The Union budget for 2014 presented by Finance minister Mr.

Arun Jaitley is a remainder of 1980's
budget which was more like a mixed bag. Though the budget focused on most of the key issues affecting
the economy, there was a lack of detailed information addressing how various schemes and reforms
would be implemented. The markets appeared confused about what to make of the Budget. A bout of
volatility was witnessed as key benchmark indices regained positive terrain after slipping into the red for
a brief period after opening higher. The barometer index, the S&P BSE Sensex, was up by 70.15 points or
0.27%, up from the day's low and off close to 30 points from the day's high. The market breadth
indicating the overall health of the market was negative. On BSE, 760 shares declined and 621 shares
rose. A total of 46 shares were unchanged. The proposal of increasing FDI in defense from 26% to 49%
will harm our National security. All the defense manufacturing companies in India will come under the
control of foreign multi-national companies, which are in turn controlled by the big powers. Earlier India
was following an independent foreign policy where the defense companies avoided joining any of the
military blocks of other important countries even though we are friendly with almost all the important
countries. Though there is a boost for agriculture sector with Government oriented schemes but in a
longer run, schemes like the Pradhanmantri Krishi Sinchai Yojana to improve irrigation facilities which is
the revival of the river linking project will be a dangerous move which may lead to environmental
disaster and schemes like NREGA will created distortions in the farm sector by pushing up agricultural
wages which have a cascading effect on production. Due to a lack of clarity on returns and input cost
compensation, no new green field urea manufacturing plant has been built in India recently. The
Provisions regarding soil card to each farmer, new Urea Policy, Kisan TV channel, National Rural Internet
& Technology Mission and the Agri-Infrastructure Fund will help in developing a scientific approach in
agriculture and water sector. The earlier decision to continue the excise duty concession till December
2014 along with the reduction in steel prices and elimination of customs duty on auto components
certainly suited the automobile sector. The new reforms of 2014 will provide a robust and streamlined
indirect taxation structure which will bring in confidence to customers in order to spend more owing to
the taming of prices.

Dr. Oshma Pinto
Middle Class Wins The Big Match (Direct Tax) -
The first Budget of the New Government marks a good beginning from the point of development and
growth of Indian economy. The targets for the present year are a growth rate of 5.4 to 5.9 percent
with the fiscal deficit being capped at 4.1 percent. FM has given some relief to middle class family like:
Basic tax exemption limit raised by Rs. 50,000 to Rs 2.5 lakh, and Rs 3 lakh for senior citizens (above
60 years). No changes made in corporate and other tax rates. Limits under section 80C investments
raised to Rs 1.5 lakh from the present Rs. 1 lakh, as also the maximum ceiling in PPF deposit raised to
Rs. 1.5 lakhs. Deduction for payment of interest on housing loan for self-occupied property raised to
Rs 2 lakh in view of high cost of borrowings. This budget charged Minimum Tax; attempted to
maximize earning through saving therefore middle class family feels happy with this budget-2014.
But, Indian Finance Minister having big challenge to procure 22,200 crore deficit from direct tax
revenue, FM has budgeted for gross tax revenue to increase by 19% to Rs. 13.65 lakh crore against a
12 percent growth achieved in FY 14. This target may be hard to achieve if, growth does not revive.

ANNUAL BUDGET 2014-15 (Indirect tax) -
There are no changes in customs, excise and service tax rates. While the coverage of service tax levy is
extended to online and mobile advertisement space and radio taxis to be covered under service tax.
The Computers, laptops, electronics items, LCD, LED TVs less than 19 inch, domestic made mobile
phones, footwears, sports gloves etc. are made cheaper while the imported electronic items,
readymade garments, pan masala, tobacco, cigarettes and gutkha are made costlier.

Prof. Sandeep Goundgawe
The Union Finance Minister Arun Jaitley presented the first Budget of the NDA government to lay a
progressive roadmap on fiscal consolidation and rational approach to policies for taxation, government
spending and growth. Few sector specific announcements have been made for reviving the investment
cycle and overall growth of the economy. Infrastructure, Real estate and Finance sectors were amongst
the biggest winners, with measures to improve funding availability to infrastructure. The major focus of
the budget is in reviving the infrastructure sector by extending the 80 IA tax benefit by three years,
government has provided tax incentive for investment in the sector. Banks will also allow them to avail
long term deposits and provide investment in this sector to avail SLR and CRR exemption. Setting up of
new ports results in increase in associated infrastructure like roads and rails apart from being an
important hub of development. The finance minister has also extended the incentive scheme for
manufacturing companies by allowing investment allowance of 15% for three years for those players
who invest over Rs 25 crore in plant and machinery. The consumers sector, both durable and non-
durable sector, has been provided a major concern in this budget. Higher tax exemptions would leave
more money in the hands of the buyers for purchases. Import duties on computers, TV sets and raw
material for soaps have been reduced. The intention clearly is to increase demand of these goods. The
footwear sector will also benefit from a reduction in duty. Retailers and FMCG sector is expected to gain
from a reduction in excise duty on food processing and packaging machine. This budget has set a task to
maintain FY15 fiscal deficit target at 4.1 per cent and announced several measures to enthuse foreign
institutional investors. The government has increased FDI in insurance up to 49 per cent from 26
percent. It would enable many promoters of Indian companies to sell their shares as well as infuse new.
This budget provisions will enhance both financial and physical access of healthcare for the country.FDI
in health insurance to 49 per cent will help increase the financial accessibility of population. The finance
minister also has provided an outlay of Rs Rs 150 crore for the safety of women in larger cities. This
budget has allocated Rs 100 crore for 'Beti Bachao, beti padhav yojana', a scheme to protect the girl
child and her future. One of the biggest disappointments of the budget is that there is still some
uncertainty on retrospective tax. Price rise is the most important factor that is putting a drag on all
fronts of the economy. It is also surprising that the Finance Minister did not announce any concrete
measures to tackle food inflation. So according to me out of ten, I will give six to this budget.
Prof. Mrinal Savyanavar