BUDGET LIVE! Jaitley tables Budget in RS, House adjourned for the day

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Wed, 01 February 2017

BUDGET Jaitley tables Budget in RS, House adjourned for the day

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16:07 Sensex zooms 485 points post-Budget

Just In: Sensex zooms 485.68 pts to close at 28,141.64; Nifty gains 155.10 pts to end at 8,716.40 on Budget day.

Finance Minister Arun Jaitley today tabled the Union Budget for the year 2017-18 along with the fiscal policy statements in Rajya Sabha.

He tabled the Budget in the Upper House after doing so in the Lok Sabha.

Before the House convened and Chairman Hamid Ansari came, Jaitley met and greeted former prime minister Manmohan Singh, and shared a few moments with him. He also greeted senior member Karan Singh, besides some others.

Jaitley was accompanied by Union Power Minister Piyush Goyal, who also greeted Singh.

Soon after the tabling of the Budget, the chairman adjourned the House for the day.

14:34 Markets give high-five to Budget 2017

Cheering the Budget proposals of infusing Rs 10,000 crore in public sector banks and keeping long-term capital gains tax unchanged for the capital markets, the benchmark Sensex regained the 28,000-mark by soaring over 400 points at mid-session today.

Sentiments also got a boost after Finance Minister Arun Jaitley proposed to bring down the fiscal deficit to 3.2 per cent of GDP from 3.5 per cent.

The Sensex, which kept moving in a tight range after the Budget was presented in Parliament, made a strong rally by soaring 401.43 points, or 1.15 per cent to 28,057.41, powered by budgetary proposals to infuse Rs 10,000 crore in public sector banks, no change for capital markets and allocating a record Rs 3.96 lakh crore to infrastructure sector as well as granting infra status to affordable housing.

Moreover, proposal to further liberaise FDI policy too uplifted trading sentiments, brokers said.

The broad-based National Stock Exchange's Nifty also saw an upswing and shot up by 109.00 points, or 1.27 per cent to 8,670.30 following widespread gains in stock prices.

"No change in the capital gain tax, particularly long-term, in the Budget, cheered the investing fraternity" said a Delhi-based NSE broker, Manoj Choraria.

The government also kept the security transaction tax (STT) and other taxes for the capital markets unchanged.

Shares of State-run banks such as SBI, Union Bank of India, Bank of Baroda, Punjab National Bank and Syndicate bank hogged the limelight and climbed by up to 4 per cent as the government announced infusion of Rs 10,000 crore in public sector banks in the next fiscal.

Budget announcement of no cash transaction over Rs 3 lakh necessary to check black money, says M B Shah, Justice (retd), chairman of Special Investigation Team set up on black money.

Restricting cash holding to Rs 15 lakh with an individual in the Budget would have been a far better measure to check corruption, says the chairman of the SIT on black money.

13:58

Just In: Former RBI governor C Rangarajan describes the 2017-18 Budget as "a fairly routine" Budget.

13:53 I-T on Rs 5 lakh income cut to 5%. 10% surcharge above Rs 50 lakh

Income tax upto Rs 5 lakh income reduced to 5 pc.

Zero tax liability on those with income of upto Rs 3 lakh.

Those earning above Rs 5 lakh to get benefit of Rs 12,500 per annum from income tax slab re-calibration.

Individuals having income less than 5 lakh will have to file a return with a one page form.

10% surcharge on those with income between Rs 50 lakh and Rs 1 crore.

The existing 15% surcharge on those with income above Rs 1 crore will continue.

13:52 Modi reacts: It's an 'Uttam' Budget

"Har kisi ke sapne ko saakar karne ka thos kadam is budget mein saaf saaf nazar aata hai," Prime Narendra Modi said soon after Finance Minister Arun Jaitley presented the Union Budget 2017 on Wednesday.

The FM has presented an 'Uttam' Budget, devoted to strengthening the hands of the poor, Modi said, terming it as an important link between all the steps taken in the last two and a half years and the development in future that will follow.

The merger of Railway Budget with the general budget will give an impetus to the transport sector's growth, he said, and the focus was on railway safety fund.

Saying the aim of his government was to double the income of farmers, Modi said, "Budget mein sabse zyada zor kisaan, gaaon, garib, Dalit, peedit, shoshit pe kendrit kiya gaya hai."

"This Budget is yet again devoted to the well-being of the villages, farmers and the poor,' he said, adding that the housing sector also stands to gain immensely.

13:17

Revenue Secretary Hasmukh Adhia has tweeted: Benefit of 25% reduced Corporate IT will be available to companies with turnover upto 50 crore in 15-16, irrespective of turnover in 17-18.

13:15

Just In: Sensex rises 265.79 points, at 27,921.75

13:13 Head post offices to issue passports

Among the many other announcements made by Jaitley are:

Duty exempted on various POS machines and iris readers to encourage digital payments.

FPI to be exempt from indirect transfer provisions.

Customs duty on LNG halved to 2.5 pc.

Head post offices to issue passports

Govt considering option to amend Negotiable Instruments Act to ensure that holders of dishonoured cheques get payment.

3 year period for long-term capital gains tax on immovable property reduced to 2 years; base year indexation shifted from 1.4.1981 to 1.4.2001.

Govt doubles distribution target under Mudra Yojana to Rs 2.44 lakh crore for 2017-18.

Govt will amend the Multi-state Cooperative Act to protect the poor and gullible investors.

Computer emergency response team to be set for cyber security of financial sector.

Govt to further liberalise FDI policy.

Digi Gaon will be launched to promote tele-medicine and education.

13:12

Government pegs fiscal deficit target at 3.2 per cent for 2017-18 and 3 per cent for next year.

13:05

Just In: Path-breaking budget, a new era has begun, says Railway Minister Suresh Prabhu.

12:57 Markets unmoved by Budget proposals

Budget announcements fail to excite markets so far. Sensex down 19 points, Nifty50 falls 15 points.

Jaitley announces that maximum cash donation to political parties can be Rs 2000, down from the current Rs 20,000.

Political parties can receive donations only by cheque/digital mode.

Electoral bonds to be issued, which can be bought from banks by donors only through cheques/digital modes, and redeemable only in the account of registered political parties.

Every political party will have to file returns in accordance with the I-T Act, and exemption from income tax will be available only on compliance with these requirements.

12:41 Cash transaction above Rs 3 lakh barred

No cash transaction above Rs 3 lakh to be permitted, says Jaitley.

12:39 Income tax on MSMEs reduced to 25pc

Income tax on medium, small and micro enterprises with annual turnover of Rs 50 cr reduced from 30pc to 25 pc, announces Jaitley.

Of the 6.94 lakh companies in India, 6.67 lakh cos fall in this category.

12:34 Capital gains tax relief for real estate deals

Unoccupied houses to be subject to tax at notional rates, says Jaitley. Number of years when capital gains can be taxed from real estate liquidation reduced to 2 years from 3 years. Basket of instruments to be increased for investment without tax.

12:31

Thrust of direct tax proposals is to stimulate growth, relief for middle class, affordale housing, curb black money, transparency in political funding, simplification of tax laws, says Jaitley.

12:28

Between November 8 and Decembe 30, 2016, deposits between Rs 2 lakh and Rs 80 lakhs was made in 1.09 lakh bank accounts (Rs 5.3 lakh avg deposit), says Jaitley.

Deposits of more than Rs 80 lakh were made in 1.48 lakh bank accounts (Rs 3.31 cr average).

12:26

1.72 lakh show income more than Rs 50 lakh a year, but 1.25 cr cars sold last year. Two crores Indian travelled in in 2015. All this showswe are largely a tax-noncompliant economy, says Jaitley.

12:21

Other announcements made by Jaitley are:

Computer Emegency Response Team to be set up.

Unmanned railway level crossings to be done away with by 2020.

Proposal to step up allocation for PMAY Gramin from 15,000 crore to 23,000 crore in next year.

Select airports in tier-II cities to be taken up for operations, development on PPP mode.

12:20 Defence Budget hiked by Rs 274K crores

Defence budget (not including pensions) increased by Rs 274,114 crores.

Other announces for the defence forces are:

Centralised defence travel system for booking travel tickets by the military.

Web-based pension system has been set up for defence personnel.

Number of tribunals to be rationalised by merging them where possile.

Big-time offenders, including economic offenders fleeing the country will now face legislative changes, even a new law, under which their assets in the country will be confiscated till they subject themselves to the law of the land, says Jaitley. Needless to say, all constitutional safeguards will be provided.

12:12 20,000 MW solar power plants to be set up

Other announcements made by Jaitley are:

A new metro rail policy will be announced with focus on innovative models of implementation and finance.

20,000 MW solar power plants to be set up.

3,500 km railway lines to be commissioned in 2017-18 as against 2,800 km in 2016-17.

12:09 2 schemes to promote BHIM app

2 schemes to promote BHIM app, says Jaitley. One is a referral scheme and the other is a cashback.

12:07 Rs 10K cr for banks' recapitalisation

Rs 10,000 cr has been set aside for recapitalisation of banks.

12:06

A revised mechanism was announced by Jaitley for time-bound listing of Central Public Sector Enterprises. Shares of IRCON, IFRB etc to be listed.

12:04 Rs 10K cr to expand broadband coverage

Other announcements Jaitley made are:

National highway allocation at Rs 64,000 crore.

Rs 10,000 crore for BharatNet project to expand broadband coverage.

National Housing Bank will refinance individual loans worth Rs 20,000 cr in 2017-18.

Eco-system to make India a global hub for electronics manufacture. Allocation of Rs 745 cr.

12:02 FIPB to be abolished

FIPB to be abolished in 2017-18, says Jaitley.

Other announcements made by Jaitley are:

Pilot project for Aadhar cards containing health details for senior citizens.

New rules regarding medical devices will be formulated; will attract investment in sector, to reduce cost of the devices.

Outcome-based monetary measures to SC/ST by NITI Aayog.

Allocation to Scheduled Castes upped to Rs 52,393 crores.

No service charge on ticket booking through IRCTC website, announces Jaitley.

All coaches of railways to be fitted with bio-tyres by 2019, and at least 25 stations will be redeveloped over next year.

Railways to implement end-to-end solutions for some commodities, and propose to feed 7000 solar railway station in medium term, says Jaitley.

Allocation for railways in 2017-18: is Rs 131000 cr wherein Rs 55k cr is provided by the government, says Jaitley. 500 stations will be made differently-abled friendly.

A rail safety fund with corpus of Rs 100,000 crore will be created over a period of 5 years, and steps will be taken to launch dedicated trains for pilgrimage and tourism.

Four priorities for railways are: 1. Passenger safety 2. Development work 3. Cleanliness 4. Reform in Accounts.

11:54 Labour laws to be simplified

Special scheme for employment in textile sector launched. A similar scheme in leather sector, too, says Jaitley. The government is committed to ensuring conducive labour environment, and will undertake legislative reforms to simplify labour laws in India.

11:53 Rules to be amended to make drugs affordable

Government committed to take structural reform in medical education and practice, says FM, and propose to amend drug rules to ensure drugs available at reasonable price., Some 1.5 lakh health sub-centres to be transformed to health wellness centres. Will encourage reputed hospitals to start courses ,he adds.

11:50 2 AIIMS to come up in Gujarat and Jharkhand

Additional 5k post-graduate seats per annum, and two new AIIMS to be set up in Jharkhand and Gujarat, says Jaitley.

Affordable housing to be given infra status, says Jaitley, and that he has hiked allocation for women skill development to Rs 1.84 lakh crore in FY18.

Mahila Shakti Kendras will aim for women's empowerment, and government will set up 100 India-international skill centres.

Mahila Shakti Kendras will be set up at village level, and an allocation of Rs 500 crore has been made.

Five special tourism zones to be set up in partnership with states.

A national testing agency to conduct all examinations in higher education, freeing CBSE and other agencies, says Jaitley.

11:46 Jaitley promises reforms in UGC

Jaitley quotes Swami Vivekananda: 'Education which does not help the common mass of people to equip themselves is it worth of the name?', and announces an innovation fund for secondary education. Will undertake reforms in UGC to improve higher education, he adds.

Sanitation coverage in rural areas has risen to 60% vs 42% earlier.

Rs 19,000 cr allotted for PM rural road plan in FY18.

50,000 gram panchayats to be made poverty free by 2019, says Jaitley. and total allocation for rural, agricultural and allied sectors for 2017-18 is Rs 187223 cr, which is 24% higher than last year.

Government to achieve 100% rural electrification by May 1, 2018, and Rs 4,800 crore has been allocated under the Deen Dayal Upadhyaya Gram Jyoti Yojana, says Jaitley.

Propose to finish 1 crore houses by 2019 for those living in kachcha houses, says Jaitley, and pace of construction of roads has increased to Rs 133 km/day in 2017.

Long-term irrigation fund set up in NABARD, additional corpus Rs 20,000 cr

The Union Cabinet approves extension of tenure of loans under Credit Linked Subsidy Scheme of Pradhan Mantri Awas Yojana from 15 to 20 years.

11:38

Open defecation free villages to be given priority for piped water, says Jaitley.

11:38

Mini labs by qualified local entrepreneurs to be set up for soil testing in all 648 krishi vigyan kendras in the country, says Jaitley.

11:37

A long-term irrigation fund to be set up in NABARD with an additional corpus Rs 20,000 crores. Will support NABARD to digitise 63,000 primary agri co-ops, says FM, and a Rs 5000 cr worth dedicated micro irrigation fund will be set up by NABARD. To up crop insurance coverage to 50% in FY19, says Jaitley, and to ensure flow of adequate credit to underprivileged areas.

11:35 MGNREGA allocation hiked to Rs 48k crore

The allocation for MGNREGA for 2017-18 has been increased to Rs 48000 crore, and we will bring one crore rural families out of poverty, says Jaitley.

Long-term irrigation fund has been set up in Nabard, and its corpus will be raised to Rs 40 crore, announces Jaitley. We are committed to double farmer's income in five years. The target for agricultural credit fixed at Rs 10 lakh crore this year, and agriculture expected to grow at 4.1% in the current year, he says.

11:29

Have done away with planned and non-planned allocation, says Jaitley, and Budget has been advanced to enable Parliament avoid a vote on account.

11:26 10 themes running through Budget 2017

The 10 themes running through Jaitley's Budget are: Farmers, rural population, youth, poor and underprivileged, infrastructure, financial sector, digital economy, public service, prudent fiscal management and tax administration

11:24

Our agenda for next year is to transform, energise and clean India, that is tech India, says Jaitley.

11:22 Budget to spend more on rural areas and infra: Jaitley

My focus in this Budget is to spend more in rural areas, infrastructure, poverty alleviation and yet maintain fiscal prudence, says Jaitley.

11:19 Jaitley quotes Gandhiji to defend note ban

Demonetisation is a bold initiative, seeks to create a new normal, is part of my government's resolve to eliminate counterfeit currency, black money, and terror funding, says Jaitley. The disruption is expected to have only a transient impact on economy, and quotes Mahatma Gandh: A right cause never fails.

11:16

Two tectonic policy initiatives, says Jaitley, referring to GST and demonetisation.

11:15 3 challenges to EMs, says Jaitley

Three challenges for emerging markets, says Jaitley. One, the current monetary policy stance of US Fed may lead to higher capital outflows. Two, uncertainty over commodity prices. And three, signs of increasing retreat from globalisation of services and goods, as pressures for protectionism build up across the world.

11:11 Focus on energising youth: Jaitley

We have moved from informal to formal economy, says Jaitley. Sluggish growth replaced by high growth. Government seen as trusted custodian of public money, express our gratitude to the people of India. Focus will be on energising our youth.

11:10

Just In: This should be a very disciplined Budget. It must send out a message to the rest of the world that fiscally we are very responsible, says Amitabh Kant, Niti Aayog.

11:08 Jaitley rises to present Union Budget

Finance Minister Arun Jaitley rises to present the Union Budget. There's a slight commotion with Congress's leader of the House Mallikarjun Kharge insisting that the House be adjourned today as a mark of respect to E Ahamed. He is clearly going to be overruled by the Speaker.

Day 2 of the Budget session of Parliament gets underway with Lok Sabha Speaker Sumitra Mahajan reading out the obituary notice for former Union minister E Ahamed who passed away in the wee hours of today.

Coming up next is the Union Budget presentation by Finance Minister Arun Jaitley.

11:02

Just In: 13 stocks hit fresh 52-week highs ahead of Union Budget.

10:59 Good news at last as Nikkei PMI turns positive for Jan

Manufacturing sector rebounded from demonetisation downturn in January amid rising order books, production as well as buying levels and the expansion in the sector is likely to pick up pace in coming months, says a monthly survey.

The Nikkei Markit India Manufacturing Purchasing Managers' Index (PMI) -- an indicator of manufacturing activity -- increased to 50.4 in January from 49.6 in December.

A reading above 50 indicates expansion while any score below the mark denotes contraction.

The main factors contributing to the above-50.0 PMI reading were growth of both new orders and output as market conditions returned to normal and led to subsequent improvement in demand.

10:55

Just In: Market back in green; Sensex up 30 pts, Nifty50 is nearly flat.

10:55

Just In: Here's some key data ahead of the Union Budget: Indian factory activity returned to modest growth in January. Nikkei Manufacturing PMI at 50.4 vs 49.6 month on month.

10:53

Just In: Union Cabinet meeting concludes after approving Union Budget 2017.

10:51 I-T exemption maybe raised to Rs 3.5 lakh

The Modi government's first unified Union Budget, to be presented today, will be a please-all Budget with a deep focus on direct taxes and sops, knowledgeable sources said, reports Rajeev Sharma.

As part of this feel-good budget, the personal income tax exemption limit is likely to be raised from Rs 2.5 lakh to Rs 3.5 lakh.

Corporate tax is likely to be reduced from 25 per cent to 18 per cent to boost the corporate sector.

Besides, expect the Budget to have a sharp focus on sops for farmers, ways to boost agricultural income and big bang announcements in fields of health and infrastructure.

10:50

Just In: Rail stocks decline 3-5% ahead of Budget. Sensex, Nifty jittery as Budget countdown starts; Maruti up 2%

10:41

Just In: Budget will be presented today, will formally announce shortly, says Lok Sabha Speaker Sumitra Mahajan.

10:41 Govt arrives at consensus over Budget presentation

The cloud hovering over the presentation of Union Budget 2017 got cleared as the government arrived at a consensus after speaking to all political parties.

Sources said the obituary to former Union minister and Indian Union Muslim League MP E Ahamed will take place before the presentation of the Union Budget.

The budget had been passed in the past as well after sitting MP Paul Jujhar and MoS industry M B Rana breathed their last in 1954 and 1974 respectively.

It was earlier speculated that the Budget could be postponed by a day after E Ahamed passed away at the RML Hospital in the national capital in the wee hours of today after suffering a heart attack.

This year's Budget is historic in several ways.

It is being presented for the first time on February 1, after having been a February-end event all along. The government is aiming at implementing the budgetary provisions from the beginning of the financial year, which is April 1.

Another feature of this year's Budget is that instead of a separate Rail Budget presented by the railway minister, allocations for the railways will be presented as part of the General Budget by the finance minister himself.

After presenting the Budget, Jaitley will reply to questions by Twitterati on the Budget proposals. The questions to Jaitley can be asked on Twitter by using the hashtag #MyQuestionToFM.

The first part of the Budget session will continue till February 9, and after a month-long recess the second part will commence from March 9.

The first part of the session has been kept brief in view of the upcoming assembly polls in Uttar Pradesh, Uttarakhand, Goa, Punjab and Manipur.

10:29 Jaitley tweets: Watch Budget at 11 am

Just In: 'Watch me present Union Budget 2017 at 11 am today,' tweets Finance Minister Arun Jaitley.

10:26 Jaitley confirms Budget presentation is on

With President Pranab Mukherjee giving his assent, Finance Minister Arun Jaitley has confirmed that Budget 2017 will be presented today as scheduled.

The Congress and Shiv Sena had asked for the Budget to be postponed following the death of former Union minister E Ahamed, casting a shadow on the budgetary process.

However, with the President's okay, the Budget presentation will proceed as scheduled.

Copies of the Budget have already arrived in Parliament, as has the finance minister along with his team.

There have been two precedents where the Budget has been read after a sitting MP had passed away. The first was in 1954 with the rail budget, and in 1974 with the Union budget.

10:19 Jaitley condoles E Ahamed's demise

Expressing condolences on the sad demise of former union minister and Indian Union Muslim League leader E Ahamed, Union Finance Minister Arun Jaitley on Wednesday prayed that the former's soul rests in peace.

'Condolences on the sad demise of Mr. E Ahamed, a veteran parliamentarian & former Union Minister. May the departed soul rest in peace,' Jaitley tweeted.

Prime Minister Narendra Modi earlier today expressed his condolence on the demise of Ahamed and said the latter's empowerment of the Muslim community would be remembered.

The prime minister said the IUML leader devoted significant efforts towards Kerala's progress, adding that his role in deepening India's ties with West Asia was notable.

The markets rose by over 64 points in opening trade today as investors built up positions ahead of the Union Budget, which is expected to be unveiled at 11 am.

The rupee appreciating 24 paise to 67.63 against the dollar added to the positivity.

The 30-share BSE index, which had lost 226.50 points in the previous two sessions, recovered 64.15 points, or 0.23 per cent, to 27,720.11.

Similarly, the NSE Nifty moved up 21.90 points, or 0.26 per cent, to 8,583.20.

Fresh positions created by retail and domestic institutional investors on the hopes of an investor-friendly budget lifted market sentiments.

Realty, PSU, oil and gas, capital goods, consumer durables and banking stocks were lapped up, accounting for much of the gains.

How will the markets react later in the day? Let's wait and watch.

Just In: Finance Minister Arun Jaitley has reached Parliament; ANI, quoting government sources, says the Budget presentation will go on as scheduled. Photograph: ANI.

Speculation is rife that the presentation of the Union Budget will be delayed by a day after former Union minister E Ahamed died early this morning.

Traditionally, Parliament is adjourned for a day if a sitting member dies either during the inter-session period or during the session itself.

However, the Budget can be presented in the Rajya Sabha today as E Ahamed was not a member of the Upper House. The Lok Sabha can be convened to mourn the death of the MP after which it is adjourned, and the Budget can be taken to the Rajya Sabha.

According to reports, a final call on the budget will be taken by the Speaker, and a decision is expected by 10 am.

Image: Finance Minister Arun Jaitley along with his ministry officials with the Budget papers, on Wednesday morning.

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