Finance Minister Arun Jaitley today sounded optimistic more than once and in his spirited speech, waxed eloquently, highlighting measures aimed to augment investment and also improve rural economy, but at the same time, ensure upholding of economic prudence.
"It is said when my goal is in sight, the winds favour me and I fly. There is no other day more appropriate than this," Mr Jaitley said in his concluding remarks. Earlier, he said he began the budget speech stating, "Spring is a season of optimism".
Constrained by code of conduct in view of assembly elections in five states including Uttar Pradesh while the government could not announce major sops for these poll-bound states, the Budget 2017-18, however, sought to target the agrarian community with enhanced budget allocation for major schemes focusing on farmers.
Finance Minister Arun Jaitley today announced a whopping Rs 1 lakh crore hike in the credit target for the next fiscal to Rs 10 lakh crore as part of the government’s efforts to double farm incomes.
The government's commitment to double farm income by 2021 was announced in last year's budget.
Mr Jaitley while presenting Budget in the Lok Sabha, said, the target for agricultural credit in 2017-18 has been fixed at a record level of Rs 10 lakh crore and added: "We will take special efforts to ensure adequate flow of credit to the under serviced areas, the eastern states and Jammu and Kashmir". Moreover, the Finance Minister said a dedicated Micro Irrigation Fund will be set up in NABARD to achieve the goal, ‘per drop more crop’. "The Fund will have an initial corpus of Rs 5,000 crore".
Jaitley at his sarcastic best: Mocks at citizens' tax evading habits
New Delhi, Feb 1 (UNI) A good orator that he is, Finance Minister Arun Jaitley today made optimum use of his glib talk ability and was at his sarcastic best hitting out at the common citizenry for what is generally given out as the national habit to evade tax payment.
"I place before you certain data to indicate that our direct tax collection is not commensurate with the income and consumption pattern of Indian economy," Finance Minister said in budget speech presented in the Lok Sabha. "The number of people showing income more than Rs 50-lakh in the entire country is only 1.72-lakh. We can contrast this with the fact that in the last five years, more than 1.25-crore cars have been sold, and number of Indian citizens who flew abroad, either for business or tourism, is two crores in the year 2015. From all these figures we can conclude that we are largely a tax non-compliant society," Mr Jaitley said even as a number of members were seen giggling or whispering to each other. India’s tax to GDP ratio is very low, and the proportion of direct tax to indirect tax is not optimal from the view point of social justice, Mr Jaitley said.
Finance Minister elaborated that as against estimated 4.2 crore persons engaged in the organised sector employment, the number of individuals filing return for salary income are only 1.74 crore. "As against 5.6 crore informal sector individual enterprises and firms doing small business in India, the number of returns filed by this category are only 1.81 crore".
He said out of the 13.94 lakh companies registered in India upto 31st March, 2014; 5.97 lakh companies have filed their returns for Assessment Year 2016. He said of the 5.97 lakh companies which have filed their returns for Assessment Year 2016-17 so far, as many as 2.76 lakh companies have shown losses or zero income. About 2.85 lakh companies have shown profit before tax of less than Rs 1 crore, while 28,667 companies have shown profit between 1 crore to 10 crore and only 7781 companies have profit before tax of more than Rs 10 crores.
Trying to put an argument in justification of the need for citizens to pay tax, he said, "When too many people evade taxes, the burden of their share falls on those who are honest and compliant." "I appeal to all citizens of India to contribute to Nation Building by making a small payment of 5 percent tax if their income is falling in the lowest slab of Rs 2.5 lakhs to Rs 5 lakhs," Mr Jaitley said.
Budget gives a push to digital economy, note ban to ensure bigger GDP: FM
New Delhi, Feb 1 (UNI) The Budget 2017-18 presented in Parliament today seeks to give a major push to the digital economy and weed out corruption and black money, Finance Minister Arun Jaitley said here even as he asserted that the demonetisation drive announced in November will ensure a cleaner economy and bigger GDP.
"Demonetisation seeks to create a new ‘normal’ wherein the GDP would be bigger, cleaner and real.The exercise is part of the Government’s resolve to eliminate corruption, black money, counterfeit currency and terror funding," Mr Jaitley said in his one-and-half-hour long speech.
Giving digital economy as envisioned by Prime Minister Narendra Modi, the Finance Minister said the government has decided that no transaction above Rs 3 lakh will be permitted in cash.
"Demonetisation seeks to create a new ‘normal’ wherein the GDP would be bigger, cleaner and real.The exercise is part of the Government’s resolve to eliminate corruption, black money, counterfeit currency and terror funding," Mr Jaitley said in his one-and-half-hour long speech.
Giving digital economy as envisioned by Prime Minister Narendra Modi, the Finance Minister said the government has decided that no transaction above Rs 3 lakh will be permitted in cash.
This decision has been taken by the government following the recommendation of Special Investigation Team on black money to ban cash transactions above Rs 3 lakh, the Finance Minister said.
On this there will be a necessary amendment to the Income Tax Act in the Finance Bill.
"Promotion of a digital economy is an integral part of Government’s strategy to clean the system and weed out corruption and black money. It has a transformative impact in terms of greater formalisation of the economy and mainstreaming of financial savings into the banking system," he said amid thumping of desks by treasury benches.
"This, in turn, is expected to energise private investment in the country. India is now on the cusp of a massive digital revolution," said Mr Jaitley.


























