My Road map for fiscal consolidation is a fiscal deficit of 3.6 per cent for 2015-16 and 3 per cent for 2016-17. we are able to find a solution in the course of this year and approve the legislative scheme which enables the introduction of GST.
*The policy of the NDA Government is to promote Foreign Direct Investment (FDI) selectively in sectors where it helps the larger interest of the Indian Economy. Currently we permit 26 per cent FDI in Defence manufacturing. The composite cap of foreign exchange is being raised to 49 per cent with full Indian management and control through the FIPB route. The composite cap in the Insurance sector is proposed to be increased up to 49 per cent from the current level of 26 per cent, with full Indian management and control, through the FIPB route. FDI in the manufacturing sector is today on the automatic route. To encourage development of Smart Cities, which will also provide habitation for the neo-middle class, requirement of the built up area and capital conditions for FDI is being reduced from 50,000 square metres to 20,000 square metres and from USD 10 million to USD 5 million respectively with a three year post completion lock in.
*Financial stability is the foundation of a rapid recovery. Our banking system needs to be further strengthened. To be in line with Basel-III norms there is a requirement to infuse Rs 2,40,000 crore as equity by 2018 in our banks. To meet this huge capital requirement we need to raise additional resources to fulfill this obligation. the PSUs will invest through capital investment a total sum of ` Rs 2,47,941 crores in the current financial year to create a virtuous investment cycle.
*To provide the necessary focus to smart city, I have provided a sum of Rs7,060 crore in the current fiscal.
*A national multi-skill programme called Skill India is proposed to be launched.
forthe scheme “Pradhan Mantri Krishi Sinchayee Yojana”. I propose to set aside a sum of Rs 1,000 crore for this purpose. Shyama Prasad Mukherji Rurban Mission will be launched to deliver integrated project based infrastructure in the rural areas, which will also include development of economic activities and skill development.
*For Deendayal Upadhyaya Gram Jyoti Yojana I propose to set aside a sum of ` 500 crore for this
purpose.This year an amount of Rs 50,548 crore is proposed under the SC Plan and ` 32,387 crore
under TSP. I propose to set aside a sum of Rs 200 crore which will be operationalised through a scheme by IFCI. For the welfare of the tribals “Van Bandhu Kalyan Yojana” is being
launched with an initial allocation of Rs 100 crore.
*The Government is notifying minimum pension ofRs 1,000 per month to all subscriber members of EP Scheme and has made an initial provision of Rs 250 crore in the current financial year to meet the
expenditure. Further, increase in mandatory wage ceiling of subscription to EPS from Rs6,500 to Rs 15,000 has been made and a provision of Rs 250 crore has been provided in the current budget. For the convenience of the subscribers, EPFO will launch the “Uniform Account Number” Service for contributing members to facilitate portability of Provident Fund accounts.
*An outlay of Rs50 crores will be spent by Ministry of Road Transport & Highways on pilot testing a scheme on “Safety for Women on Public Road Transport”. A sum of Rs 150 crores will also be spent by Ministry of Home Affairs on a scheme to increase the safety of women in large cities. It is also proposed to set up “Crisis Management Centres” in all the districts of NCT of Delhi
*I propose to set aside a sum of Rs 100 crore for this. Beti Bachao, Beti Padhao Yojana
*I propose to provide a sum of Rs 14,389 crore. Pradhan Mantri Gram Sadak Yojana
*Ajeevika, the National Rural Livelihood Mission (NRLM), aims to eliminate rural poverty through sustainable livelihood options. Under this mission, Women SHGs are provided bank loans at 4% on prompt repayment in 150 districts and at 7% in all other districts. I propose to extend the provision of bank loan for women SHGs at 4% in another 100 districts.
*I propose to increase the allocations for the year 2014-15 to Rs8,000 crore for National Housing Bank (NHB)
*I propose to start a new programme called “Neeranchal” with an initial outlay of Rs 2,142 crores in the current financial year.
*It is proposed to earmark Rs3,600 crore under National Rural Drinking Water Programme for providing safe drinking water in approximately 20,000 habitations affected with arsenic, fluoride, heavy/toxic elements, pesticides/ fertilizers through community water purification plants
in next 3 years.
*A plan to set up four more AIIMS like institutions at Andhra Pradesh, West Bengal, Vidarbha in
Maharashtra and Poorvanchal in UP is under consideration. I propose to set aside a sum of Rs 500 crore for this.
*An amount of Rs 28,635 crore is being funded for Sarva Shiksha Abhiyan and `4,966 crore for Rashtriya Madhyamik Shiksha Abhiyan. A School Assessment Programme is being initiated at a cost of Rs 30 crore. To infuse new training tools and motivate teachers, “Pandit Madan Mohan Malviya
New Teachers Training Programme” is being launched. I am setting aside an initial sum of Rs 500 crore for this.
*To take advantage of the reach of the IT, I propose to allocate a sum of Rs100 crore for setting up virtual classrooms as Communication Linked Interface for Cultivating Knowledge (CLICK) and online courses.
*Five IIMs would be set up in the States of Himachal Pradesh, Punjab, Bihar, Odisha and
Maharashtra. I propose to set aside a sum of Rs 500 crore for this.
*A programme for promoting “Good Governance” would be launched and I propose to set aside a sum of Rs 100 crore for this.
*I propose to set aside a sum of Rs 100 crore for Metro Projects in Lucknow and Ahemdabad.
*I propose setting up a Mission on Low Cost Affordable Housing which will be anchored in the National Housing Bank. Schemes will be evolved to incentivize the development of low cost affordable housing. I propose to allocate this year also a sum of Rs 4,000 crores for NHB
*An additional amount of Rs100 crores for Modernization of Madarsas has been provided to the Department of School Education.
*Government will establish two more such institutions of excellence on similar pattern in Assam and Jharkhand with an initial sum of `100 crore in the current financial year. In addition, an amount of ` 100 crores is being set aside for setting up an “Agri-Tech Infrastructure Fund”. It is also proposed to establish Agriculture Universities in Andhra Pradesh and Rajasthan and Horticulture Universities in Telangana and Haryana. An initial sum of Rs 200 crores has been allocated for this purpose.
*I propose to set aside a sum of Rs 100 crore for this purpose and an additional Rs 56 crores to set up
100 Mobile Soil Testing Laboratories across the country.
*propose to establish a “National Adaptation Fund” for climate change. As an initial sum an amount of Rs 100 crore will be transferred to the Fund.
*for availability of scientific warehousing infrastructure in the country, I propose an allocation of ` 5,000 crore for the fund for the year 2014-15.
*I propose to set up “Long Term Rural Credit Fund” in NABARD for the purpose of providing refinance support to Cooperative Banks and Regional Rural Banks with an initial corpus of ` 5,000 crore.
*Refinance Fund was announced in Union Budget 2008-09 with initial corpus of Rs 5,000 crore. In
order to ensure increased and uninterrupted credit flow to farmers and to avoid high cost market borrowings by NABARD, I propose to allocate an amount ofRs`50,000 crore for STCRC Fund during 2014-15.
*I propose to supplement NABARD’s Producers’ organization development fund for Producer’s development and upliftment called PRODUCE with a sum of Rs 200 crore which will be utilized for building 2,000 producers organizations across the country over the next two years.
*For Kishan TVI propose to set aside a sum of Rs 100 crore for this purpose.
*to drive India’s growth in manufacturing and urbanization. I have provided an initial corpus of ` 100 crore for this purpose.
*To establish technology centre network to promote innovation, entrepreneurship and agro-industry, I propose to set up a fund with a corpus of Rs200 crore.
*I propose to set up a Trade Facilitation Centre and a Crafts Museum with an outlay of Rs 50 crore to develop and promote handloom products. I also propose to set up six more Textile mega-clusters at Bareily, Lucknow, Surat, Kuttch, Bhagalpur, Mysore and one in Tamil Nadu.
I am allocating a sum of Rs 200 crore for this purpose.
*I also propose to set up a Hastkala Academy for the preservation, revival,
and documentation of the handloom/handicraft sector in PPP mode in Delhi. I have set aside a sum of Rs 30 crore for this purpose.
I propose to start a Pashmina Promotion Programme (P-3) and a programme for the development of other crafts of Jammu & Kashmir. I am setting aside a sum of Rs50 crore for this purpose
*An institution to provide support to mainstreaming PPPs called 3P India will be set up with a corpus of Rs500 crores.
*A project on the river Ganga called ‘Jal Marg Vikas’ (National Waterways-I) will be developed between Allahabad and Haldia to cover a distance of 1620 kms, which will enable commercial navigation of at least 1500 tonne vessels. The project will be completed over a period of six years at an estimated cost of Rs 4,200 crore.
*Scheme for development of new airports in Tier I and Tier II will be launched for implementation through Airport Authority of India or PPPs.
*I propose investment in National Highways Authority of India and State Roads of an amount of Rs37,880 crores, which includes Rs 3,000 crores for the North East. During CFY a target of NH construction of 8500 km will be achieved.
*We will initiate work on select expressways in parallel to the development of the Industrial Corridors. For project preparation NHAI shall set aside a sum of Rs 500 crore.
*I propose to allocate an initial sum of Rs 100 crore for preparatory work for a new scheme “Ultra-
Modern Super Critical Coal Based Thermal Power Technology.”
*I propose to allocate a sum of Rs 400 crores for this purpose. An additional ` 100 crore is set aside for the development of 1 MW Solar Parks on the banks of canals.
*There is an urgent need to converge the current Indian accounting standards with the International Financial Reporting Standards (IFRS). I propose for adoption of the new Indian Accounting Standards (Ind AS) by the Indian companies from the financial year 2015-16 voluntarily and from the financial year 2016-17 on a mandatory basis.
*The rising Non Performing Assets of Public Sector Banks is a matter of concern for the Government. Six new Debt Recovery Tribunals would be set up at Chandigarh, Bengaluru, Ernakulum, Dehradun, Siliguri and Hyderabad. Government will work out effective means for revival of other stressed assets.
*it is proposed to bridge the regulatory gap under the Prize Chits and Money Circulation Scheme (Banning) Act, 1978. This step is expected to facilitate effective regulation of companies and entities which have duped a large number of poor and vulnerable people in this country.
*In the PPF Scheme, annual ceiling will be enhanced to Rs1.5 lakh p.a.from Rs1 lakh at present.
*I therefore propose to allocate an amount of Rs 2,29,000 crore for the current financial year for Defence.
*For one rank one promotion, We propose to set aside a further sum of Rs 1,000 crore to meet this
year’s requirement.
*Modernization of the armed forces is critical to enable them to play their role effectively in the Defence of India’s strategic interests. I, therefore, propose to increase the capital outlay for Defence by Rs 5,000 crore over the amount provided for in the interim Budget.
*I propose to set aside an initial sum of Rs 100 crore to set up a Technology Development
Fund to support this objective of defence production
*The scheme for modernization of state police forces would be reviewed. I propose to enhance the allocation from a sum of Rs 1,847 crore in the BE of 2013-14 to ` 3,000 crore in the current financial year.
*In order to strengthen and modernize border infrastructure, a sum of Rs2,250 crore has been set aside. In addition, a sum of Rs990 crore has been allocated for the socio economic development of the villages along the borders. A sum of Rs150 crore has also been ear-marked for the construction of Marine Police Station, Jetties, for the purchase of boats etc.
*For National Police Memorial, I propose to set aside a sum of ` 50 crores for this purpose in the current financial year.
*I propose to create 5 tourist circuits around specific themes and set aside a sum of ` 500 crore for this purpose. National Mission on Pilgrimage Rejuvenation and Spiritual Augmentation
Drive (PRASAD) shall be launched in this financial year. A sum of Rs 100 crore is being set aside for this purpose. To begin with I propose to launch this programme in the cities such as Mathura, Amritsar, Gaya, Kanchipuram, Vellankani and Ajmer.
I propose to set aside a sum of ` 200 crore for this purpose of National Heritage City Development and Augmentation Yojana. Archeological sites preservation requires urgent attention lest our ancient
heritage is lost to all future generations. For this purpose, I intend to set aside a
sum of ` 100 crore.
*I propose to set up Integrated Ganga Conservation Mission called “Namami Gange” and
set aside a sum of ` 2,037 crores for this purpose. I propose to set aside a sum of ` 100 crore for Ghat development and beautification of river front at Kedarnath, Haridwar, Kanpur, Varanasi, Allahabad, Patna and Delhi in the current financial year.
*I also propose to set up a sports university in Manipur. For this I am providing a sum of ` 100 crore in the current financial year.
*I propose to set up “A Young Leaders Programme” with an initial allocation of ` 100 crore. have set aside a sum of ` 100 crore for this purpose of employment exchange.
*for railway connectivity, I propose to set aside an additional sum of ` 1,000 crore over and above the amount provided for in the interim Budget.
*Plan allocation of rupees 5,75,000 crore in the Main Budget 2014-15 mark an increase of 26.9% over actuals for 2013-14. Non-Plan expenditure estimates for the Financial Year are rupees 12,19,892 crore. Total expenditure estimates thus stands at rupees 17,94,892 crore. To finance this expenditure, it is estimated that Gross Tax receipts will be rupees 13,64,524 crore. After devolving the share of states, share of centre will be rupees 9,77,258 crore. Non Tax Revenues for the current Financial Year will be rupees2,12,505 crore and capital receipts other than borrowings will be rupees 73,952 crore. . With the above estimates, fiscal deficit will be 4.1% of GDP and Revenue
deficit will be 2.9 per cent of GDP. We have further made an allocation of ` 98,030 crore for women
and `81,075 crore for child welfare.
*I propose to increase personal income tax exemption limit by Rs50,000 that is, from Rs 2 lakh to Rs 2.5 lakh in the case of individual taxpayers who are below the age of 60 years. Similarly, I also propose to raise the exemption limit from Rs 2.5 lakh to Rs 3 lakh in the case of senior citizens. I propose to increase the investment limit under section 80C of the Income-tax Act from Rs 1 lakh to Rs1.5 lakh. I propose to increase the deduction limit on account of interest on loan in respect of self occupied house property from Rs 1.5 lakh to Rs 2 lakh
*I propose to provide investment allowance at the rate of 15 percent to a manufacturing company that invests more than ` 25 crore in any year in new plant and machinery. This benefit will be available for three years.
*I propose to increase the rate of tax on long term capital gains from 10 percent to 20 percent
on transfer of units of such funds. I also propose to increase the period of holding
in respect of such units from 12 months to 36 months for this purpose.
*I propose to reduce the basic customs duty (BCD) on:
Fatty acids, crude palm stearin, RBD and other palm stearin, specified industrial grade crude oils from 7.5 percent to Nil for manufacture of soaps and oleo-chemicals;
Crude glycerin from 12.5 percent to 7.5 percent and crude glycerin used in the manufacture of soaps from 12.5 percent to Nil;
Steel grade limestone and steel grade dolomite from 5 percent to 2.5percent;
Battery waste and battery scrap from 10 percent to 5 percent;
Coal tar pitch from 10 percent to 5 percent;
Specified inputs for manufacture of spandex yarn from 5 percent toNil.
*I propose to reduce the basic customs duty on reformate from 10 percent to 2.5 percent; on ethane, propane, ethylene, propylene, butadiene and ortho-xylene from 5 percent to 2.5 percent; on methyl alcohol and denatured ethyl alcohol from 7.5 percent to 5 percent; and on crude
naphthalene from 10 percent to 5 percent.
*To boost domestic production and reduce our dependence on imports, I intend to take the followingsteps:
Impose basic customs duty at 10 percent on specified telecommunication products that are outside the purview of the Information Technology Agreement;
Exempt all inputs/components used in the manufacture of personal computers from 4 percent special additional duty (SAD);
Impose education cess on imported electronic products to provide parity between domestically produced goods and imported goods;
Exempt 4 percent SAD on PVC sheet and ribbon used for the manufacture of smart cards.
*I propose to reduce the basic customs duty on LCD and LED TV panels of below 19 inches from 10 percent to Nil. Further, to encourage manufacture of LCD and LED TV panels, I propose to exempt from basic customs duty specified inputs used in their manufacture.
*I propose to increase the basic customs duty on imported flat-rolled products of
stainless steel from 5 percent to 7.5 percent.
*I propose to rationalize the duty structure on all non-agglomerated coal at 2.5 percent basic customs duty and 2 percent CVD. Henceforth, anthracite coal, bituminous coal, coking coal, steam coal and other coal will attract the same duty. This will eliminate all assessment
disputes and transaction costs associated with testing of various parameters of coal.
*I propose to rationalize the duty on ship breaking scrap and melting scrap of iron or steel by reducing the basic customs duty on ships imported for breaking up from 5 percent to 2.5 percent.
*I propose to increase the duty free entitlement for import of trimmings, embellishments and other specified items from 3 percent to 5 percent of the value of their exports. I propose to
increase the export duty on bauxite from 10 percent to 20 percent.
*I propose to reduce the excise duty from 12 percent to 6 percent on
footwear of retail price exceeding ` 500 per pair but not exceeding ` 1,000 per
pair. Footwear of retail price up to ` 500 per pair will continue to remain exempted.
*I propose to withdraw the concessional excise duty (2 percent without
Cenvat benefit and 6 percent with Cenvat benefit) on smart cards and levy a
uniform excise duty at 12 percent. Consequently, imports will attract higher CVD.
This will help domestic industry.
*I propose to increase the specific excise duty on cigarettes in the
range of 11 percent to 72 percent. Similar increases are proposed on cigars,
cheroots and cigarillos. Likewise, the excise duty is being 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. I also propose to levy an additional duty of excise at 5 percent on aerated
waters containing added sugar. These are healthy measures and I hope everyone
would welcome them from the point of view of human and fiscal health.
*To finance these additional
initiatives, I propose to increase the Clean Energy Cess from ` 50 per tonne to
`100 per tonne.
*My tax proposals on the indirect taxes side are estimated to yield ` 7,525crore.
*Faster clearance of import and export cargo reduces transaction costs
and improves business competitiveness. To help achieve these objectives,
measures are being initiated to extend the existing 24x7 customs clearance facility
to 13 more airports in respect of all export goods and to 14 more sea ports in
respect of specified import and export goods.