BUDGET 2014-15





 Finance Minister of India, while presenting his maiden budget said, decisive vote for change represents the desire of the people to grow, free themselves from the curse of poverty and use the opportunity provided by society. Country is in no mood to suffer unemployment, inadequate basic amenities, lack of infrastructure and apathetic governance, he added.

FM said, “The situation is challenging, due to sub 5% growth and double digit inflation. Continued slow-down in many emerging economies is a threat to sustained global recovery. A recovery was visible with the growth rate of world economy projected at 3.6 per cent in 2014 vis-à-vis in 2013.”

“First budget of this NDA government to lay down broad policy indicators of the direction in which we wish to take this country. Steps announced are only the beginning of the journey towards a sustained growth of 7-8% or above within the next 3-4 years, along with macro-economic stabilization. 

Deficit and Inflation
 
Decline in fiscal deficit from 5.7% in 2011-12 to 4.5% in 2013-14 was mainly achieved by reduction in expenditure rather than by way of realization of higher revenue. Improvement in current account deficit from 4.7% in 2012-13 to year end level of 1.7% was mainly achieved through restriction on non-essential imports and a slow-down in overall aggregate demand. He stressed the need to keep a watch on CAD.
A 4.1% fiscal deficit is a daunting task in the backdrop of two years of low GDP growth, static industrial growth, moderate increase in indirect taxes, subsidy burden and not so encouraging tax buoyancy.



Here is what the finance minister has given : 








ECONOMIC INITIATIVES:
 
Direct Tax Proposals
  • Personal Income-tax exemption limit raised by Rs50,000, that is, from Rs2 lakh to Rs2.5 lakh in the case of individual taxpayers, below the age of 60 years. Exemption limit raised from Rs2.5 lakh to Rs3 lakh in the case of senior citizens
  • No change in the rate of surcharge either for the corporates or the individuals, HUFs, firms etc
  • The education cess to continue at 3%
  • Investment limit under section 80C of the Income-tax Act raised from Rs1 lakh to Rs1.5 lakh
  • Deduction limit on account of interest on loan in respect of self occupied house property raised from Rs1.5 lakh to Rs2 lakh
  • Conducive tax regime to Infrastructure Investment Trusts and Real Estate Investment Trusts (REIT) to be set up in accordance with regulations of the Securities and Exchange Board of India (SEBI)
  • Investment allowance at the rate of 15% to a manufacturing company that invests more than Rs25 crore in any year in new plant and machinery. The benefit to be available for three years i.e. for investments up to 31.03.2017
  • Investment linked deduction extended to two new sectors, namely, slurry pipelines for the transportation of iron ore, and semi-conductor wafer fabrication manufacturing units
  • 10 year tax holiday extended to the undertakings which begin generation, distribution and transmission of power by 31.03.2017
  • Income arising to foreign portfolio investors from transaction in securities to be treated as capital gains
  • Concessional rate of 15% on foreign dividends without any sunset date to be continued
  • The eligible date of borrowing in foreign currency extended from 30.06.2015 to 30.06.2017 for a concessional tax rate of 5% on interest payments. Tax incentive extended to all types of bonds instead of only infrastructure bonds
  • Introduction of a “Roll Back” provision in the Advanced Pricing Agreement (APA) scheme so that an APA entered into for future transactions is also applicable to international transactions undertaken in previous four years in specified circumstances
  • Introduction of range concept for determination of arm’s length price in transfer pricing regulations
  • To allow use of multiple year data for comparability analysis under transfer pricing regulations
  • To remove tax arbitrage, rate of tax on long term capital gains increased from 10% to 20% on transfer of units of Mutual Funds, other than equity oriented funds
  • Income and dividend distribution tax to be levied on gross amount instead of amount paid net of taxes
  • In case of non deduction of tax on payments, 30% of such payments will be disallowed instead of 100%
  • Government to review the DTC in its present shape and take a view in the whole matter
  • 60 more Ayakar Seva Kendras to be opened during the current financial year to promote excellence in service delivery
  • Net Effect of the direct tax proposals to result in revenue loss of Rs22,200 crore



 
Indirect Tax Proposals
 
  • To boost domestic manufacture and to address the issue of inverted duties, basic customs duty (BCD) reduced on certain items
  • To encourage new investment and capacity addition in the chemicals and petrochemicals sector, basic customs duty reduced on certain items
  • Steps taken to boost domestic production of electronic items and reduce our dependence on imports. These include imposition of basic customs duty on certain items falling outside the purview of IT Agreement, exemption from SAD on inputs/ components for PC manufacturing, imposition of education cess on imported electronic products for parity etc
  • Colour picture tubes exempted from basic customs duty to make cathode ray TVs cheaper and more affordable to weaker sections
  • To encourage production of LCD and LED TVs below 19 inches in India, basic customs duty on LCD and LED TV panels of below 19 inches reduced from 10% to NIL
  • To give an impetus to the stainless steel industry, increase in basic customs duty on imported flat-rolled products of stainless steel from 5% to 7.5%
  • Concessional basic customs duty of 5 percent extended to machinery and equipment required for setting up of a project for solar energy production
  • Specified inputs for use in the manufacture of EVA sheets and back sheets and flat copper wire for the manufacture of PV ribbons exempted from basic customs duty
  • Reduction in basic customs duty from 10 percent to 5 percent on forged steel rings used in the manufacture of bearings of wind operated electricity generators
  • Exemption from SAD of 4% on parts and raw materials required for the manufacture of wind operated generators
  • Concessional basic customs duty of 5 percent on machinery and equipment required for setting up of compressed biogas plants (Bio-CNG)
  • Anthracite coal, bituminous coal, coking coal, steam coal and other coal to attract 2.5% basic customs duty and 2% CVD to eliminate all assessment disputes and transaction costs associated with testing of various parameters of coal
  • Basic customs duty on metallurgical coke increased from Nil to 2.5% in line with the duty on coking coal
  • Duty on ship breaking scrap and melting scrap of iron or steel rationalized by reducing the basic customs duty on ships imported for breaking up from 5% to 2.5%
  • To prevent mis-use and avoid assessment disputes, basic customs duty on semi-processed, half cut or broken diamonds, cut and polished diamonds and coloured gemstones rationalized at 2.5%
  • To encourage exports, pre-forms of precious and semi-precious stones exempted from basic customs duty
  • Duty free entitlement for import of trimmings, embellishments and other specified items increased from 3% to 5% of the value of their export, for readymade garments
  • Export duty on bauxite increased from 10% to 20%
  • For passenger facilitation, free baggage allowance increased from Rs35,000 to Rs45,000
  • To incentivize expansion of processing capacity, reduction in excise duty on specified food processing and packaging machinery from 10% to 6%
  • Reduction in the excise duty from 12% to 6% on footwear of retail price exceeding Rs500 per pair but not exceeding Rs1,000 per pair
  • Withdraw concessional excise duty (2% without Cenvat benefit and 6% with Cenvat benefit) on smart cards and a uniform excise duty at 12%
  • To develop renewable energy, various items exempted from excise duty
  • Exemption to PSF and PFY manufactured from plastic waste and scrap including PET bottles from excise duty with effect from 29 June 2010 to 7 May 2012
  • Prospective levy of a nominal duty of 2 percent without Cenvat benefit and 6% with Cenvat benefit on such PSF and PFY
  • Concessional excise duty of 2 percent without Cenvat benefit and 6% with Cenvat benefit on sports gloves
  • Specific rates of excise duty increased on cigrettes in the range of 11 per cent to 72 per cent
  • Excise duty increased from 12 percent to 16 percent on pan masala, from 50 percent to 55 percent on unmanufactured tobacco and from 60 percent to 70 percent on gutkha and chewing tobacco
  • Levy of an additional duty of excise at 5 percent on aerated waters containing added sugar
  • To finance Clean Environment initiatives, Clean Energy Cess increased from Rs50 per tonne to Rs100 per tonne
 
Service tax
  • To broaden the tax base in Service Tax, sale of space or time for advertisements in broadcast media, extended to cover such sales on other segments like online and mobile advertising. Sale of space for advertisements in print media however would remain excluded from service tax. Service provided by radio-taxis brought under service tax
  • Services by air-conditioned contract carriages and technical testing of newly developed drugs on human participants brought under service tax
  • Provision of services rules to be amended and tax incidence to be reduced on transport of goods through coastal vessels to promote Indian Shipping industry
  • Services provided by Indian tour operators to foreign tourists in relation to a tour wholly conducted outside India to be taken out of the tax net and Cenvat credit for services of rent-a-cab and tour operators to be allowed to promote tourism
  • Service tax exempted on loading, unloading, storage, warehousing and transportation of cotton, whether ginned or baled
  • Services provided by the Employees’ State Insurance Corporation for the period prior to 1 July 2012 exempted, from service tax
  • Exemption available for specified micro insurance schemes expanded to cover all life micro-insurance schemes where the sum assured does not exceed Rs50,000 per life insured
  • For safe disposal of medical and clinical wastes, services provided by common bio-medical waste treatment facilities exempted
  • Tax proposals on the indirect taxes side are estimated to yield Rs7,525 crore
  • 24X7 customs clearance facility extended to 13 more airports in respect of all export goods and to 14 more sea ports in respect of specified import and export goods to facilitate cargo clearance
  • ‘Indian Customs Single Window Project’ to facilitate trade, to be implemented
  • The scheme of Advance Ruling in indirect taxes to be expanded to cover resident private limited companies. The scope of Settlement Commission to be enlarged to facilitate quick dispute resolution
  • Customs and Central Excise Acts to be amended to expedite the process of disposal of appeals
 
Foreign Direct Investment (FDI)
 
  • Government to promote FDI selectively in sectors
  • The composite cap of foreign investment to be raised to 49% with full Indian management and control through the FIPB route
  • The composite cap in the insurance sector to be increased up to 49% from 26% with full Indian management and control through the FIPB route
  • Requirement of the built up area and capital conditions for FDI to be reduced from 50,000 square metres to 20,000 square metres and from $10 million to $5 million respectively for development of smart cities
  • The manufacturing units to be allowed to sell its products through retail including E-commerce platforms
 
Bank Capitalization
  • Requirement to infuse Rs2.40 lakh crore as equity by 2018 in our banks to be in line with Basel-III norms
  • Capital of banks to be raised by increasing the shareholding of the people in a phased manner
 
PSU Capital Expenditure
PSUs will invest through capital investment a total sum of Rs2.48 lakh crore in the current financial year
 
Smart Cities
A sum of Rs7,060 crore is provided in the current fiscal for the project of developing “one hundred Smart Cities’
 
Real Estate
  • Incentives for Real Estate Investment Trusts (REITS). Complete pass through for the purpose of taxation
  • A modified REITS type structure for infrastructure projects as the Infrastructure Investment Trusts (INVITS).
  • These two instruments to attract long term finance from foreign and domestic sources
  • including the NRIs
 
Irrigation
Rs1,000 crore provided for “Pradhan Mantri Krishi Sinchayee Yojna” for assured irrigation
 
Rural Development
  • Shyama Prasad Mukherji Rurban Mission for integrated project based infrastructure in the rural areas
  • Rs500 crore for “Deen Dayal Upadhyaya Gram Jyoti Yojana” for feeder separation to augment power supply to the rural areas
  • Rs14,389 crore provided for Pradhan Mantri Gram Sadak Yojna(PMGSY)
  • More productive, asset creating and with linkages to agriculture and allied activities wage employment would to be provided under MGNREGA.
  • Under Ajeevika, the provision of bank loan for women SHGs at 4% to be extended to another 100 districts
  • Initial sum of Rs100 crore for “Start Up Village Entrepreneurship Programme” for encouraging rural youth to take up local entrepreneurship programs
  • Allocation for National Housing Bank increased to Rs8,000 crore to support Rural housing
  • New programme “Neeranchal” to give impetus to watershed development in the country with an initial outlay of Rs2,142 crore
  • Backward Region Grant Fund (BRGF) to be restructured to address intra-district inequalities
 
Scheduled Caste/Scheduled Tribe
 
  • An amount of Rs50,548 crore is proposed under the SC Plan and Rs32,387 crore under TSP
  • For the welfare of the tribals “Van Bandhu Kalyan Yojna” launched with an initial allocation of Rs100 crore
 
Senior Citizen & Differently Abled Persons
  • • Varishtha Pension Bima Yojana (VPBY) to be revived for a limited period from 15 August 2014 to 14 August 2015 for the benefit of citizens aged 60 years and above
  • • A committee will to examine and recommend how unclaimed amounts with PPF, Post Office, saving schemes etc. can be used to protect and further financial interests of the senior citizens
  • Government notified a minimum pension of Rs1,000 per month to all subscriber members of EP Scheme. Initial provision of Rs250 crore
  • Increase in mandatory wage ceiling of subscription to Rs15,000. A provision of Rs250 crore in the current budget
  • EPFO to launch the “Uniform Account Number” Service for contributing members
  • • Scheme for Assistance to Disabled Persons for purchase/ fitting of Aids and Appliances (ADIP) extended to include contemporary aids and assistive devices
  • National level institutes for Universal Inclusive Design , Mental Health Rehabilitation and a Centre for Disability Sports to be established
  • • Assistance to State Governments to establish fifteen new Braille Presses and modernize ten existing Braille Presses
  • • Government to print currency notes with Braille like signs for visibly challenged persons
 
Women & Child Development
  • • Outlay of Rs50 crore for pilot testing a scheme on “Safety for Women on Public Road Transport”
  • • Sum of Rs150 crore on a scheme to increase the safety of women in large cities
  • “Crisis Management Centres” in all the districts of NCT of Delhi this year government and private hospitals
  • • A sum of Rs100 crore is provided for “Beti Bachao, Beti Padhao Yojana”, a focused scheme to generate awareness and help in improving the efficiency of delivery of welfare services meant for women
  • • School curriculum to have a separate chapter on gender mainstreaming
 
Drinking Water & Sanitation
  • • 20,000 habitations affected with arsenic, fluoride, heavy/ toxic elements, pesticides/ fertilizers to be provided safe drinking water through community water purification plants in next 3 years
  • • “Swachh Bharat Abhiyan” to cover every household with sanitation facility by the year 2019
 
Health and Family Welfare
  • • Free Drug Service and Free Diagnosis Service to achieve “ Health For All”
  • • Two National Institutes of Ageing to be set up at AIIMS, New Delhi and Madras Medical College, Chennai
  • • A national level research and referral Institute for higher dental studies to be set up
  • AIIMS like institutions in Andhra Pradesh, West Bengal, Vidarbha in Maharashtra and Poorvanchal in UP. A provision of Rs500 crore made
  • 12 new government medical colleges to be set up
  • • States’ Drug Regulatory and Food Regulatory Systems to be strengthened by creating new drug testing laboratories and strengthening the 31 existing State laboratories
  • 15 Model Rural Health Research Centres to be set up for research on local health issues concerning rural population
  • • A national programme in Mission Mode to halt the deteriorating malnutrition situation in India to be put in place within six months
 
EDUCATION:
 
School Education
  • • Government would strive to provide toilets and drinking water in all the girls school in first phase An amount of Rs28,635 crore is being funded for Sarv Shiksha Abhiyan (SSA) and Rs4,966 crore for Rashtriya Madhyamic Shiksha Abhiyan (RMSA)
  • • A School Assessment Programme is being initiated at a cost of Rs30 crore
  • Rs500 crore provided for “Pandit Madan Mohan Malviya New Teachers Training Programme” to infuse new training tools and motivate teachers
  • • Rs100 crore provided for setting up virtual classrooms as Communication Linked Interface for Cultivating Knowledge (CLICK) and online courses
 
Higher Education
  • • Jai Prakash Narayan National Centre for Excellence in Humanities to be set up in MP
  • • Rs500 crore provided for setting up 5 more IITs in the Jammu, Chhattisgarh, Goa, Andhra Pradesh and Kerala
  • • Five IIMs in the States of HP, Punjab, Bihar, Odisha and Rajasthan
  • • Simplification of norms to facilitate education loans for higher studies
 
Information Technology
  • • Pan India programme “Digital India” to with an outlay of Rs500 crore to be launched
  • • Programme for promoting “Good Governance” to be launched. A sum of Rs100 crore provided
 
Information and Broadcasting
  • • Rs100 crore allocated for 600 new and existing Community Radio Stations
  • • Film & Television Institute, Pune and Satyajit Ray Film & Television Institute, Kolkata are proposed to be accorded status of Institutes of national importance and a “National Centre for Excellence in Animation, Gaming and Special Effects to be set up
  • • Rs100 crore is provided for Kisan TV, to disseminate real time information to the farmers on issues such as new farming techniques, water conservation, organic farming etc
 
Urban Development
  • • Vision of the Government is that 500 urban habitations to be provided support for renewal of infrastructure and services in next 10 years through PPPs
  • • Present corpus of Pooled Municipal Debt Obligation Facility facility to be enlarged to Rs50,000 crore from Rs5,000 crore
  • • Rs100 crore provided for Metro Projects in Lucknow and Ahemdabad
 
Housing
  • • Extended additional tax incentive on home loans shall be provided to encourage people, especially the young, to own houses
  • • Mission on Low Cost Affordable Housing anchored in the National Housing Bank to be set up
  • • A sum of Rs4,000 crore for NHB from the priority sector lending shortfall with a view to increase the flow of cheaper credit for affordable housing to the urban poor/EWS/ LIG segment is provided
  • • Slum development to be included in the list of Corporate Social Responsibility (CSR) activities to encourage the private sector to contribute more
 
Minorities
  • • A programme for the up gradation of skills and training in ancestral arts for development for the minorities “Up gradation of Traditional Skills in Arts, Resources and Goods” to be launched
  • • An additional amount of Rs100 crore for Modernization of Madarsas
 
AGRICULTURE:
  • • Government to establish two more Agricultural Research Institute of excellence in Assam and Jharkhand with an initial sum of Rs100 crore
  • • An amount of Rs100 crore set aside for “Agri-tech Infrastructure Fund”
  • • Rs200 crore provided to open Agriculture Universities in Andhra Pradesh and Rajasthan and Horticulture Universities in Telangana and Haryana
  • • A scheme to provide every farmer a soil health card in a Mission mode will be launched
  • • Rs100 crore has been provided for this purpose and additional Rs56 crore to set up 100 Mobile Soil Testing Laboratories across the country
  • • To meet the vagaries of climate change a “National Adaptation Fund” with an initial sum an amount of Rs100 crore will be set up
  • • A sustainable growth of 4% in Agriculture will be achieved
  • Technology driven second green revolution with focus on higher productivity and including “Protein revolution” will be area of major focus
  • • To mitigate the risk of Price volatility in the agriculture produce, a sum of Rs500 crore is provided for establishing a “Price Stabilization Fund”
  • Central Government to work closely with the State Governments to re-orient their respective APMC Acts
  • • Sum of Rs50 crore provided for the development of indigenous cattle breeds and an equal amount for starting a blue revolution in inland fisheries
  • • Transformation plan to invigorate the warehousing sector and significantly improve post-harvest lending to farmers
 
Agriculture Credit
  • • To provide institutional finance to landless farmers, it is proposed to provide finance to five lakh joint farming groups of “Bhoomi Heen Kisan” through NABARD
  • • A target of Rs8 lakh crore has been set for agriculture credit during 2014-15
  • Corpus of Rural Infrastructure Development Fund (RIDF) raised by an additional Rs5000 crore from the target given in the Interim Budget to Rs25,000 crore
  • • Allocation of Rs5,000 crore provided for the Warehouse Infrastructure Fund “Long Term Rural Credit Fund” to set up for the purpose of providing refinance support to Cooperative Banks and Regional Rural Banks with an initial corpus of Rs5,000 crore
  • • Amount of Rs50,000 crore allocated for Short Term Cooperative Rural Credit
  • Sum of Rs200 crore for NABARD’s Producers Development and Upliftment Corpus (PRODUCE) for building 2,000 producers organizations over the next two years
 
FOOD SECURITY:
  • • Restructuring FCI, reducing transportation and distribution losses and efficacy of PDS to be taken up on priority
  • • Government committed to provide wheat and rice at reasonable prices to the weaker sections of the society
  • • Government when required will undertake open market sales to keep prices under control
 
INDUSTRY:
  • • Central Government Departments and Ministries to integrate their services with the e-Biz -a single window IT platform- for services on priority by 31 December this year
  • • Rs100 crore provided for setting up a National Industrial Corridor Authority
  • • Amritsar Kolkata Industrial master planning to be completed expeditiously
  • Master planning of three new smart cities in the Chennai-Bengaluru Industrial Corridor region, viz., Ponneri in Tamil Nadu, Krishnapatnam in Andhra Pradesh and Tumkur in Karnataka to be completed
  • • Perspective plan for the Bengaluru-Mumbai Economic corridor (BMEC) and Vizag-Chennai corridor to be completed with the provision for 20 new industrial clusters
  • Development of industrial corridors with emphasis on Smart Cities linked to transport connectivity to spur growth in manufacturing and urbanization will be accelerated
  • Proposed to establish an Export promotion Mission to bring all stakeholders under one umbrella
  • • Apprenticeship Act to be suitably amended to make it more responsive to industry and youth
 
Micro Small and Medium Enterprises (MSME) Sector
  • • Skill India to be launched to skill the youth with an emphasis on employability and entrepreneur skills
  • • Committee to examine the financial architecture for MSME Sector, remove bottlenecks and create new rules and structures to be set up and give concrete suggestions in three months
  • • Fund of Funds with a corpus of Rs10,000 crore for providing equity through venture capital funds, quasi equity, soft loans and other risk capital specially to encourage new startups by youth to be set up
  • • Corpus of Rs200 crore to be set up to establish Technology Centre Network
  • Definition of MSME to be reviewed to provide for a higher capital ceiling
  • Programme to facilitate forward and backward linkages with multiple value chain of manufacturing and service delivery to be put in place
  • • Entrepreneur friendly legal bankruptcy framework will be developed for SMEs to enable easy exit
  • • A nationwide “District level Incubation and Accelerator Programme” to be taken up for incubation of new ideas and necessary support for accelerating entrepreneurship
 
Textiles
  • • Rs50 crore is provided to set up a Trade Facilitation Centre and a Crafts Museum to develop and promote handloom products and carry forward the rich tradition of handlooms of Varanasi
  • • Sum of Rs500 crore for developing a Textile mega-cluster at Varanasi and six more at Bareilly, Lucknow, Surat, Kutch, Bhagalpur and Mysore
  • • Rs20 crore to set up a Hastkala Academy for the preservation, revival, and documentation of the handloom/handicraft sector in PPP mode in Delhi
  • Rs50 crore is provided to start a Pashmina Promotion Programme (P-3) and development of other crafts of Jammu & Kashmir
 
INFRASTRUCTURE:
• An institution to provide support to mainstreaming PPPPs called 4PIndia to be set up with a corpus of Rs500 crore
 
Shipping
  • • Rs11,635 crore will be allocated for the development of Outer Harbour Project in Tuticorin for phase I
  • • SEZs will be developed in Kandla and JNPT
  • • Comprehensive policy to be announced to promote Indian ship building industry
 
Inland Navigation
• Project on Ganges called “ Jal Marg Vikas’ to be developed between Allahabad and Haldia
 
New Airports
• Scheme for development of new airports in Tier I and Tier II Cities to be launched
 
Roads sector
  • • Sector needs huge amount of investment along with debottlenecking from maze of
  • clearances
  • • An investment of an amount of Rs37,880 crore in NHAI and State Roads is proposed which includes Rs3,000 crore for the North East
  • • Target of NH construction of 8500 kms will be achieved in current financial year
  • • Work on select expressways in parallel to the development of the Industrial Corridors will be initiated. For project preparation NHAI shall set aside a sum of Rs500 crore
 
Energy
  • • Rs100 crore is allocated for a new scheme “Ultra-Modern Super Critical Coal Based
  • Thermal Power Technology”
  • • Comprehensive measures for enhancing domestic coal production are being put in
  • place
  • • Adequate quantity of coal will be provided to power plants which are already
  • commissioned or would be commissioned by March 2015
  • • An exercise to rationalize coal linkages to optimize transport of coal and reduce cost of
  • power is underway
 
New & Renewable Energy
  • • Rs500 crore provided for Ultra Mega Solar Power Projects in Rajasthan, Gujarat, Tamil Nadu, Andhra Pradesh and Laddakh
  • • Rs400 crore provided for a scheme for solar power driven agricultural pump sets and
  • water pumping stations
  • • Rs100 crore provided for the development of 1 MW Solar Parks on the banks of
  • canals
  • • A Green Energy Corridor Project is being implemented to facilitate evacuation of
  • renewable energy across the country
 
Petroleum & Natural Gas
  • • Production and exploitation of Coal Bed Methane reserves will be accelerated
  • Possibility of using modern technology to revive old or closed wells to be explored
  • • Usage of PNG to be rapidly scaled up in a Mission mode
  • • Proposal to develop pipelines using appropriate PPP models
 
Mining
• Changes, if necessary, in the MMDR Act, 1957 to be introduced to encourage investment in mining sector and promote sustainable mining practices
 
FINANCIAL SECTOR:
 
Capital Market
  • • Ongoing process of consultations with all the stakeholders on the enactment of the Indian Financial Code and reports of the Financial Sector Legislative Reforms Commission (FSLRC) to be completed
  • • Government in close consultation with the RBI to put in place a modern monetary policy framework
  • Following measures will be taken to energize Capital markets:
    1. Introduction of uniform KYC norms and inter-usability of the KYC records across the
    2. entire financial sector
    3. Introduce one single operating demat account
    4. Uniform tax treatment for pension fund and mutual fund linked retirement plan
 
BANKING AND INSURANCE SECTOR
 
Banking
  • • Time bound programme as Financial Inclusion Mission to be launched on 15th August this year with focus on the weaker sections of the society
  • • Banks to be encouraged to extend long term loans to infrastructure sector with flexible structuring
  • • Banks to be permitted to raise long term funds for lending to infrastructure sector with minimum regulatory pre-emption such as CRR, SLR and Priority Sector Lending (PSL)
  • • RBI to create a framework for licensing small banks and other differentiated banks
  • • Differentiated banks serving niche interests, local area banks, payment banks etc. are contemplated to meet credit and remittance needs of small businesses, unorganized sector, low income households, farmers and migrant work force
  • Six new Debt Recovery Tribunals to be set up
  • • For venture capital in the MSME sector, a Rs10,000 crore fund to act as a catalyst to attract private Capital by way of providing equity , quasi equity, soft loans and other risk capital for start-up companies with suitable tax incentives to participating private funds to be established
 
Insurance Sector
  • • The pending insurance laws (amendment) Bill to be immediately brought for consideration
of the Parliament
  • • The regulatory gap under the Prize Chits and Money Circulation Scheme (Banking)
Act, 1978 will be bridged
 
Small Savings
  • • Kissan Vikas Patra (KVP) to be reintroduced
  • • A special small savings instrument to cater to the requirements of educating and marriage of the Girl Child to be introduced
  • • A National Savings Certificate with insurance cover to provide additional benefits for the small saver
  • • In the PPF Scheme, annual ceiling will be enhanced to Rs1.5 lakh p.a. from Rs1 lakh at present
 
DEFENCE & INTERNAL SECURITY:
  • • A further sum of Rs1,000 crore to meet requirement for “One Rank One Pension”
  • • Capital outlay for Defence increased by Rs5,000 crore including a sum of Rs1,000 crore for accelerating the development of the Railway system in the border areas
  • • Urgent steps would also be taken to streamline the procurement process to make it speedy and more efficient
  • • Rs100 crore is provided for construction of a war memorial in the Princes Park, which will be supplemented by a War Museum. I am allocating a sum of Rs100 crore for this purpose
  • • Rs100 crore is provided to set up a Technology Development Fund for Defence
 
Internal Security
  • • Rs3,000 crore is provided in the current financial year for modernization of state police forces
  • • Adequate allocation for Additional Central Assistance for Left Wing Extremist Affected districts
  • • Rs2,250 crore provided to strengthen and modernize border infrastructure
  • • Rs990 crore allocated for the socio economic development of the villages along the borders
  • • A sum of Rs150 crore ear-marked for the construction of Marine Police Station, Jetties and for the purchase of boats etc
  • • Rs50 crore provided for construction of National Police Memorial
 
CULTURE & TOURISM:
  • • Rs200 crore provided to build the Statue of unity(National project)
  • Facility of Electronic Travel Authorization (e-Visa) to be introduced in phased manner at nine airports in India
  • • Countries to which th
    e Electronic Travel authorisation facility would be extended would
  • be identified in a phased manner
  • • Rs500 crore provided for developing 5 tourist circuits around specific themes
  • Rs100 crore provided for National Mission on Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASAD)
  • • Rs200 crore provided for National Heritage City Development and Augmentation Yojana (HRIDAY)
  • • Rs100 crore provided for Archaeological sites preservation
  • Sarnath-Gaya-Varanasi Buddhist circuit to be developed with world class tourist amenities to attract tourists from all over the world
 
WATER RESOURCES AND CLEANING OF GANGA:
  • • Rs100 crore provided for Detailed Project Reports for linking of rivers
  • • Rs2,037 crore provided for Integrated Ganga Conservation Mission “NAMAMI GANGE”
  • • Rs100 crore provided for Ghat development and beautification at Kedarnath, Haridwar, Kanpur, Varanasi, Allahabad, Patna and Delhi
  • NRI Fund for Ganga will be set up
 
SCIENCE AND TECHNOLOGY:
  • • Government to strengthen at least five institutions as Technical Research Centres
  • Development of Biotech clusters in Faridabad and Bengaluru
  • Nascent agri-biotech cluster in Mohali to be scaled up. In addition, two new clusters, in Pune and Kolkata to be established Global partnerships will be developed under India’s leadership to transform the Delhi component of the International Centre for Genetic Engineering and Biotechnology (ICGEB) into a world-leader in life sciences and biotechnology
  • Several major space missions planned for 2014-15
 
SPORTS AND YOUTH AFFAIRS:
  • Rs200 crore provided for upgrading the indoor and outdoor sports stadiums in Jammu and Kashmir Valley to international standards
  • • Rs100 crore provided for sports university in Manipur
  • India to start an annual event to promote Unique sports traditions in the Himalayan region games
  • • Rs100 crore provided for the training of sports women and men for forthcoming Asian games
  • • A “Young Leaders Programme” with an initial allocation of Rs100 crore to be set up
 
NORTH EASTERN STATES:
  • • Rs100 crore provided for development of organic farming in North Eastern States
  • • Rs1,000 crore provided for development of rail connectivity in the North Eastern Region
  • • To provide a strong platform to rich cultural and linguistic identity of the North-East, a new 24x7 channel called “Arun Prabha” will be launched
 
ANDHRA PRADESH AND TELANGANA:
  • • Government committed to addressing the issues relating to development of Andhra Pradesh and Telangana in the AP Re-organization Act, 2014. Provision made by various Ministries/Departments to fulfill the obligation of Union Government
 
NCT OF DELHI:
  • • Rs200 crore for power reforms and Rs500 crore for water reforms to make Delhi a truly World Class City
  • • Rs50 crore provided to solve the long term water supply issues to the capital region
  • Construction of long pending Renuka Dam to be taken up on priority
 
ANDAMAN AND NICOBAR ISLAND AND PUDUCHERRY:
  • • Rs150 crore provided to tide over communication related problems of the Island
  • Rs188 crore to Puducherry for meeting commitments for Disaster preparedness
 
DISPLACED KASHMIRI MIGRANTS:
• Rs500 crore provided to support displaced Kashmiri migrants for rebuilding their lives
 
HIMALAYAN STUDIES:
• Rs100 crore provided to set up a National Centre for Himalayan Studies in Uttarakhand
 
BUDGET ESTIMATES:
  • • Mandate to be fulfilled without compromising fiscal consolidation
  • • Non-plan Expenditure of Rs12.2 lakh crore with additional provision for fertilizer subsidy and Capital expenditure for Armed forces
  • • Rs5.75 lakh crore Plan expenditure – increase of 26.9% over actuals of 2013-14
  • Plan increase targeted towards Agriculture, capacity creation in Health and Education, Rural Roads and National Highways Infrastructure, Railways network expansion, clean energy initiatives, development of water resources and river conservation plans
  • • Total expenditure of Rs17.94 lakh crore estimated
  • • Gross Tax receipts of Rs13.64 lakh crore estimated
  • • Net to centre of Rs9.77 lakh crore estimated
  • • Fiscal deficit of 4.1% of GDP and Revenue deficit of 2.9% estimated
  • New Statement to separately show plan allocation made for North Eastern Region
  • • Allocation of Rs53,706 crore for North East Regions
  • • Allocation of Rs50,548 crore under SCSP and Rs32,387 under TSP
  • Allocation for women at Rs98,030 crore and for children at Rs81,075 crore
 
TAX PROPOSALS:
  • • Ambitious Revenue Collection Targets in Interim Budget. Proposed tax changes factored in the Budget Estimates 2014-15
  • • Measures to revive the economy, promote investment in manufacturing, rationalize tax provisions to reduce litigation, address the problem of inverted duty structure in certain areas. Tax reliefs to individual tax payers

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