Indian
Finace Minister Arun Jaitley presented the Narendra Modi Government’s maiden
budget for 2014-15 on 10th july 2014.
Here are the highlights:
1. Two
years of sub-five per cent growth has led to challenges to the economy
2. Green
shoots of recovery seen in global economy
3. Slow
decision making has resulted in loss of opportunity
4. We
look forward lower level of inflation
5. Will
usher in policy regime that will usher in higher growth, low inflation
6. Aim
to achieve 7-8 per cent economic growth rate in next 3-4 years
7. Will
leave no stone unturned to create a vibrant India
8. Budget
proposes Plan expenditure of Rs 5,75,000 crore for current ficsal
9. Anti-poverty
programmes will be targeted well.
10. We
need to revive growth particularly in manufacturing sector and infrastructure
11. There
is urgent need to generate more resources
12. Should
we allow economy to suffer because of indecisiveness and populism
13. Task
before us is challenging
14: We
must continue to be watchful of CAD
15. Target
of 4.1 per cent fiscal deficit is daunting but accepting it as a challenge
16. Finance
Minister emphasizes on fiscal prudence, need to generate more resources.
17. Iraq
crisis having impact on oil prices
18. We
must address the problem of black money fully
19. We
must take bold steps to enhance economic activity
20. Expenditure
Management Commission will be constituted to look at expenditure reforms
21. We
are for minimum government, maximum governance
22. Overall
subsidy regime will be reviewed, especially food and oil. Marginalised sections
and SC/ST to be protected
23. New
urea policy will be formulated
24. We
have no option but to take some bold steps to spurt economy; these are only the
first steps and are directional
25. This
govt will not ordinarily change policies retrospectively which creates a fresh
liability
26. All
future indirect transfers under the retro tax regime will be scrutinised by a
high level committee of CBDT before action is taken
27. We
are committed to providing stable tax regime which is investor friendly
28. Govt
to set up a high-level Committee to interact with industry to bring about
changes in tax laws if required
29. FM
Proposes to enhance the scope of income tax settlement commission.
30. Govt
proposes to strengthen authority for advance ruling in tax, set up more benches
31. Transfer
pricing regulations for residents and non-residents being done
32. FDI
in Defence sector raised to 49 per cent
33. Finance
Minister Arun Jaitley takes 5-minute break; Lok Sabha adjourned for 5 minutes
34. Financial
stability is foundation of rapid recovery
35. Our
domestic manufacturing is still at nascent stage
36. Manufacturing
units will be allowed to sell their products through retail and e-commerce
37. Budget
proposes 49 per cent FDI in insurance through FIPB route.
38. Our
Banking system needs to be further strengthened. Need to infuse rs 2.40 lakh
crore in our banks
39. Bank capital
to be raised through retail sale of shares; Govt to continue to hold majority
in PSU banks
40. Govt
proposes to provide finance to 5 lakh landless farmers through NABARD
41. Will
examine proposal to give additional autonomy to banks and make them more
responsible
42. E-visa
to be introduced at 9 airports in the country
43. Govt
proposes to set up 100 smart cities. Govt to provide Rs 7,060 crore for
development of such cities
44. Public
sector banks need Rs 2.40 lakh crore equity to conform with Basel-III norms by
2018
45. Rs
50 cr set aside for indigenous cattle breed and blue revolution for inland
fisheries
46. We
expect PSUs to invest Rs 2,47941 crore this fiscal
47. Infrastructre
Investment Trust being set up to finance infra projects and reduce burden on
banks
48. Total
sanitation by 2019
49. Budget
proposes Rs 1,000 crore for Pradhanmantri Krishi Seechai Yojana to improve
irrigation facility
50. National
multi-scale programme ‘Skill India’ to be introduced to provide training and
support for employment
51. Rs
200 cr set aside for the Sardar Patel statue project in Gujarat
52. Deen
Dayal Upadhaya Gram Jyoti Yojana to be launched to augment power supply in
rural areas
53. Pension
scheme for senior citizens being revived
54. Govt
committed to providing 24×7 power supply to all homes
55. Rs
50,548 cr proposed for SC development
56. EPFO
will launch a unified account scheme for portability of Provident Fund accounts
57. Govt
proposes to set up committee to examine how to utilise large funds lying unused
in postal schemes
58. Govt
approves minimum monthly pension of Rs 1,000 per month under EPS-95 scheme run
by EPFO
59. Committee
will be set up to examine how unused money in postal schemes can be utilised
60. Govt
announces schemes for disabled persons; to set up 15 new Braille press and
revive 10 existing ones
61. Rs
14,389 crore provided for Pradhan Mantri Gram Sadak Yojana.
62. Govt
to launch ‘Beti Bachao, Beti Padhao’ scheme; sets aside Rs 100 crore for it
63. Crisis
Management Centres for women to be set up at all government hospitals in NCR
region
64. Govt
increases wage ceiling for EPFO schemes to Rs 15,000 from existing Rs 6,500 per
month
65. Rs
3,600 crore provided for safe drinking water in 20,000 habitations in villages
facing problem of impure drinking water
66. Budget
proposes National Housing Banking programme; sets aside Rs 8,000 crore
67. Rs
2.29 lakh crore allocated for Defence budget.
68. 4
more AIIMS in Andhra Pradesh, West Bengal, Vidharba and Purvanchal are under
consideration; Rs 500 cr provided
69. Each
state where there is no AIIMS will be added in the coming years
70. Govt
proposes to add 12 more medical government colleges
71. 5
new IIMs and 5 new IITs proposed to be set up
72. ‘Kisan’
TV channel to be launched by DD at cost of Rs 100 crore: Rs 100 crore for Community radio stations
proposed
73. FM
proposes National Rural Internet and Technology Mission; Rs 500 crore set aside.
74. Metro
rail services to be launched in Lucknow and Ahmedabad; Rs 100 crore set aside
for it
75. Budget
proposes to set up agri-infrastructure fund at a cost of Rs 100 crore; two more
agri-research intitutes in Jharkhand and Assam
76. FM
announces Rs 100 crore for modernisation of madrasas
77. Govt
sets aside Rs 200 cr for setting up of agriculture university in AP and
Rajasthan, and horticulture university in Haryana, Telangana
78. Rs
100 crore provided for providing soil card to every farmer
79. Govt
committed to achieve 4 per cent farm growth; to use new technologies to boost
crop yields
80. Rs
500 crore price stabilisation fund to be set up
81. Govt
sets aside Rs 100 crore for initiating scheme to provide a soil health card and
Rs 56 cr for soil testing labs.
82. No
change in income tax rate; personal income tax exemption limit raised from Rs 2
lakh to Rs 2.50 lakh.
81. Education
cess for all tax payers including corporates will continueRestructuring Food
Corporation of India to be taken up on priority
82. Budget
proposes Rs 200 cr for setting up 2000 producers’ organisations across the
country
83. Investment
limit under 80C raised from Rs 1 lakh to Rs 1.5 lakh
84. There
is need to examine financial architecture of SME sector
85. Kakinada
port and adjoining area to be developed
86. Rs
10,000 crore venture capital fund to be set up for MSME sector
87. Trade
facilitation centres will be set up at a cost of Rs 50 crore to help handloom
development
88. Definition
of MSME to be revised for high capital ceiling
89. India
has emerged as the largest PPP market in the world
90. Rs
200 cr provided for 6 more textile clusters in Rae Bareily, Lucknow, Surat,
Bhagalpur, Mysore and Tamil Nadu.
91. Govt
sets aside Rs 50 crore for Pashmina Production programme in Jammu & Kashmir
92. 1,620-km
Ganga inland waterway development from Haridwar to Haldia to be completed in 6
years at a cost of Rs 4,200 crore
93. Selective
Expressways parallel to industrial corridors to be taken up
94. Ultra
modern super critical power projects to be set up
95. New
airports to be developed through PPP mode
96. Coal
linkages to be rationalised to reduce power cost
97. Rs
4200 cr set aside for Jal Marg Vikas project on river Ganga connecting
Allahabad to Haldia
98. Rs
500 crore provided for ultra modern solar power plants in Rajasthan, Tamil Nadu
and Ladakh in Jammu and Kashmir.
99. Use
of piped cooking gas to be promoted on mission mode
100. CRT
TVs exempted from customs duty to help poor
101. Basic
custom duty on LCD and LEDs below 19 inch reduced to zero from 10 per cent
102. Changes
in Mines and Mineral Regulation and Development Act to be introduced; royalty
on minerals to be reviewed to enhance revenue for states
103. Modern
monetary policy framework needed; govt to put in place such framework in close
consultation with RBI
104. Govt
proposes developing 15,000 km additional gas pipeline through PPP mode.
105. Clarification
on tax treatment of foreign funds to be announced
106. Govt
agrees in principle on consolidation of PSU banks
107. Banks
will be permitted to raise long term funds without regulatory hindrances.
108. RBI
to frame policy for licensing of small banks, differential banks
109. Govt
to take up pending insurance reforms bill that provides for 49 pc FDI
110. Govt
to revitalise small saving scheme; special scheme to encourage saving for girl
child education and marriage to be introduced
111. PPF
investment limit increased to Rs 1.5 lakh from current Rs 1 lakh
112. Rs
100 crore technology development fund proposed in budget
113. Govt
sets aside Rs 2,250 crore to improve weather infrastructure
114. Rs
100 crore allocated for War Memorial and war museum at Princess Park, near
India Gate in Delhi
115. Rs
50 crore provided for setting up of a National Police Memorial
116. Rs
200 cr allocated for preserving heritage characters of cities like Mathura and
Agra
117. Govt
sets aside Rs 100 cr for inter-linking of rivers
118. Govt
announces Rs 100 cr for development of Archaeological sites; Gaya to be
developed as world class tourist spot
119. Integrated
Ganga mission to be set up; Rs 2,039 crore provided in Budget
120. Rs
50 crore set aside for modernisation of Ghats in places like Varanasi and Patna
121. NRI
fund for conservation of river Ganga to be set up
122. Rs
200 crore upgrading indoor and outdoor stadium in Jammu and Kashmir – both in
Jammu and Kashmir Valley
123. Budget
proposes to set up sports university in Manipur
124. Rs
100 crore set aside for training on sportspersons for the Asiad Games
125. Rs
500 crore provided for rehabilitation of displaced Kashmiri migrants
126. Rs
100 cr set aside for development of organic farming in north east region
127. Rs
200 crore provided for power reforms, Rs 500 crore for water reforms in Delhi
128. Govt
to provide Rs 1000 cr for rail connectivity in north east region
129. Govt
announces “Arun Prabha” channel for NE region; will be 24×7 channel
130. Non-plan
expenditure pegged at Rs 12,19,892 crore for 2014-15, including fetilizer
subsidy and defence spending
131. Gross tax
receipts pegged at Rs 13,64,524 crore; non-tax revenue Rs 2,12,505 crore;
capital receipt Rs 73,000 crore in 2013-14
132. Income
tax exemption limit for senior citizens raised from Rs 2.5 lakh to Rs 3 lakh
133. Exemption
on payment of income tax on interest paid on loans for self occupied houses
raised to Rs 2 lakh from Rs 1.5 lakh
134. 10-year
tax holiday to be extended to companies that start power generation by March
31, 2017
135. Investment
allowance of 15 per cent for three years will be allowed to manufacturing
companies which invest Rs 25 crore in plant and machinery
136. Concensional
rate of 15 per cent on dividends to continue
137. Govt
to review revised Direct Taxes Code taking into account comments from
stakeholders
138. Direct
tax proposals to involve sacrifice of Rs 22,200 crore
139. Basic
customs duty reduced on items used in chemical and petrochemical sector to
encourage investment
140. Inputs
used for manufacture of personal computers exempted from 4 per cent customs duty
141. Basic
customs duty on basic flat stainless steel products raised to protect domestic
industry to 7.5 per cent from 5 per cent
142. Customs
duty on coal rationalised to 2.5 per cent plus 2 per cent SAD
143. Export duty on bauxite doubled to
20 per cent
144. Excise
duty on food processing and packaging machinery for fruits and vegetables
reduced to 6 per cent from 10 per cent
145. Excise
duty on cetrain solar equipment exempted
146. Excise
duty on footwear reduced to 6 per cent from 12 per cent
147. Specific
excise duty on cigarettes raised in the range to 11 to 72 per cent
148. Additional
excise duty of 5 per cent levived on aerated waters with added sugar
149. Clean
energy cess increased from Rs 50 per tonne to Rs 100 per tonne
150. Govt
announces pruning of negative and exemption list of service tax to widen tax
base
151. Govt
to earn Rs 7,525 crore more from changes in indirect taxes
152. Govt
exempts loading/unloading and transportation of cotton from service tax
153. Indian
Custom Single Window Project to be taken up for facilitating trade.
