Highlights of the Indian budget 2014


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Highlights of the Indian budget 2014 presented today by the Finance Minister.

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Highlights of the Indian budget 2014

  1. 1. HIGHLIGHTS OF THE UNION BUDGET 2014-15  Steps announced in budget to take Indian economy to 7-8% growth in coming years  Fiscal prudence is of prime importance  Fiscal deficit target of 4.1% is daunting  Budget aims to lay down broad policy indications  Two years of sub-5% growth has resulted in challenges  Continuing slowdown has posed threat to global recovery  FY17 target for fiscal deficit at 3%  New urea policy to be formulated  We need to revive growth particularly in manufacturing sector and infrastructure  Defence FDI cap raised to 49% from 26% at present  Promote FDI selectively in sectors. India needs a boost in job creation in the manufacturing sector  All retro tax cases to be scrutinized by a high-level committee  Tax-GDP Ratio Must Be Improved  Looking forward to lower inflation  Senior Citizens Pension Plan Extended Till August 2015  Women's safety: Rs 100 crores for Beti Bachcao, Beti Padhao Yojana  MGNREGA programme to made more productive  Rural housing: Rs 8000 crores for national housing banking programme  Equity in PSU banks to be raised through share sale to the public  FM announces Skill India, a programme to train youth for jobs  Government is committed to providing 24x7 electricity in all houses  Rs 200 crores credit scheme for start-ups by those from scheduled castes and tribes  The government is committed to the welfare of scheduled castes and tribes.  Target of 4.1 per cent fiscal deficit is daunting but accepting it as a challenge  e-visas to promote tourism
  2. 2.  Rs 500 crores for setting up 5 more IIMs and IITs  Rs 50548 crore proposed for a Scheduled Castes development fund by the Finance Minister.  Rs 100 crore set aside for developing Community Radio Centres; 600 new and existing ones will be supported.  development of Metro rails in PPP mode; Rs. 100 cr set aside for metro scheme in Ahmedabad and Lucknow  Proposes to enhance the scope of income tax settlement commission  Each year government will be adding AIIMS to ensure there is an AIIMS in every state  For Farmers o The FM announces financing to 5 lakh landless farmers through NABARD o Government will also initiate scheme to provide a soil health card. Rs 100 crore set aside for this. Rs 56 crore for soil testing labs across the country. This is is replication of the Gujarat model. o Rs 50 crore set aside for indigenous cattle breed and blue revolution for inland fisheries  For our villages o Rs 5000 crore short time rural credit refinance fund for 2014-15. o Additional Rs 5000 cr set aside for the Rural Infrastructure Development Fund.  FM announces that he will set up seven industrial smart cities. He had earlier announced Rs 7060 crore for developing new cities.  Textile and handlooms o Rs 200 crore for six more textile clusters in Rae Bareily (Sonia Gandhi's constituency), Lucknow, Surat and Bhagalpur. o He also announces plans for development of a Hastkala Academy in PPP (Public Private Partnership) mode. o Rs 50 crore for Pashmina Production prog in Jammu and Kashmir.  PPP is becoming the new buzzword in government circles. New airports also to be developed through PPP mode.  FM announces Rs 4200 crore for a Jal Marg Vikas (Waterway) project on river Ganga connecting Allahabad to Haldi, an over 1620 km stretch.
  3. 3.  Renewable energy o New and renewable energy deserves high priority, Jaitley says. Announces ultra-modern power projects tin Rajasthan, Tamil Nadu and Ladakh. Rs 500 crore set aside.  FM says that in order to complete gas grid, 15000 km of additional pipeline will be developed through PPP mode.  Budget proposes 49 per cent FDI in insurance through FIPB route  FM announce Rs 100 crore for a Technology Development Fund.  Honouring our bravehearts o War memorial to be set up along with a war museum. The finance minister allocates Rs 100 crore for this. o FM announces a further Rs 5000 crore for defence outlay over and above the amount provided under interim budget.  Banking sector o Financial sector is at the heart of the growth engine, Jaitley says. He adds that it is essential to strengthen and modernise the regulatory framework in the financial sector to meet challenges posed by an increasingly complex economy. o To provide all households with banking facilities to empower the weaker sections. There should be at least two bank a/cs in each household. o He says that he will take measures to revitalise small savings schemes. o RBI will create framework for licenses of small banks.  Ganga o Jaitley says it is high time we made serious efforts to link rivers. Announces Rs 100 crore for project to link rivers. o He also announces "Namami Ganga" - an integrated Ganga Development Project. Rs 2037 crore set aside for this. Add the Rs 4200 crore for the Jal Marg Vikas (Waterway) project on the Ganga connecting Allahabad to Haldi, an over 1620 km stretch - and that is Rs 6237 crore for the Ganga alone.  Rs 500 crore announced for displaced Kashmiri migrants
  4. 4.  Investment in NHAI and state highways to the tune of Rs 37,887 crore, including Rs 3000 crore for North East  Airports to be developed in tier 1 and 2 cities, 16 new port projects to be awarded this year  Annual PPF ceiling to be enhanced to Rs 1.5 lakh, from Rs 1 lakh  FM announced an extension of tax incentives for low-cost housing loans.  Rs 200 crore set aside for upgradation of indoor and outdoor stadiums in Jammu and Kashmir to international standards. o Also announced, setting up of national sports academies for different sports in different parts of India. o A sports university to be set up in Manipur. Rs 100 crore announced for this in current financial year.  Rs 1000 crore for rail connectivity in North East.  Tax exemption limit raised o Tax exemption limit raised to Rs 2.5 lakh for those below 60. o Tax exemption limit raised to Rs 3 lakh for senior citizen (those above 60). o Tax rates to remain same. o No increase in surcharge; education cess to continue.  Exemption limit under Section 80 C also raised to Rs 1.5 lakh from Rs 1 lakh  Rs 10000 in savings for taxpayers  Combined impact: It would mean a savings of Rs 10000 for those who can avail the new advantage provided by the raising of the Section 80 C exemption limits too.  Tax exemption on annual interest component on housing loans raised to Rs 2 lakh from Rs 1.5 lakh.  Net effect of direct tax proposals is revenue loss of Rs 22200 crore  Sixty more Ayakar Sewa Kendras (centres to help us file taxes) to also be set up in the country.  FM announces proposals to make CRT TVs cheaper  FM also announces measures to encourage manufacture of LCD/LED panels of TVs. Custom duty on LED and LCD displays below 19 inch cut to zero.
  5. 5.  10 year tax holiday for power companies who start production and distribution on March 31, 2017  Revenue deficit pegged at 2.9 per cent of GDP  Budget proposes Plan expenditure of Rs 5,75,000 crore for current ficsal.  Excise duty on footwear reduced from 12% to 6%.  Costlier: Cigarettes, pan masala, gutka, soft drinks o FM announces increased excise duty on tobacco products and aerated water products with added sugar. Calls them "healthy measures". o FM also announces reduction in excise duty for specified food package industry from 10% to 6%.  Tax proposals on the indirect tax front will yield Rs. 7,525 crore, he announces. Compiled by: