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| Version 3 | Version 4 |
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| India Budget 2017: Promise to boost rural spending | India Budget 2017: Promise to boost rural spending |
| (about 5 hours later) | |
| India's government has unveiled its annual budget, with promises to boost rural spending and pull more people out of poverty. | India's government has unveiled its annual budget, with promises to boost rural spending and pull more people out of poverty. |
| It comes months after the controversial withdrawal of high value banknotes which caused chaos in the economy, hurting farmers and the poor most. | It comes months after the controversial withdrawal of high value banknotes which caused chaos in the economy, hurting farmers and the poor most. |
| Finance Minister Arun Jaitley allocated funds to bring more irrigation, roads, electricity and sanitation to villages. | Finance Minister Arun Jaitley allocated funds to bring more irrigation, roads, electricity and sanitation to villages. |
| Farmers would also have more access to credit, he said. | Farmers would also have more access to credit, he said. |
| Spending to get out of trouble | |
| The government also plans to spend a record $7.09bn (£5.69bn) on a scheme which guarantees every rural household 100 days of work each year. | The government also plans to spend a record $7.09bn (£5.69bn) on a scheme which guarantees every rural household 100 days of work each year. |
| Overall rural and farm spending would be increased by 24% as part of the government's plan to double farm incomes over five years, Mr Jaitley added. | Overall rural and farm spending would be increased by 24% as part of the government's plan to double farm incomes over five years, Mr Jaitley added. |
| Tax plan | Tax plan |
| The finance minister also revealed plans to halve income tax rates for people earning between 250,000 rupees to 500,000 rupees ($3700; £2945 to $7,400; £5888) annually, which Mr Jaitley said should also encourage more people to pay tax. | The finance minister also revealed plans to halve income tax rates for people earning between 250,000 rupees to 500,000 rupees ($3700; £2945 to $7,400; £5888) annually, which Mr Jaitley said should also encourage more people to pay tax. |
| "The present burden of taxation is mainly on the taxpayer and the salaried employees who are showing their income correctly," he told parliament. | "The present burden of taxation is mainly on the taxpayer and the salaried employees who are showing their income correctly," he told parliament. |
| "Therefore post-demonetisation, there is a legitimate expectation of this class of people to reduce their burden of taxation. Also an argument is made that if nominal rate of taxation is kept at a lower slab, more people will prefer to come in the tax rate." | "Therefore post-demonetisation, there is a legitimate expectation of this class of people to reduce their burden of taxation. Also an argument is made that if nominal rate of taxation is kept at a lower slab, more people will prefer to come in the tax rate." |
| It is not clear how many people the move would impact, but India has a long-running problem of collecting income tax. | It is not clear how many people the move would impact, but India has a long-running problem of collecting income tax. |
| In 2013, the latest year for which data is available, only 2% of Indians completed a tax return and only 1% paid tax. | In 2013, the latest year for which data is available, only 2% of Indians completed a tax return and only 1% paid tax. |
| Other proposals announced in the budget speech included: | Other proposals announced in the budget speech included: |
| Nothing for foreign investors: Analysis by Shilpa Kannan, BBC News, Delhi | Nothing for foreign investors: Analysis by Shilpa Kannan, BBC News, Delhi |
| Arun Jaitley had to do a balancing act between the need to stimulate India's growth and ensuring that the country's spending is under control. | Arun Jaitley had to do a balancing act between the need to stimulate India's growth and ensuring that the country's spending is under control. |
| But I've been at an event run by one of India's biggest business groups, the CII, and the mood is one of general disappointment. | But I've been at an event run by one of India's biggest business groups, the CII, and the mood is one of general disappointment. |
| The finance minister had promised to gradually bring down corporation tax from 30% to 25% - but he didn't do it last year and it didn't happen this year either. | The finance minister had promised to gradually bring down corporation tax from 30% to 25% - but he didn't do it last year and it didn't happen this year either. |
| Many here are saying there was nothing in for foreign or domestic investors. They fear a flee of money from India. | Many here are saying there was nothing in for foreign or domestic investors. They fear a flee of money from India. |
| 'Bright spot' | 'Bright spot' |
| India's economy is expected to grow by 6.5% in the year to March 2017, down from 7.6% the previous financial year, a key economic report revealed ahead of the budget. | India's economy is expected to grow by 6.5% in the year to March 2017, down from 7.6% the previous financial year, a key economic report revealed ahead of the budget. |
| However, the country was a "bright spot" in the world economy, Mr Jaitley said, adding that the impact on growth from the government's cash crackdown would wear off soon. | However, the country was a "bright spot" in the world economy, Mr Jaitley said, adding that the impact on growth from the government's cash crackdown would wear off soon. |
| He said the currency ban was a "a bold and decisive measure" and would leaded to larger GDP, more tax revenues and a cleaner economy. | He said the currency ban was a "a bold and decisive measure" and would leaded to larger GDP, more tax revenues and a cleaner economy. |
| The dramatic move to scrap 500 ($7.60) and 1,000 rupee notes was intended to crack down on corruption and so-called black money or illegal cash holdings. | The dramatic move to scrap 500 ($7.60) and 1,000 rupee notes was intended to crack down on corruption and so-called black money or illegal cash holdings. |
| But the Economic Survey, released on Tuesday and written by the government's chief economic adviser, admitted the rupee withdrawal had been bad for economy. in the short term. | But the Economic Survey, released on Tuesday and written by the government's chief economic adviser, admitted the rupee withdrawal had been bad for economy. in the short term. |