Finance Minister Arun Jaitley said he would uphold the fiscal deficit target of 4.1 percent inherited from the last government, while incremental steps were also announced to boost capital spending and reassure foreign investors that they would get fair treatment.
Here are the highlights of the budget:
- Tax proposals on indirect tax front would yield Rs 7,525 crore.
- Indian Custom Single Window Project to be taken up for facilitating trade.
- Clean energy cess increased from Rs 50/ tonne to Rs 100/tonne.
- Additional 5% excise tax to be levied on aerated drinks with added sugar (cold drinks). Tobacco products also to get costly as excise duty hiked to 72%
- Government announces reduction in excise duty for specified food package industry from 10% to 6%.
- Excise duty on footwear reduced from 12% to 6%
- Government announces measures to encourage manufacture of LCD/LED panels of TVs.Exemption limit for investment in financial instruments under 80C raised to Rs 1.5 lakh from Rs 1 lakh.
- Investment limit in PPF raised to Rs 1.5 lakh from Rs 1 lakh
- Deduction limit on interest on loan for self-occupied house raised to Rs 2 lakh from Rs 1.5 lakh.
- Committee to look into all fresh tax demands for indirect transfer of assets in wake of retrospective tax amendments of 2012
- EPFO to launch the ‘Uniform Account Number’ service to facilitate portability of Provident Fund accounts
- Mandatory wage ceiling of subscription to EPS (Employee Pension Scheme) raised from Rs 6,500 to Rs 15,000
- Minimum pension increased to Rs 1,000 per month
- Net effect of direct tax proposals is revenue loss of Rs 22,200 crore.
- Tax exemption limit for small and marginal, and senior tax payers changed from Rs 2.0 to Rs 2.5 lakh. For senior citizens, no tax for income up to Rs 3 lakh per annum.Rs 100 crore for training of sportspersons for upcoming Asian Games. (Read story here)
- Government announces Rs 150 crore for communication needs of Andaman and Nicobar islands.
- Government announces Arun Prabha channel for northeastern region; will be 24/7 channel. (Read story here)
- Rs 1000 crore provided for rail connectivity in northeastern region.
- Programme for displaced Kashmiri migrants with Rs 500 crore to be started.
- Rs 100 crore set aside for project to link rivers.
- Government announces Rs 100 crore for development of Archaeological sites. Gaya to be developed as world class tourism spot.
- Rs 5000 crore set aside for defence outlay over and above amount provided under interim budget.
- National Police Memorial to be set up. Rs 50 crore set aside for this purpose.
- Rs 100 crore set aside for development of Technology Development Fund.
- Rs 100 crore War Memorial at Princess Park, India Gate.
- Policy of One Rank One Pension to be adopted for defence personnel.
- RBI will create framework for licenses of small banks.
- Government aims to provide all households with banking facilities to empower the weaker sections; there should be atleast 2 bank accounts in each household.
- Urgent need to converge current Indian standard with international accounting standards: Jaitley
- Rs 37, 800 crore allotted for National Highways.
- Revision of rate of royalty on minerals to be taken up on request from the states.
- In order to complete gas grid, 15000 km of additional pipeline to be developed through PPP mode.
- New and renewable energy deserves high priority; ultra modern power projects to be taken up in Rajasthan, Tamil Nadu, Ladakh with Rs 500 crore.
- Rs 4200 crore set aside for Jal Marg Vikas project on river Ganga connecting Allahabad to Haldia , over 1620 km.
- Scheme for development of new airports at tier II and III cities through PPP mode. (Read story here)
- Rs 200 crore set aside for 6 more textile clusters in Rae Bareily, Lucknow, Surat, Bhagalpur. Rs 50 crore set aside for Pashmina Production program in J&K.
- MSMEs are the backbone of the economy; to be revived through a Committee to examine and report in three months.
- 6 more textile clusters to be set up.
- Industrial Smart Cities to come up at 7 cities.
- All govt departments and ministries to be integrated through E-platform by 31 December this year.
- Rs 100 crore set aside for Kisan Television to provide real time information on various farming and agriculture issues. (Read story here)
- National Industrial Corridor to be set up. Rs 1000 crore set aside for this.
- Rs 5000 crore short time rural credit refinance fund for 2014-15.
- Rs 50 core set aside for indigenous cattle breed and blue revolution for inland fisheries.
- Propose to provide finance to 5 lakh landless farmers through NABARD.
- Govt will initiate scheme to provide a soil health card; Rs 100 crore set aside. Rs 56 crore for soil testing labs across the country.
- Agriculture University in Andhra Pradesh and Rajasthan, and Horticulture University in Haryana, Telangana; Rs. 200 cr set aside by the government.
- Slum development to be included in Corporate Social Responsibility activities.
- Govt announces Rs 100 crore for modernization of madrassas.
- Govt announces development of Metro rails in PPP mode; Rs 100 crore set aside for metro scheme in Ahmedabad and Lucknow.
- Rs 100 crore set aside for Community Radio Centres; 600 new and existing ones will be supported.
- National Rural Internet and Technology Mission; Rs 500 crore set aside. (Read story here)
- Govt proposes to set up Center of Excellence in MP named after Lok Nayak Jai Prakash Narayan.
- 5 more IITs and 5 IIMs to be set up .
- Propose to set up four more AIIMS; Rs. 500 crore set aside for this. Six new AIIMS started recently have become functional. Four new AIIMS will be set up in Andhra Pradesh, West Bengal, Vidarbha and Purvanchal. (Read story here)
- Govt proposes National Housing Banking programme; sets aside Rs 8000 crore for this program.
- Pradhan Mantri Gram Sadak Yojana has a massive impact on rural development; Govt sets aside Rs 14,389 crore for this scheme.
- Crisis Management Center for women at Delhi; money to be provided from Nirbhaya fund.
- Govt announces Beti Padhao, Beti Badhao Yojana; sets aside Rs 100 crore for this. (Read story here)
- Safety of women of prime importance.
- EPFO will launch a unified account scheme for portability of Provident Fund accounts.
- Schemes for disabled persons in the country. 15 new Brail presses to be established and revival of 10 existing.
- Rs 50,548 crore proposed for Schedule Caste development.
- Govt committed to providing 24/7 power supply to all homes. Deen Dayal Upadhyay Gram Jyoti Yojna for electricity supply to rural areas.
- Rs 200 crore for 'Statue of Unity' of Sardar Vallabh Patel.
- Pradhan Mantri Krishi Sichayin Yojana to be started for irrigation.
- We will examine proposal to give additional autonomy to banks and make them more responsible: Jaitley
- E-visas to be introduced at nine airports in India in phased manner. (Read story here)
- FDI in insurance to be increased to 49%
- FM announces FDI in defence up from 26 to 49 % with Indian management and control
- Transfer pricing is major area for litigation; proposes changes in transfer pricing regulation: Jaitley
- I propose to strengthen authority for advance ruling in tax: Jaitley
- Aim to achieve 7-8 per cent economic growth rate in next 3-4 years.
- We wish to provide an investment friendly taxation system: Jaitley
- This govt will not ordinarily change policies retrospectively which creates a fresh liability.
- GST will streamline tax administration and result in higher tax collection for center and states. (Read story here.)
- A new urea policy would be formulated.
- Considering that we had two years of low GDP growth, a large subsidy burden, target of 4.1% fiscal burden is daunting: Jaitley
- We must address the problem of black money: Jaitley
- Iraq crisis leading behind an impact. Inflation has remained at elevated level: Jaitley
- We have taken up the challenge in the right ernest; will create a vibrant and strong India: Jaitley.
- The task before me is very challenging. We need to introduce fiscal prudence. there is an urgent need for more reforms.
- The steps I will announce are only the beginning of the journey we wish to take for macro economic stabilization: Jaitley
- People below poverty line anxious to free themselves: Jaitley
- Green shoots of recovery seen in world economy.
- We look forward to lower inflation: Jaitley
