Union Budget (Interim) - 2014
Finance Minister P. Chidambaram presented Interim Union Budget to parliament on 17th February 2014 for the fiscal year 2014-15. Though, there is no perceptible improvement in GDP growth rate, the fiscal deficit is declining, the current account deficit has been constrained, inflation has moderated, the exchange rate is stable, exports have increased and hundreds of projects have been unblocked during the year 2013-14. The salient features Interim Union Budget for the year 2014-15 are:
- GDP growth for the year 2013-14 expected at 4.9%.
- Fiscal deficit stood at 4.6% of GDP in 2013-14 and projected at 4.1% for the year 2014-15.
- Current account deficit for 2013-14 estimated at $45 billion from last fiscal year's $88 billion.
- Plan and Non plan expenditure is expected for 2014-15 at 5.55 trillion 12.08 trillion rupees respectively.
- Total spending on food, fertilizers 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 and Petroleum subsidy at 634.27 billion rupees.
- 10% increase in defence spending is proposed with total outlay of 2.24 trillion rupees in 2014-15.
- Merchandise exports seen at $326 billion in 2013-14, up 6.3% year on year. Agriculture exports expected to touch $45 billion in 2013-14, up from $41 billion in 2012-13
- Govt. to provide 112 billion capital infusion in state run banks in 2014-15
- Propose to set up Public Debt Management office to start work from 2014-15
- No major change in income tax rates/slabs.
- Excise duty slashed by 2% on capital goods.
- Cut excise duty by 6% on Sports Utility Vehicles and 4% on small/midsized cars and commercial vehicles.
- Waiver of interest on education loans who availed prior to March 2009.
- Introduction one demat account for all financial assets (shares, bonds, funds, insurance and deposits)