Budget-o-Meter: Rate the Modi Government's First Union Budget

Finance Minister Arun Jaitley detailed his budget for 2014-15 today, the first under Prime Minister Narendra Modi's new government.

India's economy is stuttering under high inflation and the worst slowdown since free-market reforms in the early 1990s, and the budget is the first major test of Mr Modi's reformist credentials since he swept to power in May with a pledge to boost growth and create millions of new jobs. (with inputs from Reuters)

Here are the highlights of Budget 2014:

• Slowdown in India broadly reflects the trend in many economies. Fortunately, there are green shoots of recovery seen in the global economy
• People have decided for a change
• Those below poverty lines anxious to free themselves
• Look forward to lower levels of inflation
• Country in no mood to suffer unemployment, lack of infrastructure
• Broad policy indicator of the direction we want to take
• Poor who suffer the most
• We have to ensure anti-poverty programmes are well targeted
• Mandate of sab ka saath, sab ka vikaas will be followed
• Will leave no stone unturned in creating a vibrant India
• Need to revive growth in manufacturing and infrastructure sector
• Can't spend beyond our means, need fiscal prudence
• Conscious choice has to be made by all of us...should we allow our future to suffer because if our indecisiveness
• Need to revive growth in manufacturing and infrastructure
• The task is simple if we accept we cannot spend beyond our means
• We need to introduce fiscal prudence
• We have large subsidy burden
• Target of 4.1% fiscal deficit is daunting
• I have accepted this target as challenge
• Tax-to-GDP ratio must be raised
• Will streamline taxation and avoid harassment. This government will not bring any restrospective amendments
• Banking Sector needs to be strengthened
• There is urgent need to generate more resources
• We need to revive growth particularly in manufacturing sector and infrastructure
• Anti-poverty programmes will be targeted well.
• We wish to achieve 7 to 8 per cent growth in next 3-4 years
• Will leave no stone unturned to create a vibrant India
• Will usher in policy regime that will usher in higher growth, low inflation
• Slow decision making has resulted in loss of opportunity
• Pradhan Mantri Krishi Sichai Yojana - 1000 crores set aside
• Swach Bharat Abhiyaan - sanitation is of prime importance
• Van Bandhu Kalyan Yojana launched with initial allocation of 100 crores for welfare of tribals
• Rs. 500 crore for Deen Dayal Upadhyay rural electrification programme.
• Sardar Patel statue work will be completed in Gujarat

Women Safety:

• Outlay of Rs 50 crores for a pilot scheme on road safety
• Another 150 crores to be spent by MHA on safety on women in larger cities
• 'Beti Bachao, Beti Padhao Yojana' - 100 crores
• 8000 crores for national housing banking programme - for rural housing

Education:

• All 6 additional AIIMS have become operational
• Plan to set up 4 more AIIMS in Andhra Pradesh, West Bengal, Vidharbha and Purvanchal. Rs 500 crore allocated
• Pandit Madan Mohan Malviya New Teacher's Training Programme launched. 5 more IITs and IIMs  to be set up - Rs 500 crores allocated
• FTII Pune, SRFTI Kolkata will be accorded the status of institute of national importance
• 100 Crores for modernising Madrasas

Agriculture:

• Urgent need for investment in agro-technology and development
• 100-crore Agri-Infrastructure fund
• Horticulture University in Telangana and Haryana

After a five-minute break, Arun Jaitley continues with his budget speech:

Infrastructure:

• 50-crores for indigenous cattle breeding. 8 lakh crores set aside for Agriculture credit
• Allocation of 5000 crores  to address the need to scientific warehousing
• Long-term rural credit fund to be set up in NABARD with initial support of 5000 crores
• Kisan TV will be launched in the current year
• The government is committed to provide housing for all by 2022
• All the Government departments and ministries will be integrated through E-platform by 31 December this year
• MSME sector - 10,000 crore rupee fund by way of attracting further private equity
• Entrepreneurship friendly bankruptcy laws to facilitate easy exit
• 200 crores for new textile centres in Bareily, Kutch, Surat, Mysore and Bhagalpur
• Hastkala Academy in Delhi - 30 crores set aside for that
• Pashmina production centre in Jammu and Kashmir

Investments in roads, airports:

• 16 new port projects to be awarded this year
• Over 11 thousand crores for Tuticorin, Kandla and other ports
• Schemes for development of airports in tier 1 and 2 cities via AAI and PPP
• Investment in NHAI and state highways to the tune of 37,887 cores - including 3000 crore for North east
• Allahabad-to-Haldia Ganga waterway project announced
• Proposals to boost investment in mining sector

Markets and Banking:

• Proposals for Capital Markets - Introduction of uniform KYC norms
• One single operating DMAT account
• Modern monetary policy framework; liberalize ADR, GDR regime
• Revamp Indian Depository Reciepts
• Time bound programme to provide banking services to all households
• Two bank accounts in each household to be opened which would also be eligible for credit
• Pending Insurance Law Amendment Bill to be taken up for consideration

Defence and Water fronts:

• 2,29,000 crores allocated for Defence; One-Rank-One-Pay Adopted
• War Memorial to be constructed at Princess' Park and supplemented by a War Museum - 100 crores allocated
• Wage ceiling for EPFO schemes increased to Rs 15,000 from existing Rs 6,500 per month.
• Construction of a national police memorial
• Rs 100 crore for development of Technology Development Fund
• Additional 5000 crore will be set aside for defence outlay over and above amount provided under interim budge
• 100 crores for ghat development & beautification of river fronts
• NRI Fund for 'Clean Ganga' Programme

Sports:

• 200 crores for upgrading indoor and outdoor facilities in Jammu and Kashmir
• Rs 100 crores allocated for Sports University in Manipur
• 100 crores for training sportsmen and women for upcoming Commonwealth and Asian Games

Education, Information Technology, tax and investments:

• IT Exemption limit raised by 50,000
• Education cess continues as 3 %
• Direct taxes: exemptions limit raised by 50,000 to 2.50 lakh
• Under 80C - 1 lakh to 1.5 lakhs to encourage savings
• Investment allowance at 15% for 3 yrs to manufacturing company which invest more than Rs 25 crore in plant and machinery
• No tax for those earning below Rs 2.5lakh per annum
• Those earning above Rs 2.5 lakh per annum to save Rs 5150 per year
• 10 year tax holiday for power companies who start production and distribution on March 31, 2017
• Small colour TVs to be cheaper
• Income Tax Department is expected to function not only for  enforcement but also as a facilitator
• New Aykar Sewa Kendras to be opened

Customs and excise:

• Colour picture tubes exempted from basic customs duty - basic customs duty on LCD, LED panels below 19 inches reduced to NIL
• Excise duty concessions extended already. More proposals to cut excise on food processing and footwear
• Cigarettes, chewing tobacco, Gutkha and Pan masala and aerated Water containing added sugar  to become more expensive