Highlights of the Budget 2014, presented by Finance Minister Arun Jaitley
Thursday, July 24, 2014:
MANUFACTURING
*Imported electronics will be costilier
* It’s time India started its own defence manufacturing
*Tax incentives for manufacturing sector will aid in revival
*Need to revive growth in manufacturing, infra sectors
*Needs a push for job creation, especially in the manufacturing sector
*Government is committed to revive SEZs.
FISCAL DEFICIT
*Fiscal deficit seen at 3.6 per cent of GDP in 2015-16
*Fiscal deficit target of 4.1 per cent of GDP for 2014-15 accepted
*”Tax-to-GDP ratio must be raised,” says Arun Jaitley
GROWTH
*Finance minister promises policies for higher growth, lower inflation
*Aims for sustained growth of 7-8 per cent in the next 3-4 years
TAXATION
*Tax exemption limit for small and marginal, and senior tax payers changed from Rs. 2.0 to Rs 2.5 lakhs
*Aims to approve goods and services tax by end of this year
*All pending cases of retrospective tax for indirect transfers to be examined by a high-level committee before action is taken
INVESTMENT
*Raises limit on foreign direct investment in defence sector from 26 per cent to 49 per cent
*Earmarks Rs 70.6 billion to create 100 “smart cities”
*To raise defence FDI to 49 per cent, retain Indian control
FUND
*Rs 1000 million set aside for development of Technology Development Fund
SUBSIDIES
*Rural job-guarantee scheme, which provides 100 days of paid employment a year, will become more focused on asset creation
SKILL DEVELOPMENT
*Five new IITs to be set up in places including Jammu, Chattisgarh, Goa, Andhra Pradesh.
