Finance minister Arun Jaitley said the focus of his Budget for 2017-18 will be on 10 important sectors, including farmers, infrastructure, digital economy and tax administration to transform, energise and clean India. The other areas of focus include rural India, the youth, poor and under-privileged, the financial sector, public service and prudent fiscal management.

Transform, energise and clean (tec) India are the three main agenda of the Budget

3 reasons why India is a bright spot

• India is set to be one of the fastest growing economies of the world, according to International Monetary Fund (IMF)
• At present, India is the 6th largest manufacturing nation 
• Thanks to demonetisation, surplus money in the banking system will lower borrowing costs and increase credit flow, leading to growth 

A to Z of budget

Times NIE decodes the basics of the budget vocabulary...

Capital expenditure: It is the use of funds or assumption of a liability in order to obtain physical assets that are to be used for productive purposes for at least one year. 

Corporate tax: It is a form of tax levied on profits earned by businessmen in a particular period of time. 

Capital gains tax: It is a tax on the gains that ensue when an asset is sold for a price higher than what it was bought for.

Customs duty: This is a tax imposed on imports. Customs duties may be levied to protect the domestic industry or sector (agriculture, for one), in retaliation against measures by other countries.

Direct taxes: These are the taxes that are levied on the income of individuals or organisations. Income tax, corporate tax, inheritance tax are some examples of direct taxation.

Excise duty: It is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country). 

Expenditure: This term refers to government spending (or outlays) made to fulfill a government obligation. Expenditure can be ‘Capital’ and ‘Current’. Capital expenditures are investments in physical assets such as roads and buildings that can be used for a number of years. Current expenditures are spendings on wages, benefit payments and other goods and services that are consumed immediately.  

Fiscal deficit: When the government’s non-borrowed receipts fall short of its entire expenditure, it has to borrow money from the public to meet the shortfall. The excess of total expenditure over total non-borrowed receipts is called fiscal deficit.

FDI: A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country.

GDP (Gross Domestic Product): One of the most common financial terms, it is the total value of final goods and services produced in a country during a calendar year. Economic growth is measured by the change in GDP from year to year.

Indirect taxes: These are the taxes paid by consumers when they buy goods and services, be it food products, jewellery or eating out. Indirect taxes also include excise and customs duties.

Service tax: It is a tax levied by the government on service providers for certain service transactions, but is actually borne by the customers. 

Surcharge: It is a fee that is added to the cost of goods or services. A surcharge is typically added to an existing tax, and may not be included in the stated price of the goods or services. 

India reacts

Great steps taken in the direction of building a strong manpower base. Autonomy to educational institutions and freeing CBSE from conducting exams will go a long way in brushing up and focusing on sharpening the academic prowess of the youth. Great job by the finance minister.

Mona Amit Luthra, teacher, SBDAV Public School, Delhi

This year’s Budget can be counted as the best because the rural and agricultural sectors have been given importance. The best thing is the proposal to have Aadhar-based health cards and earn interest on savings through LIC.

Nihal Jani, class IX, Sakar English School, Ahmedabad

This Budget reflects the government's true intentions behind the slogan 'Sabka saath sabka vikaas’. Tax structure reforms may lead to less evasion of tax as tax payers have received the much-awaited relief.

Devika Awtar, PGT Economics, KV highgrounds, Chandigarh

The Budget this year has mainly targeted the upliftment of the poor, which is a good thing. The healthcare and agricultural sectors have also been given good schemes. 

Deepika Aiyer, class X, Deens Academy, Bengaluru

Suggestions like maximum cash transaction amounts and donation limits from sources to political parties will take the government's initiative forward to eradicate black money and corruption.

S Sushmitha, class X, DAV Public School, Thane

Setting up a National Testing Agency for all Entrance Exams and the proposal to set up two AIIMS in Gujarat and Jharkhand is a good move. More efforts should have been made to promote rural education.   

Aqsha Naimuddin, class XI, Shri Shikshayatan School, Kolkata