New Delhi: Finance Minister Arun Jaitley had tabled the Budget for 2014-15 in Parliament on Thursday. Arun Jaitley said, “People of India have decisively voted for a change. The verdict represents the exasperation of the people with the status-quo. India unhesitatingly desires to grow. Those living below the poverty line are anxious to free themselves from the curse of poverty.”
He also said, “Two years of sub five per cent growth in the Indian economy has resulted in a challenging situation. We look forward to lower levels of inflation as compared to the days of double digit rates of food inflation in the last two years. The country is in no mood to suffer unemployment, inadequate basic amenities, lack of infrastructure and apathetic governance.”
Budget on Tax
The tax slab on personal income remains unchanged in this Union Budget. Meanhwile Income tax exemption limit raised by Rs 50,000 to Rs 2.5 lakh and Rs 3 lakh for senior citizens. Exemption limit for investment in financial instruments under 80C raised to Rs 1.5 lakh. Investment limit in PPF raised to Rs 1.5 lakh. Deduction limit on interest on loan for self-occupied house raised to Rs 2 lakh from Rs 1.5 lakh. Kisan Vikas Patra to be reintroduced, National Savings Certificate with insurance cover to be launched. Mandatory wage ceiling of subscription to EPS (Employee Pension Scheme) raised from Rs 6,500 to Rs 15,000. Minimum pension increased to Rs 1,000 per month. LCD, LED TV become cheaper. The three income tax slabs — at 10%, 20% and 30% — however, have been left undisturbed. However this Budget had made costlier to cigarettes, pan masala, tobacco and aerated drinks.
Welfare, Health & Education
FM proposed 5 IIMs to be opened in HP, Punjab, Bihar, Odisha and Rajasthan, 5 more IITs in Jammu, Chattisgarh, Goa, Andhra Pradesh and Kerala. He announced for 4 more AIIMS like institutions to come up in Andhra Pradesh, West Bengal, Vidarbha in Maharashtra and Poorvanchal in Uttar Pradesh. Beti Bachao, Beti Padhao Yojana to generate awareness and help in improving the efficiency of delivery of welfare services meant for women. Free Drug Service and Free Diagnosis Service to achieve “ Health For All”, Two National Institutes of Ageing to be set up at AIIMS, New Delhi and Madras Medical College, Chennai.
Modernization of rural India
Govt also proposes to launch ‘Digital India’ programme to ensure broad band connectivity at village level, Kisan TV for farmers, Arun Prabha TV for northeast. National Rural Internet and Technology Mission for services in villages and schools, training in IT skills proposed. 1000 crore provided for “Pradhan Mantri Krishi Sinchayee Yojna” for assured irrigation.
River Project
Rs 2,037 crore set aside for Integrated Ganga Conservation Mission called ‘Namami Gange’. A project on the river Ganga called ‘Jal Marg Vikas’ for inland waterways between Allahabad and Haldia; Rs 4,200 crore set aside for the purpose. New programme “Neeranchal” to give impetus to watershed development in the country with an initial outlay of Rs. 2142 crores.
Development, sanitation & women safety
Swachh Bharat Abhiyan to cover every household with sanitation facility by the year 2019. FM proposes Rs 100 crore for metro projects in Lucknow and Ahmedabad. Rs 150 crore allocated for increasing safety of women in large cities. Rs. 7,060 crore for the project of developing 100 Smart Cities. Set aside Rs 11,200 crore for PSU banks capitalization. Govt provides Rs 500 crore for rehabilitation of displaced Kashmiri migrants
Economic reforms
Arun Jaitley proposes composite cap of foreign investment to be raised to 49 per cent in Defence and Insurance sectors. Requirement of the built up area and capital conditions for FDI reduced to 20,000 square metres and USD 5 million respectively for development of smart cities. Manufacturing can sell its products through retail including Ecommerce platforms. Requirement to infuse Rs.2,40,000 crore as equity by 2018 in our banks to be in line with Basel-III norms PSUs will invest through capital investment a total sum of Rs. 2,47,941 crores. Rs 4,000 crores set aside to increase flow of cheaper credit for affordable housing to the urban poor/EWS/LIG segment.
Girish Vanvari, co-head, tax, KPMG said, “It is a good budget, as it will leave people with more money, which will offset the inflation burden to a large extent. It will channelise savings, while also leading to a lower tax burden.”
Sunil Shah, partner, Deloitte Haskins & Sells LLP, echoed a similar sentiment. He said, “The enhancement in the personal exemption limits and in the ceiling for savings instruments and interest on house loans will provide relief to individual taxpayers.”
Bureau Report
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