Finance minister Arun Jaitley has presented the Union Budget 2017 in Parliament. Here are the live updates following his budget speech

Union finance minister Arun Jaitley and his team ahead of the Union Budget 2017 presentation on Wednesday. Photo: Ramesh Pathania/Mint

Union finance minister Arun Jaitley on Wednesday presented the Union Budget 2017, proposing revised income tax limits for individual assesses, higher spending in the infrastructure sector, and measures to push India towards a digital economy. Here are the live updates following his budget speech:

7.40pm: Union Budget 2017 shows Modi has fulfilled promise on black money, says Amit Shah

BJP president Amit Shah on Wednesday said that Union Budget 2017 shows that Prime Minister Narendra Modi has fulfilled the promise made in 2014 to curb black money and bring transparency in political funding. “We had promised in 2014 to root out influence of black money in political funding and bring in transparency. Prime Minister Narendra Modi has today fulfilled that promise. By reducing the limit of cash funding to political parties to Rs2,000 from Rs 20,000, he has ushered in a new era,” Shah said.

7.00pm: Well-being of the Indian economy guiding light of Union Budget 2017: Arun Jaitley

In an interview to DD News on Wednesday, finance minister Arun Jaitley said the guiding philosophy behind Union Budget 2017 was the well-being of the Indian economy, with a focus on strengthening sectors that will boost the overall economic performance. The Union finance minister also said that his measure are aimed at going hard on tax evaders while providing tax payers relief and with additional spending power.

4.07pm: Sensex closes 486 points up after Union Budget 2017 cheers investors

BSE Sensex on Wednesday rose 485.68 points, or 1.76%, to 28,141.64 while the Nifty 50 rises 155.10 points, or 1.81%, to 8,716.40 after finance minister Arun Jaitley’s budget speech.

3.15pm: Union Budget 2017 a damp squib, lacks vision: Rahul Gandhi

Slamming the Union Budget presented by finance minister Arun Jaitley, Congress vice-president Rahul Gandhi on Wednesday said it lacked a clear vision and had nothing for farmers, youths and job creation. “We were expecting fireworks, instead it was a damp squib. It is just ‘sher-o shayari’ in the budget. There is nothing for farmers and youth and nothing for job creation. There is no clear vision,” the Congress vice-president said soon Jaitley’s budget speech in the Lok Sabha.

2.47pm: Budget 2017 futuristic, says Narendra Modi

Prime Minister Narendra Modi on Wednesday described Union Budget 2017 as “futuristic”, with an aim on fulfilling the “dreams” of every section, including the poor, the farmers and the under-privileged while focussing on job creation, transparency, urban rejuvenation and rural development.

“This is a budget for the future—for farmers, underprivileged, transparency, urban rejuvenation, rural development, enterprise,” Modi said while commenting on the document presented by finance minister Arun Jaitley in the Lok Sabha.

Reactions to Union Budget 2017

Union finance minister Arun Jaitley’s Union Budget 2017 has evoked diverse reactions from politicians, industry leaders, experts and the Twitterati.

Here are some of the reactions:

• Prime Minister Narendra Modi: “The FM has presented an ‘Uttam’ Budget, devoted to strengthening the hands of the poor,” tweeted PMO.
• Power minister Piyush Goyal: “Congratulate @arunjaitley ji on reform oriented budget with concessions to middle class & SMEs while maintaining taxes through compliance,” tweeted.
• Yogendra Yadav: “The bullish tone of FM and rosy picture of economy is not borne out by the modest picture painted by economic survey yesterday. Reducing cash limit for political funding from Rs 20K to Rs 2K is meaningless. Because there is no limit in number of persons,” tweeted.

Budget 2017: Jaitley reduces income tax rates

Union finance minister Arun Jaitley during his budget speech on Wednesday proposed revised tax limits for individual assesses in his presentation of the Union Budget 2017

Here is what the finance minister proposed:

—Tax liability for those with annual income between Rs2.5 and 5 lakh at 5% instead of the existing 10%.

—Surcharge of 10% for those individuals whose annual income is Rs50 lakh and Rs1 crore.

—Surcharge on individual annual income of Rs1 crore or more remains unchanged at 15%.

—A single-page income tax return filing form for taxable income under Rs5 lakh.

Highlights of Union Budget 2017-18

Here are the live updates on Arun Jaitley’s budget speech:

12.50pm: Income tax rate for individuals earning between Rs2.5 lakh and Rs5 lakh reduced to 5% from 10%; 10% surcharge on those individuals who have an income between Rs50 lakh and Rs1 crore. A single one-page form for filing income tax returns for taxable income up to Rs5 lakh.

Maximum amount of cash donation to any political party will be Rs2,000 from one individual.

12.47pm: Political parties will be entitled to receive donation by cheque or in digital mode, from their donors.

12.41pm: Arun Jaitley limits cash transactions for individuals at Rs3 lakh.

12.39pm: Basic customs duty on LNG to be reduced from 5% to 2.5%.

12.37pm: To make MSMEs (micro, small and medium enterprises) more viable, income tax for smaller firms to be reduced. Tax rate for companies with an annual turnover up to Rs50 crore to be reduced to 25%.

Rate of growth in advance tax in personal income tax in last three quarters of this financial year is as high as 34.8%.

12.33pm: 24 lakh people show income above Rs10 lakh in 2016. 1.7 crore people file income tax returns out of 4.2 crore salaried people.

12.32pm: Due to demonetisation, advance tax on personal Income tax increased by 34.8%

12.28pm: We are committed to make taxation rates reasonable. This approach will change the colour of money.

12.27pm: From 8 November to 30 December ((demonetisation period), deposits between Rs2 lakh and Rs80 lakh were made in 1.09 crore bank accounts.

12.25pm: Arun Jaitley says India largely a tax non-compliant country.

12.24pm: Trade Infrastructure Export Scheme to be launched in 2017-18; total allocation for infrastructure at record Rs 3.96 lakh crore (Rs3.96 trillion).

12.22pm: Digi Gaon will be launched to promote tele-medicine and education. Dedicated micro-irrigation fund to be set up by Nabard to achieve mission of Per Drop, More Crop. (PTI)

Second phase of solar power development to be taken up with an aim of generating 20,000 MW. Trade Infrastructure Export Scheme to be launched in 2017-18. The total allocation for infrastructure at record Rs3.96 trillion. (PTI)

12.20pm: Budget allocation for highways stepped up to Rs64,000 crore in FY18 from Rs57,676 crore. For transport sector, including railways, road and shipping, government provides Rs 2.41 lakh crore. (PTI)

Allocation of Rs10,000 crore for Bharat Net project for providing high-speed broadband in FY18. (PTI)

12.12pm: Service charge on e-tickets booked through IRCTC will be withdrawn; railway tariffs to be fixed on the basis of cost, social obligation and competition; new metro rail policy to be unveiled. (PTI)

Delhi and Jaipur to have solid waste management plants and five more to be set up later. (PTI)

12.11pm: Government proposes Coach Mitra facility to redress grievances related to rail coaches. (PTI)

12.08pm: Capital and development expenditure pegged at Rs 1.31 lakh cr for railways in 2017-18 from the budget. Rs1 lakh crore (Rs1 trillion) corpus for railway safety fund over five years. Five hundred stations will be differently abled by providing lifts and escalators. (PTI)

12.04pm: FIPB (Foreign Investment Promotion Board) to be abolished in 2017-18 to liberalize FDI policy. Over 90% of FDI proposls are now processed through automatic route. (PTI)

12.03pm: 35% increase in allocation for Scheduled Castes to Rs52,393 crore.

12.02pm: Model Shops and Establishment Bill to open up additional opportunities for employment of women. For senior citizens, Aadhaar-based health cards will be issued.

12.00pm: The government to set up dairy processing fund of Rs8,000 crore over three years with initial corpus of Rs2,000 crore.

11.55am: In higher education, we will undertake reforms in UGC (University Grants Commission), give autonomy to colleges and institutions. The allocation for rural agri and allied sector in 2017-18 is record Rs181,223 crore. (PTI)

Pradhan Mantri Kaushal Kendras will be extended to 600 districts; 100 international skill centres to be opened to help people get jobs abroad (PTI)

11.52am: Cabinet extends tenure of loans under Credit Linked Subsidy Scheme of Pradhan Mantri Awas Yojana from 15 to 20 years.

11.51am: A system of annual learning outcome in schools to be A system of annual learning outcome in schools to be introduced; innovation fund for secondary education to be set up

11.50am: We propose to provide safe drinking water to 28,000 arsenic and fluoride affected habitations. Sanitation coverage in villages has increased from 42% in October 2016 to 60%, a rise of 18%. (PTI)

11.48am: Rs27,000 crore on to be spend on Pradhan Mantri Gram Sadak Yojana; one crore houses to be completed by 2017-18 for the homeless. (PTI)

11.47am: The merger of the railway budget with the general budget brings focus on a multi-modal approach for development of railways, highways and inland water transport. Functional autonomy of the railways to be maintained. (PTI)

11.46am: Demonetisation was a continuation of series of measures taken by the government in two years it is bold and decisive measure. It will have only transient impact on economy and bring in long-term benefits including higher GDP growth and tax revenue. Demonetisation will help in transfer of resources from tax evaders to government. (PTI)

11.45am: The government took two tectonic policy initiatives in 2016-17: the passage of Goods and Services Tax (GST) Bill and demonetisation. Pace of remonetisation has picked up; demonetisation effects will not spill over to next year. (PTI)

11.43am: We are seen as engine of global growth. The International Monetary Fund (IMF) sees India to grow fastest in major economies. Effects of demonetisation not expected to spill over to the next year.

11.41am: Agricultural sector is expected to grow at 4.1% this fiscal. Target of agriculture credit fixed at Rs10 trillion in 2017-18. Rs9,000 crore higher allocation for payment of sugarcane arrears.

Allocation under MGNREGA increased to 48,000 crore from Rs38,500 crore in Union Budget 2017. This is highest-ever allocation. Space technology to be used for monitoring MGNREGA implementation.

11.38am: Arun Jaitley says committed to double farm income in five years.

11.35am: The government’s agenda for next year is to transform, energise and clean India. World Bank expects India GDP growth rate at 7.6% in FY18 and 7.8% in FY19.

Mini labs by qualified local entrepreneurs to be set up for soil testing in all 648 krishi vigyan kendras in the country. Plan, non-plan classification of expenditure done away with in Union Budget 2017-18 to give a holistic picture.

11.33am: The government will spend more in rural areas, infrastructure, poverty alleviation, while maintaining fiscal prudence as guiding principle of the budget. Budget presentation advanced to help begin implementation of schemes before the onset of monsoon.

11.31am: The merger of railway budget with the Union budget is a historic step, does away with a colonial practice, and will allow for an integrated plan.

11.19am: Demonetisation was a bold and decisive strike in a series of measures to arrive at a new normal of bigger, cleaner and real GDP. Double-digit inflation has been controlled, sluggish growth replaced by high growth. There are positive signs that point to a positive outlook for the next year.

11.18am: We are moving from informal to formal economy, and the government is now seen as a trusted custodian of public money.

11.16am: India stands out as a bright spot in world economic landscape. Growth in a number of emerging economies is expected to recover in 2017.

India stands out as a bright spot in world economic landscape. Growth in a number of emerging economies is expected to recover in 2017. Photo: Mint

11.15am: Arun Jaitley says have moved from a discretionary-based administration to a policy and system-based administration, A massive war on black money has been launched.

11.10am: Finance minister Arun Jaitley starts presenting the Union Budget in the parliament amid ruckus from the opposition benches.

11.05am: Mahajan says it is an exceptional situation as the budget session has been called by President Pranab Mukherjee. The House will not sit on Thursday as a mark of respect for the dead parliamentarian. Congress’s Mallikarjun Kharge demands the adjournment of House today, he says the Union budget can be presented tomorrow.

11.00am: Lok Sabha speaker Sumitra Mahajan reads out an obituary reference to late MP E. Ahamed.

Lok Sabha speaker Sumitra Mahajan. Photo: AFP

11.00am: Opposition opposes budget presentation, calling for the parliament to be adjourned following the death of MP E. Ahamed.

10.46am: PM Narendra Modi arriving in Parliament House for the cabinet meeting.

10.44am: Lok Sabha speaker Sumitra Mahajan says “budget will be there as it is a constitutional obligation”.

10.22am: The finance minister is expected to present the annual federal budget on schedule later on Wednesday despite the death of a sitting member of parliament, a spokesman for the prime minister’s office said.

Parliament typically adjourns for a day after the death of a member, although Indian TV channels cited a precedent where the budget presentation had still gone ahead in a previous year.

A final decision on the timing of the budget will be taken when political parties and the speaker of the house meet early on Wednesday, officials said.

Finance minister Arun Jaitley is expected to boost spending and ease back on cutting the deficit when he presents his fourth budget, as he seeks to lift growth hit by the government’s drive to purge the economy of “black money”.