Budget : Highlights of 2014-15

Union Finance Minister Mr. Arun Jaitley presented Union Budget 2014-15. 

 
 


For individuals

• No change in the Tax slab on personal income 
• Income tax exemption limit increased by Rs 50,000 to Rs 2.5 lakh and for senior citizens to Rs 3 lakh
• Exemption limit for investment in financial instruments under 80C increased to Rs 1.5 lakh from Rs 1 lakh.
• Investment limit in PPF increased to Rs 1.5 lakh from Rs 1 lak
• Deduction limit on interest on loan for self-occupied house enhanced to Rs 2 lakh from Rs 1.5 lakh.
• Reintroduction of Kisan Vikas Patra, National Savings Certificate with insurance cover to be launched.
•  Long term capial gain tax for mutual funds doubled to 20%; lock-in period increased to 3 years.
•  Mandatory wage ceiling of subscription to EPS (Employee Pension Scheme) enhanced from Rs 6,500 to Rs 15,000
• Minimum pension raised to Rs 1,000 per month
• LCD, LED TV become less expensive
• Cigarettes, pan masala, tobacco, aerated drinks become costlier

New projects and programmes

•     5 IIMs to be opened in HP, Punjab, Bihar, Odisha and Rajasthan

•     5 IITs in Jammu, Chattisgarh, Goa, Andhra Pradesh and Kerala

•     4 more AIIMS like institutions in Andhra Pradesh, West Bengal, Vidarbha in Maharashtra and Poorvanchal in Uttar Pradesh

•     Kisan TV for farmers, Arun Prabha TV for northeast

•     National Rural Internet and Technology Mission for services in villages and schools, training in IT skills proposed

•     ‘Digital India’ programme will be launched to ensure broad band connectivity at village level

•     Ultra Modern Super Critical Coal Based Thermal Power Technology has been proposed

•     ‘Jal Marg Vikas’ a project on the river Ganga for inland waterways between Allahabad and Haldia; Rs 4,200 crore will be allocated for the same.

•     “Uniform Account Number” service will be launched by EPFO for contributing members.

•     Project “Neeranchal” will be launched to give fillip to watershed development in the country with an initial outlay of Rs. 2142 crores.

•     Beti Bachao, Beti Padhao Yojana to spread awareness and help in improving the efficiency of delivery of welfare services meant for women.

•     Achieving “Health For All” objective through Free Drug Service and Free Diagnosis Service

•     Two National Institutes of Ageing to be established at AIIMS, New Delhi and Madras Medical College, Chennai.

Key allocations

•     Rs 100 crore allocated to support about 600 new and existing Community Radio Stations

•     Swachh Bharat Abhiyan to cover every household with sanitation facility by the year 2019

•     Rs 100 crore for metro projects in Lucknow and Ahmedabad

•     ‘Namami Gange’ the Integrated Ganga Conservation Mission has been allocated Rs 2,037 crore

•     Rs 150 crore set aside for enhancing safety of women in large cities

•     Rs. 7,060 crore allocated for the project of developing 100 Smart Cities.

•     Rs 11,200 crore for PSU banks capitalization

•     Rs 500 crore allocated for rehabilitation of displaced Kashmiri migrants

•     “Pradhan Mantri Krishi Sinchayee Yojna” has been provided Rs 1000 crore.

•     Rs. 50,548 crore under the SC Plan and Rs. 32,387 crore under TSP

Economic Measures

•     Composite cap of foreign investment to be increased to 49% in Defence and Insurance sectors.

•     Requirement of the construction area and capital conditions for FDI decreased to 20,000 square metres and $5 million respectively for development of smart cities.

•     Manufacturing can sell its products through retail including e-commerce platforms.

•     Requirement to inject Rs.2,40,000 crore as equity by 2018 in our banks to be in consonance with Basel-III norms PSUs will invest through capital investment a total sum of Rs. 2,47,941 crores.

•     Rs 4,000 cr allocated to increase flow of cheaper credit for affordable housing to the urban poor/EWS/LIG segment.

•     Government supports consolidation of PSU banks

•     Providing greater autonomy to PSU banks while making them accountable is under consideration

Some key fiscal information

•     Government expects Rs 9.77 lakh crore revenue crore from taxes

•     Plan expenditure pegged at Rs 5.75 lakh crore and non-plan at Rs 12.19 lakh crore.

•     Fiscal deficit target maintained at 4.1% of GDP for current fiscal and 3.6% for FY 2016

•     Disinvestment target fixed at Rs 58,425 crore

•     Gross borrowings pegged at Rs 6 lakh crore

•     Configuration of GST to be finalized this fiscal

•     Government to examine DTC proposal.

Administrative reforms

•     Panel to examine all fresh tax demands for indirect transfer of assets in wake of retrospective tax amendments of 2012

•     Setting up of Expenditure Management Commission; will look into food and fertilizer subsides

•     Legislative and administrative amendments to clear up pending tax demands of more than Rs. 4 lakh crore under dispute and litigation.

•     Formulation of New Urea Policy

•     MGNREGA would provide more productive, asset creating wage employment with linkages to agriculture and allied activities

•     A panel will look into and recommend how unclaimed amounts with PPF, Post Office, saving schemes etc. can be utilized to protect and further financial interests of the senior citizens

•     Slum development to be included in the list of Corporate Social Responsibility

•     Panel to look into the financial architecture for MSME Sector, remove impediments and create new norms and structures regarding the same.

•     To provide support to mainstreaming PPPPs (People Public Private Partnership) called “4PIndia”, an institution will be established with a corpus of Rs. 500 crores.