New Delhi, July 10: While making his maiden Budget Speech in Parliament today, the Union Finance Minister Shri Arun Jaitley said that India has a strong urge to grow and free itself from the curse of poverty. The people are in no mood to suffer unemployment, inadequate basic amenities, lack of infrastructure and apathetic governance. The Indian economy will have to maneuver its way through a sluggish global recovery, he added.
The Finance Minister Shri Jaitley said that the Government intends to usher in a policy regime that would bring the desired growth, lower inflation, sustained level of external sector balance and prudent policy stance. The Finance Minister pointed out that the present economic situation presents a challenge of slow growth in manufacturing, in infrastructure and also the need to introduce fiscal prudence. The tax to GDP ratio must be improved and non-tax revenues increased. He has set a target of fiscal deficit of 3.6 per cent for 2015-16 and 3 per cent for 2016-17.
Shri Jaitley said that the Government will constitute an Expenditure Management Commission to look into every aspect of expenditure reform. The Government also intends to overhaul the subsidy regime while providing full protection to the marginalized.
The Finance Minister said that the Government would like to introduce Goods and Services Tax (GST) to streamline the tax administration, avoid harassment of business and ensure higher revenue collection. The Government is committed to provide stable and predictable taxation regime that will be investor friendly and spur growth.
Shri Jaitley said that the Indian Government will promote FDI selectively in sectors. FDI in Defence and Insurance sector is being raised to 49 per cent with full Indian management and control. FDI is also being encouraged in the development of `Smart Cities’.
To infuse Rs. 2,40,000 crore in the Indian Banking system, citizens of India will be allowed direct share holding in these banks. The Government will also provide tax incentives for Real Estate Investment Trusts. A similar incentive will also be announced for Infrastructure Investment Trusts.
A national multi-skill programme called Skill India is proposed to be launched. This will provide training in traditional professions like welding and carpentry etc.
A sum of Rupees 1,000 crore will be provided to Pradhan Mantri Krishi Sinchayee Yojana to provide assured irrigation in rain fed areas.
Central Government will also focus on Swatchh Bharat Abhiyan, under which, total sanitation will be provided to every household by the year 2019 to mark 150th year of the Birth anniversary of Mahatma Gandhi.
Shyama Prasad Mukherji Urban Mission will be launched in rural areas on the lines of Gujarat. This will include economic activities and skill development in the PPP mode. To further improve rural life, the Government will launch the Deen Dayal Upadhyay Gram Jyoti Yojana to augment power supply at a cost of Rs. 500 crore.
To improve the life of the marginalized and handicapped, the Government will provide Rs. 50,548 crore under SC Plan and Rs. 32,387 crore under TSP. Besides, the Centre will extend the scheme for Assistance to Disabled Persons for purchase/fitting of Aids and Appliances (ADIP) to include contemporary aids and assistive devices. The Government will also establish 15 new Braille Presses.
In its concern for women, the Government will pilot test a scheme on `Safety for Women on Public Transport’ at a cost of Rs. 50 crore. Additionally, Rs. 150 crore will be spent by Ministry of Home to increase safety of women in large cities. It will also set up Crisis Management Centre in all districts of NCT of Delhi. The Government will also launch the Beti Bachao, Beti Padhao Yojana for which a sum of Rs. 100 crore will be set aside.
In the area of rural development, the Government will provide a sum of Rs. 14, 389 crore to the Pradhan Mantri Gram Sadak Yojana to improve rural connectivity. The MGNERGA will focus on productivity and asset creation, primarily in fields related to agriculture. The Government also proposes to start up Village Entrepreneurship Programme for encouraging rural youth to take up local entrepreneurship programs for which an initial sum of Rs. 100 crore is to be provided. The Government also proposes to start a new programme called `Neeranchal’ with an initial outlay of Rs. 2,142 crore to further boost watershed development. The Government has also earmarked Rs. 3,600 crore under National Rural Drinking Water Programme for providing safe drinking water to approximately 20,000 habitations.
In an attempt to provide Health for All, the Government will introduce two key initiatives i.e. the Free Drug Service and Free Diagnosis Service which would be taken up on priority. The Government is to set up two National Institutes for Ageing in New Delhi and Chennai. It is also planned to set up AIIMS like institutes in Andhra Pradesh, West Bengal, Maharashtra and Uttar Pradesh.
To fill the gap in elementary education an amount of Rs. 28,635 crore is being funded for Sarva Shiksha Abhiyan and Rs. 4,966 crore for Rashtriya Madhyamik Shiksha Abhiyan. A School Assessment Programme is being initiated at a cost of Rs. 30 crore. Additionally, the Pandit Madam Mohan Malviya New Teachers Training Programme is being launched for an initial sum of Rs. 500 crore.
In the field of higher education, the Government proposes to set up Jai Prakash Narayan National Centre for Excellence in Humanities in Madhya Pradesh. Also, five more IITs in Jammu, Chhatisgarh, Goa, Andhra Pradesh and Kerala will be set up, besides, five IIMs in Himachal Pradesh, Punjab, Bihar, Odisha and Maharashtra.
To bridge the digital divide, a pan India programme –`Digital India’, that will provide broadband connectivity and other IT facilities at village level, is proposed to be launched. A National Rural Internet and Technology Mission for services in villages and schools, training in IT skills and E-Kranti for government service delivery and governance scheme is also proposed at a cost of Rs. 500 crore.
For urban dwellers, under the Pooled Municipal Debt Obligation Facility, the Government will focus on infrastructure, public transport, solid waste disposal, sewerage treatment and drinking water. A sum of Rs. 100 crore will be allocated for metro projects in Lucknow and Ahmedabad. A Mission on Low Cost Affordable Housing which will be anchored in the National Housing Bank will be allocated a sum of Rs. 4000 crore this year.
An Upgradation of Traditional Skills in Arts, Resources and Goods programme would be launched for enhancing skills and training in ancestral arts for development of minorities.
To give a boost to agriculture, two institutions on the pattern of Indian Agricultural Research Institute, Pusa, will be established in Assam and Jharkhand. Agricultural Universities are proposed to be set up in Andhra Pradesh and Rajasthan, besides two horticulture universities in Telangana and Haryana. To prevent soil deterioration, 100 mobile soil testing laboratories will be set up. The Government intends to finance 5 lakh joint farming groups of “Bhoomi Heen Kisan” through NABARD.
The Government has set a target of Rs. 8 lakh crore for agriculture credit during 2014-15. The Centre will continue the Interest Subvention Scheme and raise corpus of Rural Infrastructure Development Fund to Rs. 25,000 crores. The Warehouse Infrastructure Fund will get Rs. 5,000 crore this year. The Government also proposes to set up Long Term Rural Credit Fund in NABARD for the purpose of providing refinance support to Cooperative Banks and Regional Rural Banks with an initial corpus of Rs. 5,000 crore.
Towards food security, the Government has committed itself to restructuring FCI, reducing transportation and distribution losses and efficacy of PDS. Wheat and rice will be provided at reasonable prices to weaker sections. Kisan TV dedicated to interests of agriculture and allied sector will be launched in the current financial year at a sum of Rs. 100 crore.
To give necessary impetus to the manufacturing sector, the eBiz platform aims to create a business and investor friendly ecosystem in India by making all business and investment related clearances and compliances available on a 24×7 single portal. A National Industrial Corridor Authority, with its headquarters in Pune, is being set up to coordinate the development of the industrial corridors.
An Export Promotion Mission will be set up to bring all stakeholders under one umbrella. The Government is also committed to revive the Special Economic Zones and make them effective.
The Apprenticeship Act will be suitably amended to make it more responsive to industry and youth. With a need to examine the financial architecture of SMEs, it is proposed to appoint a Committee of Finance Ministry, MSME and RBI to give concrete suggestions. It is proposed to set up a Trade Facilitation Centre and a Crafts Museum with an outlay of Rs. 50 crore to promote handloom products. To preserve and revive handloom and handicrafts, a Hastkala Academy is proposed to be created.
`3P India’, an Institution to provide support to mainstreaming PPPs will be set up to give necessary thrust to infrastructure. Also, 16 new port projects are proposed to be awarded this year with a focus on port connectivity for which Rs.11, 635 crore has been allocated. To promote inland waterways, `Jal Marg Vikas’ a project on river Ganga, between Allahabad and Haldia, will be developed.
Airports Authority of India will support Airport modernization projects in Tier I and Tier II cities. To further improve connectivity, the Government will provide Rs. 37,880 crores for road construction by National Highways Authority of India. 8,500 KMs of roads will be added in this Financial Year.
To promote clean and efficient thermal power, Rs. 100 crores will initially be provided for a new Scheme – `Ultra-Modern Super Critical Coal Based Thermal Power Technology’. It is hopeful that the existing impasse in the coal and mining sectors will be resolved. To facilitate this, changes in the MMDR Act, 1957 would be introduced.
The Finance Minister stressed that new and renewable energy deserves a very high priority. A scheme will be launched to drive agricultural pump sets and water pumping stations with solar energy for which Rs. 400 crore will be provided.
The Finance Minister has reiterated the Government’s commitment to enact the Indian Financial Code for better governance and accountability, in close consultation with all stakeholders. While the impact of these measures will be realized in the medium term, he has proposed in the budget some measures such as liberalizing the ADR/GDR regime for depository receipts and extending 5% withholding tax to bonds issued by Indian Corporates abroad.
The budget proposes adoption of the new Indian Accounting Standards (IndAs) by the Indian companies from the financial year 2015-16 voluntarily and from the financial year 2016-17 on a mandatory basis.
To provide all households in the country with banking services, a time bound programme would be launched as ‘Financial Inclusion Mission’ on 15 August this year. A special small savings instrument to cater to the requirements of educating and marriage of the girl child will be introduced. A National Savings Certificate with insurance cover will also be launched to provide additional benefits for the small saver. In the PPF Scheme, annual ceiling will be enhanced to Rs. 1.5 lakh p.a. from Rs. 1 lakh at present.
KYC norms will be made uniform and KYC records made usable across the entire financial sector. A single operating demat account will be introduced, which will allow transactions of all financial assets.
Defence gets Rs. 2,29,000 crore. Rs. 1,000 crore have been allocated for implementing One Rank One Pension policy. Capital outlay for defence has been raised by Rs. 5,000 crore over the amout provided in the interim budget. This includes Rs. 1,000 crore for the accelerating the development of the Railway system in the border areas. Rs. 100 crore have been provided for setting up a Technology Development Fund to provide resources to public and private sector companies to support research and development of defence systems said the official press statement from the PIB.(SP News)
