Farmers showed their ire before the recent Gujarat elections
that reduced the majority of the ruling party, BJP.
Now with elections coming up in four states and the
general elections scheduled next year, this budget directs
government support for the farmers, the rural poor and
Farmers are slated to reap major benefits with Minimum
Support Price of all crops increased to at least 1.5 times
of the production cost.
Plus, a slew of new schemes have been introduced for
almost every sub-sector of this activity.
The government announced an agricultural market fund with
corpus of Rs 20,000 million.
The Government proposes to launch Operation Green with Rs
Health for the poor with the world’s largest
government-funded healthcare programme, with approximately
500 million beneficiaries.
A cover of Rs half a million per family for 100 million
people was unveiled.
Another 150,000 health centres will be set up to provide
health facilities closer home.
Twenty-four new medical colleges cum hospitals to be
built in different states.
TB patients will get Rs 500 per month for eating healthy
Plenty more launched for the rural poor including better
schools, roads, solar power, telecom connectivity for
village councils and so on.
No change in personal Income Tax brackets but a standard
deduction of Rs 40,000 introduced for salaried workers.
For senior citizens, exemption of interest income on bank
deposits raised to Rs 50,000. Senior citizens also allowed
Rs 50,000 deduction on health insurance premium paid in a
year from earlier Rs 30,000.
The biggest tax bonanza comes for Small, Micro and Medium
Enterprises with turnover of less than Rs 2,500 million as
their corporate tax declined from 30 to 25 per cent.
Long-term capital gains exceeding Rs 1 lakh to be taxed
at 10 per cent
A new scheme to be introduced for providing electronic
assessment to eliminate person-to-person contact.
The direct taxes collected increased by 12.6 per cent due
to strict measures for tracing black money and tax
The number of taxpayers also went up: 85.51 lakh people
filed returns in 2017-18, as against 66.26 lakh in 2016-17.
Imported mobiles and TVs will become more expensive by
five per cent with higher duties to encourage local
At the macro level, India is now a US$2.5 trillion
economy and firmly on path to achieve growth rate of 7.2 to
7.5 per cent up from 6.75 per cent for the current year.