Today Arun Jaitley, The Finance Minister of Narendra Modi's cabinet presented, Union Budget. I must say that this budget is "Growth Oriented". Government planned to invest lots of funds on setting up of new educational institutes and one of the most important step that government took - Increase in limit of 80C. This would lead to higher investment rate and automatically this would help in job creation.
FY15 = Projected GDP for year 2015
I am listening about GST from last 5 years and many Finance Ministers promised to introduce it in previous budget. Till now no FM met his promise.
Highlights of Budget 2014
Tax exemption in 80(C) raised to Rs 1,50,000
Now people will invest more money in tax saving schemes which means saving and investment rate will increase. This would have a direct impact on employment generation and growth rate
Cigarettes, Tobacco, Gutkha and Pan masala will be expensive and LCD tv, copper wires, imported consumer products and machinery will be cheaper
Tax exemption limit increased from 2 lacs to 2.5 lacs
Much awaited and expected decision from FM. Although it was expected that tax exemption limit will be increased to 3 lacs but it is increased to 2.5 lacs only. Government tried to relief to inflation stricken public.Four new IIT's and Five new IIM's
Government is trying to use big names in education but that doesn't ensure high quality education. Nothing has been done to provide education loans at low rate of interest. Still procedures are very complicated.
New Schemes Introduced in Budget 2014
Scheme
|
Fund Allocation
|
|---|---|
Textile cluster
|
200 cr
|
Kisan television
|
100 cr
|
Four new AIIMS
|
500 cr
|
Modernization of Madrassas
|
100 cr
|
Community radio centres
|
100 cr
|
Agricultural university
|
200 cr
|
Beti padhao Bti badhao Yojna
|
100 cr
|
‘Statue of Unity’ of Sardar Vallabh Patel
|
200 cr
|
National rural Internet and technology mission
|
500 cr
|
New and renewable energy
|
500 cr
|
Soil health card policy
|
100 cr
|
Soil testing lab
|
100 cr
|
Metro rails development project
|
100 cr
|
GDP growth
Goods and Services Tax to be introduced in December 2014
Jaitley promised to bring GST by December 2014. GST will be common tax system for goods and services for all the states. Central government wants to centralize the indirect taxation system and abolish VAT. GST would ensure same tax on same commodity in every state in India. This would directly impact state government who would lose decision making authority.I am listening about GST from last 5 years and many Finance Ministers promised to introduce it in previous budget. Till now no FM met his promise.
- FDI in defence increased from 26% to 49%
- Shyama Prassad Mukherjee Rozgaar mission to be launched
