2018 Union Budget of India
2018 Ke Liye Bhārat Kā Saṅghīya Bajaṭ

Annual Financial Statement of the Central Government for the year 2018–19 The Appropriation Bill, 2018 The Finance Bill, 2018
Emblem of India
Submitted by	Arun Jaitley
Submitted to	Parliament of India
Presented	1 February 2018
Passed	1 February 2018
Country	India
Parliament	16th(Lok Sabha)
Party	Bharatiya Janata Party (BJP)
Finance minister	Arun Jaitley
Total revenue	₹2,399,147crore (equivalent to₹34 trillion or US$400 billion in 2023)[1]
Total expenditures	₹2,920,484crore (equivalent to₹41 trillion or US$480 billion in 2023)(grand total)[2]
Program Spending	₹2,442,213crore (equivalent to₹34 trillion or US$410 billion in 2023)(through budget)[3]
Tax cuts	5%(incorporate tax for companies with turnover up to₹250crore (equivalent to₹334 crore or US$40 million in 2023))
Debt payment	₹575,795crore (equivalent to₹8.1 trillion or US$96 billion in 2023)[3]
Deficit	₹624,276crore (equivalent to₹8.8 trillion or US$100 billion in 2023)[4] (3.3%)[4](Fiscal deficit)₹416,034crore (equivalent to₹5.8 trillion or US$69 billion in 2023)[4] (2.2%)[4](Revenue deficit)
Website	Official website
‹ 2017 2019 (Interim)›

The2018 Union Budget of India (ISO:2018 Ke Liye Bhārat Kā Saṅghīya Bajaṭ) was the annual financial statement (AFS), demand for grants, appropriation bill and finance bill of India for the financial year 2018–19.^[5]

It was presented toParliament on 1 February 2018 byFinance MinisterArun Jaitley.^[6][7][8]

The 2018 budget was considered to be a crucial one,^[9][10][11] as it would be the first since the rollout of theGoods and Service Tax (GST) regime in India.^[12][13][14] It was widely expected that the budget would either increase the exemption limit, or introduce a standard deduction for salaried people to reduce the tax burden, in addition to a reduction of the tax rate for the₹5 lakh (equivalent to₹6.7 lakh or US$7,900 in 2023)–₹10 lakh (equivalent to₹13 lakh or US$16,000 in 2023) slab from 20% to 10%, and an increase in the 30% band above₹10 lakh (equivalent to₹13 lakh or US$16,000 in 2023).^[15][16][17] The budget also came on the heels of acut in the corporate tax rate in theUnited States.^[18][19][20] Printing of the budget began on 20 January 2018 with the traditionalHalwa ceremony.^[21][22][23]

The budget contained a number of significant announcements. It included a healthcare programme called theNational Health Protection Scheme (Ayushman Bharat) to cover 10 crore (100 million) poor families.^[24][25] The Government proposed to contribute 12% to theEmployees' Provident Fund for new employees for three years.^[26][27] It was proposed that the medical allowance and transportation allowance be replaced by a standard deduction of₹40,000 (US$470) for salaried employees.^[28][29]The allocation to theMinistry of Defence was₹404,365crore (equivalent to₹5.4 trillion or US$64 billion in 2023),^[30] with₹195,947.55crore (equivalent to₹2.6 trillion or US$31 billion in 2023) to be spent on the day-to-day running of thearmed forces, and₹99,563.86crore (equivalent to₹1.3 trillion or US$16 billion in 2023) on modernisation, with the rest being allocated forpensions.^[31][32]

There was no reduction in personalincome tax rates,^[33][34]and the Cess on income tax was to be increased from 3% to 4%.^[35][36] A 10% tax onlong-term capital gains (LTCG) was reintroduced after a 14-year absence.^[37][38] The Corporate tax was reduced from 30% to 25% for companies with turnover up to₹250crore (equivalent to₹334 crore or US$40 million in 2023).^[39][40] Customs duties were increased for various products.^[41][42] A special scheme to tackleair pollution in Delhi was also introduced.^[43][44] The salaries ofMembers of Parliament were doubled and their total emoluments are likely to go up from Rs 1.4 lakh to Rs 2.3 lakh per month.^[45][46] Further, the salaries will be increased every five years.^[47][48]

Reaction to the budget was mixed-to-positive.^[49][50]

Political reaction to the budget was mixed.^[51]Bharatiya Janata Party (BJP) leader andPrime Minister,Narendra Modi said that the budget is "development-friendly," focused on the needs of the rural areas and will strengthen the vision of a "new-India".^[52] TheCongress leader, formerprime minister and noted economistManmohan Singh suggested that the arithmetic behind the budget was "faulty".^[53] The general secretary of theCommunist Party of India (Marxist) (CPI (M)),Sitaram Yechury said the budget was "unconnected to ground realities".^[54] Andhra Pradesh Chief Minister Sri.N.Chandra Babu Naidu is not satisfied with the budget planning as it completely ignored the special status and special package for the state.^{[citation needed]}

Aam Aadmi Party (AAP) leader andchief minister of Delhi,Arvind Kejriwal said onTwitter that the budget contained nothing for the middle class and traders.^[55]Chief Minister of Bihar,Nitish Kumar,Janta Dal (United) (JDU) leader, praised the budget for the proposals on minimum support price for farmers and the healthcare scheme.^[56]Congress leader and formerfinance ministerP. Chidambaram said that Finance Minister Arun Jaitley had failed the fiscal consolidation test,^[57] and that there was no relief for the average taxpayer.^[58]

Both of India'snational indices, theBSE SENSEX andNIFTY 50, fell sharply in the aftermath of the budget.^[59][60][61] The government, however, said that the fall in the stock market was not solely due to the budget.^[62][63]Finance andRevenue Secretary, Dr.Hasmukh Adhia said that fall in stock indices was due to global market meltdown, and not because of the reintroduction ofLTCG tax,^[64] he added the government will look into the slump.^[65]

Credit rating agency,Fitch, said that the budget, whilst supporting growth, does not address the problem of fiscal consolidation, and leaves the problem of India's relatively weak finances, to the next government.^[66][67]Economic Affairs Secretary,Subhash Chandra Garg, said, that the government would try to convincecredit rating agencies, likeStandard and Poor's andFitch, on its commitments to fiscal consolidation.^[68][69]

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