Union Budget 2018-19: Complete Analysis

Union Budget 2018-19: Complete Analysis

union budget 2018-19

Union Budget 2018-19: Will you be appearing for Banking, Insurance and other Government Job Examinations in 2018? Then to score in General Awareness section it is very important for you to get updates on The Union Budget 2018-19. This will be the last full Union Budget to be presented by Finance Minister Arun Jaitley in the session of Parliament and it will be unlike his previous four such exercises because of the complete overhaul of the indirect tax regime affected by implementing the Goods and Services Tax (GST) last year.

Candidates who will be appearing for Syndicate Bank PO, Canara Bank PO, SBI Clerk 2018 Exams and all other Competitive Exam should carefully read the Budget Analysis because there is a high possibility that you might face questions from this year's Union Budget in the General Awareness Section. The highlights and analysis of budget are not only important for exam point of view but also this can help you to prepare for the interview of this year's government job recruitment process.

The Budget, to be the last for this government in view of the general elections due in the first half of 2019, may have two main components: The first part deals with new schemes and outlays for various existing schemes and sectors for the coming fiscal, while the second contains announcements on direct and indirect taxes. With the implementation of single tax regime GST, this year's budget is believed to take into account only those items that still remain outside the purview of GST. It is highly expected that 2018-19 budget could contain changes in customs and excise duties on these remaining products, which for most others have been subsumed under GST. For the rest, you'll have to watch this space for the review of Union Budget 2018-19.

We will be covering The Union Budget from Examination's Point of View to help you remember all the important points in a simple and easy manner.

Budget 2018-19 Takeaways

Agriculture and Rural Economy

  • The Minimum Support Price (MSP) of all crops will increase to at least 1.5 times that of production cost. 
  • An Agri-Market Infrastructure Fund with a corpus of Rs. 2000 crore will be set up for developing and upgrading agricultural marketing infrastructure in the 22000 Grameen Agricultural Markets (GrAMs) and 585 APMCs.
  • Prime Minister Krishi Sampada Yojana is our flagship programme for boosting investment in food processing Rs. 1400 crore in 2018-19((last year Rs 715 crore)).
  • The government will promote the establishment of specialized agro-processing financial institutions in this sector.
  • Rs 1290 crore allocated for restructured bamboo production mission.
  • Setting up of Fishery and Aquaculture fund and Animal Husbandry fund with the total corpus of Rs 10000 crore.
  • Operation Green will be launched for agriculture with the corpus of Rs 500 crore.
  • Propose to launch a Re-structured National Bamboo Mission with an outlay of Rs.1290 crore to promote the bamboo (Green Gold) sector in a holistic manner.
  • Propose to extend the facility of Kisan Credit Cards to fisheries and animal husbandry farmers to help them meet their working capital needs.
  • Long-Term Irrigation Fund (LTIF) in NABARD for meeting funding requirement of irrigation works, expanded to cover specified command area
    development projects.

Social Protection

  • The free LPG connection scheme (Ujjwala Yojana) will be expanded to 8 crores households.
  • The government will provide free 4 crore electricity connections to the poor under Saubhagya Yojana.
  • Kisan credit card to be extended to fisheries, animal husbandry farmers.
  • A dedicated affordable housing fund will be set up this year.
  • Loans to self-help groups will increase to Rs 75000 crore
  • Govt. allocated Rs.5,750 crore to National Livelihood Mission and Rs. 2,600 crore to the groundwater irrigation scheme.

Health Sector

  • Allocation on National Social Assistance Programme this year has been kept at Rs. 9975 crores.
  • The Union Govt. is launching world's largest government-funded healthcare program, Rashtriya Samaj Beema Yojana (approximately 50
    crore beneficiaries). 
  • This will have 50 crore beneficiaries and 10 crore families will get 5 lakh per year for their families to cover secondary and tertiary hospital expenses.
  • The government will provide Rs 600 crore as nutritional support to all Tuberculosis (TB) patients.
  • Twenty four new government medical colleges will be set up by upgrading existing district hospitals in the country.
  • Allocation on National Social Assistance Programme this year has been kept at Rs. 9975 crores.

MSME Sector & Employment

  • Govt. have provided Rs. 3794 crore to MSME Sector for giving credit support, capital and interest subsidy and innovations.
  • The Online loan sanctioning facility will be refurbished to speed up the complete process by banks.
  • Rs 3 lakh crore is allocated as the target for the Mudra Yojana for the year 2018-19.
  • The government will contribute 12% of wages of new employees for all sectors.
  • Woman's contribution to the Provident Fund will be reduced to 8% from now onwards for the first 3 years of her employment with no reduction in employer's contribution.
  • The launch of National Apprenticeship Scheme with stipend support and sharing of the cost of basic training to give training to 50 lakh youth by 2020.
  • The Government will contribute 12% of the wages of the new employees in the EPF for all the sectors for next three years.
  • 306 Pradhan Mantri Kaushal Kendra has been established for imparting skill training through such centers.

Infrastructure and Transport

  • Smart Cities Mission aims at building 100 Smart Cities with state-of-the-art amenities. 
  • 99 Cities have been selected with an outlay of Rs. 2.04 lakh crore.
  • Rs 1.48 lakh crore have been allocated for the Indian Railways for the year 2018-19. 
  • In Railways, 18,000 km of doubling of tracks would eliminate capacity constraints.
  • Eastern and Western dedicated freight corridor and special attention to the maintenance of track infrastructure.
  • All railways stations (more than 25000 footfalls) will have escalators and 600 railway stations to be redeveloped
  • 150 km additional suburban railway network at the cost of Rs. 40,000 cr.
  • An institute is under its way at Vadodara to train manpower for high-speed railway projects.
  • Now, UDAN scheme will connect 56 unserved airports and 31 unserved helipads in the country. 
  • Airport capacity will now be enhanced to handle more than one billion trips every year.
  • Over 3,600 km of track renewal is being targeted in 2018-19.

Financial Sector

  • Niti Aayog to establish a national program to direct efforts in artificial intelligence towards national development.
  • Explore the use of blockchain technology proactively to boost digital economy.
  • Scheme to assign every enterprise a unique ID just like Aadhaar. 
  • Toll payments by cash will be digitized.
  • Commerce Ministry will develop a National Logistics Portal as a single window program to boost the logistics sector.
  • The Union government will recapitalize public sector banks to help them lend an additional Rs. 5 lakh crore
  • The Department of Investment and Public Asset Management will come up with debt Exchange Traded Fund.
  • GST revenue for only 11 months, instead of the usual 12 months, is 21.5 lakh crore. 
  • Three Insurance Companies (Unit Trust of India, Oriental Insurance & National Insurance) will be merged and then listed.
  • Salaries of President (Rs. 5 lakh), VP (Rs 4.0 lakh), and Governors (Rs 3.5 lakh) will be increased and salaries of Members of Parliament will also be raised. 

Education Sector

  • Education holistically without segmentation from pre-nursery to Class 12
  • For teachers, an integrated B.Ed. the programme will be initiated.
  • RISE (Revitalizing Infrastructure in School Education) Scheme for revitalizing school infrastructure, with an allocation of 1 lakh crore rupees over four years (by 2022).
  • Two new full-fledged schools of planning and architecture will be set up.
  • Prime Minister's fellowship programme will be launched to subsidize research.
  • To increase the digital intensity in education and move gradually from ‘‘black board’’ to ‘‘digital board’’.
  • Technology will also be used to upgrade the skills of teachers through the recently launched digital portal ‘‘DIKSHA".
  • Prime Minister’s Research Fellows (PMRF)’’ Scheme, Each year 1,000 best B.Tech students from premier institutions and provide facilities to do Ph.D. in IITs and IISc, with a handsome fellowship.
  • Every block with more than 50% ST population and at least 20,000 tribal people will have'Ekalavya' school at par with Navodaya Vidyalas by 2022.

Taxation Reforms

  • The total expenditure of the Union government will be Rs 21.57 lakh crore.
  • The projected fiscal deficit of the FY 2018-19 is 3.3% of the GDP.
  • January 2018, the growth rate of 18.7% has been recorded and Over 85 lakh new taxpayers filed their returns. 
  • The number of effective taxpayers increased from 6.47 lakh crore to 8.27 lakh crore in the previous financial year. 
  • The excess revenue from personal income tax is Rs 90000 crore.
  • 100 percent tax deduction to farmer-producer companies having Rs 100 crore turnover. 
  • Corporate tax will be reduced to 25% for companies having a turnover of up to Rs 250 crore.
  • A long-term capital gains tax of 10% will be levied for amounts exceeding Rs 1 lakh.
  • 12.6% growth in direct taxes in 2017-18.
  • 18.7% growth in indirect taxes in 2017-18.
  • Rs 40,000 standard deduction against travel and medical expenses.
  • Surcharge of 10% on income above Rs 50 lakh but less than Rs 1 cr, 15% on income above Rs 1 cr to continue.
  • Senior citizens will be able to claim the benefit of the deduction up to Rs 50,000 annually on health insurance premium and/or general medical expenditure incurred.

Personal income tax Slabs for 2018-19

IncomeTax rate
Individual tax payers
Up to Rs 2,50,000No tax
Rs 2,50,001 to Rs 5,00,0005%
Rs 5,00,001 – 10,00,00020%
More than Rs 10,00,00030%
Senior citizens who are 60 years old and above but less than 80 years
Up to Rs 3,00,000No tax
Rs 3,00,001 to Rs 5,00,0005%
Rs 5,00,001 to Rs 10,00,00020%
More than Rs 10,00,00030%
Senior Citizens who are 80 years old and above
Up to Rs 5,00,000No tax
Rs 5,00,001 to Rs 10,00,00020%
More than Rs 10,00,00030%

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