New Delhi:
Finance Minister Arun Jaitley detailed his budget for 2014-15 today, the first under Prime Minister Narendra Modi's new government.
India's economy is stuttering under high inflation and the worst slowdown since free-market reforms in the early 1990s, and the budget is the first major test of Mr Modi's reformist credentials since he swept to power in May with a pledge to boost growth and create millions of new jobs.
Here are the highlights of Budget 2014:- Slowdown in India broadly reflects the trend in many economies. Fortunately, there are green shoots of recovery seen in the global economy
- People have decided for a change
- Those below poverty lines anxious to free themselves
- Look forward to lower levels of inflation
- Country in no mood to suffer unemployment, lack of infrastructure
- Broad policy indicator of the direction we want to take
- Poor who suffer the most
- We have to ensure anti-poverty programmes are well targeted
- Mandate of sab ka saath, sab ka vikaas will be followed
- Will leave no stone unturned in creating a vibrant India
- Need to revive growth in manufacturing and infrastructure sector
- Can't spend beyond our means, need fiscal prudence
- Conscious choice has to be made by all of us...should we allow our future to suffer because if our indecisiveness
- Need to revive growth in manufacturing and infrastructure
- The task is simple if we accept we cannot spend beyond our means
- We need to introduce fiscal prudence
- We have large subsidy burden
- Target of 4.1% fiscal deficit is daunting (Budget 2014: Arun Jaitley Retains Fiscal Deficit Target at 4.1% of GDP)
- I have accepted this target as challenge
- Tax-to-GDP ratio must be raised
- Will streamline taxation and avoid harassment. This government will not bring any restrospective amendments
- Banking Sector needs to be strengthened
- There is urgent need to generate more resources
- We need to revive growth particularly in manufacturing sector and infrastructure (Budget 2014: Arun Jaitley Targets Fiscal Consolidation; Announces Income Tax Sops)
- Anti-poverty programmes will be targeted well
- We wish to achieve 7 to 8 per cent growth in next 3-4 years
- Will leave no stone unturned to create a vibrant India
- Will usher in policy regime that will usher in higher growth, low inflation
- Slow decision making has resulted in loss of opportunity
- Pradhan Mantri Krishi Sichai Yojana - 1000 crores set aside
- Swach Bharat Abhiyaan - sanitation is of prime importance
- Van Bandhu Kalyan Yojana launched with initial allocation of 100 crores for welfare of tribals
- Rs. 500 crore for Deen Dayal Upadhyay rural electrification programme
- Sardar Patel statue work will be completed in Gujarat (Union Budget: What You Liked and Disliked Most)
Women Safety:Education:Agriculture:
After a five-minute break, Arun Jaitley continues with his budget speech:Infrastructure:- 50-crores for indigenous cattle breeding. 8 lakh crores set aside for Agriculture credit
- Allocation of 5000 crores to address the need to scientific warehousing
- Long-term rural credit fund to be set up in NABARD with initial support of 5000 crores
- Kisan TV will be launched in the current year (Kisan TV to Provide Real Time Information on Agriculture)
- The government is committed to provide housing for all by 2022
- All the Government departments and ministries will be integrated through E-platform by 31 December this year
- MSME sector - 10,000 crore rupee fund by way of attracting further private equity
- Entrepreneurship friendly bankruptcy laws to facilitate easy exit
- 200 crores for new textile centres in Bareily, Kutch, Surat, Mysore and Bhagalpur
- Hastkala Academy in Delhi - 30 crores set aside
- Pashmina production centre in Jammu and Kashmir
Investments in roads, airports:- 16 new port projects to be awarded this year
- Over 11 thousand crores for Tuticorin, Kandla and other ports
- Schemes for development of airports in tier 1 and 2 cities via AAI and PPP (Budget 2014: New Airports in Smaller Cities, Towns)
- Investment in NHAI and state highways to the tune of 37,887 cores - including 3000 crore for North East (Budget 2014: New TV Channel for Northeast)
- Allahabad-to-Haldia Ganga waterway project announced
- Proposals to boost investment in mining sector
Markets and Banking:- Proposals for Capital Markets - Introduction of uniform KYC norms
- One single operating DMAT account
- Modern monetary policy framework; liberalize ADR, GDR regime
- Revamp Indian Depository Receipts (Budget 2014: FDI Limit in Defence, Insurance Hiked to 49%)
- Time bound programme to provide banking services to all households
- Two bank accounts in each household to be opened which would also be eligible for credit
- Pending Insurance Law Amendment Bill to be taken up for consideration
Defence and Water fronts:- 2,29,000 crores allocated for Defence; One-Rank-One-Pay Adopted
- War Memorial to be constructed at Princess' Park and supplemented by a War Museum - 100 crores allocated
- Wage ceiling for EPFO schemes increased to Rs 15,000 from existing Rs 6,500 per month.
- Construction of a national police memorial
- Rs 100 crore for development of Technology Development Fund
- Additional 5000 crore will be set aside for defence outlay over and above amount provided under interim budge
- 100 crores for ghat development & beautification of river fronts
- NRI Fund for 'Clean Ganga' Programme (Budget 2014: Government Proposes Over Rs 2,000 Crore for Ganga Conservation Mission)
Sports:- 200 crores for upgrading indoor and outdoor facilities in Jammu and Kashmir
- Rs 100 crores allocated for Sports University in Manipur
- 100 crores for training sportsmen and women for upcoming Commonwealth and Asian Games
Education, Information Technology, tax and investments:- IT Exemption limit raised by 50,000
- Education cess continues as 3 %
- Direct taxes: exemptions limit raised by 50,000 to 2.50 lakh
- Under 80C - 1 lakh to 1.5 lakhs to encourage savings
- Investment allowance at 15% for 3 yrs to manufacturing company which invest more than Rs 25 crore in plant and machinery
- No tax for those earning below Rs 2.5lakh per annum
- Those earning above Rs 2.5 lakh per annum to save Rs 5150 per year (Budget 2014: Tax Exemption Limit Raised to Rs 2.5 Lakh)
- 10 year tax holiday for power companies who start production and distribution on March 31, 2017
- Small colour TVs to be cheaper
- Income Tax Department is expected to function not only for enforcement but also as a facilitator
- New Aykar Sewa Kendras to be opened
Customs and excise:- Colour picture tubes exempted from basic customs duty - basic customs duty on LCD, LED panels below 19 inches reduced to NIL (Cheaper Mobiles and More: What Budget 2014 Brings for Tech and Telecom Companies)
- Excise duty concessions extended already. More proposals to cut excise on food processing and footwear
- Cigarettes, chewing tobacco, Gutkha and Pan masala and aerated water containing added sugar to become more expensive
- Excise duty on cetrain solar equipment exempted
- Specific excise duty on cigarettes raised in the range to 11 to 72 per cent
- Additional excise duty of 5 per cent levived on aerated waters with added sugar.
- Clean energy cess increased from Rs 50 per tonne to Rs 100 per tonne.
- Government announces pruning of negative and exemption list of service tax to widen tax base.
- Government to earn Rs 7,525 crore more from changes in indirect taxes.
- Government exempts loading/unloading and transportation of cotton from service tax
- Indian Custom Single Window Project to be taken up for facilitating trade (Budget 2014: Full Speech of Finance Minister Arun Jaitley)
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Budget 2014: See What's Cheaper and What's Costlier)
Watch Mr Jaitley's full speech: