image rotation

Union Budget for 2018-19

Circular No. ES/ 287/2017-18                                                        February 01, 2018

To:  Members of the Council

Sub: Union Budget for 2018-19

Dear Sir,

The Council is glad to inform you that the Government has announced the Union Budget for 2018-19 on 1st February, 2018.

The Government has announced major sops for the Textile industry in the Union Budget 2018-19 which is given here below - 

  • It is proposed to provide an outlay of Rs. 7148 crore for the textile sector in 2018-19.
  • Major fund allocated under ATUFS has been increased to Rs. 2300 crores for 2018-19 from Rs. 2013 crores during 2017-18.
  • Fund allocation under ROSL has been increased to Rs. 2164 crores from Rs. 1555 crores during 2017-18.
  • Customs Duty on Silk fabrics has been increased to 20% from current 10% to protect the domestic manufacturers from surging imports in line with “Make in India” initiative of the Government.
  • Fund for Interest Equalization Scheme has been more than doubled to Rs. 2500 crores for 2018-19 from Rs. 1100 crores during 2017-18. This will substantially help in reducing the cost of capital in India which at present is significantly higher as compared to the competing countries. 

The Union Budget has also made the following announcements:

Fiscal Situation 

  • Fiscal deficit is 3.5% of GDP at Rs 5.95 lakh crore in 2017-18. Projecting fiscal deficit to be 3.3% of GDP in the next fiscal. 
  • Rs 21.57 lakh crores transferred as net GST to states against a projection of Rs 21.47 lakh crores.

Tax

  • Corporate Tax of 25% extended to companies with turnover up to Rs 250 cr in financial year 2016-17. 
  • GST collections projection pegged at Rs 7.43 lakh crore in full year 2018-19 as against Rs 4.44 lakh crore in nine months of current fiscal. 
  • Govt. has made PAN mandatory for any entity entering into a financial transaction of Rs 2.5 lakh or more. 

Customs Duties 

  • Social welfare surcharge of 10% on imported goods. 
  • Central Board of Excise and Customs renamed as Central Board of Indirect Taxes and Customs. 

MSME 

  • Rs 3,794 crore allocated to the MSME sector in the form of capital support and interest subsidy By 2022, every block with more than 50 per cent ST population will have Ekalvya schools at par with Navodaya Vidyalayas. 
  • Rs 3 lakh crore target has been set for the Mudra Yojana. 
  • Rs 4.6 lakh cr sanctioned under MUDRA Scheme. 

Petroleum/ Diesel Sector 

  • Excise on unbranded diesel cut by 2 rupees to 6.33 rupee/ltr. 
  • Excise on unbranded petrol cut by 2 rupees to 4.48 rupee/ltr.

Technology 

  • Allocation to Digital India scheme doubled to Rs 3073 cr.

Companies

  • AADHAAR FOR CORPORATESGovernment will evolve a scheme to assign a Unique ID for Companies. 
  • Disinvestment target of Rs 80,000 crore for FY19. 
  • Govt revises divestment target for the current fiscal to Rs 1 lakh crore for FY 2018.

For more information on the Union Budget 2018-19, please follow the link for the following

(1)Customs Notifications

(2)Central Excise Notifications

(3)Explanatory Notes

(4)Highlights of Budget 2018-19 issued by Press Information Bureau 

(5)Indirect Taxes

The complete Union Budget 2018-19 can be viewed by following this link http://www.indiabudget.gov.in/index.asp

We request you to please send us your suggestions / views on the Budget provisions latest by 5th February, 2018 (Monday) so that the same can be included in the Post Budget Memorandum which the Council will be shortly forwarding to the Government. 

Thanking You,

Yours faithfully,

S.BALARAJU
EXECUTIVE DIRECTOR

Subscribe to SRTEPC mailing list

Exchange Rates