Tuesday, July 15, 2014

Union Budget 2014-15: Highlights

Union Budget 2014-15









Union Finance Minister, Arun Jaitley on 10 July 2014 presented Union Budget 2014-15. This budget was the maiden budget for the Finance Minister as well as its first for the newly appointed government lead by Prime Minister Narendra Modi.
Highlights of the 2014-15 Union Budgets
• The tax bracket has been increased to 2.5 lakh rupees from previous 2 lakh rupees, whereas, for senior citizen it has been raised to 3 lakh rupees from previous 2.5 lakh rupees 
• Tax relief for interest on housing loan rose from 1.5 lakh rupees to 2 lakh rupees
• Deduction under 80C increased from 1 lakh rupees to 1.5 lakh rupees
• 2037 crore rupees for Ganga cleaning
• 4200 crore rupees for Ganga project river connectivity from Allahabad to Haldia
• 15000 KM of additional pipeline through PPP mode to complete Gas Grid
• 37800 crore rupees proposed for NHAI and State Highways 
• 3000 crore rupees for roads in North East
•1000 crore rupees for improving North East connectivity 
• 1000 crore rupees for one rank one pension policy adopted by government
• 11635 crore rupees for habour projects
• 10000 crore rupees set aside for startup firms
• 1000 crore rupees proposed for Pradhanmantri Krishi Seechai Yojana to improve irrigation facility
• 30 crore rupees for setting up Hasthkala Academy for revival of handicrafts
• 14389 crore rupees announced for Pradhan Mantri Gram Sadak Yojna, PMGSY
• 1785 crore rupees for road under-bridges & over-bridges
• 4000 crore rupees for National Housing Bank for flow of cheap housing finance
• 3600 crore rupees for National Rural Drinking Water programme
• 100 crore rupees has been allotted for modernization of Madarasas
• 500 crore rupees for power transmission 
• 100 crore rupees allotted for Beti bachao-beti padhao yojna  
• 150 crore rupees for safety of women scheme
• Minimum pension of 1000 rupees to meet the expenditure to all subscribers of EPFO scheme 
• 1000 crore rupees allocated for PM Irrigation Scheme 
• 200 crore rupees has been allocated for the Statue of Unity in Gujarat, Sardar Patel stands as a unity of statue 
• 8000 crore rupees allocated for rural housing scheme
• 2000 crore rupees allocated for new Water Shed programme 
• 3600 crore rupees under national rural drinking water programme
• 50000 crore rupees for SC/ST schemes
• 500 crore rupees allocated for setting AIIMS in Andhra Pradesh, West Bengal, Vidharbha and Purvanchal. Aim is to create an AIIMS in every state
• FDI cap in Defence sector has been raised to 49 percent 
• The finance minister in the budget announced steps for sustained growth of 7-8 percent within the next three-four years
• Separate commission will be constituted to decrease government expense 
• Aim to make food and fuel subsidy more targeted so that it helps those who need them
• High-level committee will scrutinize all retro taxes 
• No change was made in tax rates retrospectively 
• GST by the end of 2014 (no deadline was announced), GST will streamline tax administration and result in higher tax collection for centre and states
• FDI cap on minimum built up area has been reduced to encourage development of smart cities 
• FDI will be promoted in selected sectors
• Beti Bachao-Beti Padhao Yojna announced
• Greater autonomy to banks
• PSU 247944 crore capex to create industrial cycle
• 100 new Smart cities to be developed, 7060 crore rupees fund for smart cities
• Tourism: e-visas to be introduced at nine airports in the country in a phased manner
• Modified REITS (Real estate investment trusts) has been announced for infrastructure projects to reduce pressure on banking system 
• Kisan Vikas Patra has been pushed further
• New scheme for skill development called Skill India to be launched
• By 2019, every household will have Sanitation 
• Shyama Prassad Mukherjee Rozgar mission to be launched
• New scheme for agricultural irrigation
• National level institute for mental health to be set up
• To help blind, currency notes with Braille like signs has been announced 
• Gender main-streaming: School curriculum to have a chapter on the issue
• MNREGA will be made more productive by linking it to agriculture related activities
• Women SCGs bank loan scheme to be extended to other districts
• Backward region grant fund for 272 backward districts: BRGF will be restructured
• Under Health for all, free drug and free diagnostic service to be taken
• 12 more government medical colleges to be added
• Aerated drinks to be more expensive
• Cigarettes to cost more, excise duty hiked to 72 percent from 11 percent
• Personal computers, electronic goods to be cheaper
• Proposal to make CRT TVs cheaper
• Basic customs duty on LED panel below 19 inch removed
• Soaps and oil products to become cheaper
• Excise duty on footwear reduced from 12 percent to 6 percent
• Excise duty concessions to continue till 31 December 2014
• Annual deposit under PPF scheme rose to 1.5 lakh rupees from previous 1 lakh rupees
• Open market sale of food grains, wherever required
• National industrial corridor to be set up with Pune at centre
• Banks to give long term infra loans
• 10-year Tax holiday for power sector to continue
• Single D-mat A/c for all financial transactions
• Funds for communications, disaster preparedness for UTs
• Funds for power, water reforms for capital in budget
• No change in surcharge
• No change in Direct Tax rates
• War Memorial will be set up at Princess Park, New Delhi
• Pending Insurance Amendment Bill to be taken up in Parliament
• Government to examine proposal to give additional autonomy to banks
• Committed to 4 percent growth in agriculture
• Six debt recovery tribunals to be set up
• Ultra modern solar power projects to be set up
• Mumbai infra corridor to be completed on schedule
• Investment in mining sector to be encouraged
• Financial sector to be at heart of economic growth
• To augment power supply in rural areas Deen Dayal Upadhaya Gram Jyoti Yojana to be launched 
• MSME definition to be revised for high capital ceiling
• Effective steps will be initiated to revive SEZs
• Pension scheme for senior citizens being revived
• Slum development to be included in CSR activities
• Composite cap on FDI in insurance proposed to be raised to 49 percent from 26 percent 
• 15 Model Rural Health Research centers for rural health issues
• National multiscale Skill India programme to provide training and support for employment
• 15 new Braille presses to be established and 10 existing to be revived
• Government to leave no stone unturned to create a vibrant India
• New urea policy will be formulated
• Centre looks forward to low inflation regime
• Commitment to AP and Telangana issues reiterated
Education
• All girls’ schools will have toilet and drinking water the funds for creation will be provided by the Government 
• 500 crore rupees allocated for new teachers training scheme that will be launched
• 100 crore rupees for virtual class rooms
• 500 crore rupees allocated for proposed national rural and tech mission 
• 100 crore rupees allocated for new plan to promote community radio 
• Madhya Pradesh will have National Centre of Humanities 
• Five more IITs and five IIMs to be set up
• Digital India, a Pan-India programme would be launched – under which broadband connectivity to villages will be provided 
• Education cess to continue at 3 percent
• 12 more government medical colleges proposed with dental facilities
• New Agricultural universities for Andhra Pradesh and Rajasthan 
• Horticulture Universities for Haryana and Telangana

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