Union Budget 2014-15 Highlights

Union Finance Minister Arun Jaitley has presented first budget for the newly elected NDA government today. The key highlights are:
Fiscal/Economy Related

  • Fiscal deficit target retained at 4.1% of GDP for current fiscal year and 3.6% for 2015-16 and 3% for 2016-17

  • Revenue Deficit seen at 2.9% for Financial year 2014-15

  • Aim to achieve 7-8% economic growth rate in next 3-4 years

  • Committed to 4% growth in agriculture

  • Govt-s plan expenditure pegged at Rs. 5.75 lakh crore and non-Plan at Rs. 12.19 lakh crore.

  • Disinvestment target fixed at Rs. 58,425 crore

  • Gross borrowings pegged at Rs. 6 lakh crore


Taxation:

  • Govt expects Rs. 9.77 lakh crore revenue crore from taxes

  • Personal tax exemption limit raised to Rs 2.5 lakh from current Rs 2 lakh for taxpayers below 60 years

  • Senior citizens' tax exemption limit incresed from Rs 2.5 lakh to Rs 3 lakh

  • No change in surcharge for corporates, individuals

  • Education Cess kept unchanged at current 3%

  • Investment limit under Section 80C hiked to Rs 1.5 lakh from current Rs 1 lakh

  • Exemption on housing loans interest on self-occupied property increased from Rs 1.5 lakh to 2 lakh

  • PPF ceiling upped from Rs 1 lakh to be Rs 1.5 lakh


Indirect Tax:

  • Basic customs duty on LED panel below 19 inch removed

  • Soaps and oil products to become cheaper

  • Excise duty on footwear reduced from 12% to 6%

  • Excise duty concessions to continue till 31st Dec

  • Mobile phones & online advertisements within tax net

  • Aerated drinks to be more expensive

  • Cigarettes to cost more, excise duty hiked from 11% to 72%

  • Personal computers, electronic goods to be cheaper

  • Proposal to make CRT TVs cheaper


Budget estimates:

  • Non-plan expenditure at Rs 12,19,892 crore

  • Non-tax revenue at Rs 2,12,544 crore

  • Revenue deficit pegged at 2.9 percent of GDP

  • Plan expenditure at over Rs 5.75 lakh crore

  • Net effect of direct tax proposals is revenue loss of Rs 22,200 cr

  • Long-term Capital Gains tax on MFs raised to 20% from 10%


Other highlights:

  • GST by end of the year (sets no firm deadline)

  • To encourage development of smart cities; FDI cap on minimum built up area reduced

  • Policy of NDA govt is to promote FDI in select sectors

  • GST will streamline tax administration and result in higher tax collection for Centre and states

  • FDI in defence and insurance sectors were increased  to 49% from existing 26%

  • Greater autonomy to banks

  • PSU 247,944 cr capex to create industrial cycle

  • Tourism: e-visas to be introduced at nine airports in the country in a phased manner

  • Real estate investment trusts - modified REITS is being announced for infrastructure projects to reduce pressure on banking system

  • Sanitation in every household by 2019

  • Shyama Prassad Mukherjee Rozgar mission to be launched

  • New scheme for agricultural irrigation


Other Allocations:

  • Smart cities: PM has vision of developing 100 new cities and Rs 7,060 cr fund for smart cities

  • Set aside Rs. 11,200 crore for PSU banks capitalisation

  • Rs 500 cr for rural electrification

  • Rs 200 cr for Sardar Vallabhbhai statue in Gujarat

  • Rs 50000 cr for SC/ST schemes

  • Social security: minimum pension of Rs 1000 per month for all subscribers of EPFO scheme

  • Rs 150 cr on new scheme to improve safety of women in big cities

  • 'Beti bacahao, beti padahao' scheme to be launched - Rs 100 cr allocation

  • Rural housing scheme: allocation increased to Rs 8000 cr

  • Watershed programme: New prog with outlay of Rs 2000 cr

  • Rs 3600 cr for national rural drinking water programme

  • New teachers training scheme is being launched: Rs 500 cr allocated

  • Rs 100 cr for virtual classrooms

  • National rural and tech mission is proposed - Rs 500 cr allocated

  • New plan to promote community radio - Rs 100 cr allocated

  • Urban renewal to get Rs 50000 cr

  • Urabn metro: govt will encourage metro system in PPP mode

  • Rs 100 cr for Lucknow and Ahmedabad metro projects

  • New mission for low cost affordable housing for urban poor - Rs 4000 cr allocated

  • Rs 100 cr for modernisation of madrasas

  • New scheme to provide soil health card to each farmer- Rs 100 cr allocated

  • Climate change is a reality which we have to face - national adaptation fund for climate change to be set up - Rs 100 allocated

  • Price stabilisation fund to be set up - Rs 500 cr allocated

  • RIDF target raised to 30000 cr

  • Warehousing: Rs 5000 cr allocated

  • Rs 5000 cr for STRC fund

  • Kisan Television will be launched this year - this will provide real time info to farmers on farming techniques - Rs 100 cr allocated

  • National Industrial Corridor with headquarters in Pune will be set up. Rs 100 crores alloted

  • Rs 100 cr for new coal based power generation technology

  • Big solar projects in Rajasthan, TN and Ladakh - Rs 400 cr allocated

  • Capital outlay of defence increased by Rs 5000 cr

  • New war memorial will be constructed at Princess Park - Rs 100 cr allocated

  • Small savings scheme to promote girl child, which will mature at the time of her marriage, higher education will be introduced

  • Renewed effort to link rivers, Rs 100 cr for detailed study on it

  • New scheme Namami Ganga for rejuvenation of River Ganga gets Rs 2,037 cr

  • Rs 990 crore for development of villages along the border

  • Rs 100 cr set aside for development of Technology Development Fund

  • National Police Memorial to be allocated Rs 50 cr

  • Allocation for defence Rs 2,29,000 crore

  • Budget proposes National Housing Banking programme; sets aside Rs 8,000

  • Rs 500 cr for five tourists circuits

  • Development of rail system in Northeast get Rs 1000 cr over and above what has been provided in interim budget

  • Rs 200 cr for upgradation of stadiums in J&K

  • Sports university to be set up in Manipur, Rs 100 allocated

  • Rs 100 cr for training for forthcoming Asian and Commonwealth Games

  • Young leaders prog for youth to be started, Rs 100 cr set aside

  • Displaced Kashmiri migrants rehabilitation gets Rs 500 cr

  • Rs 200 cr for power reforms and Rs 500 cr for water reforms in Delhi

  • Rs 150 cr for communication needs of Andaman and Nicobar Islands

  • Rs 100 cr set aside for development of organic farming in Northeast region


Other Initiatives

  • National level institute for mental health to be set up

  • Currency notes with braille like signs to help the blind

  • Gender main-streaming: School curriculum to have a chapter on the issue

  • MNREGA will be made more productive; it will be linked to agriculture related activities

  • Women SHGs bank loan scheme to be extended to other districts

  • Backward region grant fund for 272 backward districts - BRGF will be restructured

  • Health for all: free drug and free diagnostic services

  • Four more AIIMS to be set up in AP, WB, Vidharbha and Purvanchal - Rs 500 cr allocation

  • 12 more Government Medical Colleges to be added

  • Government to provide toilet and drinking water in all girl schools

  • National Centre of Humanities would be set up in MP

  • Five more IITs and five more IIMs to be set up

  • Pan-India programme called Digital India would be launched - it will provide broadband connectivity to villages

  • 5 new IITs in Jammu, Chhattisgarh, Goa, AP & Kerala

  • 5 new IIMs in HP, Punjab, Bihar, Odisha & Maharashtra

  • Program for up gradation of skills and ancient arts for the minorities

  • Two more research institutes on farming to be set up in Assam and Jharkhand

  • New agricultural University in AP, Rajasthan

  • Horticulture University in Telangana and Haryana

  • Slum development to be included in Corporate Social Responsibility activities

  • Urban renewal will address drinking water, use of recycled water,solid waste management, digital connectivity; 500 habitats supported

  • 15 Model Rural Health Research centers to be set up for rural health issues

  • Anti-poverty programmes will be targeted well

  • Finance to 5 lakh joint farming groups through NABARD

  • State Government to be encouraged to set up farmers' markets in cities and town

  • Rs 8 lakh crore target for agriculture credit

  • 3% tax subvention for farmers who pay up on time

  • To set up 100 mobile soil testing labs across country

  • Apprentice Act to be suitably amended to strengthen the Apprentice Training Scheme

  • 6 more textile clusters to be set up at Bareily, Lucknow, Kutch, Mysore, Bhagalpur and TN

  • Hastkala academy to be set up in Delhi

  • Pashmina production program in J&K

  • To set up 7 new Industrial Smart Cities

  • Manufacturing units will be allowed to sell products through retail, e-commerce

  • Ganga inland navigation - Jal Marg from Allahabad to Haldia at the cost of Rs 4200 cr

  • NHAI and state highways get 37,000 cr which includes Rs 3000 cr for Northeast

  • New expressways to be developed in parallel to the development on industrial corridors

  • 6 new debt recovery tribunals to be set up

  • Small savings scheme to be revitalized

  • National sports academies to be set up in different parts of India

  • New 24x7 TV channel for Northeast

  • National Centre for Himalayan studies to be set up in Uttarakhand

  • National institute for customs and central excise to be set up in Karnataka