Main Features of Budget of Maharashtra (2017-18)
Main Features:
DEMONITISATION:
- Bold and decisive measure to curb tax evasion and parallel economy
- Government’s resolve to eliminate corruption, black money, counterfeit currency and terror funding
- Drop in economic activity, if any, to be temporary
- Generate long term benefits including reduced corruption, greater digitisation, increased flow of financial savings and greater formalisation of the economy
- Pace of remonetisation has picked up and will soon reach comfortable levels
- The surplus liquidity in the banking system will lower borrowing costs and increase the access to credit
ROADMAP & PRIORITIES
- Agenda for 2017-18 is : “Transform, Energise and Clean India” – TEC India
- TEC India seeks to
- Transform the quality of governance and quality of life of our people;
- Energise various sections of society, especially the youth and thevulnerable, and enable them to unleash their true potential; and
- Clean the country from the evils of corruption, black money andnon-transparent political funding.
FARMERS
- Target for agricultural credit in 2017-18 has been fixed at a record level of Rs. 10 lakh crores
- Farmers will also benefit from 60 days’ interest waiver announced on31 Dec 2016
- To ensure flow of credit to small farmers, Government to support NABARD for computerisation and integration of all 63,000 functional Primary Agriculture Credit Societies with the Core Banking System of District Central Cooperative Banks. This will be done in 3 years at an estimated cost of Rs. 1,900 crores.
- Coverage under FasalBimaYojana scheme will be increased from 30% ofcropped area in 2016-17 to 40% in 2017-18 and 50% in 2018-19 for which a
budget provision of ` 9000 crore has been made
- New mini labs in KrishiVigyanKendras (KVKs) and ensure 100% coverage
of all 648 KVKs in the country for soil sample testing.
RURAL POPULATION:
- Over Rs 3 lakh crores spent in rural areas every year, for rural poor fromCentral Budget, State Budgets, Bank linkage for self-help groups, etc
- Aim to bring one crore households out of poverty and to make 50,000 Gram Panchayats poverty free by 2019, the 150th birth anniversary ofGandhiji.
- Against target of 5 lakh farm ponds under MGNREGA, 10 lakh farm ponds would be completed by March 2017. During 2017-18, another 5 lakh farmponds will be taken up
- Women participation in MGNREGA has increased to 55% from less than48%.
THE POOR AND THE UNDERPRIVILEGED
- Mahila Shakti Kendra will be set up with an allocation of Rs 500 crores in 14 lakh ICDS Anganwadi Centres. This will provide one stop convergent support services for empowering rural women with opportunities for skilldevelopment, employment, digital literacy, health and nutrition.
- Under Maternity Benefit Scheme Rs 6,000 each will be transferred directly to the bank accounts of pregnant women who undergo institutional delivery and vaccinate their children.
- Affordable housing to be given infrastructure status.
- National Housing Bank will refinance individual housing loans of about Rs 20,000 crore in 2017-18
FIinancial sector of Budget of Maharashtra
- Foreign Investment Promotion Board to be abolished in 2017-18 andfurther liberalisation of FDI policy is under consideration
- An expert committee will be constituted to study and promote creation of an operational and legal framework to integrate spot market and derivatives market in the agricultural sector, for commodities trading.e- NAM to be an integral part of the framework.
- Bill relating to curtail the menace of illicit deposit schemes will be introduced. A bill relating to resolution of financial firms will be introduced in the current Budget Session of Parliament. This will contribute to stabilityand resilience of our financial system
- A Computer Emergency Response Team for our Financial Sector (CERT-Fin)
will be established
- In line with the ‘Indradhanush’ roadmap, Rs 10,000 crores forrecapitalisation of Banks provided in 2017-18
- Lending target under PradhanMantri Mudra Yojana to be set at Rs 2.44 lakh crores. Priority will be given to Dalits, Tribals, Backward Classes andWomen.
Digital economy of Budget of Maharashtra
- 125 lakh people have adopted the BHIM app so far. The Government will launch two new schemes to promote the usage of BHIM; these are, Referral Bonus Scheme for individuals and a Cashback Scheme formerchants
- Aadhar Pay, a merchant version of Aadhar Enabled Payment System, will be launched shortly
- A Mission will be set up with a target of 2,500 crore digital transactions for 2017-18 through UPI, USSD, Aadhar Pay, IMPS and debit cards
- A proposal to mandate all Government receipts throughdigital means,
beyond a prescribed limit, is under consideration.
- Proposed to create a Payments Regulatory Board in the Reserve Bank of
India by replacing the existing Board for Regulation and Supervision of
Payment and Settlement Systems
Few Points:
- Rs 7000 crore allotted for improving roads in the state.
- Rs 1041 crore to maintain the law and order in the state.
- 55000 houses to be constructed for SC, ST under RamaiAwasYojana. Rs 500 crore set aside for the scheme.
- Rs 2384 crore budgeted for the newely announced OBC ministry.
- Rs 1600 crore for smart city project.
- Rs 1000 crore for infrastructure development in Nagar Panchayat and Nagar Parishad areas.
- Rs 1000 crore for giving incentive to the industries for electricity rates at Marathwada and Vidarbh.
- Rs 1200 crore for JalyuktShivar Scheme.
Highlights of Budget of Maharashtra
- The Gross State Domestic Product of Maharashtra for 2017-18 at current prices is estimated to be Rs 25,35,213 crore. This is 11.8% higher than the revised estimate for 2016-17.
- Total expenditure for 2017-18 is estimated to be Rs 2,83,753 crore, a 4.5% increase over the revised estimate of 2016-17. In 2016-17, there was an increase of Rs 14,456 crore (5.6%) in the revised estimate over the budget estimate.
- Total receipts (excluding borrowings) for 2017-18 are estimated to be Rs 2,44,964 crore, an increase of 10.8% over the revised estimates of 2016-17. In 2016-17, total receipts decreased the budgeted target by Rs 831 crore (0.4%).
- Revenue deficit for the next financial year is targeted at Rs 4,511 crore, or 0.18% of the state Gross Domestic Product (GDP). Fiscal deficit is targeted at Rs 38,789 crore (1.53% of state GDP).
- Departments of Public Works, School Education, Tribal Welfare saw increases in allocations for the year 2017-18. On the other hand, Departments of Agriculture, Energy, and Home witnessed a decrease in their allocation in 2017-18.
Policy Highlights of Budget of Maharashtra
- Rs 2,812 crores is allocated for 26 projects under KrishiSinchiYojna.
- Special provision of Rs 250 crore allocated for 1st phase of Krishna-Marathwada Lift Irrigation Scheme over the next four years.
- ‘NanajiDeshmukhKrishiSanjeevani’ project, worth Rs 4,000 crore is proposed to be introduced to protect farms in Marathwada and Vidarbha region from drought. The World Bank will aid the project.
- Maha-Infra, a Special Purpose Vehicle (SPV) to fund infrastructure projects is proposed to be set up. Maha-Infra will act as a single window for aggregating land held by various government departments for securitisation to raise money. The SPV is envisaged to raise Rs1 lakh crore in the next five years to finance capital expenditure of key infrastructure projects.
- Chief Minister’s rural Drinking Water scheme is allocated Rs 300 crores.
- Rs 141 crore is allocated for security related projects like CCTV and setting up of forensic labs.
- 55,000 houses to be constructed for SC, ST under RamaiAwasYojana. Rs 500 crore proposed to be allocated for the scheme.
- Rs 559 crore has been allocated for development and expansion of medical colleges in the state.
Tax proposals of Budget of Maharashtra
- Three additional benches will be setup under the Maharashtra Sales Tax Tribunal in preparation for Goods and Services Tax (GST).
- Additional powers are proposed to be provided for Appellate Authority under the Maharashtra Value Added Tax Act to increase ease of compliance and allow simpler ways for tax collection by the tax administration. This is estimated to clear pending arrears of the Finance Ministry.
- Value Added Tax of 13.5% on the sale of credit and debit card swipe machines will be waived off.
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