India Union Budget 2014 – Highlights

Today Iron man’s government revealed their first finance budget. Budget was revealed by finance minister of India Sh. Arun Jaitley at Lok Sabha Parliament. In his Press conference he said “Growth with employment is the top focus in Budget. Inflation rate will be lower down.”

Some of the main highlights of union budget of India for financial year 2014-15 are as follows:

• We have taken up the challenge in the right ernest; will create a vibrant and strong India
• A new urea policy would be formulated
• GST will streamline tax administration and result in higher tax collection for center and states
• Stable tax regime which is investor friendly
• FDI is several sectors provides additional resources
• India needs boost in manufacturing sector
• Finance Minister proposes measures to encourage development of smart cities
• Financial stability is the foundation of our recovery
• We will examine proposal to give additional autonomy to banks and make them more responsible
• As large number of people migrate to cities, unless new cities are developed the present would become unlivable
• In order to give major boost to tourism, E-visas would be introduced at 9 airports. This will facilitate visas on arrival
• A national multiscale programme called Skill India to be introduced to provide training and support for employment
• ‘Pradhanantri Krishi Sichayin Yojana’ to be started for irrigation
• Total sanitation goals to be achieved by 2019
• Govt committed to providing 24/7 power supply to all homes
• Rs.200 crore set aside to support Gujarat govt in the Sardar Patel statue installtion
• Rs.50,548 crore proposed for SC development
• A large number of money lying unused in postal schemes etc. Propose to set up a committee to examine how this can be utilised
• EPFO will launch a unified account scheme for portability of Provident Fund accounts
• Finance Minister announces schemes for disabled persons in the country
• 15 new Brail presses to be established
• Arun Jaitley laments apathy towards girl child, announces ‘Beti padhao, beti badhao yojana’, sets aside Rs.100 crore for this.
• Jaitley announces Crisis Management Center for women at Delhi; money to be provided from Nirbhaya fund.
• PMGSY has a massive impact on rural development; sets aside Rs.14,389 crore for this
• Finance Minister proposes National Housing Banking programme; sets aside Rs. 8000 cr for this programme.
• He announces Backward Regional Grant Fund to address inter regional inequalities.
• Propose to set up four more AIIMS; Rs.500 crore set aside for this. Six new AIIMS started recently have become functional
• Rs.3600 crore set aside for National Rural Drinking Water
• The four new AIIMS will be in Andhra, West Bengal, Vidarbha and Purvanchal
• Jaitley proposes 12 more Govt Medical colleges with dental facilities
• 15 Model Rural Health Research centers to be set up for rural health issues
• Propose to set up Center of Excellence in MP named after Lok Nayak JaiPrakash Narayan
• FM proposes to set up 5 new IIMs and 5 new IITs
• Pt Madan Mohan Malaviya Teaching Programme to be started
• Jaitley proposes National Rural Internet and Technology Mission; Rs.500 crores set aside.
• Rs.100 cr set aside for Community Radio Centres; 600 new and existing ones will be supported
• Urban renewal will address drinking water, use of recycled water,solid waste management, digital connectivity; 500 habitats supported
• Mission for low cost housing proposed to incentivise development of low cost housing; Rs.400 cr announced.
• FM announces development of Metro rails in PPP mode; Rs.100 cr set aside for metro scheme in Ahmedabad and Lucknow.
• FM announces Rs.100 cr for modernisation of madrasas.
• Slum development to be included in Corporate Social Responsibility activities.
• Agriculture University in Andhra and Rajasthan, and Horticulture University in Haryana, Telangana; Rs.200 cr set aside.
• Five minute break announced in presentation of Budget.
• Govt will initiate scheme to provide a soil health card; Rs.100 cr set aside. Rs.56 cr for soil testing labs across the country.
• National Adaption Fund for climate change to be set up.
• State governments to be encouraged to develop farming markets
• Rs.50 cr set aside for indigenous cattle breed and blue revolution for inland fisheries
• Additional Rs.5000 cr set aside for RIDF
• Rs.5000 cr short time rural credit refinance fund for 2014-15
• FM allocates funds for setting up 2,000 producers’ organisations across the country.
• FM allocates Rs.200 cr for setting up 2000 producers’ organisations across the country.
• Rs.100 cr set aside for Kisan Television to provide real time information on various farming and agriculture issues
• All govt departments and ministries to be integrated through E-platform by 31 Dec this year
• To set up Industrial Smart Cities in 7 cities
• Apprentice Act to be suitably amended to strengthen the Apprentice Training Scheme
• Effective steps to be taken to revive SEZs
• MSMEs are the backbone of the economy; to be revived through a committee to examine and report in three months
• Definition of MSME to be revised for high capital ceiling
• FM announces Rs.200 cr for 6 more textile clusters in Rae Bareily, Lucknow, Surat, Bhagalpur
• India has emerged as the largest PPP market in the world
• There is need to develop more sophisticated models with quick redressal mechanism in PPP contracts
• Rs.50 cr set aside for pashmina production programme in Jammu and Kashmir
• FM announces development of Hastkala Academy in PPP mode
• New airports to be developed through PPP mode
• Rs.4200 cr set aside for the Jal Marg Vikas project on river Ganga connecting Allahabad to Haldia,over 1620 km
• Existing impasse of coal sector will be resolved
• In order to complete gas grid, 15000 km of additional pipeline to be developed through PPP mode
• Revision of rate of royalty on minerals to be taken up on request from the states
• Financial sector is at the heart of the growth engine
• Essential to strengthen and modernise regulatory framework in financial sector to meet challenges of increasing complex economy
• FM proposes number of measures to energise Indian capital market
• Urgent need to converge current Indian standard with international accounting standards
• To provide all households with banking facilities to empower the weaker sections; there should be at least 2 bank accounts in each household
• Benefits of insurance have not reached larger section of people; govt will addres this in multi-pronged manner with stakeholders
• Bank will be encouraged to give long term funds and loans to the infrastructure sector
• RBI will create framework for licenses of small banks
• Govt will work out measures for revival of other stressed assets
• Pending Insurance Amendment Bill to be taken up in the Parliament
• Will take measures to revitalise small savings schemes
• Rs.100 cr set aside for development of Technology Development Fund scheme for education of girl child to be launched soon
• War memorial to be set up along with a war museum; Rs.100 cr set aside for this
• Rs.5000 cr set aside for defence outlay over and above amount provided under interim budget
• Propose to set aside Rs.50 cr for construction of National Police Memorial
• FM announces Rs.100 cr for development of archaeological sites. Gaya to be developed as world class tourism spot
• Time that we make serious efforts to link rivers; Rs.100 cr set aside for project to link rivers
• World Class Convention facility to be developed through PPP mode
• FM announces “Namami Ganga”, an integrated Ganga Development Project; Rs. 2,037 cr set aside for this.
• NRI fund for conservation of river Ganga to be set up
• Biotech clusters to be set up in Bangaluru and Faridabad to take science and technology to new heights
• Govt will set up national sports academy for different sports in different parts of India
• Sports University to be set up in Manipur; Rs.100 cr provided in current financial year
• Rs.200 cr set aside for upgradation of indoor and outdoor stadium in Jammu and Kashmir to international standards
• Young Leaders Programme to be set up with Rs.100 cr
• Programme for displaced Kashmiri migrants with Rs.500 cr to be started
• Proposed Rs.200 crore for power reforms, and Rs.500 crore for water reforms in Delhi
• FM announces Rs.150 cr for communication needs of Andaman and Nicobar islands.
• FM announces ‘Arun Prabha’ channel for NE region.
• Govt committed to development of Telangana and Andhra
• Rs.1000 cr provided for rail connectivity in NE region
• Rs.100 cr set aside for development of organic farming in north east region
• Had to encounter challenge of extremely limited fiscal space in deciding tax policy
• I propose to give some relief to taxpayers and some sectors of the economy said Jaitley
• Impact of tax changes have been factored
• Do not propose to make any changes in tax rate
• Tax exemption limit for small and marginal, and senior tax payers changed from Rs.2 to Rs.2.5 lakh
• Tax exemption limit for senior citizens changed from Rs.2.5 lakh to Rs.3 lakh: FM.
• Propose to increase investment limit under Section 80C from Rs.1 lakh to Rs.1.5 lakh
• Provide investment allowance at 15 per cent for 3 years to manufacturing company which invest more than Rs.25 cr in plant and machinery.
• FM announces measures to boost domestic manufacturing sector; says the sector has been under stress.
• Net effect of direct tax proposals is revenue loss of Rs.22,200 cr.
• FM announces proposals to make CRT TVs cheaper.
• FM announces measures to encourage manufacture of LCD/LED panels of TVs.
• Basic custom duty on LED panel below 19 inches made nil
• Finance Minister Arun Jaitley announces several tax rational measures
• Export duty on bauxite enhanced from 10 per cent to 20 per cent
• Excise duty on footwear reduced from 12 per cent to 6 per cent
• FM announces reduction in excise duty for specified food package industry from 10 per cent to 6 per cent.
• Propose increase in excise duty on tobacco products, and aerated water products with added sugar
• To broaden tax base, negative list for service tax has been reviewed
• Soaps and oil products to become cheaper: FM.
• Tax proposals on indirect tax front would yield Rs.7,525 cr

Data compiled by Megri Accounting