Finance Minister Arun Jaitley has tabled Narendra Modi-led NDA government’s first general budget on Thursday.
Although he has taken some new initiatives to boost infrastructure sector and investment, but his maiden budget has been considered as conservative in many ways.
Although he has raised FDI cap from 26% to 49% cent in defence, manufacturing and insurance sector but only could manage marginal increase in Personal income tax limit by Rs 50,000.
Jaitley’s Budget focused on growth in the industrial infrastructure by boosting huge investment in roads, airports, ports, housing, and uninterrupted power supply.
However, he fails to deliver clear road-map for how to generate money to target the fiscal deficit of 4.1% (or revised 4.5).
It seems he has just fell short in announcing some bold decision as we all expected. All in all it was an average budget with some important steps towards tax reforms for financial sector.
Highlights of the Budget:
- Targeting 4.1% fiscal fiscal deficit of GDP for 2014-15
- Govt aim to achieve 7-8% economic growth rate in next 3-4 years
- Revenue deficit pegged at 2.9 per cent of GDP
- 10 year tax holiday for power companies who start production and distribution on March 31, 2017
- Budget proposes Plan expenditure of Rs 5,75,000 crore for current ficsal
- Govt to form an expenditure management commission
- FDI in insurance to be hiked to 49 per cent
- FDI in defence up from 26 to 49 % with Indian management and control
- Rs 2.29 lakh crore allocated for defence sector
- Rs 1,000 crore for ‘one rank, one pension’ scheme
- Rs 100 crore to set up war memorial along with a war museum
- Rs 2037 crore for ‘Namami Ganga’, an integrated Ganga Development Project
- No changes in taxes retrospectively
- Goods and Services tax wait should come to end
- Annual PPF ceiling to be raised to Rs 1.5 lakh, from Rs 1 lakh
- No change in income tax rates; personal income tax exemption limit raised only by Rs. 50,000
- Investment limit under 80C raised from Rs 1 lakh to Rs 1.5 lakh.
- Housing loan rebate to raised from 1.5 lakh to 2 lakh
- Airports to be developed in tier 1 and 2 cities, 16 new port projects to be awarded this year
- Investment in NHAI and state highways to the tune of Rs 37,887 crore, including Rs 3000 crore for North East
- Computers, TV, Soap, shoes to be cheaper, Tobaco products will be costly
- Rs 7060 crores for the development of 100 smart cities
- Govt committed to providing 24/7 power supply to all homes
- Rs 500 crore for Deen Dayal Upadhyay rural electrification programm
- Rs 200 crore set aside to support Gujarat govt in the Sardar Patel statue installtion
- Special focus on disable and visible challenged people
- Rs 100 crore for ‘Beti padhao, beti badhao yojana’
- Rs 500 crore for solar power development project in Tamil Nadu and Rajasthan
- Rs 11,600 cr for developing outer harbour projects Rs 11,600 cr for developing outer harbour projects
- Mining issues to be resolved on priority
- Govt to set up 4 more AIIMS in AP, West Bengal, Vidarbha and Purvanchal
- 12 more medical colleges with dental facilities
- Rs 3600 crore set aside for National Rural Drinking Water.
- Rs 500 crore for broadband connectivity to rural areas
- E-Visas to be introduced at 9 airports: FM
- Rs 100 crore for modernisation of madrasas
- 6 more textile clusters to be set up
- Govt to provide a soil health card to farmers
- Rs 500 crore allocated for stabilizing prices of agricultural commodities
- Propose to provide finance to 5 lakh landless farmers through NABARD
- Rs 56 crore for soil testing labs across the country
- Manufacturing units will be allowed to sell their products through retail and e-commerce
- 15000km of gas pipeline to be developed through PPP mode
- Rs 200 crore for power reforms, and Rs 500 crore for water reforms in Delhi
- Single KYC norms for all financial services and one demat account for all financial products
