Budget 2014: Is it the beginning of de-Nehru-fication of government?

Arun Jaitley’s budget looks set to start the de-Nehru-fication of government schemes. Thus new schemes will be named after BJP and non-Congress icons - Sardar Patel, Madan Mohan Malaviya (of Benares Hindu University fame), Deendayal Upadhyaya (one of the leading lights of the Jana Sangh) and Loknayak Jayaprakash Narayan (godfather of the first non-Congress government at the centre in 1997). We have seen last of Nehru-Gandhi schemes at least for the next five years.

Finance minister Jaitley seemed to be in populist mode - announcing various small state-level schemes. Expect more AIIMS medical centres with the ultimate goal to reach all states. Five more IITs and five more IIMs are also on the cards. Rs 4,000 crore for urban poor housing will be routed through the National Housing Bank. Additionally, slum development will be part of corporate CSR activities - mandated at 2 percent of profits under new Companies Act.

So far there are too many small allocations for diverse schemes covering the poor, farmers, marginalised sections, etc, but none looks like having a major impact.

Here are some of the budget highlights so far:

- Plans to make food and petroleum subsidies more targeted
- Aims for sustained growth of 7-8 percent in the next three-four years
- Aims to approve goods and services tax by the end of this year
- Will not change rules on retrospective taxation and proposes changes in transfer pricing mechanism
- Raises limit on FDI in defence sector to 49 percent
- Raises composite FDI cap in insurance sector to 49 percent
- Earmarks Rs 7,060 crore to create 100 “smart cities”
- Rs 1,000 crore for irrigation scheme
- Earmarks Rs 200 crore for Sardar Patel Statue in Gujarat
- Allocates Rs 100 crore for Metro projects in Lucknow and Ahmedabad
- Government will retain majority stake in PSU banks
- Fiscal deficit target for FY16 put at 3.6 percent; for FY17 at 3 percent.
- FM announces Rs 100 crore for modernisation of madrasas
- Rs 100 crores for agri-infra fund
- EPFO will launch a unified account scheme for portability of Provident Fund accounts
- FM allocates Rs 500 crore for establishing price stabilisation fund