Interim Budget 2014-15 Presented Monday Feb 17,2014

Finance Minister P Chidambaram on Monday Feb 17,2014 presented the interim budget for the fiscal year 2014-15 to cover expenditure until the government's term ends in May 2014

Union Finance Minister P Chidambaram is seen with Ministers of State Namo Narain Meena and J.D. Seelam and his team members on the eve of interim budget presentation in New Delhi on Sunday Feb 16,2014

Finance Minister P. Chidambaram leaving for Parliament from North Block office to present Interim Budget, in New Delhi on Monday Feb 17,2014

"Our objectives were fiscal consolidation, reviving growth cycle, and enhancing manufacturing",Finance Minister P Chidambaram said, adding that the fortunes of India will have significant impact on world economy in the future

Finance Minister P. Chidambaram arrives with MoS Jesudasu Seelam (left) and Namo Narain Meena to present the Interim budget.

Finance Minister P Chidambaram said -

I rise to present the Interim Budget for 2014-15

Govt will curtail its 2013-14 fiscal deficit to 4.6 % of GDP, lower than the red line at 4.8 % he drew in the last budget. India's fiscal deficit will come down to 3 % of GDP by 2016-17

current account deficit for 2013/14 will come down to $45 billion and forex reserves will rise by $15 billion by end of 2013/14

Plan expenditure for the coming fiscal has been fixed at Rs 555,322 crore, unchanged from current year, and non-Plan expenditure at Rs 12,07,892 crore, marginally higher than 2013-14.

Food, fertilizer and fuel subsidy for 2014-15 is seen at 2.46 lakh crore, slightly more than 2.45 lakh crore in 2013-14
Fuel subsidy is pegged at Rs. 65,000 crore and food subsidy at Rs. 1.15 lakh crore in 2014-15

Agriculture credit is likely to exceed the target of Rs. 7,00,000 crore while farm exports are expected to increase to over $45 billion in the current fiscal

Foodgrain production in 2012-13 was 255 million tonnes. The estimate for the current year is 263 million tonnes

Agriculture GDP growth increased to 3.1 per cent in five years of UPA-I, further to 4 per cent in the first four years of UPA-2. In the current year, agri growth is estimated at 4.6%

Exports have recovered sharply, and the recovery must be seen in the context of growth of global trade declining from 6.1 per cent in 2011 to 2.7 % in 2013. India's merchandise exports reached a level of USD 300.4 billion in 2012-13 registering a negative growth of 1.8 % over the previous year. Though 2013-14 began on a pessimistic note, I am happy to inform the House that the year will end with estimated merchandise exports of USD 326 billion, indicating a growth rate of 6.3 %

The National Manufacturing Policy has set the goal of increasing the share of manufacturing in GDP to 25 per cent and to create 100 million jobs over a decade. Eight National Investment and Manufacturing Zones (NIMZ) have been announced along the Delhi-Mumbai Industrial Corridor and nine projects have been approved by the DMIC Trust. Five NIMZs outside DMIC have also been given in-principle approval. Three more corridors connecting Chennai and Bengaluru, Bengaluru and Mumbai, and Amritsar and Kolkata are under different stages of preparatory work

In 2012-13 and in the nine months of the current financial year, we have added 29,350 megawatts of power capacity, 3,928 kilometres of national highways, 39,144 kilometres of rural roads under PMGSY, 3,343 kilometres of new railway track, and 217.5 million tonnes of capacity per annum in our ports. Besides, 19 oil and gas blocks were given out for exploration and 7 new airports are under construction.

I propose to reduce the excise duty as follows for the period up to 30.6.2014:

• Small cars, motor cycles, scooters
• and commercial vehicles from 12% to 8%
• SUVs from 30% to 24%
• Large and mid-segment cars from 27/24% to 24/20%

To stimulate growth in the capital goods and consumer non-durables, I propose to reduce the excise duty from 12 % to 10 % on all goods falling under chapter 84 and chapter 85 of the Schedule to the Central Excise Tariff Act for the period up to 30.6.2014. 

One Rank, One Pension will be implemented from the fiscal 2014-15 which will benefit over 25 lakh retired defence personnel.The allocation for defence has been enhanced by 10 per cent from `203,672 crore in BE 2013-14 to `224,000 crore in 2014-15.

service tax exemption for storage and warehousing of rice like it was done in case of paddy in 2013-14

exempted blood banks from the service tax purview

At the end of December 2013, public sector banks had 25,70,254 student loan accounts and the amount outstanding was `57,700 crore.

Path-breaking Decisions

•  Sugar was fully decontrolled

•  A gradual correction of diesel prices was started

•  Railway fares were rationalised for the first time in a decade

•  Applications were invited for issue of new bank licences

•  DISCOMS, mostly sick, are being restructured with generous Central assistance.

Historic Legislations

• 12.8 lakh land titles covering 18.80 lakh hectare were distributed under the Scheduled Tribes and Other Traditional Forest Dwellers Act.

•  The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act was notified on 1.1.2014, finally putting to rest an oppressive colonial law of 1894.

•  The National Food Security Act was passed assuring foodgrain to 67 % of the population.

•  The new Companies Act replaced a law of 1956 vintage.

•  The PFRDA Act was passed placing the New Pension System on a statutory basis and establishing a statutory regulator. 

Note