Budget 2018-19

The Union Finance Minister Sh. Arun Jaitley has presented his last full budget 2018-19 of current government on 1st February 2018. Here are some of the highlights of the budget which can be useful for RBI Grade B exam:


  • Farmers to get a minimum of 50% over their cost of production
  • The government has decided to fix Minimum Support Price on majority of rabi crops at 1.5 times the cost of production
  • Development and Up gradation of 22000 rural haats into Gramin Agricultural Markets (GraMs) to help 86% of farmers and access market facilities.
  • Kisan Credit Cards to Fisheries and Animal Husbandry Farmers.
  • Agri-Market Infra Fund of Rs 2000 crore for GraMs/Rural Haats and 585 e-NAM centres
  • Encouragement will be provided to Farmers Producer Organisations and Village Producer Organisations in large clusters.
  • Operations Greens launched to address price fluctuations in Tomato, Onion and Potato for the benefit of Farmers and Consumers
  • Allocation doubled for food procession industries.
  • Liberalization of agricultural commodities exports
  • Re-structured National Bamboo Mission with allocations of Rs 1290 crore
  • Allocation of Rs 10000 crore for the joint animal husbandry and fisheries & aquaculture
  • Higher allocation of Rs 11 lakh crore of credit to be provided to agriculture
  • Mechanism to be brought in for purchase of surplus power from solar water pumps
  • Setting up of Fisheries and Aquaculture Infrastructure Development Fund (FAIDF) for fisheries sector and Animal Husbandry Infra Development fund for animal husbandry (AHIDF)
  • National livelihood scheme gets Rs 5,750 crore


  • Allocation to Digital India scheme doubled to Rs 3073 cr
  • 5 lakh WiFi HotSpots to provide Broadband access to 5 crore rural citizens, at the cost of Rs 10,000 cr
  • Government will take measures to stop cryptocurrency circulation, as it is not considered legal tender
  • Government will explore the usage of Blockchain technology


  • To construct a tunnel under Sela Pass
  • Ten prominent tourist sites to be developed into Iconic tourism destination
  • Tourist amenities at 100 Adarsh monuments to be upgraded
  • To raise equity from market for infrastructure by NHAI
  • NHAI to use innovative monetizing structures like Toll, Operate, Transfer (TOT) and Infrastructure Investment funds (InvITs)
  • To expand airport capacity more than 5 times under NABH Nirman to handle a billion trips a year
  • Introduction of toll system on “pay as you use
  • Infrastructure expenditure gets a boost from Rs 4.94 lakh crore to Rs 5.97 lakh crore
  • Out of 100 smart cities 99 cities have been selected, with an outlay of Rs 2.04 lakh crore
Gromo Referal


  • Quality of education to be improved treated education holistically from pre-nursery to class 12
  • 13 lakh untrained teachers to be trained
  • ‘Black Board’ to ‘Digital Board’ technology enabled quality education
  • Ekalavya Model Residential Schools in all tribal blocks by 2022
  • Revitalizing Infrastructure and System in Education (RISE) with an investment of Rs 1 lakh crore in 4 years
  • Set up a specialized railway university in Vadodara
  • Setting up of two new Schools of Planning and Architecture (SPA)
  • 18 news SPAs to be established in IITs and NITs
  • Prime Minister’s Research Fellows (PMRF) to promote 1000 B.Tech students doing Ph.D in IIT and IISc


  • Under Ayushman Bharat Initiative, Comprehensive Health Care through 1.5 lakh wellness centres. They will also provide Non Communicable Diseases and Mother & Child Health services along with free essential drugs and diagnostics services
  • National Health Protection Scheme to cover 10 crore poor and vulnerable families. The coverage upto Rs 5. Lakh per family for secondary and tertiary care hospitalization
  • Nutritional support to all TB Patients
  • 24 new government medical colleges and hospitals to be set up by upgrading existing district hospitals. To ensure one medical college for every three parliamentary constituencies.
  • Rs 600 crore allocated for tuberculosis patients, at the rate Rs 500 per month during the course of their treatment


  • To ease cash flow challenges, a Trade Electronic Receivable discounting System (TReDs) introduced
  • Government to contribute 12% EPF of the wages of new employees in EPF for all sectors in the next three years
  • 10 lakh formal jobs to be created this year
  • Increased allocation of Rs 7148 crore for textile sector
  • Rs 3 lakh crore target has been set for the Mudra Yojana

Swacch Bharat

  • GOBAR DHAN – Galvanizing Organic Bio-Agro Resources Dhan, for management and conversion of cattle dung and solid waste in farms to compost, fertilizer, bio-gas and bio-CNG.

Public Service Delivery

  • Two defence industrial production corridors to be developed
  • Industry friendly defence production policy to promote domestic production
  • Restructuring of Food Corporation of India
  • Every Industrial enterprise to get unique ID
  • National Logistics Portal to be developed as a single window online marketplace
  • Three public sector general insurance companies to be merged as single entity

Economy & Financial Markets

  • ‘A’ grade ratings to be eligible for investment
  • Fiscal Deficit to be kept at 3.3% in 2018-19
  • Central government debt to GDP ratio to be brought down to 40%
  • Loans to Women Self Help Groups will increase to Rs.75,000 crore in 2019 from 42,500 crore last year.
  • Government revises divestment target for the current fiscal to Rs 1 lakh crore for FY 18

Housing for All

  • Affordable housing fund to be established in National Housing Bank
  • Housing to all the poor by 2022
  • Housing target fixed for more than 1 crore houses in rural and 37 lakh houses in urban areas
  • Target of providing electricity connection to 4 crore houses under Saubhagya Scheme


  • Standard deduction reintroduced upto Rs 40000 for salaried class
  • Exemption of interest on deposits raised to Rs 50000 from Rs 10000 for senior citizens
  • Increase in deduction of health insurance premium to Rs 50000 from Rs 30000 for senior citizens
  • 100% income tax deduction of profit to Farm Producer Companies having turnover upto Rs 100 crore for period of 5 years
  • Reduced tax rate for companies to 25% for those having gross receipt up to 250 crore
  • Relaxation in the minimum period of employment for Footwear and Leather industries to facilitate trade
  • The Alternate Minimum Tax (AMT) payable by non-corporate entities operating in International Finance Service Centre (GIFT City) to be reduced to 9%
  • Introduction of “risk based selection” for verifying self-assessment under Customs Act
  • Appointing a new Customs Advance Ruling Authority with Appellate mechanism
  • To control cash economy, payments exceeding Rs 10,000 in  cash made by trusts and institutions to be disallowed and would be subject to tax
  • Tax on Long Term Capital Gains exceeding Rs 1 lakh at the rate of 10%, without allowing any indexation benefit. However, all gains up to 31st January, 2018 will be grandfathered.
  • Proposal to introduce tax on distributed income by equity oriented mutual funds at the rate of 10%.
  • Proposal to increase cess on personal income tax and corporation tax to 4% from present 3%


  • 18000 kms of doubling, third and fourth line works and 5000 kms gauge conversion for capacity creation
  • To achieve optimal electrification of railway network, 4000 kms are targeted
  • ‘Safety First Policy’ to cover maintenance of track infrastructure and 3600 kms of track renewal.
  • Redevelopment of 600 major railway stations to be taken up
  • Elimination of 4267 unmanned level crossings in next two years
  • All stations with more than 25000 footfall to have escalators
  • CCTVs to be provided at all stations and on trains to enhance security of passengers
  • Mumbai transport system expanded by adding 90 kms of double line track and 150 kms of additional suburban network
  • Bengaluru to get a suburban network of 160 kms at an estimated cost of Rs 17000 crore


  • NITI Aayog to initiate a national programme on Artificial Intelligence (AI) and centres of excellence will be set up on robotics, AI, Internet of things etc.
  • Comprehensive Gold Policy on the anvil to develop yellow metal as an asset class.
  • Proposed to extend Pradhan Mantri Vaya Vandana Yojana up to March, 2020
  • Defence outlay raised to Rs 2.82 lakh crore in 2018-19 from Rs 2.67 lakh crore in current year
  • Emoluments for President set at Rs 5 lakh, Rs 4 lakh for Vice President, Rs 3.5 lakh for governors
  • Government earmarks Rs 150 cr to commemorate 150 years of birth of Mahatma Gandhi

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