Vote on Account Interim Budget -2014-15

Finance minister P Chidambaram has presented his interim budget  for 2014 today which is also known as Vote on Account. This budget will be applicable only till the upcoming General Election. He did not announce for any populist measures and given suitable Fiscal Deficit related targets which the credit rating agencies will be closely looking for.


Here are the key highlights of the interim budget 2014-15


Key statistics



  • FM introduces the Finance Bill 2014

  • 140 million moved out of poverty during the Government of UPA I and II

  • USD 15 billion addition to foreign exchange in 2013-14

  • 41,16,000 Women Self-Help Groups have been provided credit as of December 2013

  • Rs. 7 lakh crore of agricultural credit to be crossed this year

  • FDI policy liberalised in telecom, pharma, civil aviation, power trading exchanges and multibrand retail

  • GST and DTC should be introduced in 2014

  • 3 more industrial corridors — Chennai-Bangalore, Bangalore-Mumbai, Amritsar-Kolkata — under various stages of implementation

  • Power capacity rises to 234,600 MW in 10 years


Fiscal Related



  • Fiscal deficit at 4.6% in 2013-14 and 4.1% next year, revenue deficit at 3% in 2013-14

  • The growth in the third and fourth quarter would be at least 5.3%

  • Fiscal deficit target of 3% to be achieved by 2017

  • Current Account Deficit (CAD) to be USD 45 billion for FY2013-14 as against USD 88 billion in 2012-13

  • Disinvestment target for FY14 cut to Rs. 16,027 cr versus Rs. 40,000 cr; next year Govt eyeing Rs. 36,925 cr

  • Lowers residual stake sale target to Rs. 3,000 cr from Rs. 14,000 cr for this fiscal

  • Govt-s net borrowing in next fiscal to be Rs. 4.57 lakh cr

  • Plan expenditure cut by Rs. 79,790 cr for current fiscal

  • Total exports will be around USD 326 billion with 6.3 % growth for FY2013-14


 


Tax/Surcharge/Duty related



  • Income tax rates kept unchanged

  • 10 % surcharge on -super-rich- having annual income above Rs. 1 crore to continue

  • 10 % surcharge on domestic corporates with income of Rs. 10 crore to continue

  • Excise duty on small cars, motorcycles and commercial vehicles cut from 12 to 8%

  • Excise duty on SUVs cut from 30 to 24%

  • Large and mid-segment cars from 27-24% to 24-20%

  • Excise duty on mobile handsets to be 6% on CENVAT credit to encourage domestic production

  • Excise duty cut on capital goods, non-consumer durables cut from 12 to 10%

  • Proposed to exempt loading, unloading, packaging of rice from service tax


Allocation Related



  • The allocation for the Defence Ministry has been increased by 10% to Rs. 2,24,000 crores

  • Rs 2,46,397 crore allocated for food, fertilizer and fuel subsidy

  • Ministry of Health and Family Welfare will get Rs. 33,725 cr

  • Ministry of HRD will get  Rs. 67,398 cr

  • Drinking water and sanitation ministry will get  Rs. 15,260 cr; Social Justice and Empowerment will get  Rs. 6730 cr

  • For Ministry of Housing and Poverty Alleviation- Rs. 6000 crore; Rs. 21,000 cr to Ministry of Women and Child Development

  • Food subsidy will be Rs 1,15,000 crore for implementation of National Food Security Act

  • New plan scheme of Rs. 100 crore to promote community radio stations

  • Rs 500 crore estimated requirement for implementing one-rank-one-pay scheme for armed forces in 2014-15

  • Rs 6000 crore to rural housing fund, Rs 2000 crore for urban housing fund

  • Rs 1,200 crore additional assistance to N-E states to be released before end of the year

  • Allocates Rs. 1,000 cr more to Nirbhaya Fund


Others



  • Foodgrain production estimated at 263 million tonnes in 2013-14

  • Moratorium on interest on student loans taken before March 31, 2009; to benefit 9 lakh borrowers

  • Govt obtains information in 67 cases of illegal offshore accounts of Indians

  • CCI cleared 296 projects worth Rs. 6.6 lakh cr by end-Jan

  • Proposed to amend Forwards Contract Regulations Act (FCRA)

  • IT modernisation process will be operational in 2015. National Solar Mission entered the second phase. Proposed to take up four projects each with capacity of 400 MW

  • 78,000 mw of power projects have been provided coal nuclear reactors are under commission to achieve 10080 mw by end of 12th power plants