www.thehansindia.com WARANGAL FRIDAY 2 FEBRUARY 2018 PAGES 20 `5.00 Forecast: Sunny Temp: Max.33°C. Min.15°C. Humidity: 22% Sunrise: 06:44 Sunset: 06:06 H Simultaneously published from Hyderabad | Warangal | Tirupati | Amaravati | Visakhapatnam | Khammam | Kurnool | Delhi H FARMERS WHAT IT MEANS TO THEM ALL POOR PEOPLE JEWELLERS Higher minimum support price promised. Heavy spend on agri markets, irrigation dairy, aqua laid out. Can sell extra solar power to state New health scheme is expected to benefit as many as 500 million people with up to Rs 5,00,000 in medical reimbursement in a year In the light of 60 per cent of gold demand accounted for by the rural India, the big thrust on boosting rural and farm incomes could benefit large jewellery chains CONSUMERS CORPORATES Increase in health and education levy to 4% from 3% will make almost every product or service slightly more expensive Corporate tax cut to 25% from 30% for firms with up to Rs 250 cr turnover, benefiting 99% of companies. India Inc feels left out SALARIED SENIOR CITIZENS INVESTORS Just a standard deduction of Rs 40,000 for salaried tax payers. But, FM took away transport allowance of Rs 9,600 and medical allowance of Rs 15,000, thereby resulting in negligible benefit Finance Minister extends a bouquet of goodies for the senior citizens as well. They get Rs 50,000 exemption for medical insurance under the Section 80D A 10% tax levied on longterm capital gains in share market. Also, 10% tax on distributed income by equityoriented MFs at the hands of investor is unpalatable A HEALTHY, ‘JAI KISAN’ BUDGET Eyeing 2019 polls, FM extends sops to the poor, but squeezes middle class New Delhi: With an eye on the next Lok Sabha elections, Finance Minister Arun Jaitley in his 2018-19 budget on Thursday proposed a major health insurance scheme for the poor, a higher minimum support price and a step up of Rs 1 lakh crore as institutional credit for farmers along with a spend of nearly Rs 6 lakh crore on infrastructure development. To pay for this seeming bout of generosity, albeit with vote-banks in mind, the FM has mopped up huge sums through three or four simple steps, mostly aimed at the middle class. While providing some sops to salaried individuals and pensioners, it has aimed to raise Rs 11,000 crore by increasing cess on income of individuals, from three to four per cent. Additionally, it has aimed to raise money by imposing a 10 per cent Social Welfare Surcharge on all imported goods. At the same time, he has eyed the share-owning and investing class by removing an exemption on long term capital gains to possibly raise over Rs 36,000 crore in a full year – by taxing at 10 per cent shares held for more than a year, exempting CG tax jolts mkts; only proﬁt of up to Rs 1 lakh. The stock mar` tumbles 44p kets reacted sharply ey indices of domestic initially to the move, bourses and home later recovering. currency went into a tailThe four per cent spin on Thursday after the health and education government imposed cess replaces the 2 long-term capital gains per cent cess for pritax on equities and said it mary education and 1 would overshoot its fiscal per cent cess for secdeficit target, but clawed ondary and higher back most of the lost education on individground after domestic inuals and corporates stitutions stepped up buyto take care of the ing. Sensex finally ended needs of education lower by 58.36 points at and health of BPL 35,906.66, while the and rural families. broader Nifty shed 10.80 Similarly, the Social points to 11,016.90. The Welfare Surcharge of rupee too plunged 44 10 per cent on all cuspaise to close at a near toms duties replaces two-week low of 64.02 the education cess on against the US dollar as imported goods. He forex market sentiment also raised the custurned subdued after the toms duty on mobile Budget announcement. phones by 5 per cent This is the biggest oneto 20 per cent. He also day fall for the rupee levied a 15 per cent since January 16. duty on some of the parts and accessories of mobile phones and TV sets to promote creation of more jobs under the "Make in India" programme. In line with the BJP's poll promise before coming to power in 2014, the Finance Minister announced that the Minimum Support Price (MSP) for unannounced kharif crops will be 1.5 times the input cost and stepped up the institutional credit for the sector to Rs 11 lakh crore – 1 lakh crore more than last year. Leaving the individual taxation slabs and rates untouched, Jaitley in his last full budget before the 2019 elections proposed to reintroduce a standard deduction of Rs 40,000 for salaried tax payers in lieu of present exemption of transport allowance and reimbursement of miscellaneous medical expenses that will involve a revenue sacriﬁce of Rs 8,000 crore to beneﬁt 2.5 crore people. Continued on Page 4 K All-friendly Budget New Delhi: Prime Minister Narendra Modi has hailed Finance Minister Arun Jaitley for presenting an allfriendly Union Budget 2018-19 with the focus on agriculture, health and small businesses. "This budget is f a r m e r- f r i e n d l y, common citizen-friendly, business environmentfriendly and development-friendly," Modi said in his ﬁrst reaction after Jaitley presented the Budget in the Lok Sabha here. "Along with ease of doing business, there is also a focus on ease of living." "This Budget has devoted attention to all sectors – ranging from agriculture to infrastructure... this budget strengthens the hope and expectations of 125 crore people of India and will give a push to development," the Prime Minister said. Continued on Page 4 STAYING THE COURSE Economy is on the path of over 8 per cent growth rate. Government is focused on infrastructure creation, higher farmers' income and economic reforms. The structural reform initiatives will help the government accelerate growth FM ARUN JAITLEY The fiscal arithmetic of the Budget for 2018-19 could be incorrect. This Budget is high on projecting a bright picture. But, how will that be sustained? Former PM Manmohan Singh Even after four years at the Centre, the BJP is still promising farmers a fair price, still announcing fancy schemes with no matching budgets and has still not created jobs for the youth. Thankfully, only one more year to go Cong president Rahul Gandhi SALIENT FEATURES S A big move to push rural growth to create demand in economy FM walks the talk on agri, infra, healthcare, fiscal consolidation S MSP to be raised to 1.5 times production cost. To ugrade 22,000 rural haats into Gramin Agricultural Markets (GrAMs). NREGA funds to be used to boost infra at GrAMs S Pradhan Mantri Gramin Sadak Yojana target of connecting all eligible habitations advanced to March 2019 from March 2022 S Major boost to organic farming; Women Self Help Groups (SHGs) to be involved S World's largest government-funded healthcare scheme. `5 lakh cover will be provided a year to 10 cr poor and vulnerable families in the country S Free gas connection for 80 million poor families Union Minister for Finance and Corporate Affairs Arun Jaitley along with the Minister of State for Finance Shiv Pratap Shukla arrives at Parliament House to present the Union Budget 2018-19 on Thursday. (PTI) COSTLIER l l l l l l l l S Fiscal slippage in current fiscal with fiscal deficit to rise from 3.2% to 3.5% and from 3% to 3.3% of GDP next fiscal, necessitating more borrowing l S Merging three state-owned insurance firms – National Insurance, United India and Oriental Insurance l S 100 per cent profit deduction to FPOs for five years. Ideally, there should be no taxes on any farm income whether individual or through group entities The budget is in the spirit of Sabka Saath Sabka Vikas. It takes development to the poorest and most underprivileged classes. MSP at 1.5 times production cost is a huge step towards realising the PM’s goal of doubling farmer income by 2022 BJP chief Amit Shah l l Cars and motorcycles Mobile phones Silver l Gold Vegetable, fruit juices, including orange and cranberry Sunglasses Miscellaneous food preparations other than soya protein Perfumes and toilet waters Sunscreen, suntan, manicure, pedicure preparations Preparations for oral dental hygiene, denture fixative pastes and powders; dental floss Pre-shave, shaving or after-shave preparations, Deodorants, bath preparations, depilatories, perfumery Scent sprays and similar toilet sprays l l l l l l l l l l l l l l CHEAPER Truck and Bus radial tyres Silk Fabrics l Footwear Coloured gemstones l Diamonds Imitation jewellery Smart watches/wearable devices LCD/ LED TV panels l Furniture Mattresses l Lamps Wrist watches, pocket watches, clocks Tricycles, scooters, pedal cars, wheeled toys, dolls’ carriages, dolls, toys, puzzles of all kinds Video game consoles Articles and equipment for sports or outdoor games, swimming pools and paddling pools Cigarette and other lighters, candles Kites edible/vegetable oils such as olive oil, groundnut oil S Exemption on health insurance premium increased from Rs 30,000 to Rs 50,000 annually. This is useful given the rising cost of healthcare l Raw cashew nuts l Solar tempered glass or solar tempered glass used for manufacture solar panels/modules l Raw materials, parts or accessories used in making cochlear implants l Select capital goods and electronics such as ball screws and linear motion guides. Salaried class left in the lurch S India grew at average 7.5% in first three years of NDA govt, is now a $2.5 trillion economy Chennai (IANS): The reintroduction of standard deduction for individuals while computing their taxable income will have a negligible beneficial impact on the salaried class, according to a top official of an international tax advisory and accounting firm based here. Union Finance Minister Arun Jaitley on Thursday during his Budget speech presentation announced reintroduction of standard deduction of Rs 40,000 for the salaried class while computing their taxable income. Continued on Page 4 S Already 7th largest economy, India set to become 5th largest economy soon S As per CSO, economy expected to grow at 6.5% in current fiscal S For 2018-19, economy is likely to grow at 7-7.5% as per the Economic Survey S The Centre will create a dedicated affordable housing fund in the National Housing Bank MORE BUDGET ITEMS ON PAGE: 7 & 9 CONG SWEEPS RAJASTHAN BYPOLLS PAGE: 8 The stress in the farm sector would continue. The health care scheme is a big jumla. There is nothing...to boost private investment. There is no relief to the average tax payer” Former Finance Minister P Chidambaram The budget is unconnected to ground realities and is a textbook exercise in post-truth. The decision to raise MSP by 1.5 times is aimed at drawing votes in upcoming elections CPM leader Sitaram Yechury I had expected some financial assistance to key projects for the national capital. Disappointed Centre continues its step-motherly treatment of Delhi. Delhi CM Arvind Kejriwal Largest healthcare scheme in world New Delhi (IANS): Terming it as the world's largest government funded healthcare programme, Finance Minister Arun Jaitley on Thursday announced the National Health Protection Scheme under which Rs 5 lakh cover will be provided a year to 10 crore poor and vulnerable families in the country. "We are now launching a ﬂagship national health protection scheme to cover 10 crore poor and vulnerable families. This is approximately 50 crore beneﬁciaries, by providing them up to Rs 5 lakh per family per year for secondary and tertiary care hospitalisation," Jaitley said. Continued on Page 4 TS draws blank: Furious KCR to meet PM OUR BUREAU CM had high expectations from the Centre. He relied on the Union government for the completion of the ongoing ﬂagship schemes, mainly Kaleshwaram irrigation project, Mission Bhagiratha and Mission Kakatiya. He was also expecting the announcement of sanction of railway coach factory as promised in the AP Reorganisation Act Hyderabad: Telangana Chief Minister K Chandrashekar Rao is likely to take up the issue of “injustice” meted out to his state in the Budget 2018-19 proposals as well as the clearance of the long-pending developmental projects with Prime Minister Narendra Modi soon. Before the presentation of Telangana State budget in March, KCR is planning to visit Delhi toward this month-end, and meet Prime minister and Finance Minister Arun Jaitley and seek clarity on the allocations to the state. A BIG DISAPPOINTMENT Budget is disappointing. Though priority was accorded to agriculture, education and medical sectors, there was no clarity on allocations. The Centre should have encouraged the states which have registered all-round performance by earmarking required funds in the budget. Development of the states is key to the overall national development Finance Minister Eatala Rajender Source said that the Chief Minister was analysing the Union Budget in detail. He will hold a meeting with the state ﬁnance department in one or “The budget is not very satisfactory. I am happy with the announcement that MSP would be raised for crops. But nothing was said how much and whether it would be secular for all crops. The budget was not up to expectations. It could have been much more pro-poor Nizamabad MP K Kavitha two days and discuss in detail the impact of the Union budget on the state economy. Since 2019 would be an electioneering year, KCR wants to DETAILED REPORT: PAGE 4 present a ‘populist’ budget in March this year. Based on the central allocations, the state will prepare budget proposals. To meet the huge ﬁnancial require- ment, the Chief Minister wanted Centre’s help in the new ﬁnancial year. It is learnt that, as the ﬁrst step, the Chief Minister instructed his party MPs to take up the issue of injustice meted out to the Telangana in the allocations of funds and clearances of the long-pending development projects with the Union government during the ongoing budget session of the Parliament. Top sources said that KCR is very much disappointed over Centre’s negligence in accepting the demands put forth by the Telangana before the budget 2018-19 presentation. Continued on Page 4 Highest-ever outlay for Rlys n `1.48 L Cr budget; world-class quality trains and infra n Doubling of 18,000km; 5,000-km lines to be broad gauge n 4,000-km network to be electriﬁed; CCTVs on all trains
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