Union Finance Minister Arun Jaitley presented Narendra Modi government’s first budget in Lok Sabha on July 10. While presenting the Union Budget 2014-15, Arun Jaitley vows to fulfill the aspirations of the people as well as that of the next generation. “People have voted for a change. India aspires to grow,” he said.
Key Highlights of Union Budget 2014-15:
Objectives:
* Looking forward to lower inflation
* There are green shoots of recovery in the global economy
* The budget is the most comprehensive action plan
* The steps announced today are only the beginning of the journey to be taken for macro economic stabilization
* We look forward to a 7-8% growth rate
* The challenge is to create a vibrant and strong India
* Need to revive growth in manufacturing sector
* Considering two years of low GDP growth, a large subsidy burden, target of 4.1% fiscal burden is daunting
* Slow decision making has resulted in loss of opportunity
* Need to generate more resources
* Bold and directional steps to be taken to spur the economy
* Aim to lower inflation
* Oil Crisis created by Iraq Crisis
* Government will not ordinarily change policies retrospectively, which creates a fresh liability
* FY 17 fiscal deficit target at 3%.
Policy Initiatives:
* A New Urea Policy to be formulated
* GST will streamline tax administration and result in higher tax collection for center and states
* Committed to providing stable tax regime which is investor friendly
* High-level committee to look into all retrospective tax cases
* To strengthen authority for advance ruling in tax
* Transfer pricing is major area for litigation; proposes changes in transfer pricing regulation
* FDI in several sectors to generate additional resources
* Manufacturing units to be allowed to sell products through all means, including the e-commerce route without any prior permission
* Proposes measures to encourage development of smart cities
* 49% FDI in Defence Production
* Cap on FDI in Insurance to be raised to 49%
* Will examine proposal to give additional autonomy to banks and make them more responsible
* To sell shares in banks to retail investors
* Tax sops for investment in FDI and Insurance.
Schemes and Projects:
* 100 smart cities to be set up
* E-Visa system to be introduced at nine airports of India within next six months. This will facilitate visas on arrival
* Skill India program to be launched for the training and skill development among youths
* Irrigation – Pradhan Mantri Krishi Sichai Yojana at Rs 1,000 crore
* Sanitation Drive – Every household to be covered by 2019
* Deen Dayal Upadhyay Gram Jyoti Yojana – Rs 500 crore. It will give 24/7 power supply to all homes
* Rs 200 crore for Sardar Patel Statue in Gujarat
* Rs 6,000 crore for welfare of Senior Citizens
* One year pension for all senior citizens
* Rs 50,548 cr proposed for SC Development
* EPFO will launch a unified account scheme for portability of Provident Fund accounts
* To set up a committee to examine how money lying unused in postal savings can be utilised
* Schemes for disabled persons in the country
* 15 new Brail presses to be established and revival of 10 existing ones to print currency notes with Braille
* Rs 14,389 crore for PMGSY in rural development (20% hike)
* Rs 1,000 crore assistance for EP Subscriber Scheme
* Backward Regional Grant Fund to address inter regional inequalities
* Rs 2,100 crore for National Watershed Programme
* National Housing Banking Programme at Rs. 8.000 cr
* No cost reduction in MGNREGA.
* Rs 500 crore for Price Stabilization Fund to fight price rise
Women:
* Rs 150 crore for Women Safety on Roads
* Curriculum in Academics to include gender sensitization
* Rs 100 crore for girl child project – ‘Beti Padhao, Beti Badhao’
* Crisis Management Center for women at Delhi; money to be provided from Nirbhaya Fund
* Special SEZs for Women in 100 Districts.
Health Schemes:
* 4 new AIIMS in Andhra Pradesh, Vidarbha (Maharashtra), West Bengal and Purvanchal (Uttar Pradesh) @ Rs 500 crore
* Vision to set up AIIMS in every state of the country
* Rs 3,600 crore for National Rural Drinking Water programme
* 15 Model Rural Health Research centers to be set up for rural health issues
* 12 more Govt Medical colleges with dental facilities.
Education:
* Rs 100 crore for Virtual Classrooms
* Rs 28,000 crore for sanitation at all primary schools
* Center of Excellence in Madhya Pradesh named after Lok Nayak JaiPrakash Narayan
* Pt Madan Mohan Malaviya Teaching Programme to be started
* To set up 5 new IIMs – Odisha, Bihar, Punjab, Himachal Pradesh and Maharashtra
* To set up 5 new IITs – Jammu, Chhattisgarh, Kerala, Andhra Pradesh and Goa
* Rs 500 crore for 5 new IIMs and 5 new IITs.
Technology:
* Focus on Software Startups
* Digital India Programme for Internet in Villages
* Rs 100 cr for Community Radio Centres; 600 new and existing ones will be supported
* National Rural Internet and Technology Mission @ Rs. 500 crore
* Rs 100 crore for Rural Entrepreneurship Programme
* Development of Metro rails in PPP mode
* Rs. 100 cr for metro scheme in Ahmedabad and Lucknow
* Metro Projects at all cities with 20 lakh people
* Rs 100 cr for development of Technology Development Fund.
Agriculture:
* Rs 200 crore for Agriculture University in Andhra Pradesh and Rajasthan, and Horticulture University in Haryana, Telangana
* Rs 100 crore for Agricultural infrastructure
* Rs 100 crore for Soil Cards for Farmers
* Soil Testing Labs across the country @ Rs 50 crore
* New institute for study climate change. National Adaption Fund to be set up.
* Farmers to get 3% incentives on agricultural loans upon timely repayment
* State Governments to be encouraged to develop farming markets
* To provide finance to 5 lakh landless farmers through NABARD
* Rs 50 cr for indigenous cattle breed and blue revolution for inland fisheries
* Additional Rs. 5,000 cr for RIDF
* Rs. 5000 cr short time rural credit refinance fund for 2014-15
* Rs 8 lakh crore for agricultural credit in 2014-15
* Rs 200 crore for setting up 2000 producers’ organisations across the country
* Rs. 100 cr for Kisan Television to provide real time information on various farming and agriculture issues
* Rs 5,000 crore for Scientific Agricultural Warehouses.
Miscellaneous:
* Urban renewal will address drinking water, use of recycled water, solid waste management, digital connectivity; 500 habitats supported
* Mission for low cost housing @ Rs 4000 crore
* Rs 100 crore for Modernization of Madrasas
* Slum development to be included in Corporate Social Responsibility activities
* Rs 50,000 crore for Urban Housing
* All government departments and ministries to be integrated through E-platform by Dec 31, 2014
* New industrial clusters on Golden Quadrilateral
* Amritsar-Kolkata Master plan to be finalized
* 7 Industrial Smart Cities to be set up
* Effective steps to be taken to revive SEZs
* Apprentice Act to be suitably amended to strengthen the Apprentice Training Scheme
* Rs 10,000 crore fund for MSMEs
* New committee will look into financial help to MSMEs
* States to be encouraged to focus on exports
* Rs 50 crore for Pashmina Production program in J&K
* Handloom Facilitation Centre in Varanasi
* Rs. 200 cr for 6 more textile clusters in Rae Bareli, Lucknow, Surat, Bhagalpur
* 16 new Port Projects in Pipeline
* Development of Hastkala Academy in PPP mode
* Rs 37,800 crore for National Highways and State Highways
* Rs 3,000 crore for road network in North East
* Rs 14,389 crore provided for Pradhan Mantri Gram Sadak Yojana
* New Airports in Tier I and Tier II cities through PPP mode
* New Inland Waterway project from Allahabad
* Rs. 4200 cr for Jal Marg Vikas (Inland Waterway) project on river Ganga connecting Allahabad to Haldia – 1620 km
* Existing impasse of coal sector will be resolved
* Rs 500 crore for Ultra Modern Solar Projects in Rajasthan, Tamil Nadu and Leh
* Development of Gas Pipelines of 15,000 km on PPP mode
* Use of PNG to be encourages
* Production of Gas and Petroleum to be increased
* Revision of rate of royalty on minerals to be taken up on request from the States
* Rs 100 crore for War Memorial along with a War Museum to be set up at Princess Park near India Gate in Delhi
* Rs 990 crore for development of villages along the border
* Rs 50 cr for construction of National Police Memorial
* * Biotech clusters to be set up in Bangaluru and Faridabad to take science and technology to new heights
* Rs 100 crore fo Sports University in Manipur
* Rs 500 crore fund for displaced Kashmiri Migrants (Pandits)
* Rs 100 crore for National Himalayan Studies in Uttarakhand
* Rs 200 cr for upgradation of indoor and outdoor stadium in J&K to international standards.
* To set up national sports academy for different sports in different parts of India
* Rs 1000 cr provided for rail connectivity in North East region
* Rs 100 cr for development of organic farming in north east region
* Rs 200 crore for power reforms in Delhi
* Rs 500 crore for water reforms in Delhi
* Rs 50 crore for construction of Renuka Dam in NCR
* “Arun Prabha” channel for NE region; will be 24/7 channel
* Rs 150 cr for communication needs of Andaman & Nicobar islands
* Rs 2,250 crore to improve weather infrastructure.
Tourism/Culture:
* Rs 100 crore for Heritage Conservation – Amritsar and Mathura have been picked up
* 5 Touirst Circuits across Religious Centres
* Rs 2037 crore for Ganga Development Project – ‘Namami Ganga’
* Rs 100 crore for River Linking projects
* Rs 100 cr for development of Archaeological sites. Gaya to be developed as world class tourism spot
* NRI fund for conservation of river Ganga to be set up
* Rs 237 crore for cleaning of rivers
Rs 100 crore for River-Front beautification
* Kakinada Port and adjoining areas to be developed
* Rs 50 crore for modernization of Ghats in places like Varanasi and Patna.
Finance:
* To strengthen stock market regulation
* ADR/GDR regime to be liberalised
* To deepen currency market
* Uniform KYC Norms for entire Financial Sector
* To provide all households with banking facilities; there should be at least 2 bank accounts in each household
* Easy loans for infrastructure sector
* Wage ceiling for EPFO schemes increased to Rs 15,000 from existing Rs 6,500 per month
* Additional benefit for small savers – PPF annual limit increased to Rs 1.5 lakh
* Small Savings Instrument for Girl Child
* Additional amount of Rs 5,000 crore added to Defence Outlay (against the interim budget) to make it Rs 2.29 lakh crore
* Revenue deficit to fall below 6%.
* Rs 80,000 crore for Child Development
* Rs 98,000 crore for Women Development.
Taxation:
* Personal Income Tax Exemption Limit increased to Rs 2.5 lakh
* For Senior Citizens above 60, the tax exemption limit increased to Rs 3 lakh
* Housing Loan Rebate increased from Rs 1.5 lakh to Rs 2 lakh.
* Investment limit (tax exemption) under 80 C increased to Rs 1.5 lakh.
* Investment allowance at 15% for 3 yrs for investments of more than Rs 25 cr in plant and machinery
* No change in direct tax rates
* 60 more Ayakar Sewa Kendras to be set up in the country
* Education Cess to continue at 3%
* No customs duty on CRT TVs, LEDs and LCDs below 19 inches
* Small LEDs, LCDs, Computer Monitors, Precious Stones, Mobile Phones, Soaps, Oil Products, Branded Clothing, Diamonds, Packaged Food, Sports Equipments, Solar Panels, Footwears, TV sets to be cheaper
* Steel Products, Tobacco, Gutkhas, Pan Masalas, Aerated Drinks, Radio Taxis to be costlier
* Customs duty hiked on stainless steel
* Edu Cess on imported electronic products
* Export duty on Bauxite enhanced from 10% to 20%
* Excise duty on footwear reduced from 12% to 6%
* Excise duty for specified food package industry reduced from 10% to 6%
* Excise duty on cigarettes and tobacco products hiked by up to 72%
* 5% excise duty on aerated drinks containing sugar
* Clean Energy cess increased from Rs 50/ tonne to Rs 100/tonne
* Loading/unloading and transportation of cotton exempted from service tax
* Service Tax on AC Bus Travel
* Service Tax on Online Advertisements
* Advertisement in Print Media exempted from Service Tax.