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Jaitley delivered his Budget 2018 speech on Thursday, with the government focusing on the agricultural sector and farmers' income.
Signalling that fiscal prudence has gone off track, Jaitley proposed a fiscal deficit target of 3.3 per cent of GDP for 2018-19. The target he had set for 2018-19 last year was 3 per cent.
Budget 2018 has proposed to levy long-term capital gains tax (LTCG) of 10% on gains exceeding Rs 100,000 from sale of equity shares. However, capital gains made on shares until January 31, 2018, would be grandfathered, the finance minister said. Also, there has been no change in the definition of short-term capital gains tax (STCG).
Here are the main highlights:
4) After improvement in ease of doing business, finance minister says the focus is now on "ease of living".
13) India's agriculture export potential is $100 billion as against today's $30 billion, says Arun Jaitley. He also added that food processing sector is growing at 8 per cent.
19) For education sector, the government proposes revitalising infrastructure, opening schools for the ST populations as well as promoting programmes for teachers, in order to improve quality education for students.
20) Jaitley says 80 million (8 crore) poor families will be given free gas connection.
21) Jaitley says the government aims to build 20 million (2 crore) toilets.
22) Finance Minister says government to allocate Rs 26 billion (2,600 crore) underground water irrigation plan in 96 districts.
‘Ayushman Bharat’ is an unparalleled initiative to ensure health insurance as well as health assurance. Protecting 10 crore families i.e about 40% of India's population with a health insurance cover of Rs. 5 lakh per family is a global first!— Amit Shah (@AmitShah) February 1, 2018
24) Jaitley announces govt to bring in Ayushman Bharat Programme, a move towards universal health coverage. Jaitley announces additional allocation of Rs 6 billion (600 crore) for nutritional support for tuberculosis patients.
25) Jaitley says Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJBY) to be expanded to all poor households.
26) Jaitley says an amount of Rs 3 trillion (lakh crore) set aside for Mudra accounts.
27) Jaitley says government to allocate Rs 1.38 trillion (lakh crore) in FY19 for government health and education programmes.
28) "Contribution of 8.33% to EPF for new employees by the government for three years and 12% government contribution to EPF in sectors employing large number of people. Women employees' contribution to EPF to be reduced to 8% from 10% for the first three years," announces Jaitley.
29) A hundred thousand (1 lakh) gram panchayats have been connected to high-speed broadband. Jaitley allocates Rs 100 billion (10,000 crore) to set up 500,000 (5 lakh) Wi-Fi hotspots to provide broadband access to 50 million (5 crore) rural citizens.
35) Jaitley proposes a fiscal deficit target of 3.3 per cent of GDP for 2018-19. The target he had set for 2018-19 last year was 3 per cent.
36) Jaitley says government to allocate Rs 71.48 billion (7,148 crore) to textile sector.
38) Despite analysts' and popular expectations, no change in personal income tax structure. Jaitley announces standard deduction of Rs 40,000 for salaried employees in lieu of transport and medical expenses.
41) BS VIEW: Corporate tax rate cut to 25% for firms with up to Rs 2.5 billion (250 crore) turnover. Promise to big firms unfulfilled; relief for MSMEs.
42) Jaitley says extra amount of Rs 900 billion (90,000 crore) collected as personal income tax in past one year. The government will continue with tax policies that reward honest tax payers, adds the finance minister.
50) Budget 2018 has proposed to levy long-term capital gains tax (LTCG) of 10% on gains exceeding Rs 100,000 from sale of equity shares. However, capital gains made on shares until January 31, 2018, would be grandfathered, the finance minister said. Also, there has been no change in the definition of short-term capital gains tax (STCG).
51) To boost domestic manufacturing, Jaitley announces customs duty hike on mobiles to 20 per cent from 15 per cent. Duty on TVs hiked to 15 per cent.