To promote affordable homes, the government also proposed to amend the Section 80-IBA, relaxing the condition of period of completion of the project for claiming deduction from the current three years to 5 years.
Effectively, the capital expenditure estimated in the Budget for next fiscal is 10.7 percent higher than revised estimates of Rs 2.79 lakh crore for the current fiscal.
Jaideep Ghosh, Partner at KPMG in India is of the view that Union Budget aims to boost digital economy, which will have a positive impact on the telecom sector. Additional outlay of Rs 10,000 crore for BharatNet and creation of â€˜Digi- Gaon‘ a definite positive to Broadband penetration.
Nikhil Khandelwal, MD, Systematix Shares & Stocks is of the view that Budget has also put in place various blocks to improve the farm level income â€“ and hence believes that farm inputs requirement and rural incomes are both set to increase in the times to come.
Presenting the Budget in Parliament, Finance Minister Arun Jaitley proposed that category I and II foreign portfolio investors (FPIs) should be exempted from taxation on indirect transfers.
However, gross borrowing has been pegged at Rs 5.8 lakh crore up for 2017-18, marginally higher from Budget estimate of Rs 6 lakh crore in the ongoing fiscal.
â€œThe Fasal Bima Yojana launched by our Government is a major step in this direction. The coverage of this scheme will be increased from 30 percent of cropped area in 2016-17 to 40 percent in 2017-18 and 50 percent in 2018-19,â€ said Jaitley in the Budget speech.
Compared to guarded moves of the past, Jaitley used his fourth budget to launch policy changes including modifying India‘s political funding structure, but did not overhaul the corporate or individual income tax system as was widely expected.
Budget was as per expectations with no major changes with thrust on skill development, farmers, rural electrification and infrastructure development, says Achin Goel, Head, Wealth Management & Financial Planning at Bonanza Portfolio.
Finance Minister Arun Jaitley said on Wednesday the Union Budget for 2017-18 will push growth, promote digital economy and bring transparency in political funding.
Adhering to fiscal consolidation roadmap, Finance Minister Arun Jaitley today said the government will target to bring down the fiscal deficit to 3.2 percent of the GDP in the fiscal 2017-18.
"A merchant enabled Aadhaar payment system will be launched shortly. This will specially be beneficial to those who do not have debit cards, mobile wallets or mobile phones," Jaitley said while reading out the Budget in Parliament.
However, the ratings agency would still need to see more evidence of the effectiveness of reforms to justify a change in its ratings stance, said Marie Diron, associate managing director of the sovereign rating group at Moody's Investors Service.
The Finance Minister Arun Jaitley on Wednesday said that the government will stick to its GST rollout date on July 1.
Elcina Electronic Industries Association of India said the exemption should be only for short-period to meet immediate needs to address shortages of such machines. In the long-term can, exemption to such machines can be detrimental for local manufacturing.
These rules will be internationally harmonised and attract investments into this sector. This will reduce the cost of such devices," Finance Minister Arun Jaitley said.
Presenting the Budget in Parliament today, Jaitley said, "In the road sector, I have stepped up the budget allocation for the National Highways from Rs 57,676 crore in the BE of 2016-17 to Rs 64,000 crore in 2017-18."
Delivering his fourth Budget address to parliament, Jaitley vowed to spend more on rural areas, infrastructure and poverty alleviation in what he called a Budget for the poor.
Union Bank of India jumped 4.34 percent, Bank of Baroda rose 3.27 percent, SBI went up 3.13 percent and PNB gained 3.12 percent on BSE.
"The Union Cabinet chaired by Prime Minister Narendra Modi has given ex-post facto approval to the proposals for extension of tenure of loans under the CLSS vertical of Pradhan Mantri Awas Yojana (Urban) Mission from 15 to 20 years," said an official statement.
The decision to ban cash transactions beyond a threshold is based on the recommendation of the Special Investigation Team on black money that was set up by the Supreme Court, Jaitley said while presenting Union Budget 2017-18 in Parliament.
Shares of Liberty Shoes surged 5 percent, Mirza International climbed 4.79 percent, Relaxo Footwears gained 2.96 percent, Superhouse (2.92 percent) and Bata India (0.91 percent) on BSE.
The scheme will be on the lines of the package announced for the textiles sector in June last year.
The FM also said that high speed broadband will be available in more 150,000 gram panchayats via WiFi hotspots by end of next financial year.
Under Indradhanush roadmap announced in 2015, the government will infuse Rs 70,000 crore in state banks over four years while they will have to raise a further Rs 1.1 lakh crore from the markets to meet their capital requirement in line with global risk norms, known as Basel-III.