Election-Year Budget- Big Focus On Farmers, Health, Personal rates of IT unchanged

By Shobhna Jain | Posted on 1st Feb 2018 | VNI स्पेशल

New Delhi, Feb 1,(VNI) Before the 2019 general elections and ahead of eight state elections this year, Finance Minister Arun Jaitley's presented his fifth and last full year Budget amid subdued economic growth, challenging fiscal situation and farm distress. Budget Leaves Personal Rates of Income Tax unchanged ,also there is no change in corporate tax. Focuses in the budget is on keeping Fiscal Deficit in Check , Boosting GDP growth,also budget gives Big Ticket concession to Senior Citizens

Finance Minister Arun Jaitley focused the Union Budget 2018 on farmers and the rural poor today, he has pegged the fiscal deficit target for next year at 3.3 per cent, higher than market estimates. the government has made a slew of farm-focused announcements, raising the minimum support price to 1.5 times the production cost for Kharif crops, a key demand of distressed farmers.

Mr Jaitley also announced what he called the world's largest government-funded healthcare scheme to cover 10 crore poor families, saying "50 crore beneficiaries will get Rs. 5 lakh per family per year. "There are no changes in income tax slabs for individuals this year. But all salaried people will get a standard deduction of Rs. 40,000 on their income in lieu of medical and transport reimbursements,announced Mr. Jaitley

Arun Jaitley has announced a new 10% long-term capital gains tax on gains exceeding Rs. 1 lakh on income from investment in equities and equity mutual funds. The budget speech was watched closely for how the government balanced its need to reach out to voters ahead of eight state elections this year and the national election next year, with keeping investors' confidence by being seen to contain the fiscal deficit and also increasing spending in key areas of a slowing economy. Mr Jaitley said the Narendra Modi government has been consistently focused on fiscal prudence. The revised fiscal deficit target for this year ending March is 3.5% of the GDP, he said. Stock markets, which were up this morning, plunged into the red as Mr Jaitley announced next year's fiscal deficit target. They have now recovered.

Speaking both in English and Hindi, Mr Jaitley prefaced his announcements by making clear that his budget this year is focused on "consolidation and agriculture, infrastructure and healthcare." Mr Jaitley has announced that eight crore free gas connections will be given to poor women. He also said that the government will contribute 12% in the Employee's Provident Fund for three years for new employees. Corporate tax rate for companies with up to Rs. 250 crore turnover has been reduced to 25% from 30%, Mr Jaitley announced. Mr Jaitley began his budget speech by listing the government's key achievements, stating that "there is now a premium on honesty." The Indian economy, the Finance minister said, is "firmly on the path to achieve a growth of 8 per cent plus," and is expected to become the fifth largest in the world soon.