INTERIM UNION BUDGET 2014-2015

Well, want to know about India’s stagnating economic situation? The Union Budget which was presented by Finance Minister, P.Chidambaram on 17 February 2014 at precisely 11 am at the Parliament House, has given us some future respite for all of us after the Lok Sabha Elections in April. This was the last union budget by the UPA before the elections.

First we will talk about what is a financial budget. The Union Budget of India, referred to as the Annual Financial Statement in Article 112 of the Constitution of India, is the annual budget of the Republic of India, presented each year on the last working day of February by the Finance Minister of India in Parliament. The budget, which is presented by means of the Financial Bill and the Appropriation bill has to be passed by the House before it can come into effect on April 1, the start of India’s financial year.

Now we will see the highlights of the Interim Union Budget of India presented by the Finance Minister:-

• Income tax rates kept unchanged for the time being.
• 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 crores.
• Fiscal deficit at 4.6 pc in 2013-14 and 4.1 pc next year, revenue deficit at 3 pc in 2013-14.
• Current Account Deficit to be USD 45 bn as against USD 88 bn in 2012-13.

• Excise duty on small cars, motorcycles and commercial vehicles cut from 12 to 8 pc.
• Excise duty on SUVs cut from 30 to 24 pc.
• Large and mid-segment cars from 27-24 pc to 24-20 pc.
• Excise duty on mobile handset to be 6 pc on CENVAT credit to encourage domestic production.
• Defence allocation increased by 10% to Rs 2.24 lakh crores.
• Excise duty cut on capital goods, non consumer durables cut from 12 to 10%.
• Moratorium on interest on student loans taken before March 31, 2009 which will benefit 9 lakh borrowers.
• USD 15 bn addition to forex exchange in 2013-14.
• Disinvestment target for FY14 cut to Rs 16,027 crores versus Rs 40,000 crores & next year government eyeing Rs 36,925 crores.
• Lowers residual stake sale target to Rs 3,000 crores from Rs 14,000 crores for this fiscal.
• Foodgrain production estimated at 263 million tonnes in 2013-14.
• Government obtaining information in 67 cases of illegal offshore accounts of Indians.
• Government’s net borrowing in next fiscal to be Rs 4.57 lakh crores.
• Plan expenditure cut by Rs 79,790 crores for the current fiscal.
• Allocating Rs 1,000 crores more to Nirbhaya Fund.
• CCI cleared 296 projects worth Rs 6.6 lakh crores by end Jan.
• GDP to grow by at least 5.2 pc in Q3 and Q4 in 2013-14.
• Plan expenditure for 2014-15 at Rs 5.55 lakh crores and non-plan at Rs 12.08 lakh crores.
• Govt to infuse Rs 11,200 crores in PSU banks in next fiscal.
• Government to get Rs 88,188 crores as dividend from PSUs, Rs 14,000 crores more than budgeted apex of Rs 2.57 lakh crore in 2013-14.

• 500 MW fast breeder test reactor in Kalpakkam to be ready shortly and 7 nuclear power reactors under construction.
• National Solar Mission to undertake 4 ultra mega solar power projects in 2014-15.
• Rs 1,200 crore additional assistance to N-E states to be released before end of the year.
• Rs 3,370 crore transferred to 2.1 crore LPG users for this fiscal.
• Government committed to Aadhaar-based LPG transfer but scheme on hold temporarily.
• Rs 2,46,397 crore allocated for food, fertiliser and fuel subsidy.
• Rs 500 crore estimated requirement for implementing one-rank-one-pay scheme for armed forces in 2014-15.
• Exports target at USD 326 bn in FY14, up to 6.3 pc.
• Minority bank accounts have swelled to 43,53,000 by 2013-14 from 14,15,000 bank accounts in last 10 years.
• Government proposes to set up debt management office which is to be operational in next fiscal.