When the new Government came to power around three months ago, it faced various challenges on economic front. The economic growth was showing a downward trend, the inflation was alarmingly high, unemployment rate was worrisome and corruption was touching new heights.

The new government took various steps for boosting growth, controlling inflation and curbing corruption among other measures. The Union Budget 2014 was its first path breaking effort to tackle all these issues upfront. Now all these efforts have started showing results:

GDP growth is showing early signs of recovery. In FY14 India’s economy grew at 4.7 per cent. As per the Central Statistics Office (CSO) data released yesterday Quarterly GDP at factor cost at constant (2004-2005) prices for Q1 of 2014-15 is estimated at ₹ 14.38 lakh crore, as against ₹ 13.61 lakh crore in Q1 of 2013-14, showing a growth rate of 5.7 per cent over the corresponding quarter of previous year.

The economic activities which registered significant growth in Q1 of 2014-15 over Q1 of 2013-14 are ‘electricity, gas & water supply’ at 10.2 per cent, ‘financing, insurance, real estate and business services’ at 10.4 per cent and ‘community, social and personal services’ at 9.1 per cent. The estimated growth rates in other economic activities are: 4.8 per cent in ‘construction’, 3.5 per cent in ‘manufacturing’, 2.8 per cent in ‘trade, hotels, transport and communication’, 3.8 per cent in ‘agriculture, forestry & fishing’, and 2.1 per cent in ‘mining & quarrying’ during this period.

• GDP growth is one of early signs of economic recovery. In FY 14, India’s economy grew at 4.7 per cent. We expect the economy to grow at 5.7-5.9% during the current FY and in 2-3 years time reclaim the high growth rate of 7%.
• Headline WPI Inflation after remaining persistent  around 7-9 per cent during 2011-13 is showing signs of moderation and has come down to 5.19% in July, 2014.
• Consumer Price Index has fallen from the levels of 8.6% in April, 2014 to 7.96% in July, 2014.
• On account of restored business confidence and improved order book, manufacturing is showing signs of rebound and HSBC PMI has risen to 53 in July, 2014 from 51.5 in June, 2014.
• Due to concessions in Excise duty, Passenger Vehicles sales have grown for the third month in a row, growing by 7.1% Year to Year in July, 2014.
• Growth of 23% in the Capital goods production IS. a healthy indicator of recovery.
• India`s annual infrastructure sector growth ( eight core sector) hit a nine-month high of 7.3 per cent in June, led by a surge in cement and electricity output.Due to increased foreign flows India’s Foreign Exchange Reserves have seen a surge and as in July end were USD 320.6 billion. This is USD 43.4 billion higher than a year ago.
• Despite less than satisfactory Monsoon, food stock in Central pool is comfortable at nearly 62 million tones.
• For ensuring macroeconomic stability Current Account Deficit will be contained within 2% and Fiscal deficit within 4.1% of GDP during CFY.

In the first Budget of this Government certain steps which are only the beginning of a journey towards a sustained growth of 7-8 per cent within the next 2-3 years were outlined.

The Government is committed to the principle of “Minimum Government Maximum Governance”. In the budget it was committed to constitute an Expenditure Management Commission, which will look into various aspects of expenditure reforms including rationalisation of subsidies, to be undertaken by the Government.Since then the Commission has been constituted with the noted economist and Ex-Governor of RBI, Dr. Bimal Jalan heading it.

Besides above, the Government has already expressed through the Budget 2014-15 its intent to fulfil the promises made to the electorate.

The Annexure covers:

• Some of the key promises made to the electorate and achievements made in that regard.
• Pro Poor and Pro Business measures in the Budget 2014-15.
• Structural Reforms Announced in the General Budget 2014-15.

Annexure

Some of the key promises made to the electorate and achievements made in that regard:

1.      Tackling price rise and corruption:

• Price Stabilization fund set up with an initial amount of ₹ 500 crore.
• Special Investigation team set up on Black money. Measure appreciated by SC.
• Dehoarding measures taken by the Government in consultation with States.
• Inflation has been contained within reasonable limits despite vagaries of weather.
• Measure taken to improve the supply side deficiencies through improving productivity such as soil health card, adaptation fund to mitigate risks of climate change and enhanced agricultural credit. Initial allocations of ₹ 100 crores have been made for the Mission for Soil health card and for National Adaptation Fund.
• Additional allocation of 50 lakh tonnes of Rice to BPL and APL families in the States and UTs for period upto March, 2015.
• Allocation of Wheat under Open market for stabilizing cereal prices.
• Committee set up to review the economic cost of the food grains payable to FCI.

2.      Widening the platform through empowerment, creation of opportunities through job creation, bridging infrastructure deficits and skill upgradation.

• Allocation for rural roads (Rs14,389 crore) , national highways (Rs 37,880 crore) and Railways(Rs 30,100 crore) enhanced in the Budget.
• Expansion of telecom network in NE and LWE areas.
• Digital India for improved access. An initial allocation of ₹ 500 crore.
• Initial allocations done for skill development and rural entrepreneurship programme(Rs 100 crore);
• Amendments’ to Apprenticeship Act proposed.

3.      Improving decision making.

• Abolition of system of GOMs and EGoM.
• Convergence of objectives within Ministries/Departments for greater focus.
• Multiple layers in decision making to be pruned.
• Revision in the delegation of powers for appraisal and approval of projects/schemes to the administrative Ministries in final stages of approval.

4.      Improved programme delivery.

• Convergence in the programme objectives for improved delivery.
• Targeting of benefits to be improved through use of DBT or AADHAR card.
• Expenditure management commission set up for making recommendation for improvement in programme delivery.

5.      Strengthening federal polity.

• Royalty on natural resources enhanced.
• Waiver of interest due to FCI on outstanding dues of State of J&K.
• NER power system improvement project appraised and approved.

6.      E-Governance as a vehicle for improving governance.

• Digital India programme approved for improved governance.
• IT based single window platform “e-BIZ” for providing single window clearance for business.
• IT based education tools to be widely used in Government programmes.
• Initial steps of creation of manpower infrastructure for e-VISA done.
• Updating of National register of citizens under NPR in Assam approved by FM.

7.      Institutional reform.

• For bringing in reforms in judicial selection process Constitutional amendment passed by Parliament;
• Planning Commission to be replaced by a new body.
• Expenditure management Commission set up.

8.      Increase in farmers income;

• Enhanced agricultural credit to ₹ 8 lakh crore.
• Steps to reduce variability on farm produce such as PMKSY. An initial allocation of ₹ 1000 crore made, Programme has been devised and necessary appraisal is being done.
• Institutional finance to 5 lakh joint farming groups of “BhoomiHeenKisan”.

9.      Making India a global manufacturing hub on the principle of “Make in India.

• Tax incentives on both direct and indirect side extended to business.
• Tax regime made more predictable and investor friendly through improved system of advanced ruling and dispute settlement.
• Expanding the scope of definition of MSME.

10.  Equal opportunities for disadvantaged;

• Van bandhukalyanyojana for tribals. Initial sum of ₹ 100 crore.
• Scheme for Madarasa modernization. Initial sum of ₹ 100 crore.
• Specific measures for women empowerment such as BetiBachaoBetiPadhao, small savings scheme for girl child and protection of women in distress.
• One stop centre for women affected by violence- Nirbhaya Centre appraised for final approval.

11.  Meet aspirations of the neo-middle class.

• Increase in Income Tax Act 80C benefit from ₹ 1 lakh to ₹ 1.5 lakh.
• Exemption limit raised by ₹ 50000 from ₹ 2 lakh to ₹ 2.5 lakh.
• Exemption limit raised for Senior Citizens from ₹ 2.5 lakh to 3 lakh.
• Plan to set up 100 smart cities and improvement in facilities in the existing urban areas.
• FDI conditions relaxed for development of housing. Requirement of built up area reduced from 50000 sq meter to 20000 sq meter.
• For improved housing Incentives for Real Estate Investment Trusts (REITS). Complete pass through for the purpose of taxation.
• For passenger facilitation, free baggage allowance increased from ₹ 35,000 to ₹ 45,000.

12.  Extending urban facilities in Rural areas.

• Shyama Prasad Mukherjee RURBAN Mission announced.

13.  Improving Urban centres.

• New Metro’s in Ahmadabad,  Lucknow and Nagpur.
• 100 smart cities programme.
• Through ‘Swacch Bharat’ sanitation to be improved.
• 500 urban habitations to be provided support for infrastructure and services renewal through PPP in next 10 years.

14.  Revitalizing education in India.

• Improvement in teachers quality through a teachers training programme. An initial allocation of ₹ 500 crore for “Madan Mohan Malviya New Teachers Training programme”.
• Simplification of norms for higher education loans.
• School Assessment Programme launched with an initial amount of ₹ 30 crore.

15.  Improving sanitation.

• Action points decided under Swacch Bharat Abhiyaan .
• These include provision of integrated toilet component in relevant programmes, convergence of all existing related programme, CSR and other sources of funding to supplement efforts and intensive awareness programme.

16.  River and Water conservation.

• NamamiGange programme launched with an initial allocation of ₹ 2037 crore to clean Ganga.
• Administrative restructuring for expeditious results in the area of water resources conservation;
• DPR for linking of Rivers and Ghat works

17.  Ensuring diversity in energy mix for hedging risks arising out of over dependence on one source.

• Encouragement to renewable sources of energy such as Wind and Solar.
•  Green energy corridor to be developed.

Budget contains and outlines intent to carry out many of the reforms indicated above. Apart from Budget Government has undertaken other reforms as well. It may be recalled that decision to set up a Special Investigation Team on Black money was set up in the 1st Cabinet meeting. Similarly, amendment to judicial selection process as part of institutional reforms or streamlining of administrative structures is not a part of the Budget.

Pro Poor and Pro Business measures in the Budget

General Budget 2014-15 fully respects the promises made by the new the Government especially to the poor people. The Government sees relation between pro business and pro poor measures as one of complementarity and not of conflict. Necessary financing required for welfare measures for the poor can only be obtained through a wider resource base derived from a vibrant business environment. Promises made by the Government and steps taken in the Budget have to be seen in this light. For the welfare of poor various measures have been taken by the Government in the Budget, major among which are.

Pro poor measures

• The subsidy regime to be made more targeted for full protection to the marginalized, poor and SC/ST. Expenditure Management Commission constituted by the Government  to look into these issues and make its interim recommendation before end of the FY.
• Time bound programme as Financial Inclusion Mission to be launched on 15 August this year with focus on the weaker sections of the society.
• Income Tax exemption ceiling enhanced to ₹ 2.5 lakh from ₹ 2 lakh.
• Limit under 80 C of Income Tax Act enhanced to ₹ 1.5 lakh from 1 lakh.
• Investment limit in PPF enhanced to 1.5 lakh and other Small savings instruments such as KVP to be reintroduced.
• More productive, asset creating and with linkages to agriculture and allied activities wage employment would to be provided under MGNREGA.
• For improving road connectivity in rural areas allocation of ₹ 14389 crore made under PMGSY.
• Allocation for National Housing Bank increased to ₹ 8000 crore to support Rural housing.
• Employment exchanges to be transformed into career centers. A sum of ₹ 100 crore provided.
• “Start Up Village Entrepreneurship Programme” for encouraging rural youth to take up local entrepreneurship programs.
• Under Ajeevika, the provision of bank loan for women SHGs at 4% extended to another 100 districts.
• For the welfare of the tribals “Van BandhuKalyanYojna” launched.
• Varishtha Pension BimaYojana (VPBY) revived for a limited period from 15 August, 2014 to 14 August, 2015 for the benefit of citizens aged 60 years and above. This was there under previous NDA Government.
• Provisions made for enhanced benefits to the EPF scheme and a Universal account number for contributing members.
• For visually challenged currency notes with Braille design and scheme for assistance to disabled persons for purchase of aids and appliances.
• Measures for safety of women on Public transport system and ‘Crisis management centers’ for women in distress.
• Programme for improving access of the poor to clean drinking water and sanitation.
• Improved irrigation facilities through ‘Pradhan Mantri Krishi Sinchaee Yojana’.
• Betibachao, BetiPadhao campaign and special small savings instrument for the girl child.
• Free drug and diagnosis services for all.
• Improvement in access to medical facilities and super specialty treatment by enhancing medical infrastructure through opening of new AIIMS like institutions.
• National programme in Mission Mode to halt the deteriorating malnutrition situation in India.
• Enhanced allocation under SSA programme for universal education.
• A new programme for improving the quality of teachers for bridging the teaching gaps.
• Toilets in all the schools for girl child.
• To bridge the gap between digital haves and have not’s a programme on Digital India.
• Kisan TV for bridging the Information gaps of farmers.
• Mission on Low Cost Affordable Housing anchored in the National Housing Bank to be set up.
•  A sum of ₹ 4000 crores for NHB from the priority sector lending shortfall with a view to increase the flow of cheaper credit for affordable housing to the urban poor/EWS/LIG segment is provided
• Slum development to be included in the list of Corporate Social Responsibility (CSR) activities to encourage the private sector to contribute more.
• Poor are most vulnerable to effects of Climate change. A National adaptation fund set up.
• Price Stabilization Fund to cushion the poor from the impact of inflation.
• To provide institutional finance to landless farmers, it is proposed to provide finance to 5 lakh joint farming groups of “BhoomiHeenKisan” through NABARD.
• Sum of ₹ 200 crore for NABARD’s Producers Development and Upliftment Corpus (PRODUCE) for building 2,000 producers organizations over the next two years.
• Skill India to be launched to skill the youth with an emphasis on employability and entrepreneur skills.

Pro-Business Measures

• Sovereign right of the Government to undertake retrospective legislation to be exercised with extreme caution and judiciousness keeping in mind the impact of each suchmeasure on the economy and the overall investment climate.
•  A stable and predictable taxation regime which will be investor friendly and spur growth.
• Legislative and administrative changes to sort out pending tax demands of more than ₹ 4 lakh crore under dispute and litigation.
• Resident tax payers enabled to obtain on advance ruling in respect of their income-tax liability above a defined threshold.
• Measures for strengthening the Authority for Advance Rulings.
• Convergence with International Financial Reporting Standard (IFRS) by Adoption of the new Indian Accounting Standards (2nd AS) by Indian Companies.
• Government to promote FDI selectively in sectors.
• The composite cap of foreign investment to be raised to 49 per cent with full Indian management and control through the FIPB route.
• The composite cap in the insurance sector to be increased up to 49 per cent from 26 per cent with full Indian management and control through the FIPB route.
• Requirement of the built up area and capital conditions for FDI reduced from 50,000 square meters to 20,000 square meters and from USD 10 million to USD 5 million respectively for development of smart cities.
• The manufacturing units to be allowed to sell its products through retail including E-commerce platforms.
• Incentives for Real Estate Investment Trusts (REITS). Complete pass through for the purpose of taxation.
• A modified REITS type structure for infrastructure projects as the Infrastructure Investment Trusts (INVITS).
• Central Government Departments and Ministries to integrate their services with the e-Biz -a single window IT platform- for services on priority by 31 December this year.
• ₹ 100 crore provided for setting up a National Industrial Corridor Authority.
• Amritsar Kolkata Industrial master planning to be completed expeditiously.
• Master planning of 3 new smart cities in the Chennai-Bengaluru Industrial Corridor region, viz., Ponneri in Tamil Nadu, Krishnapatnam in Andhra Pradesh and Tumkur in Karnataka to be completed.
• Perspective plan for the Bengaluru Mumbai Economic corridor (BMEC) and Vizag-Chennai corridor to be completed with the provision for 20 new industrial clusters.
• Development of industrial corridors with emphasis on Smart Cities linked to transport connectivity to spur growth in manufacturing and urbanization will be accelerated.
• Apprenticeship Act to be suitably amended to make it more responsive to industry and youth.
• Definition of MSME to be reviewed to provide for a higher capital ceiling.
• Committee to examine the financial architecture for MSME Sector, remove bottlenecks and create new rules and structures to be set up and give concrete suggestions in three months.    
• Entrepreneur friendly legal bankruptcy framework will be developed for SMEs to enable easy exit.
• An institution to provide support to mainstreaming PPPPs called 4PIndia to be set up with a corpus of ₹ 500 crores.
• Comprehensive measures for enhancing domestic coal production are being put in place.
• Adequate quantity of coal will be provided to power plants which are already commissioned or would be commissioned by March 2015.
• An exercise to rationalize coal linkages to optimize transport of coal and reduce cost of power is underway.
• Introduction of uniform KYC norms and inter-usability of the KYC records across the entire financial sector.
• Introduce one single operating demat account.
• Uniform tax treatment for pension fund and mutual fund linked retirement plan.
• Investment allowance at the rate of 15 percent to a manufacturing company that invests more than ₹ 25 crore in any year in new plant and machinery. The benefit to be available for three years i.e. for investments up to 31.03.2017.
• Investment linked deduction extended to two new sectors, namely, slurry pipelines for the transportation of iron ore, and semi-conductor wafer fabrication manufacturing units.
• 10 year tax holiday extended to the undertakings which begin generation, distribution and transmission of power by 31.03.2017.
• Income arising to foreign portfolio investors from transaction in securities to be treated as capital gains.
• Concessional rate of 15 percent on foreign dividends without any sunset date to be continued.
• Banks to be encouraged to extend long term loans to infrastructure sector with flexible structuring.
• Banks to  be permitted  to  raise  long  term  funds  for  lending  to infrastructure  sector with minimum regulatory pre-emption such as CRR, SLR and Priority Sector Lending (PSL).
• Bill to increase the FDI limit in insurance sector introduced in Parliament.
• Introduction of a “Roll Back” provision in the Advanced Pricing Agreement (APA) scheme so that an APA entered into for future transactions is also applicable to international transactions undertaken in previous four years in specified circumstances.
• Introduction of range concept for determination of arm’s length price in transfer pricing regulations.
• To allow use of multiple year data for comparability analysis under transfer pricing regulations.
• 60 more AyakarSevaKendras to be opened during the current financial year to promote excellence in service delivery.
• To encourage new investment and capacity addition in the chemicals and petrochemicals sector, basic customs duty reduced on certain items.
• To boost domestic manufacture and to address the issue of inverted duties, basic customs duty (BCD) reduced on certain items.
• Colour picture tubes exempted from basic customs duty to make cathode ray TVs cheaper and more affordable to weaker sections.
• To encourage production of LCD and LED TVs below 19 inches in India, basic customs duty on LCD and LED TV panels of below 19 inches reduced from 10 percent to Nil.
• To give an impetus to the stainless steel industry, increase in basic customs duty on imported flat-rolled products of stainless steel from 5 percent to 7.5 percent.
• Concessional basic customs duty of 5 percent extended to machinery and equipment required for setting up of a project for solar energy production.
• Specified inputs for use in the manufacture of EVA sheets and back sheets and flat copper wire for the manufacture of PV ribbons exempted from basic customs duty.
• Reduction in basic customs duty from 10 percent to 5 percent on forged steel rings used in the manufacture of bearings of wind operated electricity generators. Exemption from  SAD of 4 percent on parts and raw materials required for the manufacture of wind operated generators.
• Concessional basic customs duty of 5 percent on machinery and equipment required for setting up of compressed biogas plants (Bio-CNG).
• Anthracite coal, bituminous coal, coking coal, steam coal and other coal to attract 2.5 per cent basic customs duty and 2 per cent CVD to eliminate all assessment disputes and transaction costs associated with testing of various parameters of coal.
• Basic customs duty on metallurgical coke increased from Nil to 2.5 percent in line with the duty on coking coal.
• Duty on ship breaking scrap and melting scrap of iron or steel rationalized by reducing the basic customs duty on ships imported for breaking up from 5 percent to 2.5 percent.
• To prevent misuse and avoid assessment disputes, basic customs duty on semi-processed, half cut or broken diamonds, cut and polished diamonds and coloured gemstones rationalized at 2.5 percent.
• To encourage exports, pre-forms of precious and semi-precious stones exempted from basic customs duty.
• Duty free entitlement for import of trimmings, embellishments and other specified items increased from 3 percent to 5 percent of the value of their export, for readymade garments.
• To incentivize expansion of processing capacity, reduction in excise duty on specified food processing and packaging machinery from 10 percent to 6 percent.
• Reduction in the excise duty from 12 percent to 6 percent on footwear of retail price exceeding ₹ 500 per pair but not exceeding ₹ 1,000 per pair.
• To develop renewable energy, various items exempted from excise duty.
• Exemption to PSF and PFY manufactured from plastic waste and scrap including PET bottles from excise duty with effect from 29th June, 2010 to 7th May, 2012.
• Prospective levy of a nominal duty of 2 percent without Cenvat benefit and 6 percent with Cenvat benefit on such PSF and PFY.
• Concessional excise duty of 2 percent without Cenvat benefit and 6 percent with Cenvat benefit on sports gloves.
• Steps taken to boost domestic production of electronic items and reduce our dependence on imports.  These include imposition of basic customs duty on certain items falling outside the purview of IT Agreement, exemption from SAD on inputs/components for PC manufacturing, imposition of education cess on imported electronic products for parity etc.
• Provision of services rules to be amended and tax incidence to be reduced on transport of goods through coastal vessels to promote Indian Shipping Industry.
• Service tax exempted on loading, unloading, storage, warehousing and transportation of cotton, whether ginned or baled.
• 24X7 customs clearance facility extended to 13 more airports in respect of all export goods and to 14 more sea ports in respect of specified import and export goods to facilitate cargo clearance.
•  ‘Indian Customs Single Window Project’ to facilitate trade, to be implemented.

Structural Reforms Announced in the General Budget 2014-15

4.1 per cent fiscal deficit a daunting task in the backdrop of two years of low GDP growth, static industrial growth, and moderate increase in indirect taxes, subsidy burden and not so encouraging tax buoyancy. The government is committed to achieve this target.  Road map for fiscal consolidation outlines fiscal deficit of 3.6 % for 2015-16 and 3 % for 2016-17.Bold steps required to enhance economic activities and spur growth in the economy.  To achieve this various structural reform initiatives were announced in the General Budget 2014-15, summarized as below:

• The subsidy regime to be made more targeted for full protection to the marginalized, poor and SC/ST.
• Introduction of GST to be given thrust.
• Setting up of Expenditure Management Commission to look into expenditure reforms.
• Government to promote FDI selectively in sectors.
• Requirement of the built up area and capital conditions for FDI to be reduced from 50,000 square meters to 20,000 square meters and from USD 10 million to USD 5 million respectively for development of smart cities.
• Incentives for Real Estate Investment Trusts (REITS). Complete pass through for the purpose of taxation. A modified REITS type structure for infrastructure projects as the Infrastructure Investment Trusts (INVITS).These two instruments to attract long term finance from foreign and domestic sources including the NRIs.
• More productive, asset creating and with linkages to agriculture and allied activities wage employment would to be provided under MGNREGA.
• Initial sum of ₹ 100 crore for “Start-up Village Entrepreneurship Programme” for encouraging rural youth to take up local entrepreneurship programs.
• “Swachh Bharat Abhiyan” to cover every household with sanitation facility by the year 2019.
• 15 Model Rural Health Research Centres to be set up for research on local health issues concerning rural population.
• Pan India programme “Digital India” to with an outlay of ₹ 500 crore to be launched.
• Restructuring FCI, reducing transportation and distribution losses and efficacy of PDS to be taken up on priority.
• ₹ 100 crore provided for setting up a National Industrial Corridor Authority.
• Central Government Departments and Ministries to integrate their services with the e-Biz -a single window IT platform- for services on priority by 31 December this year.
• A sum of ₹ 7060 crore is provided in the current fiscal for the project of developing “one hundred Smart Cities’.  Development of industrial corridors with emphasis on Smart Cities linked to transport connectivity to spur growth in manufacturing and urbanization will be accelerated.
• Definition of MSME to be reviewed to provide for a higher capital ceiling.
• Fund of Funds with a corpus of ₹ 10,000 crore for providing equity through venture capital funds, quasi equity, soft loans and other risk capital specially to encourage new startups by youth to be set up.
• Entrepreneur friendly legal bankruptcy framework will be developed for SMEs to enable easy exit.
•  A nationwide “District level Incubation and Accelerator Programme” to be taken up for incubation of new ideas and necessary support for accelerating entrepreneurship.
• An institution to provide support to mainstreaming PPPPs called 4PIndia to be set up with a corpus of ₹ 500 crores.
• A Green Energy Corridor Project is being implemented to facilitate evacuation of renewable energy across the country.
• Changes, if necessary, in the MMDR Act, 1957 to be introduced to encourage investment in mining sector and promote sustainable mining practices.
• Government in close consultation with the RBI to put in place a modern monetary policy framework.
• Uniform tax treatment for pension fund and mutual fund linked retirement plan.
• Banks to  be permitted  to  raise  long  term  funds  for  lending  to infrastructure  sector with minimum regulatory pre-emption such as CRR, SLR and Priority Sector Lending (PSL).
• RBI to create a framework for licensing small banks and other differentiated banks. Differentiated banks serving niche interests, local area banks, payment banks etc. are contemplated to meet credit and remittance needs of small businesses, unorganized sector, low income households, farmers and migrant work force.
• For venture capital in the MSME sector,  a ₹ 10,000 crore fund to act as  a catalyst to attract private Capital by way of providing equity , quasi equity, soft loans and other risk capital for start-up companies with suitable tax incentives to participating private funds to be established.
• ₹ 990 crore allocated for the socio economic development of the villages along the borders.
• Rs2037 crores provided for Integrated Ganga Conservation Mission “NAMAMI GANGE”.NRI Fund for Ganga will be set up.
• A “Young Leaders Programme” with an initial allocation of` 100 crore to be set up.
• Legislative and administrative changes to sort out pending tax demands of more than ₹ 4 lakh crore under dispute and litigation.
• Resident tax payers enabled to obtain on advance ruling in respect of their income-tax liability above a defined threshold.
• Measures for strengthening the Authority for Advance Rulings.
• Income-tax Settlement Commission scope to be enlarged.
• Introduction of a “Roll Back” provision in the Advanced Pricing Agreement (APA) scheme so that an APA entered into for future transactions is also applicable to international transactions undertaken in previous four years in specified circumstances.
• The scheme of Advance Ruling in indirect taxes to be expanded to cover resident private limited companies.  The scope of Settlement Commission to be enlarged to facilitate quick dispute resolution.