Highlights of full Budget for 2014-15 . TAX REFORMS * Tax regime to be investor friendly * Must improve tax-GDP ratio * Plan to enlarge scope of income tax settlement commission * To provide certainty in tax laws * Propose changes in transfer pricing rules * Propose to strengthen authority for advance ruling in tax * High level panel to interact with industry on indirect tax * Clarification on tax issues to be given * Plan law, administrative changes to reduce tax disputes * Resident tax payer to get facility of advance tax ruling * Propose changes to resolve ongoing direct tax disputes * Aim stable, predictable investor-friendly tax regime * Tax demands worth 4 trln rupee currently under litigation * GST to result in higher tax mop-up for Centre, states * Committed to stable, practical tax regime * Wont ordinarily bring in tax changes retrospectively * Govts right for retrospective legislation unquestionable * Retrospective taxes should be done with caution * All cases of retrospective tax to be studied by CBDT panel * Hope to bring final solution to GST issue in FY15 * GST debate must come to an end * GST to streamline tax administration * Assure states govt to be more than fair on GST * Provide sops for REITS to enable pass through of taxation * To give tax pass through to real estate invest trust . FISCAL, CAD SITUATION * Aim 3.0% fiscal gap in FY17 * Aim 3.6% fiscal gap in FY16 * Accepted FY15 4.1% fiscal deficit target as a challenge * Reduction in fiscal deficit achieved by spending cuts * Aim of 4.1% of GDP fisc gap indeed daunting * Need fisc prudence that will lead to fisc consolidation * To continue to remain watchful on CAD front . GOVT SPENDING * To constitute expenditure mgmt panel * Time has come to revive efficiency of govt spend * Non-tax revenue must be increased * Must reduce wasteful expenditure * Cannot spend beyond our needs * Cant leave behind legacy of debt * Should we be victims of mere populism? * Fiscal prudence of paramount importance . GROWTH, INFLATION * Higher growth is a sine qua non * Still not out of the woods on inflation * Seen gradual moderation in WPI inflation recently * Bound to usher in a regime to boost growth * Two years of sub-5% growth created challenging situation * Todays steps only start of a journey to sustained growth * Slowdown in India reflects trend in many economies * Seeing greenshoots of recovery globally * Euro area expected to witness growth * Look forward to lower inflation rate * Look forward to lower inflation * India unhesitatingly desires to grow . FINANCIAL SECTOR * PSU banks allowed to sell shares to meet Basel-III norms * Bks capitals to be raised by retail shareholding directly * PSU bks need 2.4 trln rupees to meet Basel-III norm 2018 * Govt will continue major holding in PSU banks * To infuse money in PSU banks via sale of shares to public * Panel to moot ways to use unclaimed PPF, pension fund money * EPFO to launch unified account scheme * To set up panel to look at unclaimed PPF accounts * Fincl stability foundation of rapid recovery * Will examine proposal to give additional autonomy to banks . FARM SECTOR * Committed to give wheat, rice at reasonable price to poor * Have enough central pool grain stock to handle weak monsoon * Plan 1 bln rupees for Kisan TV on farming issues in FY15 * Allot 50 bln rupees for NABARD long-term rural credit fund * Will conduct open mkt sale to control grain stocks * Allot 2 bln rupee for forming 2000 producers organisations * Extended 3% interest subvention for farmers in FY15 * Rural infra corpus allocation raised to 300 bln rupees FY15 * To expedite FCI recast * Allot 500 mln rupee for indigenous cattle, inland fishery * Ups rural infra fund corpus by 50 bln rupee vs interim * Allocate 50 bln rupees farm warehousing plan * States to be encouraged to develop farming markets * Aim 8 trln rupee for farm credit FY15 * Plan to finance 500,000 landless farmers through NABARD * To create national common farm market * See 4% growth in agriculture FY15 * Allots 5 bln rupee for farm price stabilisation fund * Plan 560 mln rupees for soil testing labs across India * Allots 1 bln rupee for climate change adaptation fund * Allots 1 bln rupee for farmers soil health card plan . INFRASTRUCTURE/INDUSTRY * 1 bln rupee for metro rail projects for Lucknow, Ahmedabad * Must plan metros in cities with population over 2 mln * To spend 42 bln rupees for Ganga river transport plan * New airports to be developed through PPP mode * 500 mln rupees set aside for Pashmina production in J&K * Need better models with quick redressal in PPP contracts * 16 new port projects to be awarded in FY15 * Development of ports critical to boosting trade * Allot 116 bln rupees to develop outer harbour port projects * 16 new port projects to be awarded in FY15 * To announce comprehensive policy for shipbuilding FY15 * Plan textile clusters in Rae Bareli, Lucknow, Surat * To revive MSMEs via committee; panel report in 3 months * New friendly bankruptcy framework for MSMEs * MSME definition to be revised to allow higher capital cap * To allocate 2 bln rupees to set up 6 more textile clusters * To create 100 bln rupee fund to attract invest in start-ups * 1 bln rupees for natl industrial corridor based in Pune * To complete Amritsar-Kolkata industrial corridor soon * To set up Industrial Smart Cities in 7 cities * To take effective steps to revive SEZs * SEZs to be developed in Kandla, JNPT * Govt dept, ministries to be linked via e-platform by Dec 31 * To set up export promotion mission * To build at least 500 model cities via PPP route * To allocate 5 bln rupees for new rural power plan * Committed to supply 24X7 power supply to all households * Swachch Bharat scheme to cover each household by 2019 * Country in no mood to suffer lack of infra, basic amenities * Need to revive growth in mfg, infra sectors * To introduce e-visa facility at 9 Indian airports * To give 70.6 bln rupees to develop smart cities in FY15 . SOCIAL SECTOR * Allocate 1 bln rupees for good governance plan * Plan to include slum redevelopment in CSR * Allot 1 bln rupees for agri infra fund * Plan 500 bln rupee for municipal debt mgmt for infra * Digital connect, solid waste mgmt part of urban renewal plan * Safe drinking water, sewage mgmt part of urban renewal plan * Committed to provide housing to all by 2022 * To allocate 120 bln rupee to NHB * To set aside 80 bln rupees for rural housing scheme in FY15 * Allots 40 bln rupee for low-cost housing for urban poor * Proposes changes in norms for affordable housing * Allots 1 bln rupee for community radio plan * Set aside 1 bln rupees for good governance * To allocate 10 bln rupees for new PM irrigation plan * Announces Backward Regional Grant Fund * Allocate 36 bln rupee for national rural drinking programme * 21.42-bln-rupee added impetus to watershed programme * Allots 36 bln rupee for rural potable water plan * To aid rural job scheme via farm, asset creating projects * Allots 1 bln rupee for rural entrepreneurship plan * To spend 143.89 bln rupees for PM rural road plan * Have to ensure anti-poverty plans are well aimed * To revive senior citizen pension scheme * To give 2 bln rupees for SC entrepreneurship scheme FY15 * Extends senior citizens pension plan till Aug 2015 * Allocate 2 bln rupees for Sardar Patel statue in Gujarat * Allocate 1 bln rupees for tribal welfare plan * Allocates 505 bln rupee for scheduled caste, tribe schemes * Plan Kisan Vikas Patra for banked, unbanked population * Propose to launch Skill India programme * Propose panel to mull use of inactive fund in postal scheme * Plan Braille currency notes for visually challenged persons * Cant be oblivious that large population below poverty line * Those below poverty line want to be the new middle class * Next generation has hunger to use societal opportunities * Country in no mood to suffer unemployment . FDI * To hike FDI in insurance to 49% * FDI in several sectors provides additional resources * To hike FDI in defence to 49% * NDA policy to encourage FDI in selective sectors * Domestic defence mfg sector at nascent stage * FDI in selected sectors to help larger interest of country . SUBSIDIES * Aim to make food subsidy better directed, more inclusive * To review food, fuel subsidy * Food, oil subsidy to be more targeted * New urea policy will be formulated . EDUCATION * To set up five more IITs, 5 more IIMs * Allots 5 bln rupee to set up more IITs, IIMs * Plan IIMs in Punjab, Odisha, Bihar, Maharashtra, Himachal * Plan 5 more IITs in Chattisgarh, Goa, J&K, Andhra, Kerala * To start Pandit Madan Mohan Malaviya Teaching Programme * Allots 2 bln rupees for new agri, horticulture universities * Plan to have horticulture university in Haryana, Telangana * Plan to set up agricultural university in Andhra, Rajasthan * Allocate 1 bln rupees for modernisation of Madrasas * Allots 1 bln rupee to set up 2 farm research institutes * Allocate 49.66 bln rupees for national secondary edu plan * Allocate 286.35 bln rupees for national education plan * Plan 12 more govt medical colleges with dental facilities * Allots 286.35 bln rupee for Sarva Shiksha Abhiyan * 12 more govt medical institute to be added * To create AIIMS in every state in coming years * Plan AIIMS institutes in Andhra, Bengal, Vidarbha . GENDER JUSTICE * School curriculum to have chapter on gender sensitivity * Plan crisis mgmt centre in Delhi hospital via Nirbhaya Fund * To spend 1 bln rupees for beti bachao, beto padhao scheme * 500 mln rupee to road min for pilot project on women safety * School curriculum to have chapter on gender sensitivity * To set aside 1 bln rupees girl child education scheme . TECHNOLOGY BOOST * To allow mfg cos to sell pdts on e-commerce platform freely * Special focus on software exporting start-ups * Allots 5 bln rupee for rural broadband programme * Set aside 1 bln rupees for virtual classroom projects FY15 * Plan to launch pan-India Digital India programme * Need to boost pvt, public investment in agro tech sector . HEALTHCARE * Allots 5 bln rupee for setting up 4 more AIIMS * Free drug, diagnostic svc to be taken up on priority * Announces schemes for disabled persons * To set up 15 model rural health research centres * Govt to give assistance to 4 state drug central authority . MISCELLANEOUS * Aim to lay down broad policy indicator * Committed to minimum govt, maximum governance * Slow decision-making has resulted in loss of opportunity * People of India voted for a change * Todays measures are directional * Must address problem of black money * Urgent need to generate more resources for econ * Steps today start of macro economic stabilisation * Not wise to expect too much from new 45-day govt * Task before me today is very challenging * Econ situation presents a grave challenge * Wont leave any stone unturned for vibrant, strong India * Not wise to expect anything major in first budget * Budget is the most comprehensive action plan
Posted on: Thu, 10 Jul 2014 07:17:50 +0000
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