Budget Nuts & Bolts

Small nuggets of announcements in Budget 2017 that could have big impact on various segments

Rs 2,200 crore for vocational training initiative
The next phase of Skill Strengthening for Industrial Value Enhancement (STRIVE) will be launched in 2017-18 with an allocation of Rs 2,200 crore. STRIVE will focus on improving the quality and relevance of vocational training and strengthen apprenticeship programmes.
 
Employment generation in leather sector
The government proposes to introduce a special scheme that will focus on creating employment in the leatherand footwear industries in the country. This will be on the lines of the already-launched special scheme for creating employment in the textile sector.
 
5 tourism zones, Incredible India 2.0
The Budget proposes to set-up five Special Tourism Zones, driven by SPVs in partnership with the states. Since tourism is a big creator of jobs and has a multiplier impact on the economy, the Incredible India 2.0 campaign is being launched across the world to promote India as a tourist attraction.
 
Coverage of Fasal Bima Yojana enhanced
The reach of Fasal Bima Yojana is to be enhanced from 30 per cent of cropped area in 2016-17 to 40 per cent in 2017-18 and 50 per cent in 2018-19. For 2017-18, Rs 9,000 crore has been provided. The sum insured has more than doubled from Rs 69,000 crore in Kharif 2015 to Rs 141,625 crore in Kharif 2016.
 
‘Innovative’ fund for secondary education
The government has proposed to create an innovative fund for secondary education for ensuring universal access, gender parity and quality improvement. This will include ICT-enabled learning, transformation and the focus will be on 3,479 educationally backward blocks in the country.
 
e-NAM to be expanded to 585 APMCs
The coverage of the National Agricultural Market (e-NAM) will be expanded from the current 250 markets to 585 APMCs. Assistance up to a ceiling of Rs 75 lakh will be provided to every e-NAM market to establish cleaning, grading and packaging facilities, to add value to farmers’ produce.
 
Rs 10,000 crore for BharatNet project to digitise villages
The government allocated  Rs 10,000 crore for BharatNet, to connect more than 150,000 gram panchayats with
Wi-Fi access in 2017-18. This will help achieve the Digital India mission’s goals and help reach rural areas, enabling digital transactions, education and skilling.
 
Incentives for promoting digital payments
 
The government will promote use of the BHIM app by offering incentives to both users and merchants. It will also push banks to introduce one million PoS systems by March 2017 and 20 lakh Aadhaar Pay PoS systems by September 2017, to meet the target of 2,500 crore digital transactions in 2017-18.
 
Local electronics manufacturing gets a boost
 
India has got 250 investment proposals for electronics manufacturing in two years.  Rs 745 crore have been earmarked as incentives to promote India as a global hub. Duties have been increased on PCBs for smartphones, and reduced on biometric scanners for digital payment units.
 
Online education platform on the cards
 
The government plans to launch an online education platform, SWAYAM, with 350 courses that will act as virtual classrooms. Students will be able to participate in discussions, take tests and earn grades. SWAYAM will also be accessible through DTH channels.
 
Steps to set up a banking backbone in rural areas
 
The government is looking to get primary agriculture credit societies (PACs), crucial for loan disbursements in rural areas, integrated with the backend of district central cooperative banks. It would take  Rs 1,900 crore to get the 65,000 PACs online. This will help government to pay subsidies directly to farmers.
 
Technology to be used to geo-tag MGNREGA assets
 
The government has increased the budget provision under MGNREGA to  Rs 48,000 crore. The increased budget will go into geo-tagging all MGNREGA assets and putting them in the public domain. The use of satellite data would help in better monitoring and accountability of funds.

Team for cyber security of financial sector

The Budget proposes to establish a Computer Emergency Response Team for the Financial Sector (CERT-Fin) to work in close coordination with all financial sector regulators and other stakeholders. This is being done to ensure stepped-up cyber security for the financial sector.

Mega oil restructuring on the cards

The government intends to create an integrated public sector ‘oil major’ which will be able to match the performance of international and domestic private sector oil and gas companies. The finance minister said such restructuring will result in a capacity to bear higher risks, avail economies of scale, and create more value.

New public sector companies’ ETF to be launched

Following the response to an exchange trade fund (ETF), comprising shares of 10 central public sector enterprises (CPSEs), a new ETF with diversified CPSE stocks and other government holdings will be launched in 2017-18. The government will continue to use ETFs as a vehicle for further disinvestment of shares. 

Incentives for BHIM, merchants’ payment system

The government will launch two schemes to promote usage of BHIM. These are a referral bonus scheme for individuals and a cashback scheme for merchants. Aadhaar Pay, a merchant version of Aadhaar Enabled Payment System, will be launched shortly for those who do not have debit cards, mobile wallets, mobile phones.

Payments Regulatory Board to be set up in RBI

The government will review the Payment and Settlement Systems Act. To begin with, it is proposed to create a Payments Regulatory Board in the Reserve Bank of India by replacing the existing Board for Regulation and Supervision of Payment and Settlement Systems. Necessary amendments are proposed to this effect in the Finance Bill 2017.

Online pension disbursal for defence staff

A web-based interactive Pension Disbursement System for defence pensioners will be established for making pension payments. A Centralised Defence Travel System has also been developed through which travel tickets can be booked online by soldiers and officers. Hence, no standing in queues.

Labour laws to be simplified, amalgamated
 

Legislative reforms will be undertaken to simplify, rationalise and amalgamate existing labour laws into four codes — on wages; industrial relations; social security and welfare; and safety and working conditions — to improve working conditions of labour and enhance ease of doing business. 

Aadhaar-based health card,  pension for elderly
 

Aadhaar-based smart cards containing citizens’ health details are to be introduced. A beginning will be made through a pilot project in 15 districts in 2017-18. LIC will implement a scheme for senior citizens to provide assured pension, with a guaranteed return of eight per cent per annum for 10 years.

Railway safety fund created with govt seed capital

Rashtriya Rail Sanraksha Kosh will be created with a corpus of ~1 lakh crore over a period of five years to fund rail safety works. The Railways will arrange the remaining resources from its own revenues and other sources. The government will lay down clear guidelines and timelines for implementing safety works. 

More facilities, better hygiene for rail passengers 

In addition to the existing SMS-based Clean My Coach Service, the government now proposes to introduce the “Coach Mitra” facility, a single window interface, to register all coach-related complaints and requirements. By 2019, all coaches of Indian Railways will be fitted with bio toilets, the finance minister said. 

New Metro Rail policy to attract private players
 

A new Metro Rail Policy is on the cards, with focus on innovative models of  financing, as well as standardisation and indigenisation of hardware and software. This will open up new job opportunities. A new Metro Rail Act will be enacted, to facilitate greater private participation in construction and operation.

Airport Authority land will be monetised
 

The government will amend the Airport Authority of India Act to enable effective monetisation of land assets. The resources so raised will be utilised for the upgradation of airports across the country. Select airports in tier-II cities will be taken up for operation and maintenance in the public-private partnership mode.

Two new strategic oil reserves to be created
 

Two additional strategic reserves for crude oil will be set up. One will be in Chandikhole (Odisha), while the other will be in Bikaner (Rajasthan). Along with the existing three reserves, these two will help take the country’s strategic reserve capacity to 15.33 million tonnes. This will substantially enhance energy India’s security.

More doctors to improve healthcare 
 

To ensure adequate availability of specialist doctors and strengthen the health care system, steps will be taken to create an additional 5,000 post graduate seats per year, roll out DNB courses in big district hospitals, and strengthen PG teaching in select ESI and municipal corporation hospitals. 

Rs 2,000 crore fund set up for dairy sector
A Dairy Processing and Infrastructure Development Fund will be set up in Nabard with a corpus of Rs 8,000 crore over three years. Initially, the fund will start with a corpus of Rs 2,000 crore. Availability of milk processing facilities and other infrastructure will benefit farmers by adding value.
 
By 2019, 50,000 gram panchayats to be poverty-free
With a focus on improving accountability, outcomes and convergence, the government will undertake a Mission Antyodaya to lift 10 million households out of poverty and make 50,000 gram panchayats poverty-free by 2019, the 150th birth anniversary of Mahatma Gandhi.
 
Ten million houses for the poor living in kachcha homes
The government aims to complete 10 million houses for the homeless and those living in kachcha houses by 2019. It has allocated Rs 23,000 crore for the Pradhan Mantri Awaas Yojana-Gramin in 2017-18, up from Rs 15,000 crore in 2016-17.  Rs 4,814 crore has been proposed for providing electricity.
 
Outlay of Rs 500 crore for Mahila Shakti Kendra
Mahila Shakti Kendra will be set up at the village level with an allocation of Rs 500 crore in 1.4 million ICDS Anganwadi Centres. This will provide one-stop convergent support services to empower rural women through opportunities for skill development, health, employment, digital literacy.
 
NHB to refinance home loans of Rs 20,000 crore
National Housing Bank will refinance individual housing loans of Rs 20,000 crore in 2017-18. The finance minister said the improved liquidity created by demonetisation has prompted banks to reduce lending rates, including rates for housing. An interest subvention for housing loans was also unveiled recently.

Law to confiscate economic offenders’ assets

The government is considering introduction of legislative changes, or even a new law, to confiscate the assets of economic offenders fleeing the country. This is to force them to submit to the jurisdiction of the appropriate legal forum. Necessary constitutional safeguards will be followed.

Tax exemptions for land pooling in Andhra capital 

The government will give an exemption from capital gains tax in cases where individuals have agreed to pool their land for creation of the new capital city for Andhra Pradesh. This will apply to persons holding land on June 2, 2014, the date on which the state of Andhra Pradesh was reorganised.

FPIs to get ease of access to Indian capital markets 

A common application form for registration, opening of bank and demat accounts, and issue of PAN will be introduced for Foreign Portfolio Investors (FPIs). SEBI, RBI and CBDT will put in place necessary systems and procedures. The aim is to enhance ease of access to Indian capital markets for FPIs.

Trading of security receipts on bourses soon 

Listing and trading of Security Receipts issued by a securitisation company or a reconstruction company under the SARFAESI Act will be permitted in Sebi-registered stock exchanges. This will enhance capital flows into the securitisation industry and will help in dealing with bank NPAs.

Mini labs to be set up for soil health testing 

To ensure that soil samples are tested quickly and the nutrient level of the soil is known, the government will set up new mini labs in Krishi Vigyan Kendras (KVKs) and ensure 100 per cent coverage of all 648 KVKs. Some 1,000 mini labs will be set up by local entrepreneurs who will be eligible for a subsidy.

Solar power in focus, rail stations to benefit

The second phase of Solar Park development will be taken up for an additional 20,000 Mw capacity. It is proposed to feed about 7,000 railway stations with solar power in the medium term. A beginning has already been made in 300 stations. Work will be taken up in 2,000 railway stations.