The Union Budget of Modi Govt.
The new
exemption limit was fixed at Rs. 2.5 lakh — from
the existing Rs. 2 lakh. For
senior citizens, the exemption limit was raised from Rs. 2.5 lakh to Rs. 3 lakh. Besides,
the government raised the tax exemption on home loans from Rs. 1.5 lakh to Rs. 2 lakh.
Jaitley
said, in the current fiscal, the non-tax revenue was seen at Rs.2.12 trillion rupees, while the capital receipts
were seen at Rs. 739.5 billion.
He projected the fiscal deficit at 3.6% of
the gross domestic product (GDP) in 2015/16, accepting the fiscal deficit
target of 4.1% in the current fiscal.
The finance minister also said the government
aimed at sustained growth of 7-8% in the next 3-4 years, as the Economic Survey
projected 5.4-5.9% GDP growth in fiscal 2014-15.
The
government has announced to set-up five more IITs in the Jammu & Kashmir,
Chhattisgrah, Goa, Andhra Pradesh and Kerala. Similarly, five new IIMs will be
set-up in the States of Himachal Pradesh, Punjab, Bihar, Odisha and
Maharashtra.
Highlights
of the Union Budget 2014-15
Fiscal deficit
* Accepts fiscal deficit target of 4.1% of GDP for 2014/15
* Fiscal deficit seen at 3.6% of GDP in 2015/16
* Finance minister says: "We cannot spend beyond our means"
* Tax-to-GDP ratio must be raised
Growth
* Aims for sustained growth of 7-8% in the next 3-4 years
* Finance minister says he is bound to usher in policies for higher growth, lower inflation
Taxation
* Aims to approve goods and services tax by end of this year
* Will not change rules on retrospective taxation
* All pending cases of retrospective tax for indirect transfers to be examined by a high-level committee before action is taken
* Proposes changes in transfer pricing mechanism
Investment
* Raises limit on foreign direct investment in defence sector from 26% to 49%; raises FDI limit in insurance sector to 49%
* Earmarks 70.6 billion rupees to create 100 "smart cities"
* Will provide the necessary tax changes to introduce real estate investment trusts and infrastructure investment trusts
* Proposes 40 billion rupees for affordable housing through national housing bank and extends tax incentives for housing loans
Subsidies
* Plans to make food and petroleum subsidies more targeted
* Rural job-guarantee scheme, which provides 100 days of paid employment a year, will become more focused on asset creation
* Proposes 80 billion rupees for rural housing scheme
(With Reuters and AFP inputs)
Fiscal deficit
* Accepts fiscal deficit target of 4.1% of GDP for 2014/15
* Fiscal deficit seen at 3.6% of GDP in 2015/16
* Finance minister says: "We cannot spend beyond our means"
* Tax-to-GDP ratio must be raised
Growth
* Aims for sustained growth of 7-8% in the next 3-4 years
* Finance minister says he is bound to usher in policies for higher growth, lower inflation
Taxation
* Aims to approve goods and services tax by end of this year
* Will not change rules on retrospective taxation
* All pending cases of retrospective tax for indirect transfers to be examined by a high-level committee before action is taken
* Proposes changes in transfer pricing mechanism
Investment
* Raises limit on foreign direct investment in defence sector from 26% to 49%; raises FDI limit in insurance sector to 49%
* Earmarks 70.6 billion rupees to create 100 "smart cities"
* Will provide the necessary tax changes to introduce real estate investment trusts and infrastructure investment trusts
* Proposes 40 billion rupees for affordable housing through national housing bank and extends tax incentives for housing loans
Subsidies
* Plans to make food and petroleum subsidies more targeted
* Rural job-guarantee scheme, which provides 100 days of paid employment a year, will become more focused on asset creation
* Proposes 80 billion rupees for rural housing scheme
(With Reuters and AFP inputs)
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