Budget 2014 Update
Finance Minister Arun Jaitley will present the Budget for the financial year 2014-15 on 10th July 2014, Thursday three days after the parliament begins its session, while the Economic Survey will be released on July 9, Wednesday. Shri Arun Jaitley would be delivering his first budget speech 2014 in the parliament for this financial year 2014-15. Finance Minister’s budget 2014 should spell out his vision for the next five years and making projections for upcoming years.
As per the economist surveyed the budget 2014-15 the government is likely to increase its fiscal deficit target to 4.4 per cent of gross domestic product, as foreign agencies tend to focus on the size of the fiscal deficit. The railway budget which was announced just a couple of days back saw some brave decision made by Modi government.
The former finance minister P. Chidambaram ended with the revenue deficit of 3.3 percent of GDP. This has presented a big responsibility of the shoulder of Mr. Jailey as he has to focus on revenue deficit, promising to bring the percentage to Zero within upcoming three years.
Budget 2014 Speech
Unfortunately, this year the budget was delayed because of the elections in India. This is reason why we didn’t get any budget in February month. In July, the first ever budget speech will be conducted by majority winner. BJP led government has a clean victory in Vidhansabha election which has given them an option to select the budget of their choice. Finance Minister acted tough on budget 2014.Shri Arun Jaitley faces the embarrassment, but feels a necessary task of explaining that “Achche Din” can come sustainable along with a lag of One or two years. He must pluck the low hanging fruits while being fiscally tough.
The victory of modi as a prime minister has sparked the stock market boom so Jaitley can aim for making extremely large disinvestment by Rs. 100000 Crore for easing fiscal strains.
Jaitley should abandon with direct tax code. He announces that India’s direct tax rates will move within five years towards those of ASEAN countries for making India internationally competitive. He resists to reward the middle class people with a big increase in the income tax exemption rate.
What are the expectations from this Budget?
In a Budget speech 2014, Mr. Jaitley will aim to benefit the sectors such as agriculture, power, auto-ancillary, capital goods, infrastructure, oil & gas, banking and non- banking & finance are expected to get a boost.
Cut in subsidies and rationalization in the welfare programmes will improve the fiscal situation in the country. There should be increase in allocation to the infrastructure projects.
The banking sector budget 2014 expects that there should be recapitalization of the PSU banks. The exemption limit under Sec 80c should be raised. The long term infra bonds should be used for infra sector funding.
The power sector expects many from the budget 2014 by way of providing incentives for renewable energy, tax free bonds and improvement in coal supply for the power sector.
In oil and gas sector budget 2014 expectations are:
- The government should continue with its policy for diesel price hikes.
- It could take steps for lowering the subsidy on kerosene and cooking gas (LPG).
- Small and periodic increase in the prices of the diesel have gradually raised the income of ONGC companies without affecting the public. Now it should not increase further.
Expectations of budget in Agriculture sectors are as follows:
- There must be a reduction in excise duty and uniform rate of VAT for agro chemicals.
- There should be increase in the spending related to the irrigation projects.
- Allowing usage of hybrid seeds for better production.
The real estate sector expects the budget 2014 should be such that it could impose lower mortgage rate for first time affordable housing buyers and maintain the deduction of interest rates.
The introduction of New Direct Tax Code with effect from 1 April, 2015 should widen the income tax net, increase the revenues and relight India’s savings and investment rates. There has expected a very few changes in the Indirect taxes that includes both customs and excise.
I hope you all like my article as it provides the brief expectations from this year budget 2014. I will conclude this article by asking a question that ‘whether budget 2014 justify the election party’s slogan “Achche Din Aane Wale Hai” or not?’ post your comment below.
Note: We will update the post once the budget speech 2014 is delivered by the finance minister. Make sure you are following our blog