Current Affairs: July 10, 2014 ~ erYMr

Budget Box 2014-15: Highlights

July 10, 2014

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 toRs 2 lakh from Rs 1.5 lakh.
Reintroduction of Kisan Vikas Patra, National Savings Certificate withinsurance 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 waterwaysbetween 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 Delhiand 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% inDefence 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.

Socializer Widget By erYMr

SOCIALIZE IT →