The first ever budget by the Modi government was presented

on 10th July 2014 expectations from the public and corporates

alike. Major expectations were on income tax  rebates; policy

announcements to bring in more investments into the country

encourage exports and facilitate growth which had lackened.

The budget however, was not populist contained measures to

boost the industry and some amount of relief for income

tax payers and was a balanced one under the circumstances,

amidst huge.

 

The budget contained pro-growth measures by giving boost to

the agriculture and infrastructure. The direction and path for

long term vision for the economy via boost to these sectors will

play

a crucial role. Accepting a task of reducing fiscal deficit target to 4.1%

of the GDP in the current year followed by 3.6% for 2015-16 and

3% for 2016-17 indicates fiscal prudence and consolidation through various policy measures.

 

Commodities derivative market is going through a bad phase with drop in volume from the last one year. Large sections of the industry were expecting that this budget will provide respite by rationalizing Commodities Transaction Tax (CTT), and hence will provide positive flip for growth to these markets. Markets were also hoping for a reduction of import duty on gold since the CAD has declined sharply partly due to measures taken by the government and the RBI. However, the government instead adopted a wait and watch approach with no changes in import duty structure defying market expectations. All and all this budget gives us the hope for a bright future of our country tomorrow."

 

 

The Budget has presented a broad road map of the economic policy of the new Government and outlined its plan for reviving the growth spirit of the Indian Economy. The targets for the current year are a growth rate of 5.4 to 5.9% with the fiscal deficit being capped at 4.1%. In order to achieve higher economic growth and lower inflation the Finance Minister introduced the following changes

 

1. Change in income tax slab: The minimum exemption limit in the case of individuals, HUF, AOP was increased to 2,50,000 from 2,00,000 , while for senior citizens its 300,000.

 

2. Minimum Alternative Tax and Alternative Minimum Tax remains unchanged at 18.5%.

 

3. The ceiling on savings has been increased to INR 1,50,000 from the present limit of INR 1,00,000 sec 80C

 

4. Deduction for interest paid on housing loan has been increased to INR 2,00,000 from INR 1,50,000. 

 

5. Expenses incurred on CSR are disallowed and would not be deemed to be an expenditure incurred for the purpose of business. However the CSR expenditure that is of the nature described in other specified provisions of the Act may be allowable as deduction subject to fulfillment of the conditions prescribed in the respective sections.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Backed by the strongest mandate in the decade, the budget was riding on high expectations of people hoping that the budget would curb inflation , create employment and bring a new lease of life for developing India, and as expected the new government at the center tried to live up to the expectations.