Budget 2017 LIVE: Finance Minister Arun Jaitley Announces Reforms In Political Parties Funding

10:35 AM: Finance Minister Arun Jaitley has tweeted a few minutes before indicating that he will go ahead and present the budget at 11 AM today as planned. Since a sitting MP passed away there have been suggestions from the opposition that the house must be adjourned.

10:55 AM: Union Minister Venkaiah Naidu while speaking to reporters a little earlier said the government will go by speaker’s verdict on the issue of postponing the budget due to a sitting MP’s death. He also said that there was precedent for going ahead with the tabling of the budget in such circumstances thus indicating the government was all for tabling the budget today.

11:05 AM

Finance Minister Arun Jaitley has begun delivering his budget speech. Earlier the speaker Sumitra Mahajan informed the house that the house will not sit tomorrow as a mark of respect to the sitting MP Shri E Ahamed who passed away earlier today.

11: 13 AM

Here are some of the opening comments

- We have moved from a discretionary administration to a policy-based administration

- Proof of higher agricultural production. Inflation has been controlled.

- India remains a bright spot in the turbulent global economy. India has become the sixth largest manufacturing country in the world.

Finance Minister opened the speech with a mention of India’s biggest challenges in the global economy today.

11:20 AM

The budget will be presented in ten themes. The first one is on farmers and doubling their income.

Agriculture is expected to grow greater than 4% this year. Target for agricultural credit fixed at a ‘record level’ of Rs 10 lakh crores. Farmers will also benefit from a 60 day interest waiver.

Government will support NABARD to help computerise cooperative banks with core banking support. Model law on contract farming will be circulated. Soil testing labs will be set up in Krishi Vigyan Kendra’s to ensure 100% coverage.

PM Fasal Bima Yojana target to be increased from 30 per cent to 50 per cent by 2018-19.

MGNREGS allocation hiked to Rs. 48,000 crore. Government has achieved the target of building 5 lakh ponds and 10 lakh compost pits. Another 5 lakh ponds will be added in 2017-18.

11:30 AM - Schemes and plans announced for youth

New National Testing Agency for entrance exams. This will free CBSE, AICTE to focus on skill development. New program called SANKALP to provide market relevant training for skill enhancement. 350 online courses to be set up for students.

Sops for senior citizens: Smart cards based on AADHAAR to store medical information for senior citizens.

LIC to introduce pension scheme for senior citizens with assured return of 8%.

11:50 AM: Government’s plans for railways

Railways will focus on four areas: passenger safety, capital and development work, Cleanliness and Reform in Accounts

3500 km new railway lines to be commissioned next year. 500 stations will be made disabled-friendly. Rail safety fund with a corpus of Rs 100,000 crore to be created over a period of 5 years.

Railway capital expenditure is at Rs 1,31,000 crore out of which 55,000 crore allocated by the Centre. This is a 50% increase compared to last year when allocation was only 35,000 crore

12:04 PM: Infrastructure

Total allocation for infrastructure sector stands at a record level of Rs 3,96,000 crore.

Rs 10,000 crore have been allocated for the Bharatnet project. High speed optical fibre be available in 1,50,000 gram panchayats.

Rs 2,41,387 crore have been allocated for transportation. Airport Authority of India Act will be amended to allow monetisation of land assets.

12:07 PM: Financial Sector

BIG NEWS: Foreign Investment Promotion Board to be scrapped. Shares of ITCTC and IRFC to be listed.

Rs 10,000 crores to recapitalise banks. Additional funds will be made available if necessary. Lending target for MUDRA has been doubled to Rs 2.44 lakh crore.

Computer Emergency Response Team for financial sector will be established. To launch Aadhaar pay, Aadhaar enabled payment system to be launched soon. 1.25 crore people have adopted BHIM App.

New Payment regulatory board under RBI to be set up.

12:32 PM

Finance Minister revealed the below statistics on income tax payers in the country.

1.72 lakh individuals have declared income of Rs 50 lakh plus. However, Rs 1.25 crore cars have been sold in three years . And two crore Indians have gone abroad.

Out of 3.7 crore who filed tax returns in 2015-16, only 24 lakh persons showed income above Rs 10 lakh. Due to demonitisation advance tax on personal Income tax increased by 34.8 per cent.

12:40 PM - Tax boost for SMEs:

Income tax for firms with less than Rs 50 crore turnover reduced to 25%. 6.67 lakh companies fall in this category. Almost 96 per cent of all the companies to benefit from this move.

12:41 PM

No cash transactions to be allowed above Rs 3 lakhs. However it is not clear how this will be implemented.

12:45 PM

Sweeping reforms in funding political parties

Maximum cash donation capped at Rs 2,000 from one source.

New electoral bonds proposed. Donor can purchase bonds against digital payments. Redeemable only in registered accounts.

12:57 PM

Finance Bill introduced. Lok Sabha stands adjourned.

12:51 PM - One major IT slab change

Simple one page IT return form to be introduced. First time return filer will NOT be harassed.

Individuals earning Rs 2.5 - Rs 5 lakh a year will now be taxed at 5% instead of 10% .