Union Finance Minister Mr. Arun Jaitley presented Union Budget 2014-15. The highlights:

For individuals

• No change in the Tax slab on personal income
• Income tax exemption limit increased by Rs 50,000 to Rs 2.5 lakh and for senior citizens to Rs 3 lakh
• Exemption limit for investment in financial instruments under 80C increased to Rs 1.5 lakh from Rs 1 lakh.
• Investment limit in PPF increased to Rs 1.5 lakh from Rs 1 lak
• Deduction limit on interest on loan for self-occupied house enhanced to Rs 2 lakh from Rs 1.5 lakh.
• Reintroduction of Kisan Vikas Patra, National Savings Certificate with insurance cover to be launched
• Long term capial gain tax for mutual funds doubled to 20%; lock-in period increased to 3 years
• Mandatory wage ceiling of subscription to EPS (Employee Pension Scheme) enhanced from Rs 6,500 to Rs 15,000
• Minimum pension raised to Rs 1,000 per month
• LCD, LED TV become less expensive
• Cigarettes, pan masala, tobacco, aerated drinks become costlier

New projects and programmes

• 5 IIMs to be opened in HP, Punjab, Bihar, Odisha and Rajasthan
• 5 IITs in Jammu, Chattisgarh, Goa, Andhra Pradesh and Kerala
• 4 more AIIMS like institutions in Andhra Pradesh, West Bengal, Vidarbha in Maharashtra and Poorvanchal in Uttar Pradesh
• Kisan TV for farmers, Arun Prabha TV for northeast
• National Rural Internet and Technology Mission for services in villages and schools, training in IT skills proposed
• ‘Digital India’ programme will be launched to ensure broad band connectivity at village level
• Ultra Modern Super Critical Coal Based Thermal Power Technology has been proposed
• ‘Jal Marg Vikas’ a project on the river Ganga for inland waterways between Allahabad and Haldia; Rs 4,200 crore will be allocated for the same.
• “Uniform Account Number” service will be launched by EPFO for contributing members.
• Project “Neeranchal” will be launched to give fillip to watershed development in the country with an initial outlay of Rs. 2142 crores.
• Beti Bachao, Beti Padhao Yojana to spread awareness and help in improving the efficiency of delivery of welfare services meant for women.
• Achieving “Health For All” objective through Free Drug Service and Free Diagnosis Service
• Two National Institutes of Ageing to be established at AIIMS, New Delhi and Madras Medical College, Chennai.

Key allocations

• Rs 100 crore allocated to support about 600 new and existing Community Radio Stations
• Swachh Bharat Abhiyan to cover every household with sanitation facility by the year 2019
• Rs 100 crore for metro projects in Lucknow and Ahmedabad
• ‘Namami Gange’ the Integrated Ganga Conservation Mission has been allocated Rs 2,037 crore
• Rs 150 crore set aside for enhancing safety of women in large cities
• Rs. 7,060 crore allocated for the project of developing 100 Smart Cities.
• Rs 11,200 crore for PSU banks capitalization
• Rs 500 crore allocated for rehabilitation of displaced Kashmiri migrants
• “Pradhan Mantri Krishi Sinchayee Yojna” has been provided Rs 1000 crore.
• Rs. 50,548 crore under the SC Plan and Rs. 32,387 crore under TSP

Economic Measures

• Composite cap of foreign investment to be increased to 49% in Defence and Insurance sectors.
• Requirement of the construction area and capital conditions for FDI decreased to 20,000 square metres and $5 million respectively for development of smart cities.
• Manufacturing can sell its products through retail including e-commerce platforms.
• Requirement to inject Rs.2,40,000 crore as equity by 2018 in our banks to be in consonance with Basel-III norms PSUs will invest through capital investment a total sum of Rs. 2,47,941 crores.
• Rs 4,000 cr allocated to increase flow of cheaper credit for affordable housing to the urban poor/EWS/LIG segment.
• Government supports consolidation of PSU banks
• Providing greater autonomy to PSU banks while making them accountable is under consideration

Some key fiscal information

• Government expects Rs 9.77 lakh crore revenue crore from taxes
• Plan expenditure pegged at Rs 5.75 lakh crore and non-plan at Rs 12.19 lakh crore.
• Fiscal deficit target maintained at 4.1% of GDP for current fiscal and 3.6% for FY 2016
• Disinvestment target fixed at Rs 58,425 crore
• Gross borrowings pegged at Rs 6 lakh crore
• Configuration of GST to be finalized this fiscal
• Government to examine DTC proposal.

Administrative reforms

• Panel to examine all fresh tax demands for indirect transfer of assets in wake of retrospective tax amendments of 2012
• Setting up of Expenditure Management Commission; will look into food and fertilizer subsides
• Legislative and administrative amendments to clear up pending tax demands of more than Rs. 4 lakh crore under dispute and litigation.
• Formulation of New Urea Policy
• MGNREGA would provide more productive, asset creating wage employment with linkages to agriculture and allied activities
• A panel will look into and recommend how unclaimed amounts with PPF, Post Office, saving schemes etc. can be utilized to protect and further financial interests of the senior citizens
• Slum development to be included in the list of Corporate Social Responsibility
• Panel to look into the financial architecture for MSME Sector, remove impediments and create new norms and structures regarding the same.
• To provide support to mainstreaming PPPPs (People Public Private Partnership) called “4PIndia”, an institution will be established with a corpus of Rs. 500 crores.