New Delhi, Feb 1: Finance Minister Arun Jaitley on Thursday unveiled Union Budget 2018-19.
While presenting the budget Jaitley said the main focus will be on agriculture and rural sector.
As it was the first budget after the implementation of the Goods and Service tax, expectations were especially high that the government would announce income tax sops and positive changes in direct taxation for the salaried class.
In Narendra Modi government’s last full budget before 2019 Lok Sabha elections, India’s farmers and villagers, as well as firms with exposure to agriculture, emerge as the biggest winners. While Bond investors and salaried class might just be the biggest losers.
Below we have enlisted winners and losers :
WINNERS
Farmers:
The Minimum Support Price (MSP) of all crops shall increase to at least 1.5 times that of the production cost.
The government will set up a fund of Rs 2,000 crore for developing agricultural markets. Besides this, the budget promises to double farmers’ income by 2022.
A sum of Rs 500 cr will be allocated for Operation Green in a bid to promote agricultural products.
Hundred percent tax deduction for the first five years to companies registered as farmer producer companies with a turnover of Rs 100 crore and above.
Health Care Sector:
The government launched National Health Scheme to provide Rs 5 lakh cover for 10 crore families.
Universal health coverage will be intensified after seeing the performance of the scheme.
Rs 600 crore allocated for tuberculosis patients, at the rate Rs 500 per month during the course of their treatment.
The Finance Minister announced setting up of one medical college for every three parliamentary constituencies, with 24 New government medical colleges also being envisioned. Government also will work on upgrading hospitals to medical colleges
Transport:
In the year 2018-19, for the creation of livelihood and infrastructure in rural areas, the total amount to be spent by the ministries will be Rs 14.34 lakh crore, including extra-budgetary and non-budgetary resources of Rs 11.98 lakh crore.
Airports:
UDAN (Ude Desh ka Aam Naagrik) scheme will connect 56 unserved airports and 31 unserved helipads.
LOSERS
Bond Investors:
Bond investors got some relief from a lower than expected borrowing program. In a significant admission of fiscal slippage with implications for pushing inflation, the government revised upwards its fiscal deficit target for 2017-18 to 3.5 percent of the GDP, or the equivalent of Rs 5.9 lakh crore.
Salaried Class:
The Budget did not provide any relief in the income tax rates for 2018-19.
Surcharge of 10% on income above Rs 50 lakh but less than Rs 1 cr to be continued next year; 15% on income above Rs 1 cr to also continue.
Financial Sector:
The long-term capital gains on equities exceeding Rs 1 lakh will be taxed at 10 percent without indexing.
Just after the announcement, the two key indices — S&P BSE Sensex and NSE Nifty50 — plunged. The wider Nifty50 of the National Stock Exchange (NSE) fell by 59.70 points or 0.54 percent to trade at 10,968 points.
Defense Sector:
The Finance Minister praised the armed forces and promised an industry-friendly policy to promote defense production as he addressed parliament. But there was no indication of a major boost to defense expenditures.
Mobile Phones, Electronics:
Customs duty hike on Mobile Phones, Electronics would hurt consumers.
Jaitley said Customs duty on import of mobile phone parts will be increased to 20 per cent from the existing 15 per cent.
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