Union Budget 2014: 'Modi'fied budget?

Discussion in 'Economy & Infrastructure' started by pmaitra, Jul 10, 2014.

  1. pmaitra

    pmaitra Moderator Moderator

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  3. pmaitra

    pmaitra Moderator Moderator

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    8 things to watch on Budget day

    1. Fiscal numbers

    Government expected to announce new roadmap, blame UPA for under-providing for subsidies, over-estimating revenue growth.

    2. Micro small and medium enterprises

    New fund for the sector in the offing.

    3. Monsoon

    The monsoon may have shown its presence over some parts of the country after a long dry spell in June, but a strong revival is expected only in the second week of July.

    4. Monsoon and Inflation

    Government to soothe nerves, say it’s ready to deal with scanty rains. To announce measures, spending to combat possible adverse impact. To unveil steps to tame prices.

    5. Foreign Direct Investment (FDI)

    Foreign investment to be allowed in railways, ceiling for defence may be increased to 49% from 26%.

    6. Special Economic Zones

    Some tax relief for SEZs are in the offing to compensate developers for the imposition of minimum alternate tax and dividend distribution tax.

    7. Disinvestment

    Government will look to raise more resources from PSU share sale, may look at strategic stake sale in loss-making companies.

    8. Good and services tax

    Expect Arun Jaitley to revive the ambitious tax reforms by getting states on board, promising compensation package.

    9. Income tax
    [​IMG]

    10. Taxes

    Individuals should expect some relief on personal income tax, especially for long-term savings such as pension and insurance. Government may allow banks to issue tax-free bonds to fund infrastructure. Statement to comfort businessmen likely.
     
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  4. ladder

    ladder Senior Member Senior Member

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    Defence FDI increased to 49%

    7000 crore for smart cities.
     
    Last edited: Jul 10, 2014
  5. Tshering22

    Tshering22 Sikkimese Saber Senior Member

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    Defence FDI is said to be planned for 51% for foreign companies so that their IP can flow into India.
     
  6. Samar Rathi

    Samar Rathi Regular Member

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    It's 49 % not 51%
     
  7. Samar Rathi

    Samar Rathi Regular Member

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    Highlights of Union Budget 2014

    * ​Indian Custom Single Window Project to be taken up for facilitating trade.
    * Clean energy cess increased from Rs 50/ tonne to Rs 100/tonne.

    * Additional 5% excise tax to be levied on aerated drinks with added sugar (cold drinks). Tobacco products also to get costly as excise duty hiked to 72%

    * Government announces reduction in excise duty for specified food package industry from 10% to 6%.

    *​ Excise duty on footwear reduced from 12% to 6%

    * Basic custom duty on LED panel below 19 inch made nil.

    * Government announces measures to encourage manufacture of LCD/LED panels of TVs.

    * Housing loan rebate to raised from Rs 1.5 lakh to Rs 2 lakh.

    * Net effect of direct tax proposals is revenue loss of Rs 22,200 crore.

    * Government proposes to increase investment limit under Section 80C from Rs 1 lakh to Rs 1.5 lakh.

    * Tax exemption limit for small and marginal, and senior tax payers changed from Rs 2.0 to Rs 2.5 lakh. For senior citizens, no tax for income up to Rs 3 lakh per annum.

    * No changes in tax rate.

    * PPF limit to be raised to Rs 1.5 lakh: Jaitley

    * Rs 100 crore for training of sportspersons for upcoming Asian Games.

    * Government announces Rs 150 crore for communication needs of Andaman and Nicobar islands.

    * Government announces Arun Prabha channel for northeastern region; will be 24/7 channel.

    * Rs 1000 crore provided for rail connectivity in northeastern region.

    * Programme for displaced Kashmiri migrants with Rs 500 crore to be started.

    * Rs 100 crore set aside for project to link rivers.

    * Government announces Rs 100 crore for development of Archaeological sites. Gaya to be developed as world class tourism spot.

    * Rs 5000 crore set aside for defence outlay over and above amount provided under interim budget.

    * National Police Memorial to be set up. Rs 50 crore set aside for this purpose.

    * Rs 100 crore set aside for development of Technology Development Fund.

    * Rs 100 crore War Memorial at Princess Park, India Gate.

    * Policy of One Rank One Pension to be adopted for defence personnel.

    * RBI will create framework for licenses of small banks.

    * Government aims to provide all households with banking facilities to empower the weaker sections; there should be atleast 2 bank a/cs in each household.

    * Urgent need to converge current Indian standard with international accounting standards: Jaitley

    * Rs 37, 800 crore allotted for National Highways.

    * Revision of rate of royalty on minerals to be taken up on request from the states.

    * In order to complete gas grid, 15000 km of additional pipeline to be developed through PPP mode.

    * ​New and renewable energy deserves high priority; ultra modern power projects to be taken up in Rajasthan, Tamil Nadu, Ladakh with Rs 500 crore.

    * Rs 4200 crore set aside for Jal Marg Vikas project on river Ganga connecting Allahabad to Haldia , over 1620 km.

    * Scheme for development of new airports at tier II and III cities through PPP mode.

    * Rs 200 crore set aside for 6 more textile clusters in Rae Bareily, Lucknow, Surat, Bhagalpur. Rs 50 crore set aside for Pashmina Production program in J&K.

    * MSMEs are the backbone of the economy; to be revived through a Committee to examine and report in three months.

    * 6 more textile clusters to be set up.

    * Industrial Smart Cities to come up at 7 cities.

    * All govt departments and ministries to be integrated through E-platform by 31 December this year.

    * Rs 100 crore set aside for Kisan Television to provide real time information on various farming and agriculture issues. (Read story here)

    * National Industrial Corridor to be set up. Rs 1000 crore set aside for this.

    * Rs 5000 crore short time rural credit refinance fund for 2014-15.

    * Rs 50 core set aside for indigenous cattle breed and blue revolution for inland fisheries.

    * Propose to provide finance to 5 lakh landless farmers through NABARD.

    * Govt will initiate scheme to provide a soil health card; Rs 100 crore set aside. Rs 56 crore for soil testing labs across the country.

    * Agriculture University in Andhra Pradesh and Rajasthan, and Horticulture University in Haryana, Telangana; Rs. 200 cr set aside by the government.

    * Slum development to be included in Corporate Social Responsibility activities.

    * Govt announces Rs 100 crore for modernization of madrassas.

    * Govt announces development of Metro rails in PPP mode; Rs 100 crore set aside for metro scheme in Ahmedabad and Lucknow.

    * Rs 100 crore set aside for Community Radio Centres; 600 new and existing ones will be supported.

    * National Rural Internet and Technology Mission; Rs 500 crore set aside.

    * Govt proposes to set up Center of Excellence in MP named after Lok Nayak Jai Prakash Narayan.

    * 5 more IITs and 5 IIMs to be set up .

    * Propose to set up four more AIIMS; Rs. 500 crore set aside for this. Six new AIIMS started recently have become functional. Four new AIIMS will be set up in Andhra Pradesh, West Bengal, Vidarbha and Purvanchal. (Read story here)

    * Govt proposes National Housing Banking programme; sets aside Rs 8000 crore for this program.
     
  8. Ray

    Ray The Chairman Defence Professionals Moderator

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    Thus spake the Drama Queen, who is the world famous self styled economist!

    A prized populist blind!
     
  9. Abhijat

    Abhijat Regular Member

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    Budget 2014 provides Rs 10k cr entrepreneurship fund; bankruptcy law to be made startup-friendly - The Economic Times

    Excerpt from above:

    "The FM clearly mentioned that the Rs. 10,000 crore is earmarked as venture fund for SMEs and startups. This, I am sure, will be indirect funding that will allow other venture funds to come up and in turn invest in startups. This will be a huge leverage and is an allocation of budget by Ministry of Finance for other venture funds or maybe even banks like Sidbi. This is a very important step in bridging capital requirements of startups," says Rajiv Chawla, President- Faridabad Small Industries Association.

    This is very laudable step towards incentive's young minds to take up new ideas and innovation . It will go long way in promoting the new technology and alternative model of growth. Such funds are established in Europe, Singapore etc.

    Also the budget gave special impetus to MSME , which is very laudable step as it creates more jobs also the resource distribution is more even than in large industries.
     
  10. anoop_mig25

    anoop_mig25 Senior Member Senior Member

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    Boring budget .No big bang nothing their for business community , job craetion

    How can communist say its budget for Big coorprates , from which angle this budget was for big business firm
     
  11. Abhijat

    Abhijat Regular Member

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    @anoop_mig25 , you should read Economics Times or even The Hindu , you will get gist of what business community have to say about the budget.
     
    Last edited by a moderator: May 10, 2015
  12. bose

    bose Senior Member Senior Member

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    I believe the budget 2014 is very good one... it has something for all... common people to corporates... it is good that FM are not trying to achieve that is not possible and emphasis on small steps and managing the damage by the Congress government...

    The real push for reform will come the next year budget...
     
  13. Ashutosh Lokhande

    Ashutosh Lokhande Senior Member Senior Member

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    the true big MODI budget will only come next year in feb which may have some serious changes in the policies.
    the only reson this budget didnt met the hype and expectaions of some ppl is coz of this coming elections. they want to keep it safe till then. once the election are over expect some big decision to be made.
     
  14. jackprince

    jackprince Turning into a frog Senior Member

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    Also, to make a big shift in policy any sane person would have had a thorough study first, which could not be possible in just 2 months.

    It is a good budget. I would say a balanced one, though linking the fuel market to fuel price would hurt middle class people with salaried income like me for the short term pretty bad.
     
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  15. Ashutosh Lokhande

    Ashutosh Lokhande Senior Member Senior Member

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    yes, But to say they didnt got enough time just 45 -60 days is wrong. every major party prepares and starts planning budget atleast a year before the BIG elections. they dont wait for results and then think of planning out a budget.
     
  16. sob

    sob Moderator Moderator

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    This is just a road map. The situation is quite bad. The Govt. has inherited an economic mess and with uncertain monsoon and persistent high inflation, big bang reforms were not to be expected.

    The biggest take away for me in this budget is,

    1. The share of states in the Taxes is increased by almost 50%. Now the money will be with the states and they need to act now on local issues fast.

    2. Thrust on infrastructure and rural development.

    3. Increase in FDI in both Insurance and Defence production.

    4. Reduction in subsidy for Petroleum Products by almost 25%. Welcome step. This will gradually reduce.

    A very important point for me was that the FM did not try to blame his predecessor unlike others and has taken the full responsibility on his shoulders. This will go a long way to increase confidence.
     
  17. jackprince

    jackprince Turning into a frog Senior Member

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    Trye. However, the actual data and figures take a long time to gather, and so to link them all with a comparison to available resources of Govt. etc. which only a Govt. can order and that much specialised manpower and apparatus are only available with the Govt.

    Further, w/o any criticism to current Govt. or its members, it is always easy to criticise something or demand for more from the outside when it may be completely different view from the inside. Just see about the income tax ceiling - Mr. Jetly when in opposition demanded the celeing to be raised to 5 lac, when just after 3 months he raised the same to only 2.5 lac. Even then the loss to exchequer is above rs. 20000 cr.
     
  18. Ashutosh Lokhande

    Ashutosh Lokhande Senior Member Senior Member

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    yes i agree with your first para a bit.
    but to say jetly is so innocent that Mr. Jetly when in opposition demanded the celeing to be raised to 5 lac, when just after 3 months he raised the same to only 2.5 lac. Even then the loss to exchequer is above rs. 20000 cr. is not true.
    dont forget he was in opposition and we all know that the oppositin never agrees with the ruling party.
    its all game of POWER. they will go any extent to oppose the ruling party in order to create a perception that how the existing party is making all wrong decisons so that next time ppl vote them instead of the existing ruling party. even if it means to contradict themselves by applying and following the same policies when in power which they took potshots against.
     
  19. Apollyon

    Apollyon Führer Senior Member

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    R&D budget in Defence increased from 5257.6 to 9298.25 crore. :high5:
     
  20. anoop_mig25

    anoop_mig25 Senior Member Senior Member

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    Why not u post summary from this newspapers
     
    Last edited by a moderator: May 10, 2015

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