UNION BUDGET 2017-2018

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Union Budget 2017-18

Important Questions based on Union Budget 2017-18

Q- Which is the Unique thing about Union Budget 2017-18?

  1. The Union Budget 2017-18 will be implemented from 1st March 2017.
  2. Union Budget 2017 -18 are a merged form of both Union and Rail budget.
  3. In this budget it is for first time that the system of elaborating the planned and unplanned expenditures has been done away.
  4. None of the above
  5. Both b) and c)  

Q-  What is the maximum amount of cash donation which a political party can receive through one source only?

  1. Rs 2000
  2. Rs 3000
  3. Rs 4000
  4. Rs 5000
  5. Rs 6000

Q- The pegged fiscal deficit for 2017-18 which is  proposed in Union Budget 2017-18 is-

  1. 3.2% of GDP
  2. 3.3 % of GDP
  3. 3.8 % of GDP
  4. 3.9 % of GDP
  5. None of these

Q-  What is the total expenditure envisaged under Union Budget 2017-18? –

  1. Rs. 24,71 ,000 crore
  2. Rs. 24, 17, 000 crore
  3. Rs 22, 71, 000 crore
  4. Rs 21, 74 , 000 crore
  5. None of these

Q- With Reference to  Union Budget 2017-18 which organisation has been abolished?

  1. IPPB
  2. FIPB
  3. BBB
  4. SEBI
  5. None of these

Q- As mentioned in the union Budget the TEC is the agenda of Budget 2017-18,  the TEC refers to-

  1. Telecommunication Engineering Centre
  2. Transform, Elevation and Clean India
  3. Transform, Energise and Clean India
  4. Transfer, Energise and Clean India
  5. None of these

Q- – The amount of fund that has been allocated for National Bank  for Agriculture and Development (NABARD) in the Union Budget 2017-18?

  1. 30, 000 crore
  2. 40, 000 crore
  3. 50, 000 crore
  4. 60, 000 crore
  5. None of these


Union Budget 2017 – 2018


The  Union Budget 2017-18 was presented by the honourable  Finance Minister Arun Jaitley on 01st February 2017. The union budget  mainly focussed on 10 issues that are Goods and Service TAX, farming sector, rural and youth population, poor and health care for the underprivileged, infrastructure, financial sector for stronger institutions, speedy, prudent fiscal management and tax administration. The CPI-based inflation declined from 6% in July 2016 to 3.4% in December, 2016  Economy has moved on a high growth path. India’s Current Account Deficit declined from about 1% of GDP last year to 0.3% of GDP in the first half of 2016-17. FDI grew 36% in H1 2016-17 over H1 2015-16, despite 5% reduction in global FDI inflows. Foreign exchange reserves have reached 361 billion US Dollars as on 20th January, 2017. Important steps like War against black money launched. The Government continued on path of fiscal consolidation, without compromising on public investment. The Indian economy has been robust to mild shocks and IMF forecasts, India to be one of the fastest growing major economies in 2017.


Goods and Services Tax (GST)  

  1. The GST Council gave green signal to its recommendations on all the issues of GST.
  2. The  consensus has been based on the basis of 9 meetings held regarding the matter.
  3. Also the schedule carries the  Preparation of IT system for GST.
  4. The GST will be implemented totally from 1st april, 2017 and from the same date will be implemented the extensive reach-out efforts to trade and industry.
  5. In order to make them aware of the new taxation system the Government has introduced RAPID (Revenue, Accountability, Probity, Information and Digitisation) for Maximising efforts for e-assessment in the coming year
  6. The RAPID will enforce greater accountability of officers of Tax Department for specific act of commission and omission.



  1. It was a  Bold and decisive measure to curb tax evasion and parallel economy  Government’s resolve to eliminate corruption, black money, counterfeit currency and terror funding
  1. It will generate long term benefits including reduced corruption, greater digitisation, increased flow of financial savings and greater formalisation of the economy.
  2. Pace of re monetisation has picked up and will soon reach comfortable levels.
  3. The surplus liquidity in the banking system will lower borrowing costs and increase the access to credit
  4. Announcements made by the Honourable Prime Minister on 31st Dec, 2016 focusing on housing for the poor; relief to farmers; credit support to MSMEs; encouragement to digital transactions; assistance to pregnant women and senior citizens; and priority to dalits, tribals, backward classes and women under the Mudra Yojana, address key concerns of our economy


The Agriculture sector


  1. As announced  a sum of Rs.10 lakh crore is allocated as credit to farmers. In this 60 days interest waiver will be provided .
  2. The Fund of NABARD  will be increased to Rs. 40,000 crore.
  3. The Government will also set up mini labs in Krishi Vigyan Kendras for soil testing.
  4. An amount of Rs 5,000 crore initial corpus will be granted as  micro irrigation fund.
  5. Irrigation corpus has been increased from Rs 20,000 crore to Rs 40,000 crore.


Challenges in 2017-18


  1. World economy faces considerable uncertainty, in the aftermath of major economic and political developments during the last year.
  1. The US Federal Reserve’s , intention to increase policy rates in 2017, may lead to lower capital inflows and higher outflows from the emerging economies
  2. Uncertainty around commodity prices, especially that of crude oil, has implications for the fiscal situation of emerging economies
  3. Signs of retreat from globalisation of goods, services and people, as pressures for protectionism are building up


Rural population


  1. The government has set target to bring 1 crore households out of poverty by the end of  year 2019.
  2. Under the MGNREGA programme five lakh farm ponds will be established under Rs 3 lakh crore will be spent for rural India.
  3. The Income of farmer will be doubled under MGNREGA.
  4. The women will be encouraged for participation. Over 55% of women population is targeted under this scheme.
  5. MGNREGA will be supported by Space Technology.
  6. For those who are homeless government will allocate houses upto 1 crore.
  7. Rs. 19,000 crore will be allocated for Pradhan Mantri Gram Sadak Yojana in 2017-18.
  8. The target is to achieve 100% rural electrification by March 2018.
  9. The Sanitation coverage has increased from 42% to 60%  from October 2013 to now.


For youth population

  1. Will introduce a system of measuring annual learning outcomes and come out with an innovation fund for secondary education.
  2. The Government will lay Focus on 3,479 educationally-backward blocks.
  3. In order to maximise potential skill India mission was launched for which about 100 India International Centres will be established across the country.
  4. There will be focus on  introduction of foreign languages Courses.
  5. Target Will be there  to create 5000 PG seats per annum.


For the poor and health care


  1. For Mahila Shakthi Kendras Rs 500 crore is allocated.
  2. Rs. 6000 will be transferred to bank accounts of each person Under a nationwide scheme for pregnant women. This done to facilitate pregnant women for better care of infants.
  3. Around Rs.1,84,632  crore allocated for women and children.
  4. The Lending rates for housing will be reduced as there is surplus liquidity.
  5. The Chronic disease tuberculosis will be eliminated by the end of 2025.
  6. Health sub centres, numbering 1.5 lakh, willl be transformed into health wellness centres.
  7. Two AIIMS will be set up in Jharkhand and Gujarat.
  8. Will undertake structural transformation of the regulator framework for medical education.
  9. Allocation for Scheduled Castes  is Rs. 52,393  crore
  10. Aadhaar-based smartcards will be issued to senior citizens to monitor health.




  1. About  Rs. 39,61,354 crore has been allocated in this field.
  2. Total allocation for the field of Railways is Rs. 1,31,000 crore.
  3. There will be No service charge on tickets booked through IRCTC.
  4. For passenger safety the  Raksha coach with a corpus of Rs. 1 lakh crore for five years.
  5. All the Unmanned level crossings will be eliminated by the year  2020.
  6. About 700 km in establishment of railway lines i.e 3,500 km of railway lines to be commissioned this year up from 2,800 km last year
  7. The New SMS-based ”clean my coach service” is put in place.
  8. There will also be “Coach mitra facility” introduced to register all coach related complaints.
  9. By the end of 2019 all trains will have bio-toilets.
  10. About 500 stations will be made differently-abled friendly.
  11. Indian Railways to partner with logistics players for front-end and back-end solutions for select commodities.
  12. Indian Railways will also offer competitive ticket booking facility
  13. Rs. 64,000 crore allocated for highways and expressways
  14. High speed Internet to be allocated to 1,50,000 gram panchayats across the country.
  15. New Metro rail policy will be announced with new modes of financing


The Energy Sector


  1. A strategic policy for crude oil reserves will be set up
  2. Rs. 1.26,000 cr for energy production-based investments received
  3. The new Trade infra export scheme will be launched 2017-18.


Tax proposals

  1. The  Proportion of direct tax to indirect tax is not optimal.
  2. Around 1.95 crore individuals showed their income between Rs 2.5 lakh to Rs 5 lakh.
  3. Out of 76 lakh individual assessees declaring their income above  Rs 5 lakh, 56 lakh are salaried.
  4. Only 1.72 lakh people showed income of more than Rs 50 lakh a year.
  5. From Nov 8 to Dec 30: Deposits between Rs 2 lakh and Rs 80 lakh was made in 1.09 crore bank accounts.
  6. The Net tax revenue of 2013-14 was Rs 11.38 lakh crore.
  7. Rate of growth of advance tax in Personal I-T is 34.8% in last three quarters of this financial year.
  8. Holding period for long term capital gain lowered to 2 years
  9. Propose to have carry-forward of MAT for 15 years.
  10. Capital gains tax to be exempted for persons holding land from which land was pooled for creation of state capital of Telangana.
  11. Corporate tax: In order to make MSME companies more viable, propose to reduce tax for small companies of turnover of up to 16. Rs 50 crore to 25%. About 67 lakh companies fall in this category. 96% of companies to get this benefit.
  12. Propose to reduce basic customs duty for LNG to 2.5% from 5%
  13. SIT on black money suggested no cash transactions of more than Rs 3 lakh. Govt has accepted this proposal.
  14. Income Tax Act to be amended.  No transaction above Rs 3 lakh to be permitted in cash.
  15. Limit of cash donation by charitable trust reduced to Rs 2,000 from Rs 10,000.
  16. Net revenue loss in direct tax could be Rs. 20,000 crore.
  17. India’s tax to GDP ratio is not favourable.
  18. Out of 13.14 lakh registered companies, only 5.97 lakh companies have filed returns for 2016-17.


Personal income tax


  1. The existing rate of tax for individuals ranging from Rs.  2.5- Rs 5 lakh has been  reduced to 5% from 10%.
  2. Rest of the category of  tax payers in subsequent brackets will get benefit of Rs 12,500.
  3. Individuals who are  filing I-T returns for the first time will not come under government Scrutiny.
  4. The surcharge on individual income above Rs. 50 lakh and up to Rs 1 crore will be 10%.
  5.  There will be 15%  surcharge on individuals whose income is  above Rs. 1crore and above.


Financial Sector


  1. The FDI policy involves reforms like more than 90% of FDI inflows are now automated.
  2. The Shares of Railway Public Sector Enterprises like IRCTC would be listed on stock exchanges.
  3. Bill on resolution of financial firms to be introduced in this session of parliament.
  4. It has been decided to abolish FIPB (Foreign Investment Promotion Board) in 2017-18.
  5. Revised mechanism to ensure time bound listing of CPSEs
  6. Computer emergency response team for financial sector to be formed.
  7. Pradhan Mantri Mudra Yojana lending target at Rs 2.44 lakh crore for 2017-18
  8. Digital India – Bhim app will unleash mobile phone revolution – two new schemes to promote the app.
  9. Govt to introduce two new schemes to promote BHIM App – referral bonus for users and cash back for traders: FM.
  10. Negotiable Instruments Act might be amended.
  11. DBT to LPG consumers , Chandigarh is kerosene free, 84 govt schemes are on the DBT platform.
  12. Head post office as the central office for rendering passport services
  13. Easy online booking system for Army, defence personnel
  14. For big-time offences – including economic offenders fleeing India, the govt. will introduce a legislative change or new law to confiscate the assets of these people within the country.


Fiscal Situation


  1. The Total expenditure – Rs. 21, 47,000 crore
  2. Total Abolition on plan, non-plan expenditure, focus on capital expenditure ( Capital expenditure will be 25.4 per cent)
  3. Rs. 3,000 crore under Department of Economic Affairs for implementing Budget announcements.
  4. The Defence expenditure excluding pension of personnels  will be  Rs 2,74,114  crore.
  5. For science and technology the expenditure will be Rs. 37,435 crore.
  6. The Total resource allocation  to all States and UTs is Rs 4.11 lakh crore
  7. The Recommended 3% fiscal deficit for 3 years with deviation of 0.5% of GDP.
  8. The Revenue deficit will be 1.9 %.
  9. Pegged fiscal deficit of 2017-18 at 3.2% of GDP and remain committed to achieving 3% in the next year.


Funding of political parties


  1. The maximum  amount of cash donation for political parties will be Rs 2,000. Earlier it was 20, 000.
  2. These Political parties will be entitled to receive donations by cheque or digital mode from donors.
  3. Amendment is being proposed to RBI Act to enable issuance of electoral bonds that government will scheme.
  4. Donor can purchase these bonds from banks or post office via cheque or digital transactions.
  5. These can be redeemed only by registered political parties.


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January 2017

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