Highlights of Interim Budget 2014-15
Union Finance Minister, P Chidambaram presented the Interim Budget 2014-15 in the Lok Sabha on 17 February 2014.
This was the 83rd budget of the Union Government and 9th personal budget by Chidambaram as Finance Minister.
The Highlights of the Union Budget 2014-15 are : GROWTH
- GDP expansion in third and fourth quarters of 2013/14 estimated at 5.2 percent. Growth for the whole year expected at 4.9 percent.
- Fiscal deficit seen at 4.6 percent of GDP in 2013/14, below target of 4.8 percent.
- Fiscal deficit projected at 4.1 percent of GDP in 2014/15
- Says need to bring down the deficit to 3 percent of n DP by 2016/17
CURRENT ACCOUNT DEFICIT
- Current account deficit for 2013/14 estimated at $45 billion from last fiscal year’s $88 billion.
- Forex reserves to rise by $15 billion by end of 2013/14
- Gross market borrowing for 2014/15 seen at 5.97 trillion rupees, net market borrowing at 4.57 trillion rupees.
- Government plans to buy back/switch bonds of 500 billion rupees in 2014/15.
- Ways and Means advances for 2014/15 estimated at 100 billion rupees
- Debt repayment in 2014/15 seen at 1.397 trillion rupees
- Interest payments seen rising to 4.27 trillion rupees in 2014/15 from a revised estimate of 3.8 trillion rupees for the current fiscal year.
- Target from stake sale in state run firms for 2013/14 revised to 258.41 billion rupees
- Target for 2014/15 increased to 569.25 billion rupees
- Plan expenditure for 2014/15 seen at 5.55 trillion rupees, the same level as the previous fiscal year
- Non plan spending estimated at about 12.08 trillion rupees in 2014/15
- Total spending on food, fertilisers and fuel at 2.5 trillion rupees in 2014/15
- Food subsidy estimated at 1.15 trillion rupees, fertiliser subsidy at 679.71 billion rupees. Petroleum subsidy seen at 634.27 billion rupees versus revised figure of 854.8 billion rupees for 2013 /14.
- Spending raised to 2.24 trillion rupees in 2014/ 15, up 10 percent year on year.
- Merchandise exports seen at $326 billion in 2013/14, up 6.3 percent year on year.
- Agriculture exports expected to touch $45 billion in 2013/14, up from $41 billion in 2012/13
- Income tax rates kept unchanged
- 10 pc surcharge on ‘super-rich’ having annual income above Rs 1 crore to continue
- 5 pc surcharge on corporates with turnover of Rs 10 cr
- Factory gate tax to be reduced to 10 percent from 12 percent on some capital goods, consumer durables
- Cut excise duty on small cars, two wheelers, commercial vehicles to 8 percent from 12 percent
- Recommends excise duty reductions on larger vehicles
INDIA – at a glance 2014 I 5
- Restructure of factory gate tax for mobile handsets
- Govt to provide 112 billion rupees capital
infusion in state run banks in 2014/15
- Propose to set up public debt management office to start5 work from 2014/15