What gets cheaper, what gets costlier, what is good and what is bad in Union budget 2014-15?

Union Budget 2014

Union Budget 2014

What gets costlier in the Union Budget?

Cigarettes, aerated drinks, radio taxis, imported garments, non-IT telecom instruments, imported electronic products, pan masala, zarda based tobacco, imported steel, Chewing tobacco, gutka.

What gets cheaper in the Union Budget?

Mobile phones, computers, soap, oil, small LCD TVs, Diamonds and precious stones, CRT Television, LED lights and lamps, matchboxes, DDT insecticides, RO-based water purifiers and medium range footwear.

Good Points of the Union Budget 2014-15

5 more IIMs – HP, Punjab, Bihar, Odisha and Rajasthan to have IIMs

5 more IITs – Jammu, Chattisgarh, Goa, Andhra Pradesh and Kerala to have IITs

4 more AIIMs like institutions – Andhra Pradesh, West Bengal, Vidarbha in Maharashtra and Poorvanchal in Uttar Pradesh

2 National Institutes of Ageing to be established at AIIMS, New Delhi and Madras Medical College, Chennai

For the latest agriculture based information Kisan TV will be set up for farmers and Arun Prabha for northeast regions of India.

‘Digital India’ programme was proposed for the broadband connectivity at village level

For the services in villages National Rural Internet and Technology Mission along with training in IT skills has been proposed.

Ultra Modern Super Critical Coal Based Thermal Power Technology proposed

River Ganga will have ‘Jal Marg Vikas’ project for inland waterways between Allahabad and Haldia.

To push watershed development in the country, programme ‘Neeranchal’ has been announced.

For the welfare of girl child and women, government proposes Beti Bachao, Beti Padhao Yojana.
The Government proposed the ‘Swatchh Bharat Abhiyan’ scheme to be completed by 2019. Finance Minister added that though the central government will provide all the necessary resources but it cannot be achieved without the collective efforts and support of all.

‘Pradhan Mantri Krishi Sinchayee Yojana’to take care of irrigation needs of the farmers. The scheme has been proposed because most of our farm lands are dependent on monsoons which at times is very less. Government allocated Rs 1000 crore for this scheme.

To push investment and domestic production, government has decreased basic custom duties on some of the items used as raw material.

Investors can now use a single functional demat account to operate all their financial products. Also there will be uniform Know Your Customer (KYC) norms all across the financial sector.

Increase in foreign direct investment (FDI) in real estate focusing more on low cost housing has been proposed by the finance minister. Real estate sector is considered as the biggest beneficiary in the Union Budget 2014-15.

The NDA government during its last term in office had introduced the Varishtha Pension Bima Yojana (VPBY), a pension scheme for senior citizens. The scheme has been extended for the period of one year from 15 August, 2014 to 14 August, 2015. Apart from this, a committee will be set up to utilize the large sum of money lying unclaimed in PPF, Post Office and savings accounts for senior citizens.

Tier I and Tier II cities to have new airports through Airport Authority of India and PPPs. This has been proposed to increase the air travel reach Indians who are willing to travel by air.

Minimum taxable income has been increased to Ra 2.5 lakh from Rs 2 lakh. For senior citizen this has been hiked to Rs 3 lakh from Rs 2.5 lakh.

To help you to save more government has increased the annual tax-exempted amount on PPF from Rs 1 lakh to Rs 1,50,000.

E visa facility has been proposed to boost tourism in India. The facility will be introduced at nine airports within the period of next six months.

Rs 100 crore has been announced for Sports University in Manipur.

Government allocated Rs 37,880 crores to construct 8,500 km of roads and assign this amount to the National Highways Authority of India and State Roads.

Rajasthan, Ladakh to have new Solar power projects.

Bad side of the Union Budget 2014-15
Investors were unhappy when the NDA government in the 2012-13 Budget introduced the General Anti-Avoidance Rules (GAAR). In this Union Budget GAAR has not been scrapped altogether. Government has proposed to install a high level committee to keep an eye on the cases under litigation due to the retrospective changes.

Installing the statue of Sardar Vallabhai Patel in Gujarat is the most criticized point of the Union Budget 2014-15. Finance minister has allocated Rs 200 crore for this project. Such decisions should not be taken at time when the country is going through the period of wide fiscal deficit and a low economy

Government has proposed nothing on disinvestment.

Government has not talked about the restructuring of the government’s subsidy bill. A committee will be formed to review food and fuel subsidies.

Apart from this funds have been announced for the safety of women in large cities. But what about the safety of women in villages and towns?

Government has not done much for Research and Development. At present India’s share in global R&D is just 2.7%.

What is your opinion on the Union Budget 2014-15? Is it good or bad?