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2014 Union budget of India

Government budget From Wikipedia, the free encyclopedia

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The 2014 Union Budget of India was presented by Finance Minister, Arun Jaitley on 10 July 2014,11 am.[1] This was the first budget of the Narendra Modi led NDA government.[2]

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Highlights

  • 70.6 billion (US$840 million) provided for the development of Smart Cities in India
  • 10 billion (US$120 million) provided for irrigation
  • 5 New IITs and IIMs and four new AIIMS in India.
  • New airports scheme in tier 1 and 2 cities
  • Schemes for development of sports across the country.

Foreign Direct Investment

  • FDI cap in Defense and Insurance sector was increased to 49% from 26%.
  • FDI in real estate for low cost housing

Personal tax and exemption limit

  • No changes in personal income tax slabs. But tax exemption limit has been increased to 250,000 (US$3,000) from 200,000 (US$2,400) for those below the age of 60. Income tax exemption limit for senior citizens has been raised to 300,000 (US$3,500).
  • Investment limit under Section 80C has also been increased to 150,000 (US$1,800) from the current 100,000 (US$1,200).
  • Housing loan interest rate deduction limit has been increased to 200,000 (US$2,400).
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Reactions

The budget received largely negative reactions, with former Prime Minister Manmohan Singh saying that it "lacks road-maps,"[3] the Communist Party of India (Marxist) calling it "a recipe for further enriching the rich and impoverishing the poor,"[4] and former Chief Minister of Delhi Arvind Kejriwal stating that "it was a directionless budget with no steps to bring down inflation in the country,"[5] although president of CII Ajay S. Shriram said that it "covered many aspects of the population" and offered a "positive direction for higher economic growth."[6]

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See also

References

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