Article by Darshana Jamindar
Today, Finance Minister, Arun Jaitley presented his maiden Budget for the year 2014-15 for NDA government.
Jaitley proposed his vision to revive Indian economy with a goal of GDP development, proposed PPP model in different areas of development. Jaitley sai, we have no option but to take some bold steps to spurt economy, these are only the first steps and are directional. We are committed to providing stable and predictable tax regime that will protect investment and spur growth. We must address the problem of black money fully. We will not ordinarily bring any Retrospective tax. India today needs a boost to promote FDI. NDA wants to promote FDI in certain select sectors. Overall subsidy regime will be reviewed, for especially for food and oil. Marginalised sections and SC/ST to be protected. We are for minimum government, maximum governance. Government proposes to strengthen authority for advance ruling in tax, set up more benches. Transfer pricing regulations for residents and non-residents being done. Expenditure Management Commission will be constituted to look at expenditure reforms.
Highlights of Budget 2014-15 are as follows:
Rs.500 crore fund will be set up for price stabilization in agriculture sector
Additional tax incentives for housing loan
Budget proposes 49 per cent FDI in insurance through FIPB route
Rs 50 cr set aside for indigenous cattle breed and blue revolution for inland fisheries
National Adaption Fund for climate change to be set up
New urea policy will be formulated
Our domestic manufacturing is still at nascent stage
Fiscal deficit to be brought down from 4.1 to 3.6 per cent
Propose to provide finance to 5 lakh landless farmers through NABARD
Overall subsidy regime will be reviewed, especially food & oil. Marginalised sections & SC/ST to be protected
Government will initiate scheme to provide a soil health card; Rs. 100 cr set aside. Rs. 56 cr for soil testing labs across the country
Financial stability is foundation of rapid recovery
Public sector banks need Rs 2.40 lakh crore equity to conform with Basel-III norms by 2018
We will examine proposal to give greater autonomy to banks
Rs 5000 crore will be set aside for increasing warehousing capacity
‘Kisan Television’ will be launched in the current year
Funds for setting up 2000 producers` organisations across the country
Government proposes to set up 100 smart cities. Government to provide Rs 7,060 crore for development of such cities
Effective steps to be taken to revive SEZs
Apprentice Act to be suitably amended to strengthen the Apprentice Training Scheme
All the Government departments and ministries will be integrated through E-platform by 31 Dec this year
To set up Industrial Smart Cities in 7 cities
Wish to achieve 7 to 8 percent growth in next 3-4 years
Rs 50 cr set aside for indigenous cattle breed & blue revolution for inland fisheries
Proposal for E-Visa on 9 airports, 5 new IIMs and IIT institutions
24 hours electricity, implementation of Din Dayal schemes
Rs 200 crore for 6 more textile clusters in Rae Bareily, Lucknow, Surat, Bhagalpur
Rs 50 crore will be set aside for Pashmina Production program in J&K
Bank capital to be raised through retail sale of shares; Government to continue to hold majority in PSU banks
Our Banking system needs to be further strengthened. Need to infuse rs 2.40 lakh crore in our banks
Development of Hastkala Academy in PPP mode, 30 cr set aside
Total sanitation by 2019
Infrastructre Investment Trust being set up to finance infra projects & reduce burden on banks
Iraq crisis having impact on oil prices
10,000 crore fund for start up companies
Manufacturing units will be allowed to sell their products through retail and e-commerce
MSMEs are backbone of economy; to be revived through a Committee
It is my Government’s intention to encourage investment in the mining sector,current impasse 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
I propose development of Metro rails in PPP mode, Rs. 100 crore set aside for metro scheme in Ahmedabad and Lucknow
Pension scheme for senior citizens being revived
Ultra modern solar power plants to be set up in Rajasthan, Tamil Nadu and J&K
Budget proposes Rs 1,000 crore for Pradhanmantri Krishi Seechai Yojana to improve irrigation facility
4200 cr set aside for the Jal Marg Vikas project on river Ganga connecting Allahabad to Haldia,over 1620 km
Investment in NHAI and state highways to the tune of Rs 37,887 core including Rs 3000 crore for North- East
New airports will be developed through the PPP mode
Essential to strengthen &modernize regulatory framework in financial sector to meet challenges of increasing complex economy
Rs.8,000 crore for National Housing Banking programme
Government proposes to set up committee to examine how to utilise large funds lying unused in postal schemes
EPFO will launch a unified account scheme for portability of Provident Fund accounts
Rs 50,548 cr proposed for SC development
Rs 14,389 crore provided for Pradhan Mantri Gram Sadak Yojana
Government will work out measures for revival of other stressed assets
Benefits of insurance have not reached larger section of people, will address in multi-pronged manner with stakeholders
Rs 100 crore for cleaner thermal power technology
To provide all households with banking facilities to empower the weaker sections; there should be atleast 2 bank a/cs in each household
Propose to revitalise small savings scheme
RBI will create framework for licenses of small banks
Introduction of uniform KYC and common use
Government announces schemes for disabled persons; to set up 15 new Braille press and revive 10 existing ones
Urgent need to converge current Indian standard with international accounting standards
propose to set aside Rs 50 cr for construction of National Police Memorial
Allocates 2.29 trillion rupees for defence spending in 2014-15
War memorial to be set up along with a war museum; Rs. 100 cr set aside for this
Government increases wage ceiling for EPFO schemes to Rs 15,000 from existing Rs 6,500 per month
Pending Insurance Amendment Bill to be taken up in the Parliament
Propose of construction of a national police memorial
Budget proposes National Housing Banking programme; sets aside Rs 8,000 crore
Rs 3,600 crore provided for safe drinking water in 20,000 habitations in villages facing problem of impure drinking water
Rs. 5000 cr set aside for defence outlay over and above amount provided under interim budget
For defence personal, FM announces one rank, one pension
Crisis Management Centres for women to be set up at all government hospitals in NCR region
Rs 100 cr set aside for development of Technology Development Fund
Announcement for “Namami Ganga”, an integrated Ganga Development Project; Rs. 2037 cr set aside for this
Rs 100 for ghat development in Kedarnath, Varanasi, Patna, Allahabad
World Class Convention facility to be developed through PPP mode
Biotech clusters to be set up in Bangaluru & Faridabad to take science & technology to new heights
National Rural Internet and Technology Mission; Rs 500 crore set aside
Young Leaders Programme to be set up with Rs. 100 cr
Rs 100 crore for sportspersons participating in Asiad, Commonwealth Games
Allocation of Rs 200 crores for upgradation of sports facilities in J&K
proposes to set up Trade Facilitation Centres for Varanasi
National Sports University to be set up in Manipur; Rs. 100 crore set aside for this
Rs 100 crore for modernisation of madrasas
Announces “Arun Prabha” channel for North East region; will be 24/7 channel
Proposes to set up agri-infrastructure fund at a cost of Rs 100 crore; two more agri-research intitutes in Jharkhand and Assam
Government committed to development of Telangana and AP
National Centre for Himalayan Studies will be set up in Uttarakhand
Rs 1000 crore will be provided for rail connectivity in North-east region
Rs 100 cr set aside for development of organic farming in north east region
Propose Rs 200 crore for Power reforms, and Rs. 500 crore for water reforms in Delhi
Announces Rs 150 cr for communication needs of A&N islands
