UNIONBUDGET 2014-15

JAITLEY JOURNEY – 1

On May 16, the BJP came to power with 282 seats, the most won by a single party in 30 years. It was a sweeping mandate for change, jobs, growth.

Does the Budget reflect those aspirations?

The Three GoalsPresenting the first Budget of BJP

government, Finance Minister Arun Jaitley stuck to the troika – of ‘restoring the pace of growth’, ‘containing inflation’ and ‘concentrating on fiscal consolidation’.

GrowthGDP growth in 2014/15

estimated at 5.4-5.9 percent year-on-year.

Aims for sustained growth of 7-8 percent in the next 3-4 years.

Nominal GDP growth in 2014/15 expected to be 13.4 percent year-on-year.

Must usher in policies for higher growth, lower inflation.

Taxation High level committee to decide on

cases of retrospective amendments.Investment allowance threshold revised

to ₹25 crore from ₹100 crore at the rate of 15% to boost manufacturing; to be applicable upto March 31, 2007.

Investment-linked deduction for two new sectors – slurry pipelines for iron ore transportation, and semiconductor wafer fabrication manufacturing.

Tax holiday for 10 years extended to power undertakings that begin generation, distribution and transmission by March 31, 2017.

DTC to be reviewed.60 Aayakar Seva Kendras to be

opened during 2014-15.Color picture tubes to be exempt

from basic customs duty.Excise duty on footwear reduced

from 12% to 6%.

Imposes 10 percent customs duty on some telecom products.

Introduces uniform customs duty on all types of coals.

Raises export tax on bauxite to 20 percent from 10 percent.

The government has set a direct tax collection target of ₹7,58,421 crore for 2014-15.

Personal FinanceAnnouncement to raise the exemption

limit for individuals from ₹2 lakh to ₹2.5 lakh and also for senior citizens from ₹2.5 lakh to ₹3 lakh.

Announcement to raise the deduction limit under Section 80C from ₹1 lakh currently to ₹1.5 lakh.

Investment ceiling in the tax-free PPF scheme has been raised to ₹1.5 lakh from ₹1 lakh.

Transport“It is time to reaffirm our

commitment to a better and more energetic PMGSY under the dynamic leadership of Prime Minister Narendra Modi. I propose to provide a sum of ₹14,389 crore.”

- Arun Jaitley, Finance Minister

Employment/Education₹10,000 crore incubation fund,

thrust on more jobs.The budget also unveiled a

national multi-skill programme called “Skill India” that would equip the youth with skill, with an emphasis on employability and entrepreneur skills.

Budget Highlights

1. Fiscal deficit target 3.6% of GDP for FY16, 3% for FY17.

2. Subsidy regime, including food and petroleum subsidies, to be overhauled.

3. High-level panel to interact with trade, industry for tax law reforms.

4. FDI cap in defence raised to 49%.

5. FDI cap in insurance sector raised to 49% from 26%.

6. ₹7,060 crore allotted for developing ‘100 Smart Cities’.

7. For ‘Smart Cities’, built-up area cut from 50,000 sq mts to 20,000 sq mts.

8. Manufacturing units allowed to sell products through retail.

9. Electronic Travel Authorisation at 9 airports.

10.Skill India, a skill programme to improve employability of youths, to be launched.

11.₹1,000 crore Pradhan Mantri Krishi Sinchayee Yojana — to improve access to irrigation — introduced.

12.Every household to have total sanitation by 2019 — the 150th birth anniversary of Mahatma Gandhi — through Swachh Bharat Abhiyan.

13.Shyama Prasad Mukherji Rurban Mission to provide urban amenities in rural areas;  through PPP model.

14.₹200 crore for Sardar Patel’s Statue of Unity in Gujarat.

15.₹500 cr Deen Dayal Upadhyaya Gram Jyoti Yojana for rural electricity.

16.Institutes for Universal Inclusive Design and Mental Health Rehabilitation to be set up.

17.Centre for Disability Sports to be set up.

18.15 new Braille presses coming, 10 existing presses to be modernised.

19.Currency notes to be printed with Braille-like signs.

20. ₹150 crore for safety of women in large cities.

21.₹14,389 crore for Pradhan Mantri Gram Sadak Yojana.

22.MGNREGA to continue, emphasis on asset creation.

23.₹8,000 crore for rural housing.24.‘Neeranchal’ watershed initiative.25.₹3,600 crore for National Rural

Drinking Water Programme.26.Health for All: Free Drug Service

and Free Diagnosis Service.

27.₹28,635 crore for Sarva Shiksha Abhiyan.

28.₹4,966 crore for Rashtriya Madhyamik Shiksha Abhiyan.

29.₹500 crore for Pandit Madan Mohan Malviya New Teachers’ Training Programme.

30.₹100 crore for setting up virtual classrooms, online courses.

31.₹500 crore for ‘Digital India’ initiative covering villages.

32.A comprehensive strategy to tackle malnutrition with timelines, targets.

33.A programme for skill upgrade for minorities in ancestral arts.

34.₹100 crore to modernise madarsas.

35.₹100 crore for scheme to provide every farmer a soil health card.

36.₹56 crore to set up 100 Mobile Soil Testing Laboratories.

37.Focus on technology-driven second green revolution.

38.Push for the Amritsar-Kolkata industrial master plan.

39.A Trade Facilitation Centre and Crafts Museum to promote handloom products of Varanasi.

40.₹4,200 cr Jal Marg Vikas project on Ganga to connect Allahabad to Haldia.

41.8,500 km of National Higways.42.₹500 cr for Ultra Mega Solar

Power Projects in Rajasthan, Gujarat, Tamil Nadu, and Ladakh.

43.₹400 cr for solar power driven agri-pump sets and water pumping stations.

44.₹100 crore to develop 1 MW Solar Parks near canals.

45.₹100 crore for war memorial and museum in Delhi.

46.₹500 crore to develop five tourist circuits with themes.

47.Sarnath-Gaya-Varanasi Buddhist circuit with world-class tourist amenities.

48.₹2,037 crore for Integrated Ganga Conservation Mission called “Namami Gange”.

49.₹100 crore for Ghat devlopment and beautification of river front at Kedarnath, Haridwar, Kanpur, Varanasi, Allahabad, Patna and Delhi.

50.Special attention for 5 institutions engaged in nanotechnology, material science & biomedical device technology.

51.To transform Delhi’s International Centre for Genetic and Biotechnology into a world-leader.

52.Space missions including experimental flight of GSLV Mk-III, commercial launch of PSLV and two navigational satellites.

53.₹1,000 crore for rail connectivity in Northeast.

54.₹200 cr for power and ₹500 cr for water reforms to make Delhi a world class city.

55.10-year tax holiday for power generation, distribution firms.

56.No customs duty on LCD and LED TV panels of below 19 inches.

57.Colour picture tubes exempted from basic customs duty.

58.Exemption from 4 % special additional duty on components for PCs.

59.Excise duty increased on cigarettes.

60.Excise duty hiked on gutkha, tobacco.

“These are only the first steps and are

directional.”ARUN JAITLEY, Finance Minister

THANK YOU.