Budget 2014 - A Growth Oriented Budget

Published on Thursday, July 10, 2014
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.

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

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

GDP growth rate
FY15 = Projected GDP for year 2015

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

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