Budget 2014: Breather for FDI!
Finance Minister in his maiden Union Budget 2014 speech gave a breather to few sectors by raising FII bars
FM raises limit on foreign direct investment in defence sector from 26% to 49%
Raises FDI limit in insurance sector from 26% to 49%
Budget 2014: Revenues and Expenditure
Finance Minister presented about Revenue and Expenditure in his maiden Union Budget 2014 speech
- Estimates that total expenditure will be Rs 17.95 trillion in 2014/15
- Revenue deficit seen at 2.9 per cent of GDP in 2014/15
- Capital receipts seen at Rs 739.5 billion in 2014/15
- Retains tax collection targets and makes no major changes to direct tax rates
- Allocates Rs 2.29 trillion for defence spending in 2014/15; capital outlay raised by Rs 50 billion over interim budget
- Earmarks Rs70.6 billion to create 100 'smart cities'
- Proposes Rs 50 billion for warehousing capacity; Rs 100 billion of private capital for start-up companies; and Rs 378 billion of investment in national and state highways
- Rs40 billion for affordable housing proposed through national housing bank; Rs 80 billion proposed for rural housing scheme
Budget 2014: Cigarettes to lit Fire in pockets
FM Jaitley targets raising Cigarettes prices which may lit Fire in common man’s pockets
- To raise export duty on bauxite to 20% from 10%
- To cut excise duty to 6% from 12% on footwear below Rs1,000
- To raise excise duty on cigarette between 11%-72%
- To raise excise duties on chewing tobacco, cigars
- To raise excise duty on aerated water containing added sugar
- Raises excise duty on pan masala to 16% from 12%
Budget impact on consumer goods
Here is how the consumer goods will be impacted post Budget 2014 announcement
Cheaper
- Footwear (excise duty reduced from 12% to 6%)
- LED TVs with panel below 19 inches (basic custom duty on import of panel made nil)
- CRT TVs
Dearer
- Gutka (excise duty hiked to 70% from 60%)
- Aerated water products with added sugar
- Cigarettes (excise hike on some cigarettes to 72% from 11%)
Budget 2014: Education
Finance Minister presented following Education limits in his maiden Union Budger 2014 speech
- To set up Jai Prakash Narayan National Centre for Excellence in Humanities in Madhya Pradesh.
- To set up five more IITs in Jammu, Chhattisgarh, Goa, Andhra Pradesh and Kerala.
- To set up five more IIMs in Himachal Pradesh, Punjab, Bihar, Odisha and Maharashtra.
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