The Union Finance Minister P. Chidambaram presented the Interim Budget 2014-15 in the Lok Sabha with an estimated plan expenditure of Rs. 5,55,322 crore and non-plan expenditure of Rs. 12,07,892 crore. Excise duty on cars, two-wheelers, SUVs and capital goods and consumer durables has been slashed to boost the manufacturing and growth. There is no change in income tax rates.
Important points of the Union Budget 2014-15
- Focus: On manufacturing and manufacturing exports.
- Fiscal deficit for FY14 to be contained at 4.6% of GDP; FY15 target at 4.1 %
- FY14 Current Account Deficit seen at $45 bn.
- FY14 Q3 & Q4 GDP growth to be at least 5.2%.
- Agriculture credit will cross $ 45 billion against $41 billion in 2012-13.
- Food grain production estimated at 263 million tons in 2013-14
- Proposed a venture capital fund with an initial capital of Rs. 200 crore to promote entrepreneurship among scheduled castes and scheduled tribes.
- No change has been introduced under the tax laws but a change has been introduced for the indirect taxes.
- Budgetary support to railways increased from Rs 26,000 crore to Rs 29,000 crore 2014-15.
Ministry-wise allocations for flagship schemes:
- Rs.82, 200 crore rural development, Rs.67, 398 crore for human resource development, Rs.33, 725 crore for health and family welfare, Rs.21, 000 crore for women and child development, Rs.15, 260 crore drinking water and sanitation.
- Food subsidy will be Rs 1, 15,000 crore for implementation of National Food Security Act.
- One -rank-one-pension scheme for defense personnel from 2015.
- Defense allocation increased by 10% to Rs 2.24 lakh crore.
- To strengthen the capacity of Central Armed Police Forces by modernization and providing state-of-the-art equipment and technology, the government has allocated Rs. 11009 crore.
- To formulate and promote the scheme of community radio station, the government sanctioned a fund of Rs.100 crore.
- For the Social Justice Ministry, Rs. 6730 crore has been sanctioned.
- For the Panchayati Raj Ministry, Rs.7000 crore has been sanctioned.
- For food, fertilizer and fuel subsidy, Rs. 246397 crore has been allocated.
- To stimulate growth, the government has slashed excise duty to 10% from 12%.
- Foreign exchange reserves up by $15 billion.
- Rs 2,600 crore for education loan moratorium, to benefit 9 lakh borrowers for loans taken before March 31, 2009.
- A ten point agenda has been created by Mr. Chidambaram to make India the third largest economy after US and China.
- Two projects sanctioned under Nirbhaya Fund of which the original was of Rs.1000 crore that was non-lapsable and another Rs. 1000 crore has been granted.
- 3 more industrial corridors – Chennai-Bangalore, Bangalore-Mumbai, Amritsar-Kolkata – under various stages of implementation.
- Govt. committed to Aadhaar-based LPG transfer but scheme on hold temporarily.