Budget 2014 Live update: Finance Minister P Chidambaram presents Interim Budget 2014


New Delhi, Feb 17: Amid constant interruptions by some members, Finance Minister P. Chidambaram began presenting the interim budget for 2014-15 in the Lok Sabha Monday, expressing concerns confronting the economy today and how his government has navigated so far to address the challenges.

This was India’s 83rd budget and the 9th such personal exercise for Chidambaram. The main budget for the financial year 2014-15 will be presented by the new government that will come to power after the general elections, the schedule for which are likely to be announced by the Election Commission soon.

Highlights of interim budget proposals:

  • Blood banks to be exempt from service tax.
  • Service tax relief storage for warehousing for rice.
  • Excise duty on small cars, motorcycles and SUVs reduced.
  • Excise duty on mobile handset to be 6 pc on CENVAT credit to encourage domestic production.
  • Govt has obtained information in 67 cases of illegal offshore accounts of Indians.
  • Excise duty cut from 12 to 10 per cent in capital goods sector to stimulate growth.
  • No changes in tax laws in interim budget: FM.
  • I am disappointed that we could not introduce GST: FM.
  • We must focus on manufacturing, specially manufacturing for exports: FM.
  • RBI must strike a balance between growth and moderating inflation: FM.
  • Fiscal deficit target of 3 pc to be achieved by 2017.
  • Public Debt Management Bill ready: FM.
  • Moratorium on interest on student loans taken before March 31, 2009; to benefit 9 lakh borrowers.
  • Social Justice Ministry gets Rs 6730 crore; Panchayati Raj Ministry Rs 7000 crore, says FM.
  • Rs 3711 crore for Minority Affairs; Housing and Urban Poverty Alleviation gets Rs 6000 crore.
  • Minority bank accounts have swelled to 43,53,000 by 2013-14 from 14,15,000 bank accounts 10 years ago.
  • Rs 6000 crore to rural housing fund, Rs 2000 crore for urban housing fund, says FM.
  • Rs 500 crore estimated requirement for implementing one-rank-one-pay scheme for armed forces in 2014-15.
  • Defence allocation increased by 10 per cent to Rs 2.24 lakh crore.
  • Food subsidy will be Rs 1,15,000 crore for implementation of National Food Security Act.
  • Rs 2,46,397 crore allocated for food, fertilizer and fuel subsidy.
  • Budgetary support to Railways increased from Rs 26,000 crore to Rs 29,000 crore 2014-15.
  • Plan expenditure will be Rs 5,55,322 crore in 2014-15, unchanged from last fiscal.
  • Aadhaar is tool for empowerment: FM.
  • Rs 3,370 crore to transferred to 2.1 crore LPG users; Govt committed to Aadhaar-based LPG transfer but scheme on hold temporarily.
  • Rs 1,000 crore grant for Nirbhaya Fund will be non-lapsable; another Rs 1,000 crore to be given next fiscal: FM.
  • Rs 1,200 crore additional assistance to N-E states to be released before end of the year.
  • National Solar Mission to undertake 4 ultra mega solar power projects in 2014-15: FM.
  • 500 MW fast breeder test reactor in Kalpakkam to be ready shortly; 7 nuclear power reactors under construction.
  • PSUs to achieve record capex of Rs 2,57,645 crore in 2013-14: FM.
  • Community radio to be promoted with Rs.100 crore
  • Four solar generation plants of 500 MW each to be constructed in 2014-15
  • Construction underway for 50,000MW of conventional power
  • India not unaffected by events in global economy
  • Fiscal deficit at 4.6 percent
  • Current account deficit at $45 billion
  • Hope to add $15 billion to forex reserves
  • Challenges we face common to emerging economies
  • I reject the argument of policy paralysis: Chidambaram.
  • Expenditure on education has risen from Rs 10,145 crore 10 years ago to Rs 79,251 crore this year.
  • Power capacity rises to 234,600 MW in 10 years: FM.
  • Declining fiscal deficit, moderation of CAD, stable exchange rate and increase in project implementation result of hardwork: FM.
  • GDP growth rate in Q3 and Q4 of 2013-14 will be at least 5.2 pc: FM.
  • 3 more industrial corridors – Chennai-Bangalore, Bangalore-Mumbai, Amritsar-Kolkata – under various stages of implementation.
  • Merchandise export to grow by 6.8 pc to USD 326 billion.
  • 296 projects worth Rs 6,60,000 crore cleared by Cabinet Committee on Investment by end January 2014: FM.
  • Agriculture credit will cross USD 45 billion against USD 41 billion in 2012-13.
  • Foodgrain production estimated at 263 million tons in 2013-14: FM.
  • Foreign exchange reserves up by USD 15 billion: FM.
  • CAD will be USD 45 billion in 2013-14: FM.
  • Fiscal deficit to be contained at 4.6 pc of GDP in 2013-14.

Finance Minister P Chidambaram presented the Interim Budget for 2014-15 in Lok Sabha. IANS