2014 Union budget of India

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 () 2014 Union budget of India
Emblem of India
Submitted10 July 2014
Submitted byArun Jaitley, Finance Minister
PartyBharatiya Janata Party
Websitewww.indiabudget.nic.in
‹ 2014
2015 ›

The 2014 Union Budget of India was presented by Finance Minister, Arun Jaitley on 10 July 2014,11 am.[1] This was the first budget of Narendra Modi led NDA government.[2]

Salient features of the budget

  • ₹70.6 billion (US$880 million) provided for the development of Smart Cities in India
  • ₹10 billion (US$130 million) provided for irrigation
  • 5 New IITs and IIMs and four new AIIMS in India.
  • New airports scheme in tier 1 and 2 cities
  • Schemes for development of sports across the country.

Foreign Direct Investment

  • FDI cap in Defense and Insurance sector has been increased to 49% from 26%.
  • FDI in real estate for low cost housing

Personal tax and exemption limit

  • No changes in personal income tax slabs. But tax exemption limit has been increased to ₹250,000 (US$3,100) from ₹200,000 (US$2,500) for those below the age of 60. Income tax exemption limit for senior citizens has been raised to ₹300,000 (US$3,800).
  • Investment limit under Section 80C has also been increased to ₹150,000 (US$1,900) from the current ₹100,000 (US$1,300).
  • Housing loan interest rate deduction limit has been increased to ₹200,000 (US$2,500).

Budget 2014: Highlights of Finance Minister Arun Jaitley’s Budget speech

  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 ₹5.75 trillion (US$72 billion) for the current fiscal
  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 [3]
  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 ₹2.4 trillion (US$30 billion) 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 500,000 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 in India. Govt to provide ₹70.6 billion (US$880 million) for development of such cities
  44. Public sector banks need ₹2.4 trillion (US$30 billion) equity to conform with Basel-III norms by 2018
  45. ₹50 crore (US$6.3 million) set aside for indigenous cattle breed and blue revolution for inland fisheries
  46. We expect PSUs to invest ₹2,479.41 billion (US$31 billion) this fiscal
  47. Infrastructure Investment Trust being set up to finance infra projects and reduce burden on banks
  48. Total sanitation by 2019
  49. Budget proposes ₹10 billion (US$130 million) 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. ₹2 billion (US$25 million) set aside for the Sardar Patel statue project in Gujarat
  52. Deen Dayal Upadhyaya 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. ₹505.48 billion (US$6.3 billion) 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 ₹1,000 (US$13) 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. ₹143.89 billion (US$1.8 billion) provided for Pradhan Mantri Gram Sadak Yojana.
  62. Govt to launch ‘Beti Bachao, Beti Padhao’ scheme; sets aside ₹1 billion (US$13 million) 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 ₹15,000 (US$190) from existing ₹6,500 (US$81) per month
  65. ₹36 billion (US$450 million) 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 ₹80 billion (US$1.0 billion)
  67. ₹2.29 trillion (US$29 billion) allocated for Defence budget.
  68. 4 more AIIMS in Andhra Pradesh, West Bengal, Vidharba and Purvanchal are under consideration; ₹5 billion (US$63 million) 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 ₹1 billion (US$13 million): ₹1 billion (US$13 million) for Community radio stations proposed
  73. FM proposes National Rural Internet and Technology Mission; ₹5 billion (US$63 million) set aside.
  74. Metro rail services to be launched in Lucknow and Ahmedabad₹1 billion (US$13 million); ₹1 billion (US$13 million) set aside for it.
  75. Budget proposes to set up agri-infrastructure fund at a cost of ₹1 billion (US$13 million); two more agri-research institutes in Jharkhand and Assam
  76. FM announces ₹1 billion (US$13 million) for modernisation of madrasas
  77. Govt sets aside ₹2 billion (US$25 million) for setting up of agriculture university in Andhra Pradesh and Rajasthan, and horticulture university in Haryana, Telangana
  78. ₹1 billion (US$13 million) 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. ₹5 billion (US$63 million) price stabilisation fund to be set up
  81. Govt sets aside ₹1 billion (US$13 million) for initiating scheme to provide a soil health card and ₹560 million (US$7.0 million) for soil testing labs.
  82. No change in income tax rate; personal income tax exemption limit raised from ₹200,000 (US$2,500) to ₹250,000 (US$3,100).
  83. Education cess for all tax payers including corporates will continueRestructuring Food Corporation of India to be taken up on priority
  84. Budget proposes ₹2 billion (US$25 million) for setting up 2000 producers’ organisations across the country
  85. Investment limit under 80C raised from ₹100,000 (US$1,300) to ₹150,000 (US$1,900)
  86. There is need to examine financial architecture of SME sector
  87. Kakinada port and adjoining area to be developed
  88. ₹100 billion (US$1.3 billion) venture capital fund to be set up for MSME sector
  89. Trade facilitation centres will be set up at a cost of ₹500 million (US$6.3 million) to help handloom development
  90. Definition of MSME to be revised for high capital ceiling
  91. India has emerged as the largest PPP market in the world
  92. ₹00 cr provided for 6 more textile clusters in Rae Bareily, Lucknow, Surat, Bhagalpur, Mysore and Tamil Nadu.
  93. Govt sets aside ₹500 million (US$6.3 million) for Pashmina Production programme in Jammu & Kashmir
  94. 1,620-km Ganga inland waterway development from Haridwar to Haldia to be completed in 6 years at a cost of ₹42 billion (US$530 million)
  95. Selective Expressways parallel to industrial corridors to be taken up
  96. Ultra modern super critical power projects to be set up
  97. New airports to be developed through PPP mode
  98. Coal linkages to be rationalised to reduce power cost
  99. ₹42 billion (US$530 million) set aside for Jal Marg Vikas project on river Ganga connecting Allahabad to Haldia
  100. ₹5 billion (US$63 million) provided for ultra modern solar power plants in Rajasthan, Tamil Nadu and Ladakh in Jammu and Kashmir.
  101. Use of piped cooking gas to be promoted on mission mode
  102. CRT TVs exempted from customs duty to help poor
  103. Basic custom duty on LCD and LEDs below 19 inch reduced to zero from 10 per cent
  104. Changes in Mines and Mineral Regulation and Development Act to be introduced; royalty on minerals to be reviewed to enhance revenue for states
  105. Modern monetary policy framework needed; govt to put in place such framework in close consultation with RBI
  106. Govt proposes developing 15,000 km additional gas pipeline through PPP mode.
  107. Clarification on tax treatment of foreign funds to be announced
  108. Govt agrees in principle on consolidation of PSU banks
  109. Banks will be permitted to raise long term funds without regulatory hindrances.
  110. RBI to frame policy for licensing of small banks, differential banks
  111. Govt to take up pending insurance reforms bill that provides for 49 pc FDI
  112. Govt to revitalise small saving scheme; special scheme to encourage saving for girl child education and marriage to be introduced
  113. PPF investment limit increased to ₹150,000 (US$1,900) from current ₹100,000 (US$1,300)
  114. ₹1 billion (US$13 million) technology development fund proposed in budget
  115. Govt sets aside ₹22.5 billion (US$280 million) to improve weather infrastructure
  116. ₹1 billion (US$13 million) allocated for War Memorial and war museum at Princess Park, near India Gate in Delhi
  117. ₹500 million (US$6.3 million) provided for setting up of a National Police Memorial
  118. ₹1 billion (US$13 million) allocated for preserving heritage characters of cities like Mathura and Agra
  119. Govt sets aside ₹1 billion (US$13 million) for inter-linking of rivers
  120. Govt announces ₹1 billion (US$13 million) for development of Archaeological sites; Gaya to be developed as world class tourist spot
  121. Integrated Ganga mission to be set up; ₹20.39 billion (US$260 million) provided in Budget
  122. ₹500 million (US$6.3 million) set aside for modernisation of Ghats in places like Varanasi and Patna
  123. NRI fund for conservation of river Ganga to be set up
  124. ₹2 billion (US$25 million) upgrading indoor and outdoor stadium in Jammu and Kashmir – both in Jammu and Kashmir Valley
  125. Budget proposes to set up sports university in Manipur
  126. ₹1 billion (US$13 million) set aside for training on sportspersons for the Asiad Games
  127. ₹5 billion (US$63 million) provided for rehabilitation of displaced Kashmiri migrants
  128. ₹1 billion (US$13 million) set aside for development of organic farming in north east region
  129. ₹2 billion (US$25 million) provided for power reforms, ₹5 billion (US$63 million) for water reforms in Delhi
  130. Govt to provide ₹10 billion (US$130 million) for rail connectivity in north east region
  131. Govt announces “Arun Prabha” channel for NE region; will be 24×7 channel
  132. Non-plan expenditure pegged at ₹12,198.92 billion (US$150 billion) for 2014-15, including fertilizer subsidy and defence spending
  133. Gross tax receipts pegged at ₹13,645.24 billion (US$170 billion); non-tax revenue ₹2,125.05 billion (US$27 billion); capital receipt ₹730 billion (US$9.1 billion) in 2013-14
  134. Income tax exemption limit for senior citizens raised from ₹250,000 (US$3,100) to ₹300,000 (US$3,800)
  135. Exemption on payment of income tax on interest paid on loans for self occupied houses raised to ₹200,000 (US$2,500) from ₹150,000 (US$1,900)
  136. 10-year tax holiday to be extended to companies that start power generation by March 31, 2017
  137. Investment allowance of 15 per cent for three years will be allowed to manufacturing companies which invest ₹250 million (US$3.1 million) in plant and machinery
  138. Concensional rate of 15 per cent on dividends to continue
  139. Govt to review revised Direct Taxes Code taking into account comments from stakeholders
  140. Direct tax proposals to involve sacrifice of ₹222 billion (US$2.8 billion)

..

Reactions

  • Former Prime Minister of India, Manmohan Singh reacted on budget saying that "Budget lacks road-maps".[4]
  • The Communist Party of India (Marxist) accused the budget as "a recipe for further enriching the rich and impoverishing the poor. "[5]
  • Former Chief Minister of Delhi, Arvind Kejriwal stated that "it was a directionless budget with no steps to bring down inflation in the country".[6]
  • Sharad Yadav reacted on budget saying that "This Budget shows we are standing where we were. It's like distributing toffees".
  • Sonia Gandhi said that Arun Jaitley copied the policies of congress government.[7]
  • Rajeev Shukla stated that "This budget is intended for corporate sector and rich people. There is nothing in budget for common man"
  • Sudheendra Kulkarni: Smart new cities are welcome. But far bigger challenge is to make old cities smarter. Possible only with Good Governance Reforms.[8]
  • Sunil Duggal: The Union Budget 2014-15 was going to be a tough balancing act for Finance Minister Mr. Arun Jaitley, given the precarious state that the Economy was in.[9]
  • President of FICCI, Sidharth Birla stated that "The FM has set the ground for repair of the economy. There has been a mix of both short-term and long-term measures geared towards boosting confidence of all key constituents."[10]
  • President of CII, Ajay S. Shriram stated that "It has covered many aspects of the population and that is big plus. The finance minister has looked at policies from 2-3 year view and this is a positive direction for higher economic growth."[11]

See also

References

  1. ^ "Expectation from union budget 2014-15". Patrika Group. 10 July 2014. Archived from the original on 14 July 2014. Retrieved 10 July 2014.
  2. ^ "Union Budget 2014: Jaitley hands middle class its big tax break". India Today. 10 July 2014. Retrieved 10 July 2014.
  3. ^ "FM Maintains FY15 Fisc Deficit Target At 4.1%". Bloomberg TV India.
  4. ^ "No roadmap in budget : Manmohan". Patrika Group. 10 July 2014. Archived from the original on 14 July 2014. Retrieved 11 July 2014.
  5. ^ "On Union Budget". Polit Bureau of the Communist Party of India (Marxist). 10 July 2014. Archived from the original on 14 July 2014. Retrieved 11 July 2014.
  6. ^ "Arvind Kejriwal reacted to the general budget saying that it was a directionless budget". www.arvindkejriwal.co.in. Retrieved 11 July 2014.
  7. ^ "जेटली ने ज्यादातर कांग्रेस की योजनाओं को कॉपी किया है". Patrika Group. Archived from the original on 14 July 2014. Retrieved 11 July 2014.
  8. ^ "Twitter / SudheenKulkarni: Smart new cities are welcome". www.twitter.com. Retrieved 11 July 2014.
  9. ^ "Post Budget Reactions". www.adgully.com. Retrieved 11 July 2014.
  10. ^ "Budget 2014-15: India Inc reactions". business-standard. 11 July 2014. Retrieved 13 July 2014.
  11. ^ "Budget 2014 positive, implementation will be ke". Economic times. Times of India. 10 July 2014. Retrieved 11 July 2014.

External links

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