Finance Minister Arun Jaitley laid down the roadmap of BJP-led NDA government in his maiden Budget speech on Thursday. There are green shoots of recovery in the global economy > To lay down broad policy indicators in budget > Not wise to expect anything in new govts first budget > Wish to take for macroeconomic stabilization > Need to revive growth in infra and manufacturing sector > FM emphasizes on fiscal prudence, need to generate more resources >To resolve tax Disputes for resident taxpayers quickly >To meet 4.1% fiscal deficit target > Target of 4.1% fiscal deficit is daunting > FY17 Fiscal deficit target at 3% FY16 Fiscal deficit target at 3.6% >No option but to take some bold steps to spurt economy; these are only the first steps and are directional a new urea policy would be formulated > FY14 fiscal deficit retained at 4.1% > GST will streamline tax administration and result in higher tax collection for center and states >This govt will not ordinarily change policies retrospectively which creates a fresh liability >To constitute expenditure management commission > To strengthen authority for advance ruling in tax > Will not change rules on retrospective taxation > Transfer pricing is major area for litigation; proposes changes in transfer pricing regulation > FDI is several sectors provides additional resources > India needs boost in manufacturing sector > FM proposes measures to encourage development of smart cities > Composite cap of FDI raised to 49% in insurance > To sell shares in banks to retail investors >Will examine proposal to give additional autonomy to banks and make them more responsible > PSU banks would need Rs 2.4 trillion govt infusion by 2018 > In order to give major boost to tourism, E-visas would be introduced at 9 airports. This will facilitate visas on arrival > As large number of people migrate to cities, unless new cities are developed the present would become unliveable > Pass-through status for REITs > Tax Pass-through status for REITs >Pradhan mantri krishi sichayin yojana to be started for irrigation >A national multiscale programme called Skill India to be introduced to provide training and support for employment > Allocate Rs 10 billion for PM irrigation scheme > To give Rs 70.60 billion to develop smart cities > Rs 505.48 billion proposed for SC development > Rs 2 billion set aside to support Gujarat govt in the Sardar Patel statue installation >Total sanitation goals to be achieved by 2019 > A large number of money lying unused in postal schemes etc. Propose to set up a committee to examine how this can be utilised > EPFO will launch a unified account scheme for portability of Provident Fund accounts > FM announces schemes for disabled persons in the country > Plan Kisan vikas patra for bank, unbanked population > To allocate Rs 5 billion for new rural power plant > Propose to change in transfer pricing regulation > FM laments apathy towards girl child; announces Beti padhao, beti badhao yojana; sets aside Rs. 1 billion for this > FDI in Defence to be raised to 49% > 15 new Brail presses to be established and revival of 10 existing announced by FM Rs 1.50 billion to be spent on safety of women in all cities > PMGSY has a massive impact on rural development; sets aside Rs. 143.89 billion for this > Announces Crisis Management Center for women at Delhi; money to be provided from Nirbhaya fund > FM proposes National Housing Banking programme; sets aside Rs. 80 billion for this programme > FM announces Backward Regional Grant Fund to address inter regional inequalities Rs. 36 billion set aside for National Rural Drinking Water > Propose to set up four more AIIMS; Rs. 5 billion set aside for this. Six new AIIMS started recently have become functional > The four new AIIMS will be in AP, West Bengal, Vidarbha and Purvanchal > FM proposes 12 more Govt Medical colleges with dental facilities > 15 Model Rural Health Research centers to be set up for rural health issues > Propose to set up Center of Excellence in MP named after Lok Nayak JaiPrakash Narayan > FM proposes to set up 5 new IIMs and 5 new IITs > Retro tax not repeated > Infra investment trust to be set up to securitize infra projects > FM proposes National Rural Internet and Technology Mission; Rs. 5 billion set aside > Rs 1 billion set aside for Community Radio Centres; 600 new and existing ones will be supported > Pt Madan Mohan Malaviya Teaching Programme to be started > Urban renewal will address drinking water, use of recycled water, solid waste management, digital connectivity; 500 habitats supported >FM announces development of Metro rails in PPP mode; Rs. 1 billion set aside for metro scheme in Ahmedabad and Luck now > Slum development to be included in Corporate Social Responsibility activities > Agriculture University in AP and Rajasthan, and Horticulture University in Haryana, Telangana; Rs. 2 billion set aside > Rs 40 billion for affordable housing via NHB > Slum development will be a part of CSR > To allocate 120 billion to NHB > Plans for Rs 500 billion for municipal debt management for infra > Manufacturing unit can sell product without additional approval > Five minute break announced in presentation of Budget. > Govt will initiate scheme to provide a soil health card; Rs. 1 billion set aside. Rs. 560 million for soil testing labs across the country > National Adaption Fund for climate change to be set > Litigation to continue on account of retro amendments > Propose to provide finance to 5 lakh landless farmers through NABARD > State Govts to be encouraged to develop farming markets > FY15 agricultural growth at 4% > National Adaption Fund for climate change to be set > Rs 500 million set aside for indigenous cattle breed and blue revolution for inland fisheries > Propose to continue interest subvention for farmers > Additional Rs. 50 billion set aside for RIDF > Allocates funds for setting up 2000 producers organisations across the country > Rs. 50 billion short time rural credit refinance fund for 2014-15 > To set aside Rs 8 trillion for farm credit in FY15 > Propose additional 3% interest subsidy on farm loans > Allocate Rs 1 billion for agri infra fund > Allocate Rs 5 billion for farm warehousing plans. 1 billion set aside for Kisan Television to provide real time information on various farming and agriculture issues > All govt departments and ministries to be integrated through E-platform by December 31 this year > Allocate Rs 5 billion for farm warehousing plan > Proposes 50 billion fund for fresh warehousing capacity > Apprentice Act to be suitably amended to strengthen the Apprentice Training Scheme > Effective steps to be taken to revive SEZs > Plan 6 more textile clusters > MSMEs are the backbone of the economy; to be revived through a Committee to examine and report in three months > FM announces Rs. 2 billion for 6 more textile clusters in Rae Bareily, Lucknow, Surat, and Bhagalpur > India has emerged as the largest PPP market in the world. > Propose Rs 100 billion funds for start-up firms > Rs 500 million set aside for Pashmina Production prog in J&K > There is need to develop more sophisticated models with quick redressal mechanism in PPP contracts > FM announces development of Hastkala Academy in PPP mode > Propose Rs 116.35 billion for harbour projects in this FY > 16 new port projects to be awarded in FY15 > Rs. 42 billion set aside for Jal Marg Vikas project on river Ganga connecting Allahabad to Haldia,over 1620 km > Existing impasse of coal sector will be resolved > Propose Rs 378.50 billion investment in NHAI and state roads this FY > New & renewable energy deserves high priority; ultra-modern power projects to be taken up in Rajasthan, Tamil Nadu, Ladakh with Rs 5 billion > In order to complete gas grid, 15000 km of additional pipeline to be developed through PPP mode > Propose work on express way parallel to Indl corridors > Propose scheme for development of airports in Tier I, II cities > Financial sector is at the heart of the growth engine > Revision of rate of royalty on minerals to be taken up on request from the States > Adequate coal to be given to existing power plants > Essential to strengthen and modernize regulatory framework in financial sector to meet challenges of increasing complex economy > Uniform KYC norms for entire financial sector > FM proposes number of measures to energise Indian capital market > Withholding tax on corporate bonds issued overseas extended > To liberalize ADR, GDRs regime for all permissible securities > Time bound program on consolidation of PSU banks > Urgent need to converge current Indian standard with international accounting standards > To provide all households with banking facilities to empower the weaker sections; there should be at least 2 bank a/cs in each household > Benefits of insurance have not reached larger section of people; govt will address this in multi-pronged manner with stakeholders > New accounting standards for financial sector from FY17 > To set up 6 debt recovery tribunals > RBI will create framework for licenses of small banks > Propose to take up pending insurance bills > Banks will be encourage to give long term loans to infra > Allocate Rs 2.29 trillion for defense sector > Will take measures to revitalise small savings schemes > Single demat acc for all financial transactions > Rs 1 billion set aside for development of Technology Development Fund > To enhance PPF contribution to Rs 1.5 lakh > War memorial to be set up along with a war museum; Rs. 1 billion set aside for this > To allocate Rs 30 billion for state police modernization > Rs 9.90 billion for socio economic development of villages along borders > Time that we make serious efforts to link rivers; Rs 1 billion set aside for project to link rivers > FM announces Rs 1 billion for development of Archaeological sites. Gaya to be developed as world class tourism spot > World Class Convention facility to be developed through PPP mode > FM announces Namami Ganga, an integrated Ganga Development Project; Rs. 20.37 billion set aside for this > NRI fund for conservation of river Ganga to be set up > Biotech clusters to be set up in Bangaluru and Faridabad to take science and technology to new heights > Govt will set up national sports academy for different sports in different parts of India > Sports University to be set up in Manipur; Rs. 1 billion provided in current financial year > Rs 2 billion set aside for upgradation of indoor and outdoor stadium in J&K to international standards > Young Leaders Programme to be set up with Rs. 1 billion > Programme for displaced Kashmiri migrants with Rs. 5 billion to be started > Rs 1 billion set aside for development of organic farming in north east region > Rs 10 billion provided for rail connectivity in NE region > Govt committed to development of Telangana and AP > FM announces Arun Prabha channel for NE region; will be 24/7 channel > FM announces Rs 1.50 billion for communication needs of A&N islands > Non-plan expenditure at Rs 12.2 trillion for 2014-15 > Plan expenditure at Rs 5.75 trillion for FY15> Total expenditure at Rs 17.9 trillion > Fiscal deficit to be at 4.5% of GDP in FY15 Revenue deficit to be 2.9% of GDP in FY15 Non Direct Taxes To cut basic customs duty on some petchems Education cess on imported electronic products 10 percent customs Duty on Some Telecom Products To cut customs duty on LCD, LED Panels Sub-19 Inch To Nil To Rationalise Customs Duty on all grades of coal to 2.5 percent To Cut Excise Duty on Food Processing To 6 percent To Hike Excise Duty on Cigarettes By 11-72 percent Excise Duty on Gutka Raised To 70 percent from 60 percent Direct Taxes No change in corporate surcharge To up personal income tax exemption to Rs 2.5 lakh and Rs 3 lakh for senior citizens Invest allowance of 15% on investment of > Rs25 cr in manufacturing Propose To Extend 10-Yr Tax Holiday for Power Income From Portfolio Invst to Be Capital Gains Exemption for self-occupied homes raised to Rs 2 lakh Source: CNBC, Money Control (website)
Posted on: Fri, 11 Jul 2014 03:53:22 +0000
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