Finance Minister P Chidambaram presents Interim Budget 2014-15

Surmounting Challenges, A Major Goal 

While presenting the Interim Budget 2014-15, the Union Finance Minister Shri P Chidambaram said that 2012 and 2013 were years of turbulence for the Indian economy, as they were for other emerging economies. He declared that, on returning to the Ministry of Finance, his primary objectives and concerns were fiscal consolidation, price stability, self-sufficiency in food, reviving the growth cycle, enhancing investments, promoting manufacturing, encouraging exports and quickening the pace of implementation of projects. The Minister added that he is intend on finding practical solutions to certain stressed sectors such as petroleum, power, coal, highways and textiles.

Important points of the Interim Budget 2014-15 are: 

UPA Government has Delivered Above the

Trend Growth Rate, says Finance Minister;

Recent Decline in Growth Rate Arrested

Presenting the Interim Budget for 2014-15 on Monday in Lok Sabha, the Finance Minister, Shri P. Chidambaram has said that the UPA Government, during its two terms, has delivered above the trend growth rate in India. He said that over a period of 33 years, the trend growth rate in India has been 6.2 per cent. Average annual GDP growth during the period 1999-2004 was 5.9 per cent, which is below the trend rate. In the next five year period 2004-2009, it was 8.4 percent and, in the period 2009-2014, it will be 6.6 per cent. Shri Chidambaram said that UPA-I and UPA-II have delivered above the trend growth rate during its tenure. 

Outlining the achievements of the Government during the last ten years, Shri Chidambaram said that food production has increased to 263 million tonnes from 213 million tonnes ten years ago. Similarly, while the installed power capacity was 112,700 MW ten years ago, today it is 234,600 MW. The length of rural roads under the flagship programme PMGSY has increased to 389,578 KM from only 51,511 KM a decade ago. The Central Government will spend five times more on health this year as compared to the expenditure ten years ago. 

Fiscal Deficit to be contained at 4.6 Per Cent of GDP in 2013-14 

The fiscal deficit for the financial year 2013-14 will be contained at 4.6 per cent of GDP. Stating this Shri P. Chidambaram, said that the Current Account Deficit (CAD), that threatened to exceed last year’s CAD of USD 88 billion, will be contained at USD 45 billion. The Finance Minister further stated that about USD 15 billion is expected to be added to the foreign exchange reserves by the end of the financial year 2013-14. 

Shri Chidambaram said that due to the efforts of both the Government and the RBI, the WPI inflation stood 5.05 per cent at the end of January 2014 where as the core inflation was 3.01 per cent. This is lower than the WPI inflation figure of 7.3 per cent and core inflation of 4.2 per cent for the same period last year. The Finance Minister admitted that the food inflation continues to be a matter of concern although it has declined sharply from a high of 13.6 per cent to 6.2 per cent.

Agricultural GDP to Grow at 4.6% During the Current Financial Year 
Foodgrain Production Expected to Touch 263 Million Tonnes 

The Finance Minister informed that in 2013-14, agriculture exports are likely to cross USD 45 billion as compared to USD 41 billion in 2012-13.

Highlighting the achievements made in the area of agricultural credit, the Finance Minister said that agricultural credit is likely to touch Rs 735,000 crore, exceeding the target of Rs 700,000 crore.

An amount of Rs 11,200 crore has been provided for capital infusion in Public Sector Banks (PSB’s) in the Interim Budget 2014-15. Defense allocation has been enhanced by 10%. The Union Finance Minister Shri P. Chidambram said that an allocation of Rs. 224,000 crore has been made for defense as against Rs. 203,672 crore in the last Budget.

Exports Show Recovery and expected to Grow by 6.3 Per Cent in 2013-14. The Finance Minister, Shri P. Chidambaram has indicated a growth rate of 6.3 per cent in merchandise exports during the current financial year with estimated merchandise exports of USD 326 billion.

Adequate Allocation for SC/ST Sub-Plans 

An allocation of Rs. 48,638 crore has been made for the scheduled caste sub- plan and Rs. 30,726 crore for the Tribal Sub-Plan. The Finance Minister said that it is also heartening to note that an allocation of Rs. 97,533 crore has been made towards the gender budget and an allocation of Rs. 81,024 crore towards the child budget.

Volume of lending to the Minority Communities had soared from Rs 4,000 crore in the year 2004-05 to Rs.66,500 crore in the year 2013-14.

Food, Fertilizer and Fuel Subsidies 

The Finance Minister, Shri P. Chidambram presenting the Budget in the Parliament today said Rs. 65,000 crores is provided for fuel subsidy. He said Rs. 115,000 crore has been allocated for food subsidy keeping in mind UPA Government’s firm and irrevocable commitment to implement the National Food Security Act throughout the country. 

Government Steps Up Project Clearances resulting 296 Projects of Rs 660,000 Crore Cleared by January End This Year. 

Direct Taxes Code (DTC) to be put on the website of the ministry for public discussion. Relief to The Manufacturing Sector proposed; Cars and Scooters to be Cheaper. Excise Duty on Mobile Handsets to be restructured. Customs Duty Structure is to be rationalized to encourage production of Soaps and Oleo Chemicals. Production Of Security Paper For Printing Currency Notes Also Gets Encouragement.