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Thursday, July 10, 2014

Hightlights of the full Budet for 2014-15

NEW DELHI/MUMBAI: Highlights of the full Budget for 2014-15 (Apr-Mar), presented by Finance Minister Arun Jaitley in the Lok Sabha today:
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Minister Arun Jaitely
FY15 ESTIMATES
* FY15 capital receipts seen 739.5 bln rupees
* FY15 revenue gap pegged 2.9%
* FY15 non-tax revenue 2.12 trln rupees
* FY15 gross tax receipt 13.64 trln rupees                            
* FY15 total expenditure estimated 17.95 trln rupees
* FY15 plan allocation 5.7 trln rupees, up 26.9% on yr

* FY15 non-plan expenditure estimated 12.19 trln rupees

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DIRECT TAX
* No hike in direct tax rates
* Retain tax targets for FY15
* Retain interim gross tax collection aim
* Propose relief to individual tax payers
* Ups 80 C invest cap to 150,000 rupees vs 100,000 rupees
* Up tax exemption limit for senior citizens to 300,000 rupee
* No change in rate of surcharge for corporates, individuals
* No change in surcharge rates for direct tax
* To up personal income tax exemption limit to 250,000 rupee
* Personal income tax exemption hiked by 50,000 rupee/yr
* Personal tax exemption limit hiked by 50,000 rupee/yr
* Net loss on direct tax proposals 222 bln rupee FY15
* Will consider views on new Direct Tax Code draft
* Education cess to continue at 3%
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INDIRECT TAX
* Scraps customs duty on sub-19 inch LCD, LED panels
* Imposed educational cess on imported electronic pdts
* Basic customs duty on crude, naphthalene cut to 5% vs 10%
* Customs duty of 10% on telecom products outside tax Act
* Colour picture tubes exempt from basic customs duty
* Cut customs duty on steel grade limestone, dolomite to 2.5%
* Customs duty on coal tar pitch cut to 5% from 10%
* Scraps additional duty on imported computer components
* To cut basic customs duty on some petrochemicals
* Customs duty waived for crude glycerine used in soaps
* Cuts basic customs duty on methyl alcohol to 5%
* Cuts basic customs duty on ethane propane to 2%
* Scraps customs duty on spandex yarn
* Scraps customs duty on fatty acid, palm RBD
* Excise on food processing, packing cut to tackle inflation
* Import of smart card to attract higher CVD
* Excise on capital good, consumer durable extended by 6 mos
* Excise on food processing, packaging equipment cut to 6%
* Export duty on bauxite hiked to 20% vs 10%
* 2.5% uniform duty on semi-processed diamonds, gemstones
* No export duty on 3 forms of precious, semi precious stones
* Ups export duty on bauxite to 20% from 10%
* Customs duty on ship imported for breaking cut to 2.5%
* Uniform 2.5% customs duty on all types of imported coal
* Customs duty on some wind power equipment cut to 5%
* Exempts some solar power equipment from customs duty
* Hikes customs duty on flat steel pdts to 7.5% vs 5%
* Ups long-term capital gain tax on MFs to 20% vs 10%
* No sunset clause for tax benefit on div from foreign arms
* Transfer price arithmetic mean concept to continue
* Extend eligibility date for FX borrow to Jun 30, 2017
* FIIs’ security portfolio income to be seen as capital gain
* 15% tax on dividends from foreign arms of Indian co to stay
* Extend 10-yr tax holiday for power projects to Mar 31, 2017
* 15% tax break to cos investing over 250 mln rupee on plants
* Ups interest payment rebate on home loan to 200,000 rupees
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TAX REFORMS
* Tax regime to be investor friendly
* Must improve tax-GDP ratio
* Plan to enlarge scope of income tax settlement commission
* To provide certainty in tax laws
* Propose changes in transfer pricing rules
* Propose to strengthen authority for advance ruling in tax
* High level panel to interact with industry on indirect tax
* Clarification on tax issues to be given
* Plan law, administrative changes to reduce tax disputes
* Resident tax payer to get facility of advance tax ruling
* Propose changes to resolve ongoing direct tax disputes
* Aim stable, predictable investor-friendly tax regime
* Tax demands worth 4 trln rupee currently under litigation
* GST to result in higher tax mop-up for Centre, states
* Committed to stable, practical tax regime
* Won’t ordinarily bring in tax changes retrospectively
* Govt’s right for retrospective legislation unquestionable
* Retrospective taxes should be done with caution
* All cases of retrospective tax to be studied by CBDT panel
* Hope to bring final solution to GST issue in FY15
* GST debate must come to an end
* GST to streamline tax administration
* Assure states govt to be more than fair on GST
* Provide sops for REITS to enable pass through of taxation
* To give tax pass through to real estate invest trust
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FISCAL, CAD SITUATION
* Aim 3.0% fiscal gap in FY17
* Aim 3.6% fiscal gap in FY16
* Accepted FY15 4.1% fiscal deficit target as a challenge
* Aim of 4.1% of GDP fisc gap indeed daunting
* Reduction in fiscal deficit achieved by spending cuts
* Need fisc prudence that will lead to fisc consolidation
* To continue to remain watchful on CAD front
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GOVT SPENDING
* To constitute expenditure mgmt panel
* Time has come to revive efficiency of govt spend
* Must reduce wasteful expenditure
* Cannot spend beyond our needs
* Can’t leave behind legacy of debt
* Non-tax revenue must be increased
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GROWTH, INFLATION
* Higher growth is a sine qua non
* Still not out of the woods on inflation
* Seen gradual moderation in WPI inflation recently
* Bound to usher in a regime to boost growth
* Two years of sub-5% growth created challenging situation
* Today’s steps only start of a journey to sustained growth
* Slowdown in India reflects trend in many economies
* Seeing greenshoots of recovery globally
* Euro area expected to witness growth
* Look forward to lower inflation rate
* India unhesitatingly desires to grow
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FINANCIAL SECTOR
* Suitable incentives for increasing reach of insurance
* RBI will create framework for licenses of small banks
* Annual PPF deposit ceiling to be raised to 150,000 rupees
* Framework for differential bks for small businesses, poor
* To address low penetration of insurance
* Will bridge regulatory gap for chit funds
* Propose to revamp small savings scheme
* To provide all households with banking facilities
* There should be at least 2 bank accounts in each household
* To take up insurance regulator bill for consideration
* To work on revival of banks’ stressed assets
* To set up 6 new debt recovery tribunals
* Rising NPAs of banks a matter of concern
* Propose to allow banks to issue long-term infra bonds
* RBI to create framework for differentiated bk licences
* Propose number of measures to energise Indian capital mkt
* Govt in principle agrees to consolidation of PSU banks
* Time-bound fincl inclusion plan on Aug 15
* Adoption of new Indian accounting standard mandatory FY17
* Govt to consider consolidation of banks
* Must strengthen, modernise fincl sector regulatory system
* To strengthen regulatory framework of commodity mkt
* To introduce single Demat acct for all fincl transactions
* To implement warehousing receipt plan with vigour
* To introduce uniform KYC norms
* To revamp IDRs and introduce Bharat Depository Receipts
* Extend 5% withholding tax on all India co bonds to Jun 2017
* To allow international settlement of India debt securities
* To liberalise ADR, GDR regime
* Advised regulators to deepen FX mkts
* To complete consultation on Indian Fincl Code expeditiously
* Essential to have a modern monetary policy framework
* PSU banks allowed to sell shares to meet Basel-III norms
* PSU bks need 2.4 trln rupees to meet Basel-III norm 2018
* Bks’ capital to be raised by retail shareholding directly
* Govt will continue major holding in PSU banks
* To infuse money in PSU banks via sale of shares to public
* Panel to moot ways to use unclaimed PPF, pension fund money
* EPFO to launch unified account scheme
* To set up panel to look at unclaimed PPF accounts
* Fincl stability foundation of rapid recovery
* Will examine proposal to give additional autonomy to banks
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FARM SECTOR
* Committed to give wheat, rice at reasonable price to poor
* Have enough central pool grain stock to handle weak monsoon
* Plan 1 bln rupees for Kisan TV on farming issues in FY15
* Allot 50 bln rupees for NABARD long-term rural credit fund
* Will conduct open mkt sale to control grain stocks
* Allot 2 bln rupee for forming 2000 producers’ organisations
* Extended 3% interest subvention for farmers in FY15
* Rural infra corpus allocation raised to 300 bln rupees FY15
* To expedite FCI recast
* Allot 500 mln rupee for indigenous cattle, inland fishery
* Ups rural infra fund corpus by 50 bln rupee vs interim
* Allocate 50 bln rupees farm warehousing plan
* States to be encouraged to develop farming markets
* Aim 8 trln rupee for farm credit FY15
* Plan to finance 500,000 landless farmers through NABARD
* To create national common farm market
* See 4% growth in agriculture FY15
* Allots 5 bln rupee for farm price stabilisation fund
* Plan 560 mln rupees for soil testing labs across India
* Allots 1 bln rupee for climate change adaptation fund
* Allots 1 bln rupee for farmers’ soil health card plan
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INFRASTRUCTURE/INDUSTRY
* To revive old, closed oil, gas wells
* 1 bln rupee for pilot work on ultramodern coal power plants
* To ensure just allocation to states from mineral royalty
* National Gas Grid needs 15,000-km more gas pipeline
* To use PPP mode to add 15,000-km gas pipeline
* Revision of royalty rate on minerals due soon
* To review mining royalty for states
* To expedite resolution of iron ore mining impasse
* Existing impasse of coal sector will be resolved
* Adequate coal to be given to existing power plants
* NHAI to target 8,000 km of road development in FY15
* To accelerate exploration of coal bed methane reserves
* To set up new airports in Tier-I, II cities via PPP, AAI
* Allot 30 bln rupees for North East highways
* Allots 5 bln rupee for new solar power projects
* To take up ultra modern solar projects
* Allots 1 bln rupee for clean tech in thermal power plants
* Allot 378 bln rupees to NHAI
* 1 bln rupee for metro rail projects for Lucknow, Ahmedabad
* Must plan metros in cities with population over 2 mln
* To spend 42 bln rupees for Ganga river transport plan
* New airports to be developed through PPP mode
* 500 mln rupees set aside for Pashmina production in J&K
* Need better models with quick redressal in PPP contracts
* 16 new port projects to be awarded in FY15
* Development of ports critical to boosting trade
* Allot 116 bln rupees to develop outer harbour port projects
* 16 new port projects to be awarded in FY15
* To announce comprehensive policy for shipbuilding FY15
* Plan textile clusters in Rae Bareli, Lucknow, Surat
* To revive MSMEs via committee; panel report in 3 months
* New friendly bankruptcy framework for MSMEs
* MSME definition to be revised to allow higher capital cap
* To allocate 2 bln rupees to set up 6 more textile clusters
* To create 100 bln rupee fund to attract invest in start-ups
* 1 bln rupees for natl industrial corridor based in Pune
* To complete Amritsar-Kolkata industrial corridor soon
* To set up Industrial Smart Cities in 7 cities
* To take effective steps to revive SEZs
* SEZs to be developed in Kandla, JNPT
* Govt dept, ministries to be linked via e-platform by Dec 31
* To set up export promotion mission
* To build at least 500 model cities via PPP route
* To allocate 5 bln rupees for new rural power plan
* Committed to supply 24X7 power supply to all households
* Swachch Bharat scheme to cover each household by 2019
* Country in no mood to suffer lack of infra, basic amenities
* Need to revive growth in mfg, infra sectors
* To introduce e-visa facility at 9 Indian airports
* To give 70.6 bln rupees to develop smart cities in FY15
* 22.50 bln rupees to strengthen border infrastructure
* Allots 22.5 bln rupees for border force strengthening
* State police force allocation raised to 30 bln rupees
* 10 bln rupee for accelerating rail systems in border areas
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SOCIAL SECTOR
* 9.9 bln rupee for socio econ development of border villages
* Allocate 1 bln rupees for good governance plan
* Plan to include slum redevelopment in CSR
* Allot 1 bln rupees for agri infra fund
* Plan 500 bln rupee for municipal debt mgmt for infra
* Digital connect, solid waste mgmt part of urban renewal plan
* Safe drinking water, sewage mgmt part of urban renewal plan
* Committed to provide housing to all by 2022
* To allocate 120 bln rupee to NHB
* To set aside 80 bln rupees for rural housing scheme in FY15
* Allots 40 bln rupee for low-cost housing for urban poor
* Proposes changes in norms for affordable housing
* Allots 1 bln rupee for community radio plan
* Set aside 1 bln rupees for good governance
* To allocate 10 bln rupees for new PM irrigation plan
* Announces Backward Regional Grant Fund
* Allocate 36 bln rupee for national rural drinking programme
* 21.42-bln-rupee added impetus to watershed programme
* Allots 36 bln rupee for rural potable water plan
* To aid rural job scheme via farm, asset creating projects
* Allots 1 bln rupee for rural entrepreneurship plan
* To spend 143.89 bln rupees for PM rural road plan
* Have to ensure anti-poverty plans are well aimed
* To revive senior citizen pension scheme
* To give 2 bln rupees for SC entrepreneurship scheme FY15
* Extends senior citizens’ pension plan till Aug 2015
* Allocate 2 bln rupees for Sardar Patel statue in Gujarat
* Allocate 1 bln rupees for tribal welfare plan
* Allocates 505 bln rupee for scheduled caste, tribe schemes
* Plan Kisan Vikas Patra for banked, unbanked population
* Propose to launch Skill India programme
* Propose panel to mull use of inactive fund in postal scheme
* Plan Braille currency notes for visually challenged persons
* Can’t be oblivious that large population below poverty line
* Those below poverty line want to be the new middle class
* Next generation has hunger to use societal opportunities
* Country in no mood to suffer unemployment
* Plan crisis mgmt centre in Delhi hospital via Nirbhaya Fund
* To spend 1 bln rupees for beti bachao, beto padhao scheme
* 500 mln rupee to road min for pilot project on women safety
* Allots 5 bln rupee for setting up 4 more AIIMS
* Free drug, diagnostic svc to be taken up on priority
* Announces schemes for disabled persons
* To set up 15 model rural health research centres
* Govt to give assistance to 4 state drug central authority
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FDI
* To hike FDI in insurance to 49%
* FDI in several sectors provides additional resources
* To hike FDI in defence to 49%
* NDA policy to encourage FDI in selective sectors
* Domestic defence mfg sector at nascent stage
* FDI in selected sectors to help larger interest of country
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SUBSIDIES
* Aim to make food subsidy better directed, more inclusive
* To review food, fuel subsidy
* Food, oil subsidy to be more targeted
* New urea policy will be formulated
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EDUCATION
* To set up five more IITs, 5 more IIMs
* Allots 5 bln rupee to set up more IITs, IIMs
* Plan IIMs in Punjab, Odisha, Bihar, Maharashtra, Himachal
* Plan 5 more IITs in Chattisgarh, Goa, J&K, Andhra, Kerala
* To start Pandit Madan Mohan Malaviya Teaching Programme
* Allots 2 bln rupees for new agri, horticulture universities
* Plan to have horticulture university in Haryana, Telangana
* Plan to set up agricultural university in Andhra, Rajasthan
* Allocate 1 bln rupees for modernisation of Madrasas
* Allots 1 bln rupee to set up 2 farm research institutes
* Allocate 49.66 bln rupees for national secondary edu plan
* Allocate 286.35 bln rupees for national education plan
* Plan 12 more govt medical colleges with dental facilities
* Allots 286.35 bln rupee for Sarva Shiksha Abhiyan
* 12 more govt medical institute to be added
* Plan AIIMS institutes in Andhra, Bengal, Vidarbha
* School curriculum to have chapter on gender sensitivity
* To set aside 1 bln rupees girl child education scheme
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TECHNOLOGY BOOST
* Allot 1 bln rupees for Technology Development Fund
* To allow mfg cos to sell pdts on e-commerce platform freely
* Special focus on software exporting start-ups
* Allots 5 bln rupee for rural broadband programme
* Set aside 1 bln rupees for virtual classroom projects FY15
* Plan to launch pan-India Digital India programme
* Need to boost pvt, public investment in agro tech sector
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STATES
* Govt committed to address issues in Andhra, Telangana
* 2 bln rupees to improve power availability in Delhi
* Allots 5 bln rupees for Delhi water reforms
* Plan 24X7 TV channel for North Eastern states
* 1 bln rupee for centre for Himalayan studies in Uttarakhand
* 10 bln rupees to up rail connectivity in Northeast
* Allots 1 bln rupees for organic farming in northeast
* Allocate 5 bln rupees for displaced Kashmiri migrants
* Biotech clusters to be set up in Bengaluru, Faridabad
* May mull viability gap funding for Goa convention centre
* To set up world class convention centre in Goa via PPP
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SPORTS
* Allots 1 bln rupees for Asian, Commonwealth Games training
* To set up sports institute in Manipur
* To give 2 bln rupees to develop sports infra in J&K
* Allots 1 bln rupees for sports university in Manipur
* 2 bln rupees for indoor, outdoor stadiums in J&K
* To set up natl sports academies for major sports
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MISCELLANEOUS
* Several space missions planned in FY15
* Allots 2.29 trln rupee for defence
* Ups FY15 defence buy allotment by 50 bln rupee vs interim
* To up capital outlay by 50 bln rupees for defence
* Allots 1 bln rupee for war memorial, museum
* Young Leaders Programme to be set up with 1 bln rupees
* Allots 5 bln rupees for five tourist circuits
* To allot 1 bln rupees for spiritual tourism
* Allots 2 bln rupees for national heritage development
* Allots 500 mln rupees for national police memorial
* Allots 1 bln rupees for river-interlink study
* NRI fund for Ganga to be set up
* Allots 20.37 bln rupees for Ganga conservation project
* Aim to lay down broad policy indicator
* Must address problem of black money

source: http://freepressjournal.in

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