Union Budget 2014

UNION BUDGET: 

India witnessed the first Union Budget under the Modi rule on 10^th July which was proposed by the finance minister Mr. Arun Jaitely. A balanced approach can be seen in the budget; it neither disappointed nor did it fulfill all the promises made by the “ache din aaenge” campaign. Some of the key highlights of the budget are:

1. A sum of 7060 crore is provided for the project of developing “one hundred Smart Cities.This shows that the government has a futuristic outlook and wants inclusive growth.
2. 500 crore provided for setting up 5 more IITs in the Jammu, Chhattisgarh, Goa, Andhra Pradesh and Kerala. Also, 5 new IIMs introduced in the States of HP, Punjab, Bihar, Odisha and Rajasthan. A good move where this would certainly boost the education sector.
3. Excise duty on cigarettes increased to 72%. Not a very well thought move as the maximum amount of tobacco usage base is of bheedis.
4. 100 crore provided for the training of sports women and men for forthcoming Asian games which provides the necessary boost for the sportspersons of India.
5.  A War Memorial is planned to come up at Princess Park, India Gate. Rs. 100 crore has been kept aside for the same. A brave move to set aside money for a memorial as it will greatly add to the aesthetic value of New Delhi as a world destination.
6.  FDI in insurance and defense increased to 49% will surely increase the competitive spirit in the market with better goods and services.
7.  A sum of 1000 crore against 500 crore of Chindambaram, to meet requirement for “One Rank One Pension” reinventing people’s faith in the defense.
8. The housing loan rebate is increased from Rs. 1.5 lakh to 2lakh, which is a clear indication for the public to invest in new properties and houses.
9.  Tax exemption limit for small and marginal, and senior tax payers has been changed from Rs 2.0 to Rs 2.5 lakh. For senior citizens, no tax for income up to Rs 3 lakh per annum. This will surely boost the middle income strata of the Indian Economy.
10.  A target of 8 lakh crore has been set for agriculture credit during 2014-15 which would clearly benefit the farmers.  But it remains to be seen if such claims are met by the Modi Government.
11. 100 crore provided for setting up virtual classrooms as Communication Linked Interface for Cultivating Knowledge (CLICK) and online courses. Apprehensive about this move, as implementing virtual classrooms in the existing education structure especially in public sector side is pretty difficult.
12. Sum of 150 crores on a scheme to increase the safety of women in large cities. A much need move due to the current situation but the government was unclear as to how it would be implemented.
13. 1000 crore provided for “Pradhan Mantri Krishi Sinchayee Yojna” for assured irrigation. This will provide relief to the farmers who depend a lot on the monsoon.