bank of India an instrument to manage excess liquidity, the Reserve Bank of India Act is being amended to institutionalize the Uncollateralized Deposit Facility. Securities and Exchange Board of India, Act 1992, Securities Contracts (Regulation) Act 1956, and Depositories Act 1996, are being amended to streamline the adjudication procedures and to provide penalties for certain infractions. These proposals are given in the Finance Bill.
For easier access, links to all Detailed Demand for Grants will be provided at india.gov.in. The Government will also consider the feasibility of providing disclosed financial information in a machine-readable form.
The Government is transforming method of disposal of its business by introduction of e-office and other e-governance initiatives in the Central Ministries and Departments. These initiatives are given in the Annexure IV, which have been laid on the Table.
The Government will formulate a comprehensive Gold Policy to develop gold as an asset class. The Government will also establish a system of a consumer-friendly and trade-efficient system of regulated gold exchanges in the country. Gold Monetization Scheme will be revamped to enable people to open a hassle-free Gold Deposit Account.
The Outward Direct Investment (ODI) from India has grown to US $ 15 billion per annum. The Government will review existing guidelines and processes to bring a coherent and integrated Outward Direct Investment (ODI) policy.
Hybrid instruments are suitable for attracting foreign investments in several niche areas such as for startups and venture capital firms. The Government will evolve a separate policy for the hybrid instruments.
Now, this is important, Madam. The emoluments of the President, the Vice President and the Governors were last revised on 1st January, 2006. These emoluments are proposed to be revised to Rs. 5 lakh for the President, Rs. 4 lakhs for the Vice President and to Rs. 3.5 lakh per month for the Governors.
There has been a considerable public debate with regard to the emoluments paid to the Members of Parliament. The present practice allows the recipients to fix their own emoluments, which invites criticism. I am, therefore, proposing necessary changes to refix the salary, constituency allowance, other expenses and meeting allowances payable to the Members of Parliament with effect from 1st April, 2018. The law will also provide for an automatic revision of emoluments every five-years indexed to inflation. I am sure that the hon. Members of Parliament will welcome this initiative, which will not suffer any criticism in future.
Our country will commemorate 150th birth anniversary of Mahatma Gandhi, Father of the Nation, from 2nd October, 2019 to 2nd October 2020. The Government and the People of India will rededicate them, through their actions, to the ideals that the Mahatma taught and lived by. A National Committee, chaired by the Prime Minister, which includes Chief Ministers of all the States, representatives from across the political spectrum, Gandhians, thinkers and eminent persons from all walks of life, has been constituted to formulate a Commemoration Programme. My Government has earmarked `150 crore for the year 2018-19 for the activities leading to the Commemoration.
Section III - Fiscal Management I now turn to the fiscal situation for 2017-18 and fiscal estimates for 2018-19.
In 2017-18, Central Government will be receiving GST revenues only for 11 months, instead of 12 months. This will have fiscal effect. There has also been some shortfall in Non-Tax revenues on account of certain developments, including deferment of spectrum auction. A part of this shortfall has been made up through higher direct tax revenues and bigger disinvestment receipts.
Total Revised Estimates for expenditure in 2017-18 are `21.57 lakh crore (net of GST compensation transfers to the States) as against the Budget Estimates of `21.47 lakh crore.
Our Government assumed office in May, 2014 when fiscal deficit was running at very high levels. Fiscal Deficit for 2013-14 was 4.4% of GDP. The Prime Minister and the Government have always attached utmost priority to prudent fiscal management and controlling fiscal deficit. As Hon’ble Members would recall, we embarked on the path of consistent fiscal reduction and consolidation in 2014. Fiscal Deficit was brought down to 4.1% in 2014-15 to 3.9% in 2015-16, and to 3.5% in 2016-17. Revised Fiscal Deficit estimates for 2017-18 are `5.95 lakh crore at 3.5% of GDP. I am projecting a Fiscal Deficit of 3.3% of GDP for the year 2018-19.
In order to impart unquestionable credibility to the Government’s commitment for the revised fiscal glide path, I am proposing to accept key recommendations of the Fiscal Reform and Budget Management Committee relating to adoption of the Debt Rule and to bring down Central Government’s Debt to GDP ratio to 40%. Government has also accepted the recommendation to use Fiscal Deficit target as the key operational parameter. Necessary amendment proposals are included in the Finance Bill.
PART B Madam Speaker, I shall now present my tax proposals.
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 `90,000crores and the same can be attributed to the strong anti-evasion measures taken by the Government.
Similarly, there has been huge increase in the number of returns filed by taxpayers. In financial year 2016-17, 85.51lakhs new taxpayers filed their returns of income as against 66.26lakhs 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 6.47crores at the beginning of F.Y.14-15 to 8.27crores 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 “imandarika utsav” only for this reason.
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 44.72lakh 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 5.68lakh 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/-.
Taxincentive for promoting post-harvest activities of agriculture 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 Sampada Yojana.
Employment generation 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 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 In the Union Budget, 2017, I had announced the reduction of corporate tax rate to 25% for companies whose turnover was less than `50 crore 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 turnoverup to `250crore 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.
Are they objecting to any concession being given to the MSME sector? (Interruptions)
Relief to salaried taxpayers 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, 1.89croresalaried 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, 1.88crores 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 individual business tax payer.
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.
Reliefto senior citizen 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 Pradhan Mantri Vaya Vandana Yojana 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) 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:
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) 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 `3,67,000 crores 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 `1lakh at the rate of 10%without allowing the benefit of any indexation. However, all gainsup 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 crores in the first year. The revenues in subsequent years may be more.
Health and Education Cess 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 cess will 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 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.
My other tax proposals on direct tax are listed in Annexure V of my speech, which have been laid on the Table.
Indirect Tax 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.
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 VI to my speech, which have been laid on the Table.
To help the cashew processing industry, I propose to reduce customs duty on raw cashew from 5% to 2.5%.
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 VI to my speech (laid on the Table) will attract the proposed Surcharge at the rate of 3% of the aggregate duties of customs only.
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.
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.
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’’.
With these words, Madam Speaker, I commend the Budget to the House.
12 50 hrs … (Interruptions)…