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Modi Government unveils first Union Budget
July 10, 2014, 12:07 pm
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Finance Minister Arun Jaitley detailed his budget for 2014-15 on 10 July, 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  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
  • 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
  • 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

Women Safety:

  • Outlay of Rs. 50 crores for a pilot scheme on road safety
  • Another 150 crores to be spent by MHA on safety on women in larger cities
  • 'Beti Bachao, Beti Padhao Yojana' - 100 crores
  • 8000 crores for national housing banking programme - for rural housing

Education:

  • All 6 additional AIIMS have become operational
  • Plan to set up 4 more AIIMS in Andhra Pradesh, West Bengal, Vidharbha and Purvanchal. Rs. 500 crore allocated
  • Pandit Madan Mohan Malviya New Teacher's Training Programme launched. 5 more IITs and IIMs  to be set up - Rs. 500 crores allocated
  • FTII Pune, SRFTI Kolkata will be accorded the status of institute of national importance
  • 100 Crores for modernising Madrasas

Agriculture:

  • Urgent need for investment in agro-technology and development
  • 100-crore Agri-Infrastructure fund
  • Horticulture University in Telangana and Haryana

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
  • 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 for that
  • 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
  • Investment in NHAI and state highways to the tune of 37,887 cores - including 3000 crore for North east
  • 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 Reciepts
  • 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

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
  • 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
  • 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
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