Union Finance Minister P. Chidambaram presented the Vote on Account on 17 February 2014 in the Lok Sabha to cover expenditure until the government’s term ends in May 2014. Following are the key highlights of this Interim Budget or Finance Bill for 2014.
Key Objectives and Indicators
· Fiscal deficit of FY 2013-14 to be contained at 4.6%
· Rs. 5,55,322 crore Planned expenditure for FY 2013-14
· Proposed target of 3% for fiscal deficit by 2016
· Proposed target of 3% for fiscal deficit by 2016-17
· GDP fell to 4.4% from 7.9% in nine quarters
· GDP growth in Q3, Q4 (Fourth Quarter) FY 2014 seen at 5.2%; FY 2014: 4.9%
· FY 2015’s non-planned expenditure estimated at Rs 12.07 lakh crore
· Agriculture GDP growth for 2013-14 estimated at 4.6%
· FY 2014 GDP growth seen at 4.9%
· FY 2015 central assistance to sates at Rs 3.38 lakh crore (Central assistance to states will increase from 1.36 lakh crore in 2013-14 to 3.38 lakh crore)
· Even after the slowdown the savings rate was 31% in FY 2012-13
·Overall Investment rate was 34.8% in FY 2012-13
· India’s current account deficit (CAD) to be contained at $45 billion during FY 2013-14, which is well below the record high level of 2012-13
Other Important Proposals
· Excise duty on consumer durables cut from 12% to 10%
· Excise duty to be cut by 2% for Capital Goods & Consumer Durables
· Excise duty reduced for small cars from 12% to 8%
· Excise duty reduced for SUVs from 30% to 24%
· Excise duties on bikes/2 wheelers down to 8%
· Blood banks to be exempt from service tax
· Government accepts in principle one rank one pension policy (to be effective from 2014-2015)
· Three more industrial corridors at Chennai-Bangalore, Bangalore-Mumbai and Amritsar-Kolkata
· 100 crore for community radio, Rs. 1200 cr additional assistance to NE, Himchal, Uttarakhand
· IFCI will set up VC fund for scheduled caste. Initial capital of Rs. 200 crore will be given
· Moratorium for all educational loans taken before 2009. 9 lakh student borrowers will benefit to the extent of Rs. 2,600 crore
Allocations
· Defence allocation at Rs 2,24,000 crore, allocation raised by 10%
· Education – Rs. 79, 541 crore
· Minority affairs – Rs. 3711 crore
· Tribal affairs – Rs. 4379 crore
· Housing and poverty alleviation – Rs. 6000 crore
· Social welfare- Rs. 6730 crore
· Panchayati Raj – Rs. 7000 crore
· Drinking water and sanitaion – Rs. 15000 crore
· Women and child development – Rs. 21000 crore
· Human Resource Development – Rs. 67398 crore
· Rural development – Rs. 82202 crore
· Railways – Rs. 29000 crore
· North East states to get Rs 1,200 crore
Key Objectives and Indicators
· Fiscal deficit of FY 2013-14 to be contained at 4.6%
· Rs. 5,55,322 crore Planned expenditure for FY 2013-14
· Proposed target of 3% for fiscal deficit by 2016
· Proposed target of 3% for fiscal deficit by 2016-17
· GDP fell to 4.4% from 7.9% in nine quarters
· GDP growth in Q3, Q4 (Fourth Quarter) FY 2014 seen at 5.2%; FY 2014: 4.9%
· FY 2015’s non-planned expenditure estimated at Rs 12.07 lakh crore
· Agriculture GDP growth for 2013-14 estimated at 4.6%
· FY 2014 GDP growth seen at 4.9%
· FY 2015 central assistance to sates at Rs 3.38 lakh crore (Central assistance to states will increase from 1.36 lakh crore in 2013-14 to 3.38 lakh crore)
· Even after the slowdown the savings rate was 31% in FY 2012-13
·Overall Investment rate was 34.8% in FY 2012-13
· India’s current account deficit (CAD) to be contained at $45 billion during FY 2013-14, which is well below the record high level of 2012-13
Other Important Proposals
· Excise duty on consumer durables cut from 12% to 10%
· Excise duty to be cut by 2% for Capital Goods & Consumer Durables
· Excise duty reduced for small cars from 12% to 8%
· Excise duty reduced for SUVs from 30% to 24%
· Excise duties on bikes/2 wheelers down to 8%
· Blood banks to be exempt from service tax
· Government accepts in principle one rank one pension policy (to be effective from 2014-2015)
· Three more industrial corridors at Chennai-Bangalore, Bangalore-Mumbai and Amritsar-Kolkata
· 100 crore for community radio, Rs. 1200 cr additional assistance to NE, Himchal, Uttarakhand
· IFCI will set up VC fund for scheduled caste. Initial capital of Rs. 200 crore will be given
· Moratorium for all educational loans taken before 2009. 9 lakh student borrowers will benefit to the extent of Rs. 2,600 crore
Allocations
· Defence allocation at Rs 2,24,000 crore, allocation raised by 10%
· Education – Rs. 79, 541 crore
· Minority affairs – Rs. 3711 crore
· Tribal affairs – Rs. 4379 crore
· Housing and poverty alleviation – Rs. 6000 crore
· Social welfare- Rs. 6730 crore
· Panchayati Raj – Rs. 7000 crore
· Drinking water and sanitaion – Rs. 15000 crore
· Women and child development – Rs. 21000 crore
· Human Resource Development – Rs. 67398 crore
· Rural development – Rs. 82202 crore
· Railways – Rs. 29000 crore
· North East states to get Rs 1,200 crore
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