2017 Budget : Key tech initiatives

Budget 2017 is significant as it comes on the back of Prime Minister Modi's demonetisation drive which created chaos all over the country. A lot of expectations came up including from India’s growing tech industry ahead of the budget presentation. Some of the key areas which everyone especially the tech industry wanted to see actions included governments’ renewed pledge with its tech initiatives including smart city, digital and make in India. 

A lot of hopes are tied with the much-awaited Goods & Services Tax (GST).Information technology sector looked for extra benefits or incentives to promote digital transactions, and some disincentives for cash transactions. 

With increase in digitization, cyber security is another area which many leaders cited as one of the top expectations from finance minister Arun Jaitley. Ensuring safety of online transactions would be critical as we brace for digitalisation and a cashless economy. Overall, a renewed focus on IT is the much-needed fillip the industry were looking for. 

In one of the longest budget speech ever, Arun Jaitley laid out 10 themes of the budget this year. This concludes Farmers, Rural population, Youth, Poor and the underprivileged, Infrastructure, Financial sector, Digital economy, Public services -- effective governance, Prudent fiscal management, and Tax administration "honouring the honest". 

Key ‘tech’ announcements from the budget of 2017

The Modi government continues the push for less-cash economy after announcing the much talked about demonetisation drive in November last year. Budget 2017 comes up with several steps to promote digital transactions. 

125 lakh people have embraced the BHIM wallet app so far, says Jaitley. He also announced that the government will roll out two new schemes to further escalate the adoption of the app --Referral Bonus Scheme for individuals and a Cashback Scheme for merchants. As we have reported earlier, the government will also launchAadhar Pay , which is a merchant version of Aadhar Enabled Payment System, shortly. 

The government will set up a mission with a target of 2,500 crore digital transactions for 2017-18 through UPI, USSD, IMPS, Aadhar Pay , and debit cards. The government is working on a proposal to mandate government receipts through digital means. There will be a Payments Regulatory Board in the RBI which will replace the existing Board for supervision of payment and settlement systems. 

Aadhar based smart card will be provided for senior citizens. The government will also roll out scheme for senior citizens to give them assured income and health benefits. 

By 2019, all coaches of Indian Railways will be fitted with bio-toilets. The Finance Minister announced a new initiative called DigiGaon to provide tele-medicine, education, and skills, through digital technology. Space technology will be used for monitoring MNREGA implementation. 

No transaction above three lacs will be permitted in cash. Political parties will be entitled to receive donations by cheque or digital mode. A proposal to receive all government receipts beyond a certain threshold through e-modes is also under consideration. 

Read : BHIM vs e-Wallets: Which one is for you? 

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