Budget for 2014-15

[V.Balasubramani]

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All eyes on Jaitley - NEWS TODAY


New Delhi, July 6: Finance Minister Arun Jaitley's maiden Budget on Thursday is expected to be a tightrope walk of trying to meet demands for tax sops especially from the middle class and pursuing fiscal prudence to spur investment and growth. The Budget for 2014-15 will be presented by the new BJP-led government, which rode to power on promises of providing relief to inflation-hit common man, amid falling growth, stagnating investments, high fiscal deficit and external crisis. There are high hopes from the new government that it will raise tax slabs and also significantly hike the annual tax exemption limit to provide a much-needed relief to salaried class, which is reeling under the stubbornly high inflation. For boosting investment, Jaitley is expected to announce tax incentives for industry. As a prelude to the Budget, the government has already extended the excise duty concessions for automobile and consumer durable sectors till December. The Finance Minister is also expected to take a call on reducing duties on gold import, which were increased last year to check ballooning current account deficit. He could also provide relief to farmers to help them tide over the impact of deficient monsoon which could lead to fall in agricultural output. ………


Read more at: All eyes on Jaitley | News Today

 

[V.Balasubramani]

Union Budget 2014, IIP data, Infosys results to drive stock markets, say experts

NEW DELHI: In an eventful week ahead, stock markets would take cues from a host of important triggers, including the Union Budget for 2014-15, industrial production data and quarterly earnings from Infosys, say experts.

The week also marks the beginning of the Q1 June quarter corporate earnings season, with InfosysBSE 0.88 % announcing its result on July 11.

Industrial production data for May will come out on Friday.

Marketmen said that majorly investors, be it dom ..

Read more at: Union Budget 2014, IIP data, Infosys results to drive stock markets, say experts - The Economic Times

 

[krish44]

VBji
I have a simplistic way of investing .
I ask the girl who operates my share account in one of stock trading firms
when I asked last week , she told me simplistically , now sell instead of buying anything and take cash out
budget will only make you loose money . after the budget she will tell me on what I should put my money
She is hardly 24 yrs old . she operates the NSE screen day in and day out and has the share prices and trends on her finger tips
whenever I try to operate on my judgement, when she feels I am not prudent ,
she cautions me . I totally trust her.
I find she is an excellent judge in the market.
I have made money only by listening to her and depending on her.
we have a simple way of working. on simple phone call ,I am able to sell or buy in minutes .sitting anywhere in the country
my life runs on trust . for everything from stock market or banking or real estate, I identify individuals who can deliver and delegate the works. since I trust them totally , I have never been let down.
I am totally free to enjoy my life to the fullest due to high degree of trust and delegation
For my taxes , I have a income tax consultant and tax lawyer whose headache it is to take care of any tax muddles I get into
life can be simple , if one decides .

 

[V.Balasubramani]

Krish Ji,

You are right. One needs to trust someone who has more knowledge on a particular field viz. Stocks and Shares.

My anxiety is how for the ensuing Budget 2014-15 is going to have its influence on our country's economy.

Such other issues concerning the Union Budget, we will discuss.

 

[V.Balasubramani]

AnandRathi has come out with its report on budget expectation.

· We expect fiscal deficit figures to be revised upwards from the interim budget targets.
· For financial services, we expect a roadmap to recapitalize public-sector banks and incentives to increase financial savings.
· For technology, we expect reduction in MAT and lowering of dividend tax from foreign subsidiaries.
· For consumer & retail, we expect increase in excise-duty for cigarettes and increased government spending in rural areas.
· For auto and auto parts, the most important budget expectation has been met - the reduced excise duty extended till Decend.
· We expect thrust on infrastructure development.
· For healthcare, MAT on SEZ / EOU units might be reversed and MAT may not be applicable to profit from SEZ units.
· For industrials, single-window clearance would help large infrastructure projects. There could be increased outlay for urban infrastructure.
· For cement & building materials, greater infrastructure investments could revive cement demand; we expect single-window clearance for large infra projects and real-estate projects.
· For construction, there could be increase in government spending on infrastructure and existing schemes. Also, we expect higher limit for tax-free bonds by government agencies for long-term infrastructure financing.

Read more at:
Budget 2014 AnandRathi lists expectations from Arun Jaitley

 

[sarang]

I think the budget will be more qualitative and affirmation of policy directions than the usual arithmetic based presentations with a few wisecracks. Most of executive and administrative decisions will not find a place in the budget, I think.

 

[V.Balasubramani]

Budget 2014-2015: Financial market wish list – THE FINANCIAL EXPRESS.

Summary

Government has to deal this time in such a manner that this Budget creates a win-win situation for both the public as well as the government.

The first Budget of Modi's government will be presented on July 10,2014 by the Finance Minister Arun Jaitley, while Rail Budget will be presented on July 8, 2014. In this Union budget of 2014-15 salaried class and industry have a lot of expectations, be it tax exemption, hike in the transport allowances, increasing the rebate cap on home loans, subsidiaries to the farmers and the issues like women and
senior citizen taxation.

The major heads to be looked upon during budget are as follows:

Income tax exemption limit – The tax free income slab is expected to increase from the current limit of 2 lac to 3 lac , and for women it is expected to go up till 3.5 from current limit of 2 lac.

Retail Investors- Government should bring more schemes not only to benefit first time investors ( tax benefits provided under Rajiv Gandhi Saving Schemes to first time investors in equity segment) but also to the other investors.

The government this time has to keep in mind the expectations of common man from Union Budget, so government has to deal this time in such a manner that this Budget creates a win-win situation for both the public as well as the government.

Source: Budget 2014-2015: Financial market wish list - Financial Express

 

[tks]

Not sure if this is relevant to the discussion. I hope the salary of union government employees are raised significantly so that they are not tempted to rely on corruption practices as another source of income. Once the salaries are raised it will be possible to impose significant sanctions including dismissal if any government employee is caught cheating. It is not an implementable scheme to use threat alone when in reality many may be viewing bribes as another source of income to meet the needs of a middle class family

 

[prasad1]

I hope the salary of union government employees are raised significantly so that they are not tempted to rely on corruption practices as another source of income. Once the salaries are raised it will be possible to impose significant sanctions including dismissal if any government employee is caught cheating. It is not an implementable scheme to use threat alone when in reality many may be viewing bribes as another source of income to meet the needs of a middle class family

This is a pipe-dream. Corruption is not because of poverty, it is because of greed.

Corruption, greed, heartlessness, lack of conscience – these have become so commonplace in our day-to-day lives to the extent that in some cases, it’s as if they are a part of our cultural traditions.
Corruption and greed are also contagious. They are vices that endanger the morals of the whole nation.

Many of the biggest scandals since 2010 have involved very high level government officials, including Cabinet Ministers and Chief Ministers, such as in the 2G spectrum scam (1760 billion), the 2010 Commonwealth Games scam (700 billion), the Adarsh Housing Society scam, the Coal Mining Scam (1860 billion), the Mining Scandal in Karnataka and the Cash for Vote scam.

Vito Tanzi in an International Monetary Fund study suggests that in India, like other countries in the world, corruption is caused by excessive regulations and authorisation requirements, complicated taxes and licensing systems, mandated spending programmes, lack of competitive free markets, monopoly of certain goods and service providers by government controlled institutions, bureaucracy, lack of penalties for corruption of public officials, and lack of transparent laws and processes.[12][71] A Harvard University study finds these to be some of the causes of corruption and underground economy in India.

So by raising the salary to Match the prevailing market rate you would increase the bribe rate rather than lower it.

If the rich become free of corruption they will stop their poor staff from being corrupt. Do you think that a truly honest officer will allow his secretary to be corrupt?

 

[tbs]

hi

i have some expectations in the budget....as an ex service army person.....as modi promised in the election...ONE RANK ONE PENSION

SYSTEM... even congress promised too..never implemented...some benefits for senior citizen in the tax/investment rules....

lets wait and see...

 

[krish44]

prasadji
an excellent post

I full agree that corruption starts at the highest level and flows down the lines to the lowest rungs of govt.Politicians indulge in it due to high cost of elections and the need to recover by corruption the money they have spent on it . govt employees are encouraged by the actions of senior officers who are out to make a quick buck in govt contracts in league with politicians

unless the govt rules and regulations are simplified with more transparency in laws and processes besides less controls
leading to open competition in a market economy , corruption is likely to persist .it is the rules of mixed economy leading to corruption.when there is transition from mixed to open economy , the oppertunities for corruption increase.

it is unlikely that corruption will decrease. it is the price of growth with high cost economy leading poor to misery
open to the need more money for subsistence. the rich and upper crust have taken care of themselves and forced the poor to expect doles from govt to live a decent life. they can become only poorer with high costs and inflation in double figures

 

[krish44]

Not sure if this is relevant to the discussion. I hope the salary of union government employees are raised significantly so that they are not tempted to rely on corruption practices as another source of income. Once the salaries are raised it will be possible to impose significant sanctions including dismissal if any government employee is caught cheating. It is not an implementable scheme to use threat alone when in reality many may be viewing bribes as another source of income to meet the needs of a middle class family

TKSji
I also used to think like you when I was young
after a lifetime in govt, my strong feeling is corruption has nothing to do with salaries. those who indulge in it or encourage others are people who do not need money for good living. it is the seniors in govt service who do such things.lower rungs are only encouraged by their actions.the rot is from above.

govt officers were given huge pay rises in sixth pay commission. they are just a greedy lot

 

[tks]

This is a pipe-dream. Corruption is not because of poverty, it is because of greed.

Corruption, greed, heartlessness, lack of conscience – these have become so commonplace in our day-to-day lives to the extent that in some cases, it’s as if they are a part of our cultural traditions.
Corruption and greed are also contagious. They are vices that endanger the morals of the whole nation.

Many of the biggest scandals since 2010 have involved very high level government officials, including Cabinet Ministers and Chief Ministers, such as in the 2G spectrum scam (1760 billion), the 2010 Commonwealth Games scam (700 billion), the Adarsh Housing Society scam, the Coal Mining Scam (1860 billion), the Mining Scandal in Karnataka and the Cash for Vote scam.

Vito Tanzi in an International Monetary Fund study suggests that in India, like other countries in the world, corruption is caused by excessive regulations and authorisation requirements, complicated taxes and licensing systems, mandated spending programmes, lack of competitive free markets, monopoly of certain goods and service providers by government controlled institutions, bureaucracy, lack of penalties for corruption of public officials, and lack of transparent laws and processes.[12][71] A Harvard University study finds these to be some of the causes of corruption and underground economy in India.

So by raising the salary to Match the prevailing market rate you would increase the bribe rate rather than lower it.

If the rich become free of corruption they will stop their poor staff from being corrupt. Do you think that a truly honest officer will allow his secretary to be corrupt?

The salary of cop in the street is very low.
Senior officials visiting USA (e.g, CEO of a public sector company for example) are given good per day allowance but for same work they are given significantly less salary than their counter parts in USA.

In private sector, the market raises the salary In India if not to be on par but at least in reaching 1/2 or 1/3rd of the salary of a person doing similar work in USA. The IT companies enjoyed salary inflation because market demanded the changes.

For a public sector CEO the ratio of his/her salary to the salary of similar person in USA may be down by factor of 1/10 or 1/20. This is unsustainable because these people see the life styles of rich and famous and covet the same.

They can risk their job along with the entire lot because the differences in compensation are immense.

A cop with his salary cannot make the ends meet. So he needs to generate other sources of revenue.

If they are paid well, accompanied by serious punishment then there will be no incentives to take further risks.

In USA for example, one cannot bribe their way out of a traffic ticket. These officers are not going to risk losing their job for a bribe which at best is likely to be a very small fraction of his salary .

In India large number of cops are ready to set up road traps to make few thousand Rupees quickly. They can easily make two weeks of their salary in two hours.

Greed is the root cause for the corruption. But I do not think Indians are more greedy than people in other countries

 

[krish44]

tksji
you are probably not aware the , the govt accomodation the senior officials get in prime new delhi , how much it is worth.the working hours they put in is 8to 9hrs at the worst.the do not work week ends, the have more holidays and leave. the job security and stability of work life can be envy of all . the medical care in premium class in top govt hospitals is free for them .their retirement benefits are envy. of all;
anything they want from public sector under the control of their ministry is theirs for the asking.
many go on deputation to them for milking them for their benefit
private companies which have to go to them for various purposes will do anything to please them
these guys are the new maharajas.you are living in a dream world when you say that public sector officers are not well off.
most of them are able to place their children in good univ in india or abroad.if you look around US is full of off springs of govt babus.

 

[dhikshita]

This is a pipe-dream. Corruption is not because of poverty, it is because of greed.

Corruption, greed, heartlessness, lack of conscience – these have become so commonplace in our day-to-day lives to the extent that in some cases, it’s as if they are a part of our cultural traditions.
Corruption and greed are also contagious. They are vices that endanger the morals of the whole nation.

Many of the biggest scandals since 2010 have involved very high level government officials, including Cabinet Ministers and Chief Ministers, such as in the 2G spectrum scam (1760 billion), the 2010 Commonwealth Games scam (700 billion), the Adarsh Housing Society scam, the Coal Mining Scam (1860 billion), the Mining Scandal in Karnataka and the Cash for Vote scam.

Vito Tanzi in an International Monetary Fund study suggests that in India, like other countries in the world, corruption is caused by excessive regulations and authorisation requirements, complicated taxes and licensing systems, mandated spending programmes, lack of competitive free markets, monopoly of certain goods and service providers by government controlled institutions, bureaucracy, lack of penalties for corruption of public officials, and lack of transparent laws and processes.[12][71] A Harvard University study finds these to be some of the causes of corruption and underground economy in India.

So by raising the salary to Match the prevailing market rate you would increase the bribe rate rather than lower it.

If the rich become free of corruption they will stop their poor staff from being corrupt. Do you think that a truly honest officer will allow his secretary to be corrupt?

Hi,
Since you have categorically analyzed each and every factor that lead to corruption, at the outset I agree with you that corruption is not because of prevailing poverty but because of greediness among the people with a view to enrich themselves at the shortest possible time. Moreover, there is no striking balance between the demand and supply compared to pro-rata basis, per capita income per diem in our country. This adds fuel to the fire by way of unchecked Indian population. There is no complacency among the people to eke out the livelihood within their own available means

 

[V.Balasubramani]

It is very simple. We cannot blame the Government babus alone for corruption. There are Agencies like the Central Vigilance Commission and the Vigilance and Anti- Corruption Department to deal with the offences committed by the Government Officers/staff under Prevention of Corruption Act. These Teams, on receipt of complaint or reliable information will initiate necessary enquiry, investigate and register cases against the corrupt officials. So, the Government babus are taken care off by the Commission/Department and are dealt by the iron hand of law.

Instead, we have to blame only ourselves, bcos these Government babus are governed by the Ministers of the concerned portfolio, who will be a hard core politician. And we the public send these politicians to form Government and to rule the country, who also involve in major scams umpteen number of scandals, etc and to name a few:-
Indian Coal allocation scam
2G Spectrum Scam
The Satyam Scam
Hawala Scandal
Bihar Fodder Scam
Saradha Group Financial Scandal
Disproportionate Wealth case faced by noted politicians

 

[V.Balasubramani]

Common man’s expectations from Budget 2014 - THE ECONOMIC TIMES

It is Budget time again and the common man's expectations are running high from the newly-elected Modi government's maiden Budget, to be presented on July 10. After all, hit hard by high inflation and slow income growth in the last few years, the middle and lower income groups have struggled to make their both ends meet, leave alone saving. This has also led to a fall in the household savings rate.


"The common man will, therefore, expect the Budget to widen tax slabs and reduce tax rates, launch new tax savings schemes and bring in other short and long haul initiatives aimed at making life easier for him. Time is ripe for steps to alleviate their suffering to some extent. However, considering the fiscal situation, not much relief can be expected in terms of subsidies or tax reliefs," says Anil Chopra, group CEO & director, Bajaj Capital Ltd.

Still, some of the expectations the ..

Read more at: Common man?s expectations from Budget 2014 - The Economic Times

 

[tbs]

hi

the simple reason for corruption.....politicians investing money for election....he has get back his returns as much as possible

within five years....students paying donation/capitation fee...he has get back as much as possible after his studies.....

police/govt staff has to pay for good postings/promotions....they have to pay extra amount from their choice postings....

he has to get back his payment with maximum returns other than salary....so these things very common economical theory...

like simple theory....SUPPLY AND DEMAND....supply more ..demand less...then less corruption....supply less more demands...

then more corruptions...we have 2 real examples in india....1 railway reservations.....2 land line telephones....once upon a time these

were supreme premiums...now nobody cares...nobody pays extra to the govt babus....

 

[V.Balasubramani]

High expectations from Jaitley’s maiden Budget - The HIndu

Amid high expectations from the middle class and industry, Union Finance Minister Arun Jaitley present’s his maiden budget on Thursday that may contain tax sops for the salaried, dumping of the controversial retrospective tax and spelling out of steps to revive investment and manufacturing for growth.

There are high hopes that the budget for 2014-15 to be presented in Parliament may actually not tinker with the threshold limit or the other tax slabs but could provide reliefs by incentivising savings.

For boosting investment, Mr. Jaitley is expected to announce tax incentives for industry. As a prelude, the government has already extended the excise duty concessions for automobile and consumer durable sectors till December.

The Finance Minister is also expected to take a call on reducing duties on gold import, which were raised last year to check ballooning current account deficit.

He could also provide relief to farmers to help them tide over the impact of deficient monsoon which could lead to fall in agricultural output. The government may set up a price stabilisation fund, as promised in the BJP’s manifesto.

The new minister may also outline the road map for roll out of the Good and Services Tax (GST) but it was not clear what will be his approach on the Direct Taxes Code (DTC) about which the Economic Survey makes a mention on Wednesday.

In a bid to restore investor confidence, both domestic and foreign, Mr. Jaitley may announce scrapping of the provision of retrospective taxing of corporate mergers and acquisitions, a legacy of the UPA that was blamed on putting off foreign investors.


Read more at: High expectations from Jaitley?s maiden Budget - The Hindu

 

[vgane]

Income tax exemption limit hiked from Rs 2 lakh to Rs 2.5 lakh

New tax slabs:

Upto 2.5 lakh - NIL;

Above 2.5-5 lakh - 10%;

Rs 5-10 lakh - 20%;

Above Rs 10 lakh - 30% ;

SrCitizen: Above 60(Upto 3lakh)/Above 80(Upto Rs 5 lakh)-NIL

This is a good one..Also under 80c, deduction allowed up to Rs 1.5 Lacs which was 1 Lac earlier..Also Interest on housing loan allowed up to Rs 2 lac which was Rs 1.5 Lac earlier..So FM trying to put some money in the hands of tax payer...But may be he will take away this additional money citing bitter pil to reduce fiscal deficit by removing subsidy for gas cylinder/higher Inflation

 

[CHANDRU1849]

BUDGET 2014-15

For Senior Citizens, the tax exemption limit has been increased to Rs.3 lakh, and for others it is Rs.2.5 lakh.
PFF investment is increased to Rs.1.5 lakh.
80-c deduction is increased to Rs.1.5 lakh.

 

[V.Balasubramani]

Budget Highlights - THE NEWS TODAY

For women The Union Minister announced gender sensitisation to be part of school curriculum. For the safety and security of women, he announced 'Beti Bachao, Beti Padhao Yojana' and Rs 100 crores set aside for the purpose.
Break & Back

In an unusual situation, the presentation of the Union Budget for 2014-15 was halted in Lok Sabha for five minutes after Finance Minister Arun Jaitley sought a break. Acceding to the Minister's request, Speaker Sumitra Mahajan gave a five-minute break as he appeared feeling exhausted after a 40-minute fast-paced speech. When the House reassembled, the Speaker said the break was given since he felt slightly unwell. She then allowed him to resume the budget presentation while being seated. Lok Sabha sources said the 61-year-old Minister also felt back pain and was once seen leaning on the lectern. Cheer for TN

In his Budget speech, Jaitley announced allocating a sum of Rs 200 cr for six more textile clusters in the country including one in Tamilnadu. Besides he stated that a sum oif Rs 500 crore will be earmarked for solar power development project in the State.

5 more IIMs, IITs to come up
Union Finance Minister Arun Jaitley said that five new IITs and IIMs will be set up across the country. '...I also intend to set up five more IITs (Indian Institutes of Technology) in Jammu, Chhattisgarh, Goa, Andhra Pradesh and Kerala,' Jaitley said while presenting the budget for 2014-15.


Read more at: Budget Highlights | News Today

 

[prasad1]

Indians balk at $33 million statue in new budget
Associated Press By MUNEEZA NAQVI
In a country grappling with poverty, sluggish growth and a daunting deficit, India's new budget has set aside 2 billion rupees ($33 million) for a colossal iron-and-bronze statue almost twice the size of the Statue of Liberty.

The plans in Thursday's budget for a 182-meter (nearly 600 feet)-tall replica of Indian independence leader Vallabhbhai Patel caused an outcry, with many people saying the country has far more urgent priorities.

"How can they waste money on statue like that?" asked Rohtash, a vegetable vendor in the Indian capital who goes by one name. "The government could have used that money to reduce the price of rice. That would have been some help for poor people like us."

It was the first budget of a new government elected on promises to revive stalled economic growth.

Others lamented how the budget earmarks more money for the Patel statue than for women's safety nationwide, which got 1.5 billion rupees ($25 million), or the education of young girls at 1 billion rupees ($16.5 million).

The move was criticized strongly on social media, with one sarcastic Twitter user saying: "Truly #budget2014 has something for everyone, even Sardar Patel." The move was rated "most disliked" on the website of NDTV news channel, and the Times of India newspaper started a Twitter poll asking if the statue is a "wasteful expenditure."

The statue, which Indian officials say will be the tallest in the world, will stand on an island in the Narmada River in western Gujarat state, where Prime Minister Narendra Modi was chief minister for more than a decade. The project was originally meant to be financed by the local government and donations of iron and cash from across the country.

 

[prasad1]

Arun Jaitley's penchant for Rs 100 crore:

The Union Budget is normally associated with huge sums and one expects to read and hear about lakhs of crores — not lakhs and crores — when it comes to allocation of funds for different schemes. But finance minister Arun Jaitley's Budget has been different. It seems Jaitley has a penchant for the Rs 100 crore figure. In his speech, the finance minister announced as many as 29 schemes which have been granted Rs 100 crore each.
Arun Jaitley's penchant for Rs 100 crore - The Times of India

 

[prasad1]

Jaitley allocates Rs 33,364 crore for MNREGA
The UPA's flagship programme MNREGA was on Thursday allocated Rs 33,364 crore, with Narendra Modi government expressing commitment to carrying it forward, ignoring suggestions including from within for scrapping it.


The amount is same as allocated in last financial year during the Manmohan Singh government. In his budget speech, finance minister Arun Jaitley said, "The government is committed to providing wage and self-employment opportunities in rural areas".

The government proposed to extend the provision of bank loan for women Self Help Groups at 4 per cent in another 100 districts under Ajeevika, the National Rural Livelihood Mission (NRLM). Currently under this mission, Women SHGs are provided bank loans at 4 per cent on prompt repayment in 150 districts and at 7 per cent in all other districts. The programme is aimed at eliminating rural poverty through sustainable livelihood options.