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INTERIM BUDGET 2014-15
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Promotion of MSME Continues to be one of the Thrust Area of the Government
Union Finance Minster presented Interim Union Budget 2014-15 in the Parliament on 17.2.2014.
In his budget speech, while mentioning about state of the economy, the Finance Minister mentioned, inter-alia, that several measures have been taken to promote micro, small and medium enterprises including notifying a public procurement policy, establishing technology centres and common facility centres, and launching the Khadi mark.
The Finance Minister also mentioned about the major achievements of the Government in the current financial year, while discussing Report Card of 2013-14. The Finance Minister stated that Ministry of MSME will create the ‘India Inclusive Innovation Fund’ to promote grassroot innovations with social returns to support enterprises in the MSME sector. The Finance Minister proposed to make an initial contribution of Rs 100 crore to the corpus of the Fund.
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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.
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Indian Economy Steers Out of Troubled Waters Despite Global Impact
While presenting the Interim Budget 2014-15, the Union Finance Minister Shri P Chidambaram said that since September, 2008, the state of the world economy has been the most decisive factor impacting the fortunes of every developing country, including India. However, India has been among a few countries to keep its head above the water. Hence, to understand the story of India’s growth, it would be pertinent to add a few words on the global economy as well as on the global risks.
The Finance Minister informed that the world economic growth was 3.9 percent in 20011, 3.1 percent in 2012 and 3.0 percent in 2013. He added that among India’s major trading partners, who are also major sources of foreign capital inflows such as the United States, has just recovered from a long recession while Japan’s economy is still responding to the stimulus. He also pointed out that the Eurozone, as a whole, is reporting a growth of 0.2 percent and China’s growth has slowed down from 9.3 percent in 2011 to 7.7 percent in 2013.
Shri P Chidambaram stated in the House that the `Global Risks 2014 Report’ has mapped 31 global risks. Among these, he elaborated, are ten risks which are of highest concern. They include fiscal crisis, structurally high unemployment or underemployment, income disparity, governance failure, food crisis and political and social instability. These are challenges faced by all emerging economies.
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Lending to Minority Communities soar to Rs 66,500 Crores
Volume of lending to the Minority Communities had soared from Rs 4,000 crore in the year 2004-5 to Rs.66,500 crore in the year 2013-14. Presenting the Interim Budget in the Lok Sabha today, the Union Finance Minister, P. Chidambaram said that ten years ago, the Minorities had 14,15,000 bank accounts in 121 districts of India where there is concentration of Minorities. At the end of March 2013, they had 43,52,000 accounts and volume of lending rose to Rs 66,500 crore. Loans to Minorities Communities in the whole country stood at Rs.211,451 crore at the end of December 2013.
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Indian Economy to be Third Largest by 2043 UPA Outlines Ten Steps for a Vibrant Economy
While presenting the Interim Budget 2014-15, the Union Finance Minister Shri P Chidambaram said that in the next three decades India will become the third largest economy behind USA and China. In future, the fortunes of China and India will have a significant impact on the rest of the world. Therefore, the Indian Government must be responsible not only to itself but to the whole world by keeping the country’s economy in robust health.
The Finance Minister said that the UPA Government has a clear vision of the goals that have been set for itself. The Minister went on to elaborate the ten tasks that his Government intends to take to achieve those goals.
i. Fiscal Consolidation: A target of fiscal deficit of 3 percent of GDP must be achieved by 2016-17 and must always be kept below that level.
ii. Current Account Deficit: Since the economy will run a Current Account Deficit every year for some more years, it can be financed only by foreign investment, whether it is FDI or FII or ECB or any other kind of foreign inflow. Therefore, foreign investment must be encouraged.
iii. Price Stability and Growth: In a developing economy where the aim is high growth, a moderate level of inflation will have to be accepted. RBI must strike a balance between price stability and growth while formulating monetary policy.
iv. Financial Sector Reforms: The recommendations of the Financial Sector Legislative Reforms Commission must be implemented immediately as they do not require any change in legislation. Also, a timetable must be drawn for other recommendations that require legislation.
v. Infrastructure: The country must rebuild its infrastructure and add a huge quantity of new infrastructure. Every proven model must be adopted but the PPP model must be more widely used. New financing structures must be created for long term funds and pooling of investments.
vi. Manufacturing: The Government must focus on manufacturing and especially on manufacturing for export. The Minister proposed that all taxes, Central and State, that go into an exported product should be waived or rebated. He also proposed that there should be a minimum tariff protection so that there is an incentive to manufacture goods in India rather than import them into India.
vii. Subsidies: Given the limited resources, and the many claims on the resources, the Government must choose the subsidies that are absolutely necessary and give them only to the absolutely deserving.
viii. Urbanisation: The country’s cities will become ungovernable, and perhaps unliveable, if attention is not paid to the decay in these cities. Cities have wealth and also create wealth. But that wealth should be tapped for resources to rebuild the cities with a new model of governance.
ix. Skill Development: Skill development must rank alongside secondary education, university education, total sanitation and universal health care in the priorities of the Government.
x. Sharing responsibility between States and Centre: States have the fiscal space to bear a reasonable proportion of the financial costs of implementing flagship programmes and must willingly do so, so that the Central Government can allocate more resources for subjects such as defence, railways national highways and telecommunications that are its exclusive responsibility.
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Exports Show Recovery, 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. In his Interim Budget speech for the year 2014-15, the Finance Minister said that though 2013-14 began on a pessimistic note, the year will end with estimated merchandise exports of USD 326 billion.
Shri Chidambaram said that exports from India have recovered sharply, in spite of the global trade declining from 6.1 per cent in 2011 to 2.7 per cent in 2013. India’s merchandise exports reached a level of USD 300.4 billion in 2012-13 registering a negative growth of 1.8 per cent over the previous year. But the during the current year, they are likely to grow by 6.3 per cent, he added.
The Finance Minister admitted that the rupee came under pressure during 2013-14. However, the Government, RBI and SEBI undertook a number of measures to facilitate capital inflows and stabilize the foreign exchange market. The Minister informed that among emerging economy currencies, the rupee was affected least when the actual reduction took place in December 2013 and January 2014.
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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. Announcing this in the Interim Budget in the Parliament today the Finance Minister Shri P. Chidambram said, if there are any shortcomings they can be addressed when the regular budget is presented. The 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. He said, there is enough flexibility in the expenditure budget to make changes in the allocations within the overall resource envelope, if there is a need.
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Adequate Plan Funds for Flagship Programmes
All Ministries/Departments that run key flagship programs of the UPA Government have been provided adequate funds for 2014-15 for plan expenditure. Presenting the Interim Budget in the Parliament today the Finance Minister Shri P. Chidambram said Rs. 555,322 crores has been provided for plan expenditure in 2014-15, which is about at the same level or higher than the Budget Estimates for 2013-14 and higher allocations are irrespective of the revised estimates for the year. The Minister said an allocation of over Rs. 82,200 crore has been made for the Ministry of Rural Development. Similarly, allocations of Rs. 67,398 crore for the Ministry of Human Resource Development, Rs. 33,725 crore for the Ministry of Health and Family Welfare, Rs. 21,000 crore for the Ministry of Women and Child Development and Rs. 15,260 for the Ministry of Drinking Water and Sanitation have been made respectively.
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Agricultural Credit Likely to Touch Rs. 7,35,000 Crore; Target for 2014-15 Kept at Rs. 8,00,000 Crore
Agricultural GDP Growth Estimated at 4.6 Percent in the Current Year
Effective Rate of Interest on Farm Loans to Remain 4 Percent In 2014-15
Finance Minister Shri P. Chidambaram today informed the Lok Sabha about the ‘stellar performance’ of the agriculture sector. He said that agricultural credit is likely to touch Rs. 7,35,000 crore in the current year, exceeding the target of Rs. 7,00,000 crore. Finance Minister set a target of Rs. 8,00,000 crore for 2014-15. He also said that in the current year agricultural GDP growth is estimated at 4.6 percent. He said this while presenting the Interim Budget for 2014-15.
He also mentioned about the interest subvention scheme introduced in 2006-07. There is a subvention of 2 percent and an incentive of 3 percent for prompt payment, thus reducing the effective rate of interest on farm loans to 4 percent. So far, Rs. 23,924 crore has been released under the scheme.
Foodgrain production in 2012-13 was 255.36 million tonnes and the estimate for the current year is 263 million tonnes. Estimates of production of sugarcane, cotton, pulses, oilseeds and quality seeds point to new records, the Finance Minister said.
Finance Minister further said that agriculture exports in 2012-13 stood at USD 41 billion versus imports of USD 20 billion. In 2013-14, agriculture exports are likely to cross USD 45 billion.
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Food, Fertilizer and Fuel Subsidies
Subsidies for food, fertilizer and fuel announced in the Interim Budget today for the coming financial year is slightly more than the revised estimates for 2013-14. 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 committement to implement the National Food Security Act throughout the country.
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Funds for Railways
The Finance Minister Shri P. Chidambram has said that new instruments and new mechanisms have to be identified to raise funds for railway projects. Presenting the Interim Budget in the Parliament today, he said budgetary support to railways has been increased from Rs. 26,000 crore, as it was in the Budget Estimates of 2013-14, to RS. 29,000 crore in the current budget of 2014-15. He said the railways need to mobilise huge resources through market borrowing and Private Public Partnership (PPP schemes).
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Government Steps Up Project Clearances
296 Projects of Rs 660,000 Crore Cleared by January End This Year
The Government has taken the bold step to set-up the Cabinet Committee on Investment and the Project Monitoring Group to speed up the implementation of projects in the country. As result, by the end of January, 2014, the way was cleared for completing 296 projects with an estimated project cost of Rs 660,000 crore. Stating this in the Interim Budget speech for the financial year 2014-15, the Finance Minister Shri P. Chidambaram said the Government has given a big push to infrastructure and capacity addition in infrastructure industries.
In 2012-13 and in the nine months of the current financial year, the Government has added 29,350 megawatts of power capacity, 3928 kilometers of national highways, 39,144 kilometres of rural roads under PMGSY, 3343 kilometres of new railway track and 217.5 million tonnes of capacity per annum in the ports, he said. Besides, 19 oil and gas blocks were given out for exploration and 7 new airports are under construction. The Finance Minister added that the Government has also facilitated infrastructure Debt Funds to provide take-out finance for infrastructure projects and ease the pressure on the banking system.
Shri Chidambaram informed that even after the economic slowdown the saving rate was 31.3 per cent in 2011-12 and 30.1 per cent in 2012-13. The corresponding investment rate was 35.5 percent and 34.8 per cent, respectively, indicating there was no steep decline in investment except in mining and manufacturing.
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Venture Capital Fund to Promote Entrepreneurship Among the Scheduled Castes Mechanism for Marketing Minor Forest Produce Introduced
While delivering his Interim Budget Speech the Union Finance Minister Shri P. Chidambaram informed the House that in order to promote entrepreneurship among the scheduled castes and to provide concessional finance to them, IFCI will set-up a Venture Capital Fund of Rs. 200 crore, which can be supplemented every year.
The Finance Minister Shri Chidambaram further informed the House that restructured ICDS will be rolled-out in all districts from 1.4.2014.
Government has approved the National Agro-Forestry Policy 2014 which has multiple objectives including employment, productivity, conservation and adaptation.
The Finance Minister Shri P. Chidambaram informed the House that the Government has also taken other major social sector initiatives during the current financial year i.e. 2013-14. These initiatives are:
• A mechanism for marketing minor forest produce has been introduced, and the Budget has allocated Rs. 444.59 crore to continue the scheme in 2014-15.
• An allocation of Rs. 100 crore has been approved to promote community radio stations.
• Ministry of Health and Family Welfare has delivered new technologies to the people: the JE vaccine, a diagnostic test for Thalassaemia, and a Magnivisualizer for detection of cervical cancer.
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Rs. 3,370 Crore has been Transferred to 2.1 Crore LPG Beneficiaries 57 Crore Aadhaar Numbers have been Issued so far
Opening Bank Accounts for all Aadhaar Holders to Promote Financial Inclusion
The Union Finance Minister Shri P. Chidambaram has informed the House that a sum of Rs. 3,370 crore has been transferred to 2.1 crore LPG beneficiaries. The scheme has been put on hold for the time being pending resolution of some difficulties that have been pointed out. He further said that Government remains fully committed to Aadhaar under which 57 crore unique numbers have been issued so far and to opening bank accounts for all Aadhaar holders in order to promote financial inclusion.
The Finance Minister Shri Chidambaram earlier informed the House that under the Direct Benefit Transfer Scheme money is being transferred to beneficiaries under 27 identified schemes, including the National Social Assistance Programme (NSAP). A total of 54,20,114 transactions have been put through until 31.1.2014 and Rs. 628 crore has been transferred.
The Finance Minister also highlighted who need Aadhaar. He said that it is those who are at the bottom of the pyramid, the poor, the migrant workers, the homeless, and the oppressed who need Aadhaar and we will ensure that they get Aadhaar. Aadhaar is a tool of empowerment.
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Additional Central Assistance to State Plans for Centrally Sponsored Schemes
In the plan budget of 2014-15, an additional Central Assistance is proposed to be given to States/ UTs Plans for implementation of the Centrally Sponsored Plan Schemes (CSSs). These schemes are also proposed to be now restricted to 66 schemes from the 126 such schemes currently in vogue under 17 flagship programmes. Accordingly, a higher allocation of Rs. 3,38,562 crore towards for State Plans for 2014-15 has been made under central assistance, as against Rs. 1,36,254 crore made in the Budget of 2013-14. A central assistance of Rs. 34,000 crores is proposed to be given towards State/UTs Plans for Mahatma Gandhi National Rural Employment Guarantee scheme. Rs. 27,635 crore is to be given for Sarva Siksha Abhiyan, Rs. 13,152 crore for National Programme for Mid-Day meals in schools and Rs. 4,965 crore for Rashtriya Madhyanik Shiksha Abiyan. For the Intergrated Child Development Services (ICDS) a central assistance of Rs. 18691 crore will be provided to State/UTs Plans. Similarly Rs. 16,000 crore will be provided for State/UTs Plans as central assistance for rural housing, Rs. 13,000 crore for Pradhan Mantri Gram Sadak Yojna, Rs. 11,000 crore for drinking water supply and Rs. 4,260 crore for rural sanitation. Rs 2,200 crore for National Food Security Mission will be provided to State/UTs Plans. For Urban Development, Rs. 7060 crore will be given as central assistance to State/UTs Plans for the Jawahar Lal Nehru National Urban Renewal Mission( JNNURM).
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Government Succeeds in Obtaining Information in Dozens of Cases of Illegal Off-Shore Accounts
Prosecutions Launched In Many Other Cases
Despite several hurdles in obtaining evidence on illegal off-shore accounts held by the Indians from the countries concerned, the Central Government has succeeded, through alternative methods and special efforts, in obtaining information in 67 cases. Stating this while presenting the Union Interim Budget 2014-15 in Parliament here today, the Finance Minister, Shri P. Chidambaram said that action is under way to determine the tax liability as well as impose penalty. He said that prosecutions for willful tax evasions have been launched in 17 other cases. More enquires have been initiated into accounts reportedly held by Indian entities in no tax or low tax jurisdictions.
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Rs. 1000 Crore Allocated to Nirbhaya Fund
The Union Finance Minister Shri P. Chidambaram has reiterated his commitment to fulfill the promises he made during last year on girl child. Towards this, an amount of Rs. 1000 crore has been allocated under Nirbhaya Fund during 2014-15 as well.
The Finance Minister Shri Chidambaram informed that the fund will be a permanent fund and declared the grant of Rs. 1000 crore as non-lapsable. In order to support more proposals, the Finance Minister proposed to contribute another sum of Rs. 1000 crore next year.
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Defence Allocation
The Defence Allocation has been enhanced by ten(10) per cent. The Interim Budget for 2014-15 makes an allocation of Rs. 224,000 crore as against Rs. 203,672 crore in the last Budget.
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The Interim Budget 2014-15 Shows an Estimated Plan Expenditure of Rs. 5,55,322 Crore and Non-Plan Expenditure of Rs. 12,07,892 Crore
Fiscal Deficit to be Pegged at 4.1% and the Revenue Deficit at 3%
The Union Finance Minister, Shri P. Chidambaram here today presented the Interim Budget 2014-15 that shows an estimated plan expenditure of Rs. 5,55,322 crore and non-plan expenditure of Rs. 12,07,892 crore. He said that the current financial year will end on a satisfactory note with the fiscal deficit at 4.6% and the revenue deficit at 3.3%. Shri P. Chidambaram said that emboldened by the progress made, he has budgeted for the receipts and expenditure in 2014-15 that will leave a fiscal deficit of 4.1% and revenue deficit of 3%. The Finance Minister said the fiscal deficit during 2014-15 will be below the target set by the fiscal consolidation path.
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Loading, Unloading, Packing, Storage and Warehousing of Rice also Exempted from Service Tax;
Cord Blood Banks also get the Same Relief
Finance Minister, Shri P. Chidambaram has proposed to exempt loading, unloading, packing, storage and warehousing of rice from service tax. Stating this while presenting the Interim Budget 2014-15 in Parliament here today he said that by virtue of the definition of ‘agricultural produce’ in Finance Act, 2012, read with the Negative List, storage or warehousing of Paddy was excluded from the levy of service tax; but rice was not. As this distinction was somewhat artificial, the same has been done away with and now rice has also been exempted.
Shri P. Chidambaram said that he has acceded to the request of the Ministry of Health and Family Welfare that services provided by Cord Blood Banks are also health care services and hence they should also be exempt from service tax.
Notifications in respect of the above changes will be issued today itself.
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Relief to The Manufacturing Sector; Cars and Scooters to be Cheaper Excise Duty on Mobile Handsets to be Restructured
Customs Duty Structure To Be Rationalised To Encourage Production Of Soaps And Oleo Chemicals
Production Of Security Paper For Printing Currency Notes Also Gets Encouragement
The Union Finance Minister, Shri P. Chidambaram has announced some changes in Indirect Tax Rates. Presenting the Interim Budget 2014-15 here in Parliament today, he said that keeping with the conventions, he does not propose to make any announcements regarding changes to the Tax Laws. However, the current economic situation demands some interventions that cannot wait for the regular budget. In particular, the manufacturing sector needs an immediate boost. Hence, Shri P. Chidambaram proposed the following changes in some Indirect Tax Rates:
1. To stimulate growth in the capital goods and consumer non-durables, Shri P. Chidambaram proposed to reduce the excise duty from 12% to 10% on all goods falling under Chapter 84 and 85 of the schedule to the Central Excise Tariff Act for the period up to 30.06.2014. The rates can be reviewed at the time of the regular budget.
2. To give relief to the automobile industry which is registering unprecedented negative growth, the Finance Minister proposed to reduce the excise duty as follows for the period up to 30.06.2014:
(i) Small cars, motorcycles, scooters and
commercial vehicles ----------------------- from 12% to 8%
(ii) SUVs ------------------------------------------ from 30% to 24%
(iii) Large & Mid-segment Cars--------------- from 27/24% to 24/20%
Accordingly, Shri Chidambaram proposed to make appropriate reductions in the excise duty on chassis and trailers.
3. To encourage domestic production of mobile handsets and reduce the dependence on imports, the Finance Minister has proposed to restructure the excise duties for all categories of mobile handsets. The rates will be 6% with CENVAT credit or 1% without CENVAT credit.
4. To encourage domestic production of soaps and oleo chemicals, Shri P. Chidambaram proposed to rationalize the customs duty structure on non-edible grade industrial oils and its fractions, fatty acids and fatty alcohols at 7.5%.
5. To encourage domestic production of specified road construction machinery, the Finance Minister proposed to withdraw the exemption from CVD on similar imported machinery.
6. To encourage indigenous production of security paper for printing currency notes, the Interim Budget proposes to provide a concessional customs duty of 5% on capital goods imported by the Bank Note Paper Mill India Pvt. Ltd.
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Additional Assistance of Rs. 1,200 Crore to North Eastern States, Himachal Pradesh and Uttarakhand
While delivering his Interim Budget Speech the Union Finance Minister Shri P. Chidambaram informed the House that the North Eastern States, Himachal Pradesh and Uttarakhand deserve special attention. In addition to funds allocated in the current year, he said that a sum of Rs. 1,200 crore is released as Additional Central Assistance to these States before the end of the year.
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Government Took Path Breaking Decisions in the Current Financial Year 2013-14
Government has taken several notable decisions on the economy of the country and the welfare of the people. While delivering his Interim Budget Speech, the Finance Minister Shri P. Chidambaram said that these decisions include fully decontrol of sugar, gradual correction of diesel prices, rationalization of railway fares for the first time in decade among others. He said that applications were invited for issuing new bank licenses and restructuring of DISCOMS was done with generous central assistance.
The Finance Minister Shri P. Chidambaram informed the House that the Government has also passed some historical legislations during the current financial year i.e. 2013-14.
128 lakh land titles covering 18.80 lakh hectare were distributed under the Scheduled Tribes and Other Traditional Forest Dwellers Act.
• The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act was notified.
• The National Food Security Act was passed.
• The new Companies Act enacted.
• The PFRDA Act was passed
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A ‘Research Funding Organisation’ to be set up to fund Research Projects Selected through a Competitive Process
The Finance Minister, Shri P. Chidambaram said that the Government has passionately espoused the cause of science, promoted scientific research and supported scientific applications and inventions. Now, a ‘Research Funding Organisation’ is to be set up to fund Research Projects selected through a competitive process. This was proposed by the Finance Minister, Shri P. Chidambaram while presenting Interim Budget 2014-15 in Parliament here today. He said that contributions to that organisation will be eligible for tax benefits. This will require legislative changes which can be introduced at the time of the regular Budget.
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Direct Taxes Code (DTC) to be put on the website of the ministry for public discussion
Direct Taxes Code (DTC) will be put on the website of the Ministry of Finance for a public discussion without partisanship or acrimony. This was stated by the Finance Minister, Shri P. Chidambaram while presenting Interim Budget 2014-15 in Parliament here today. He said that the Code can serve us for at least the next 20 years. The Finance Minister appealed to all political parties to resolve to pass the GST Laws and the Direct Taxes Code in 2014-15.
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Major Economic Initiatives in the Current Financial Year Public Sector Enterprises Achieve a New Record in Capital Expenditure
While delivering his Interim Budget Speech the Union Finance Minister Shri P. Chidambaram said that Centrally Sponsored Schemes were restructured into 66 programmes and central assistance to plans of States and Union Territories will rise substantially from Rs. 136,254 crore in BE 2013-14 to Rs. 338,562 crore in 2014-15.
The Finance Minister Shri P. Chidambaram informed the House that the Public Sector Enterprises will achieve a new record in capital expenditure of Rs. 257,641 crore in 2013-14.
Presenting the Report Card for 2013-14, the Finance Minister Shri P. Chidambaram informed about various other economic initiatives taken by the Government during the current financial year are:
• About 50,000 MW of Thermal and Hydelpower capacity is under construction and 78,000 MW of power capacity has been assured coal supply.
• The FDI policy was liberlised.
• Approval was granted to establish two semi-conductor wafer fab units.
• IT modernization of the Department of Posts with an outlay of Rs. 4,909 crore.
• Kudankulam Nuclear Power Plant Unit I achieved criticality and is generating 180 million units of power.
• 500 MW prototype fast breeder reactor at Kalpakam is nearing completion.
• National Solar Mission exceed the target and achieved 1,684 MW of grid connected solar power.
• Initial contribution of Rs. 100 crore to the corpus of ‘India Inclusive Innovation Fund’ under Ministry of MSME.
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A Non–Statutory Public Debt Management Agency to be Established
A non–statutory Public Debt Management Agency (PDMA)shall be established that can begin work in 2014-15. Presenting the Interim Budget 2014-15 the Union Finance Minister Shri P. Chidambaram said that pursuant to the announcement in the Budget speech of 2011-12, Government is ready with the Public Debt Management Agency Bill.
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Forward Contracts (Regulation) Act to be Amended
The Forward Contracts (Regulation) Act- FCRA shall be amended to strengthen the regulatory framework of the commodity derivatives market. Presenting the Interim Budget 2014-15 in the LokSabha today, the Union Finance Minister Shri P. Chidambaram said that Honorable Members will recall the payment crisis in the National Spot Exchange Limited (NSEL).
Following the transfer of the subject to the Ministry of Finance, swift action was taken to sequester NSEL and to ensure that there was no spill over of the crisis to the other regulated segments of the financial market.
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Number of Steps Envisaged to Deepen The Indian Financial Market
The Government has envisaged number of steps to deepen the Indian Financial markets. Presenting the Interim Budget 2014-15, the Union Finance Minister Shri P. Chidambaram outlined the steps as below:
· To comprehensively revamp the ADR/GDR scheme and enlarge the scope of Depository Receipts;
· To liberalise the rupee-denominated corporate bond market;
· To deepen and strengthen the currency derivatives market to enable Indian companies to fully hedge against foreign currency risks;
· To create one record for all financial assets of every individual;
· To enable smoother clearing and settlement for international investors looking to invest in Indian bonds.
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More Than 41 Lakh Women Self Help Groups Provided Credit By December 2013
More than 41 lakh Women Self Help Groups (SHG’s) have been provided credit at the end of December 2013. Presenting the Interim Budget in the LokSabha today, the Union Finance Minister Mr. P. Chidambaram said that ten years ago, only 9,71,182 women SHG’s had been credit linked to banks. At the end of December 2013, 41,16,000 women SHG’s have been provided credit and the outstanding amount of credit was Rs 36,893 crore.
SOURCE - CLICK HERE
ONE RANK ONE PENSION ACCEPTED FOR DEFENCE SERVICES.
fiscal deficit for 2013-14 will be 4.6 percent of GDP. Current Account Deficit (CAD) will be pegged to$45 billion.
Food inflation still the main worry. declines sharply from 13.6 percent to 6.2 percent.
In the current year, agriculture growth UP at 4.6 percent.
merchandise export 2013-14 $ 326 billion, up by 6.3 percent.
Defence allocation up by 10 percent.
Government will contribute Rs. 1000 crore to Nirbhaya Fund.
Big Excise relief to automobile and capital goods industry. Attempts to boost domestic production of mobile handsets.
67 cases of illegal Off-shore Accounts detected. Action underway to determine tax liability. Prosecutions for willful tax evasion launched in 17 other cases.
The Union Finance Minister Shri P. Chidambaram today sought to present UPA Government’s ‘unparalleled’ growth record, rejecting the argument of policy paralysis. He also outlined a vision for the future with ten major tasks that must be undertaken by the Government of the day. Keeping the fiscal deficit at 4.1 percent of GDP and acceding to the long-pending demand of one rank one pension among defence personnel were other key highlights of the Interim Budget presented by him.
The Minister enumerated path-breaking decisions taken by the Government in 2013-14. These include decontrol of sugar, gradual correction of diesel prices, rationalization of railway fare, starting the process for issue of new bank licenses and restructuring of DISCOMS.
Asserting that the economy is more stable today than what it was two years ago, the Minister said that the fiscal deficit is declining, the current account deficit has been contained, inflation has moderated, the quarterly growth rate is on the rise, the exchange rate is stable, exports have increased, and hundreds of projects have been unblocked.
The Cabinet Committee on Investment (CCI) and the Project Monitoring Group were setup. Thanks to the swift decisions taken by them, by the end of January, 2014, the way was cleared for completing 296 projects with an estimated project cost of Rs. 660,000 crore.
Shri Chidambaram stated that decline in GDP observed in the first quarter of 2013-14 will be arrested and the growth cycle will turn in the second quarter. He expressed the confidence that growth in Q3 and Q4 of 2013-14 will be at least 5.2 percent.
The Finance Minister stated that the annual GDP growth in the last ten years of UPA Government has been above the growth rate of 6.2 percent for the last 33 years. While it was 8.4 percent during UPA-I, it was 6.6 percent during UPA-II.
The Interim Budget estimates the plan expenditure in 2014-15 at Rs. 555,322 crore, almost the same as in the previous year. The non-plan expenditure has been raised slightly to Rs. 12,07,892 crore. Fiscal deficit for 2013-14 is likely to be contained at 4.6 percent of GDP and for 2014-15 at 4.1 percent.
PERFORMANCE
The Finance Minister Shri Chidambaram gave examples of fast growth in various sectors in the last ten years. India produces 263 million tonnes of foodgrains now as compare to 213 million tonnes ten years ago. Similar fast growths have taken place in coal production, power capacity and rural roads. Central Government’s expenditure on education has risen to Rs. 79,451 crore as compared to Rs. 10,145 crore ten years back. Expenditure on health has risen to Rs. 36,322 crore from Rs. 7,248 crore in a decade, the Minister said.
Agriculture sector has shown ‘stellar performance’ in 2013-14. Foodgrain production is estimated 263 million tonnes. Production of sugarcane, cotton, pulses, oilseeds and quality seeds has reached new records. Agricultural exports are likely to cross $ 45 billion. Agricultural credit is likely to touch 7,35,000 crore, exceeding the target of Rs. 7,00,000 crore. In the current year, agricultural GDP growth is estimated at 4.6 percent.
Merchandise exports rose by 6.3 percent in 2013-14 to $326 billion.
Eight National Investment and Manufacturing Zones (NIMZ) have been announced and another 5 NIMZ approved in-principle.
Infrastructure has grown by valuable addition to national highways, rural roads, railway tracks and port capacity. Besides, 19 oil and gas blocks were given out for exploration in 2013-14 and 7 new airports are under construction.
MAJOR PROPOSALS
The Government has accepted the principle of ‘one rank one pension’ for the defence forces and has allocated Rs. 500 crore for this purpose.
The target of agricultural credit has been raised to Rs. 8,00,000 crore. The effective rate of interest on farm loans, after interest subvention and incentive for prom payment, has been maintained at 4 percent.
Defence allocation has been enhanced by 10 percent to Rs. 2,24,000 crore. A moratorium period for all education loans taken upto 31.3.2009 has been proposed. It will benefit nearly nine lakh students borrowers by way of reduced interest burden. Rs. 2,600 crore have been allocated for this purpose.
The Government will contribute Rs. 1000 crore to the Nirbhaya Fund on top of Rs. 1000 crore provided earlier.
Rs. 1200 crore Additional Central Assistance is being provided to the North-Eastern States, Himachal Pradesh and Uttarakhand.
A venture capital fund for Scheduled Castes is proposed to be set up with an initial capital of Rs. 200 crore.
The restructured ICDS, which is being implemented in 400 districts, will be rolled out in the remaining districts.
Rs. 1000 crore is being proposed to the National Skill Development Cooperation in view of its success in providing skills to the youth.
A VISION FOR THE FUTURE
Among the tasks identified for the health of the economy in the years to come, the Minister called for keeping the fiscal deficit at 3 percent of GDP, promoting foreign investment, keeping inflation at a moderate level, and time- bound implementation of financial sector reforms. He also emphasized the need to rebuild infrastructure and promote manufacturing. Keeping subsidies under check, addressing the decay in cities and skill development will need to be given emphasis. States must share costs of flagship programmes so that more resources can be allocated to defence, railways etc.
REVENUE PROPOSALS
To give relief to automobile industry which is registering unprecedented negative growth, it is proposed to reduce the excise duty for the small cars, motor cycles, scooters and commercial vehicles by 4 percent. It will be cut from 12 percent to 8 percent.
The excise duty on SUVs is proposed to be reduced by 6 percent. From 30 percent to 24 percent.
In case of large and mid-segment cars, it is proposed to reduced excise duty by 3 percent i.e. 27/24% to 24/20%. All these reduced rates will be applicable upto June 30, 2014.
To stimulate growth in capital goods and consumer non-durable, it is proposed to reduce the excise duty from 12 to 10 percent on all goods for a period up to June 30, 2014. It is applicable to all goods falling under Chapter 84 and 85 of the Schedule to the Central Excise Act.
To encourage the domestic production of mobile handsets and reduce the dependence on imports, it is proposed to restructure the excise duty for category of mobile handsets. The rates will be 6 percent with CENVAT credit or 1 percent without CENVAT credit.
To boost domestic production of soaps and oleo chemicals, it is proposed to rationalize the customs duty structure on non-edible grade industrial oils and fractions, fatty acids and fatty alcohols at 7.5 percent.
It is proposed to withdraw the exemption from CVD on similar imported machinery to encourage domestic production of the specified road construction machinery.
The Government has succeeded in obtaining information in 67 cases of illegal Off-shore Accounts and action is underway to determine the tax liability as well as impose penalty. Prosecutions for willful tax evasion have been launched in 17 other cases.
Setting-up a Research Funding Organization that will fund research projects selected through a competitive process. Contributions to that organization will be eligible for tax benefit.
The Direct Taxes code (DTC) is ready and it will be placed on the website for a public discussion. The Finance Minister appeals to all political parties to resolve to pass the GST laws and the DTC in 2014-15.
SOURCE - CLICK HERE
Major Relief for Education Loan Borrowers, 9 Lakh Student Borrowers to Benefit
The Union Finance Minister Shri P. Chidambaram has announced a Moratorium period for all education loans taken-up to 31.3.2009 and outstanding on 31.12.2013. Government will take over the liability for outstanding interest as on 31.12.2013, but the borrower would have to pay interest for the period after 1.1.2014. Nearly 9 lakh students borrowers will benefit to the tune of approximately Rs2,600 crore.
Presenting the Interim Budget in the LokSabha today, the Union Finance Minister ShriChidambaram said that a sum of Rs 2,600 crore will be provided in the current financial year itself and this amount will be transferred to the Canara Bank. Mr. P. Chidambaram said that the Central scheme for interest subsidy was introduced in 2009-10 in respect of education loans disbursed after 1.4.2009. However, students who had borrowed before 31.3.2009 struggled to pay interest during the period of study and they deserved some relief.
Shri P. Chidambaram informed that ten years ago, only a few thousand students- mostly the well-connected- got education loans. At the end of December 2013, Public Sector Banks had 25,70,254 student loan accounts and the amount outstanding was Rs. 57,700 crore.
Lending to Minority Communitiessoar to Rs 66,500 Crores
SOURCE - CLICK HERE
Volume of lending to the Minority Communities had soared from Rs 4,000 crore in the year 2004-5 to Rs.66,500 crore in the year 2013-14. Presenting the Interim Budget in the Lok Sabha today, the Union Finance Minister, P. Chidambaram said that ten years ago, the Minorities had 14,15,000 bank accounts in 121 districts of India where there is concentration of Minorities. At the end of March 2013, they had 43,52,000 accounts and volume of lending rose to Rs 66,500 crore. Loans to Minorities Communities in the whole country stood at Rs.211,451 crore at the end of December 2013.
Target of Agriculture Credit of 8 Lakh Crore For 2014-15
SOURCE - CLICK HERE
The Finance Minister Shri P. Chidambaram has set a target of Rs 8 lakh crore of Agriculture credit for the year 2014-15. Presenting the Interim Budget in the LokSabhatoday, The Union Finance Minister P. Chidambaram said that the banks will exceed the target of Rs7 lakh crore of Agriculture credit fixed for the current yeari.e 2013-14.
The Finance Minister also announced that the interest subvention scheme shall continue in 2014-15. Under this scheme, a subvention of 2 percent and an incentive for 3 per cent for prompt payment is provided. This reduces the effective rate of interest on farm loans to 4 per cent. An amount of Rs 23,924 crore has been released under this scheme so far.
Rs 11,200 Crores Provided for Capital Infusion in the Public Sector Banks
SOURCE - CLICK HERE
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. The Union Finance Minister Mr. P Chidambaram made this announcement while presenting the Interim Budget in the Parliament today.
The Finance Minister informed that the Public Sector Banks have opened 5207 branches so far and nearing the goal of installing an ATM at every branch. Mr P. Chidambaram said that bankers have assured that they will be able to contain the NPA’s, recover more loans and build healthier balance sheets as the economy turns.
Public Sector General Insurance Companies Open 1849 Offices in Towns With Population of 10,000 Or More
SOURCE - CLICK HERE
The four Public Sector General Insurance Companies have opened 1849 offices in towns with population of 10,000 or more to serve peri-urban and rural areas. This information was given by the Union Finance Minister Shri P. Chidambaram while presenting the Interim Budget 2014-15 in the Lok Sabha today. He said that Life Insurance Corporation have opened 1252 offices in towns with a population of 10,000 or more to serve peri-urban and rural areas. The Public Sector General Insurance Companies are moving steadily to achieve the goals set for them.
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INTERIM BUDGET 2014-15
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Promotion of MSME Continues to be one of the Thrust Area of the Government
Union Finance Minster presented Interim Union Budget 2014-15 in the Parliament on 17.2.2014.
In his budget speech, while mentioning about state of the economy, the Finance Minister mentioned, inter-alia, that several measures have been taken to promote micro, small and medium enterprises including notifying a public procurement policy, establishing technology centres and common facility centres, and launching the Khadi mark.
The Finance Minister also mentioned about the major achievements of the Government in the current financial year, while discussing Report Card of 2013-14. The Finance Minister stated that Ministry of MSME will create the ‘India Inclusive Innovation Fund’ to promote grassroot innovations with social returns to support enterprises in the MSME sector. The Finance Minister proposed to make an initial contribution of Rs 100 crore to the corpus of the Fund.
SOURCE - CLICK HERE
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.
SOURCE - CLICK HERE
Indian Economy Steers Out of Troubled Waters Despite Global Impact
While presenting the Interim Budget 2014-15, the Union Finance Minister Shri P Chidambaram said that since September, 2008, the state of the world economy has been the most decisive factor impacting the fortunes of every developing country, including India. However, India has been among a few countries to keep its head above the water. Hence, to understand the story of India’s growth, it would be pertinent to add a few words on the global economy as well as on the global risks.
The Finance Minister informed that the world economic growth was 3.9 percent in 20011, 3.1 percent in 2012 and 3.0 percent in 2013. He added that among India’s major trading partners, who are also major sources of foreign capital inflows such as the United States, has just recovered from a long recession while Japan’s economy is still responding to the stimulus. He also pointed out that the Eurozone, as a whole, is reporting a growth of 0.2 percent and China’s growth has slowed down from 9.3 percent in 2011 to 7.7 percent in 2013.
Shri P Chidambaram stated in the House that the `Global Risks 2014 Report’ has mapped 31 global risks. Among these, he elaborated, are ten risks which are of highest concern. They include fiscal crisis, structurally high unemployment or underemployment, income disparity, governance failure, food crisis and political and social instability. These are challenges faced by all emerging economies.
SOURCE - CLICK HERE
Lending to Minority Communities soar to Rs 66,500 Crores
Volume of lending to the Minority Communities had soared from Rs 4,000 crore in the year 2004-5 to Rs.66,500 crore in the year 2013-14. Presenting the Interim Budget in the Lok Sabha today, the Union Finance Minister, P. Chidambaram said that ten years ago, the Minorities had 14,15,000 bank accounts in 121 districts of India where there is concentration of Minorities. At the end of March 2013, they had 43,52,000 accounts and volume of lending rose to Rs 66,500 crore. Loans to Minorities Communities in the whole country stood at Rs.211,451 crore at the end of December 2013.
SOURCE - CLICK HERE
Indian Economy to be Third Largest by 2043 UPA Outlines Ten Steps for a Vibrant Economy
While presenting the Interim Budget 2014-15, the Union Finance Minister Shri P Chidambaram said that in the next three decades India will become the third largest economy behind USA and China. In future, the fortunes of China and India will have a significant impact on the rest of the world. Therefore, the Indian Government must be responsible not only to itself but to the whole world by keeping the country’s economy in robust health.
The Finance Minister said that the UPA Government has a clear vision of the goals that have been set for itself. The Minister went on to elaborate the ten tasks that his Government intends to take to achieve those goals.
i. Fiscal Consolidation: A target of fiscal deficit of 3 percent of GDP must be achieved by 2016-17 and must always be kept below that level.
ii. Current Account Deficit: Since the economy will run a Current Account Deficit every year for some more years, it can be financed only by foreign investment, whether it is FDI or FII or ECB or any other kind of foreign inflow. Therefore, foreign investment must be encouraged.
iii. Price Stability and Growth: In a developing economy where the aim is high growth, a moderate level of inflation will have to be accepted. RBI must strike a balance between price stability and growth while formulating monetary policy.
iv. Financial Sector Reforms: The recommendations of the Financial Sector Legislative Reforms Commission must be implemented immediately as they do not require any change in legislation. Also, a timetable must be drawn for other recommendations that require legislation.
v. Infrastructure: The country must rebuild its infrastructure and add a huge quantity of new infrastructure. Every proven model must be adopted but the PPP model must be more widely used. New financing structures must be created for long term funds and pooling of investments.
vi. Manufacturing: The Government must focus on manufacturing and especially on manufacturing for export. The Minister proposed that all taxes, Central and State, that go into an exported product should be waived or rebated. He also proposed that there should be a minimum tariff protection so that there is an incentive to manufacture goods in India rather than import them into India.
vii. Subsidies: Given the limited resources, and the many claims on the resources, the Government must choose the subsidies that are absolutely necessary and give them only to the absolutely deserving.
viii. Urbanisation: The country’s cities will become ungovernable, and perhaps unliveable, if attention is not paid to the decay in these cities. Cities have wealth and also create wealth. But that wealth should be tapped for resources to rebuild the cities with a new model of governance.
ix. Skill Development: Skill development must rank alongside secondary education, university education, total sanitation and universal health care in the priorities of the Government.
x. Sharing responsibility between States and Centre: States have the fiscal space to bear a reasonable proportion of the financial costs of implementing flagship programmes and must willingly do so, so that the Central Government can allocate more resources for subjects such as defence, railways national highways and telecommunications that are its exclusive responsibility.
SOURCE - CLICK HERE
Exports Show Recovery, 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. In his Interim Budget speech for the year 2014-15, the Finance Minister said that though 2013-14 began on a pessimistic note, the year will end with estimated merchandise exports of USD 326 billion.
Shri Chidambaram said that exports from India have recovered sharply, in spite of the global trade declining from 6.1 per cent in 2011 to 2.7 per cent in 2013. India’s merchandise exports reached a level of USD 300.4 billion in 2012-13 registering a negative growth of 1.8 per cent over the previous year. But the during the current year, they are likely to grow by 6.3 per cent, he added.
The Finance Minister admitted that the rupee came under pressure during 2013-14. However, the Government, RBI and SEBI undertook a number of measures to facilitate capital inflows and stabilize the foreign exchange market. The Minister informed that among emerging economy currencies, the rupee was affected least when the actual reduction took place in December 2013 and January 2014.
SOURCE - CLICK HERE
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. Announcing this in the Interim Budget in the Parliament today the Finance Minister Shri P. Chidambram said, if there are any shortcomings they can be addressed when the regular budget is presented. The 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. He said, there is enough flexibility in the expenditure budget to make changes in the allocations within the overall resource envelope, if there is a need.
SOURCE - CLICK HERE
Adequate Plan Funds for Flagship Programmes
All Ministries/Departments that run key flagship programs of the UPA Government have been provided adequate funds for 2014-15 for plan expenditure. Presenting the Interim Budget in the Parliament today the Finance Minister Shri P. Chidambram said Rs. 555,322 crores has been provided for plan expenditure in 2014-15, which is about at the same level or higher than the Budget Estimates for 2013-14 and higher allocations are irrespective of the revised estimates for the year. The Minister said an allocation of over Rs. 82,200 crore has been made for the Ministry of Rural Development. Similarly, allocations of Rs. 67,398 crore for the Ministry of Human Resource Development, Rs. 33,725 crore for the Ministry of Health and Family Welfare, Rs. 21,000 crore for the Ministry of Women and Child Development and Rs. 15,260 for the Ministry of Drinking Water and Sanitation have been made respectively.
SOURCE - CLICK HERE
Agricultural Credit Likely to Touch Rs. 7,35,000 Crore; Target for 2014-15 Kept at Rs. 8,00,000 Crore
Agricultural GDP Growth Estimated at 4.6 Percent in the Current Year
Effective Rate of Interest on Farm Loans to Remain 4 Percent In 2014-15
Finance Minister Shri P. Chidambaram today informed the Lok Sabha about the ‘stellar performance’ of the agriculture sector. He said that agricultural credit is likely to touch Rs. 7,35,000 crore in the current year, exceeding the target of Rs. 7,00,000 crore. Finance Minister set a target of Rs. 8,00,000 crore for 2014-15. He also said that in the current year agricultural GDP growth is estimated at 4.6 percent. He said this while presenting the Interim Budget for 2014-15.
He also mentioned about the interest subvention scheme introduced in 2006-07. There is a subvention of 2 percent and an incentive of 3 percent for prompt payment, thus reducing the effective rate of interest on farm loans to 4 percent. So far, Rs. 23,924 crore has been released under the scheme.
Foodgrain production in 2012-13 was 255.36 million tonnes and the estimate for the current year is 263 million tonnes. Estimates of production of sugarcane, cotton, pulses, oilseeds and quality seeds point to new records, the Finance Minister said.
Finance Minister further said that agriculture exports in 2012-13 stood at USD 41 billion versus imports of USD 20 billion. In 2013-14, agriculture exports are likely to cross USD 45 billion.
SOURCE - CLICK HERE
Food, Fertilizer and Fuel Subsidies
Subsidies for food, fertilizer and fuel announced in the Interim Budget today for the coming financial year is slightly more than the revised estimates for 2013-14. 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 committement to implement the National Food Security Act throughout the country.
SOURCE - CLICK HERE
Funds for Railways
The Finance Minister Shri P. Chidambram has said that new instruments and new mechanisms have to be identified to raise funds for railway projects. Presenting the Interim Budget in the Parliament today, he said budgetary support to railways has been increased from Rs. 26,000 crore, as it was in the Budget Estimates of 2013-14, to RS. 29,000 crore in the current budget of 2014-15. He said the railways need to mobilise huge resources through market borrowing and Private Public Partnership (PPP schemes).
SOURCE - CLICK HERE
Government Steps Up Project Clearances
296 Projects of Rs 660,000 Crore Cleared by January End This Year
The Government has taken the bold step to set-up the Cabinet Committee on Investment and the Project Monitoring Group to speed up the implementation of projects in the country. As result, by the end of January, 2014, the way was cleared for completing 296 projects with an estimated project cost of Rs 660,000 crore. Stating this in the Interim Budget speech for the financial year 2014-15, the Finance Minister Shri P. Chidambaram said the Government has given a big push to infrastructure and capacity addition in infrastructure industries.
In 2012-13 and in the nine months of the current financial year, the Government has added 29,350 megawatts of power capacity, 3928 kilometers of national highways, 39,144 kilometres of rural roads under PMGSY, 3343 kilometres of new railway track and 217.5 million tonnes of capacity per annum in the ports, he said. Besides, 19 oil and gas blocks were given out for exploration and 7 new airports are under construction. The Finance Minister added that the Government has also facilitated infrastructure Debt Funds to provide take-out finance for infrastructure projects and ease the pressure on the banking system.
Shri Chidambaram informed that even after the economic slowdown the saving rate was 31.3 per cent in 2011-12 and 30.1 per cent in 2012-13. The corresponding investment rate was 35.5 percent and 34.8 per cent, respectively, indicating there was no steep decline in investment except in mining and manufacturing.
SOURCE - CLICK HERE
Venture Capital Fund to Promote Entrepreneurship Among the Scheduled Castes Mechanism for Marketing Minor Forest Produce Introduced
While delivering his Interim Budget Speech the Union Finance Minister Shri P. Chidambaram informed the House that in order to promote entrepreneurship among the scheduled castes and to provide concessional finance to them, IFCI will set-up a Venture Capital Fund of Rs. 200 crore, which can be supplemented every year.
The Finance Minister Shri Chidambaram further informed the House that restructured ICDS will be rolled-out in all districts from 1.4.2014.
Government has approved the National Agro-Forestry Policy 2014 which has multiple objectives including employment, productivity, conservation and adaptation.
The Finance Minister Shri P. Chidambaram informed the House that the Government has also taken other major social sector initiatives during the current financial year i.e. 2013-14. These initiatives are:
• A mechanism for marketing minor forest produce has been introduced, and the Budget has allocated Rs. 444.59 crore to continue the scheme in 2014-15.
• An allocation of Rs. 100 crore has been approved to promote community radio stations.
• Ministry of Health and Family Welfare has delivered new technologies to the people: the JE vaccine, a diagnostic test for Thalassaemia, and a Magnivisualizer for detection of cervical cancer.
SOURCE - CLICK HERE
Rs. 3,370 Crore has been Transferred to 2.1 Crore LPG Beneficiaries 57 Crore Aadhaar Numbers have been Issued so far
Opening Bank Accounts for all Aadhaar Holders to Promote Financial Inclusion
The Union Finance Minister Shri P. Chidambaram has informed the House that a sum of Rs. 3,370 crore has been transferred to 2.1 crore LPG beneficiaries. The scheme has been put on hold for the time being pending resolution of some difficulties that have been pointed out. He further said that Government remains fully committed to Aadhaar under which 57 crore unique numbers have been issued so far and to opening bank accounts for all Aadhaar holders in order to promote financial inclusion.
The Finance Minister Shri Chidambaram earlier informed the House that under the Direct Benefit Transfer Scheme money is being transferred to beneficiaries under 27 identified schemes, including the National Social Assistance Programme (NSAP). A total of 54,20,114 transactions have been put through until 31.1.2014 and Rs. 628 crore has been transferred.
The Finance Minister also highlighted who need Aadhaar. He said that it is those who are at the bottom of the pyramid, the poor, the migrant workers, the homeless, and the oppressed who need Aadhaar and we will ensure that they get Aadhaar. Aadhaar is a tool of empowerment.
SOURCE - CLICK HERE
Additional Central Assistance to State Plans for Centrally Sponsored Schemes
In the plan budget of 2014-15, an additional Central Assistance is proposed to be given to States/ UTs Plans for implementation of the Centrally Sponsored Plan Schemes (CSSs). These schemes are also proposed to be now restricted to 66 schemes from the 126 such schemes currently in vogue under 17 flagship programmes. Accordingly, a higher allocation of Rs. 3,38,562 crore towards for State Plans for 2014-15 has been made under central assistance, as against Rs. 1,36,254 crore made in the Budget of 2013-14. A central assistance of Rs. 34,000 crores is proposed to be given towards State/UTs Plans for Mahatma Gandhi National Rural Employment Guarantee scheme. Rs. 27,635 crore is to be given for Sarva Siksha Abhiyan, Rs. 13,152 crore for National Programme for Mid-Day meals in schools and Rs. 4,965 crore for Rashtriya Madhyanik Shiksha Abiyan. For the Intergrated Child Development Services (ICDS) a central assistance of Rs. 18691 crore will be provided to State/UTs Plans. Similarly Rs. 16,000 crore will be provided for State/UTs Plans as central assistance for rural housing, Rs. 13,000 crore for Pradhan Mantri Gram Sadak Yojna, Rs. 11,000 crore for drinking water supply and Rs. 4,260 crore for rural sanitation. Rs 2,200 crore for National Food Security Mission will be provided to State/UTs Plans. For Urban Development, Rs. 7060 crore will be given as central assistance to State/UTs Plans for the Jawahar Lal Nehru National Urban Renewal Mission( JNNURM).
SOURCE - CLICK HERE
Government Succeeds in Obtaining Information in Dozens of Cases of Illegal Off-Shore Accounts
Prosecutions Launched In Many Other Cases
Despite several hurdles in obtaining evidence on illegal off-shore accounts held by the Indians from the countries concerned, the Central Government has succeeded, through alternative methods and special efforts, in obtaining information in 67 cases. Stating this while presenting the Union Interim Budget 2014-15 in Parliament here today, the Finance Minister, Shri P. Chidambaram said that action is under way to determine the tax liability as well as impose penalty. He said that prosecutions for willful tax evasions have been launched in 17 other cases. More enquires have been initiated into accounts reportedly held by Indian entities in no tax or low tax jurisdictions.
SOURCE - CLICK HERE
Rs. 1000 Crore Allocated to Nirbhaya Fund
The Union Finance Minister Shri P. Chidambaram has reiterated his commitment to fulfill the promises he made during last year on girl child. Towards this, an amount of Rs. 1000 crore has been allocated under Nirbhaya Fund during 2014-15 as well.
The Finance Minister Shri Chidambaram informed that the fund will be a permanent fund and declared the grant of Rs. 1000 crore as non-lapsable. In order to support more proposals, the Finance Minister proposed to contribute another sum of Rs. 1000 crore next year.
SOURCE - CLICK HERE
Defence Allocation
The Defence Allocation has been enhanced by ten(10) per cent. The Interim Budget for 2014-15 makes an allocation of Rs. 224,000 crore as against Rs. 203,672 crore in the last Budget.
SOURCE - CLICK HERE
The Interim Budget 2014-15 Shows an Estimated Plan Expenditure of Rs. 5,55,322 Crore and Non-Plan Expenditure of Rs. 12,07,892 Crore
Fiscal Deficit to be Pegged at 4.1% and the Revenue Deficit at 3%
The Union Finance Minister, Shri P. Chidambaram here today presented the Interim Budget 2014-15 that shows an estimated plan expenditure of Rs. 5,55,322 crore and non-plan expenditure of Rs. 12,07,892 crore. He said that the current financial year will end on a satisfactory note with the fiscal deficit at 4.6% and the revenue deficit at 3.3%. Shri P. Chidambaram said that emboldened by the progress made, he has budgeted for the receipts and expenditure in 2014-15 that will leave a fiscal deficit of 4.1% and revenue deficit of 3%. The Finance Minister said the fiscal deficit during 2014-15 will be below the target set by the fiscal consolidation path.
SOURCE - CLICK HERE
Loading, Unloading, Packing, Storage and Warehousing of Rice also Exempted from Service Tax;
Cord Blood Banks also get the Same Relief
Finance Minister, Shri P. Chidambaram has proposed to exempt loading, unloading, packing, storage and warehousing of rice from service tax. Stating this while presenting the Interim Budget 2014-15 in Parliament here today he said that by virtue of the definition of ‘agricultural produce’ in Finance Act, 2012, read with the Negative List, storage or warehousing of Paddy was excluded from the levy of service tax; but rice was not. As this distinction was somewhat artificial, the same has been done away with and now rice has also been exempted.
Shri P. Chidambaram said that he has acceded to the request of the Ministry of Health and Family Welfare that services provided by Cord Blood Banks are also health care services and hence they should also be exempt from service tax.
Notifications in respect of the above changes will be issued today itself.
SOURCE - CLICK HERE
Relief to The Manufacturing Sector; Cars and Scooters to be Cheaper Excise Duty on Mobile Handsets to be Restructured
Customs Duty Structure To Be Rationalised To Encourage Production Of Soaps And Oleo Chemicals
Production Of Security Paper For Printing Currency Notes Also Gets Encouragement
The Union Finance Minister, Shri P. Chidambaram has announced some changes in Indirect Tax Rates. Presenting the Interim Budget 2014-15 here in Parliament today, he said that keeping with the conventions, he does not propose to make any announcements regarding changes to the Tax Laws. However, the current economic situation demands some interventions that cannot wait for the regular budget. In particular, the manufacturing sector needs an immediate boost. Hence, Shri P. Chidambaram proposed the following changes in some Indirect Tax Rates:
1. To stimulate growth in the capital goods and consumer non-durables, Shri P. Chidambaram proposed to reduce the excise duty from 12% to 10% on all goods falling under Chapter 84 and 85 of the schedule to the Central Excise Tariff Act for the period up to 30.06.2014. The rates can be reviewed at the time of the regular budget.
2. To give relief to the automobile industry which is registering unprecedented negative growth, the Finance Minister proposed to reduce the excise duty as follows for the period up to 30.06.2014:
(i) Small cars, motorcycles, scooters and
commercial vehicles ----------------------- from 12% to 8%
(ii) SUVs ------------------------------------------ from 30% to 24%
(iii) Large & Mid-segment Cars--------------- from 27/24% to 24/20%
Accordingly, Shri Chidambaram proposed to make appropriate reductions in the excise duty on chassis and trailers.
3. To encourage domestic production of mobile handsets and reduce the dependence on imports, the Finance Minister has proposed to restructure the excise duties for all categories of mobile handsets. The rates will be 6% with CENVAT credit or 1% without CENVAT credit.
4. To encourage domestic production of soaps and oleo chemicals, Shri P. Chidambaram proposed to rationalize the customs duty structure on non-edible grade industrial oils and its fractions, fatty acids and fatty alcohols at 7.5%.
5. To encourage domestic production of specified road construction machinery, the Finance Minister proposed to withdraw the exemption from CVD on similar imported machinery.
6. To encourage indigenous production of security paper for printing currency notes, the Interim Budget proposes to provide a concessional customs duty of 5% on capital goods imported by the Bank Note Paper Mill India Pvt. Ltd.
SOURCE - CLICK HERE
Additional Assistance of Rs. 1,200 Crore to North Eastern States, Himachal Pradesh and Uttarakhand
While delivering his Interim Budget Speech the Union Finance Minister Shri P. Chidambaram informed the House that the North Eastern States, Himachal Pradesh and Uttarakhand deserve special attention. In addition to funds allocated in the current year, he said that a sum of Rs. 1,200 crore is released as Additional Central Assistance to these States before the end of the year.
SOURCE - CLICK HERE
Government Took Path Breaking Decisions in the Current Financial Year 2013-14
Government has taken several notable decisions on the economy of the country and the welfare of the people. While delivering his Interim Budget Speech, the Finance Minister Shri P. Chidambaram said that these decisions include fully decontrol of sugar, gradual correction of diesel prices, rationalization of railway fares for the first time in decade among others. He said that applications were invited for issuing new bank licenses and restructuring of DISCOMS was done with generous central assistance.
The Finance Minister Shri P. Chidambaram informed the House that the Government has also passed some historical legislations during the current financial year i.e. 2013-14.
128 lakh land titles covering 18.80 lakh hectare were distributed under the Scheduled Tribes and Other Traditional Forest Dwellers Act.
• The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act was notified.
• The National Food Security Act was passed.
• The new Companies Act enacted.
• The PFRDA Act was passed
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A ‘Research Funding Organisation’ to be set up to fund Research Projects Selected through a Competitive Process
The Finance Minister, Shri P. Chidambaram said that the Government has passionately espoused the cause of science, promoted scientific research and supported scientific applications and inventions. Now, a ‘Research Funding Organisation’ is to be set up to fund Research Projects selected through a competitive process. This was proposed by the Finance Minister, Shri P. Chidambaram while presenting Interim Budget 2014-15 in Parliament here today. He said that contributions to that organisation will be eligible for tax benefits. This will require legislative changes which can be introduced at the time of the regular Budget.
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Direct Taxes Code (DTC) to be put on the website of the ministry for public discussion
Direct Taxes Code (DTC) will be put on the website of the Ministry of Finance for a public discussion without partisanship or acrimony. This was stated by the Finance Minister, Shri P. Chidambaram while presenting Interim Budget 2014-15 in Parliament here today. He said that the Code can serve us for at least the next 20 years. The Finance Minister appealed to all political parties to resolve to pass the GST Laws and the Direct Taxes Code in 2014-15.
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Major Economic Initiatives in the Current Financial Year Public Sector Enterprises Achieve a New Record in Capital Expenditure
While delivering his Interim Budget Speech the Union Finance Minister Shri P. Chidambaram said that Centrally Sponsored Schemes were restructured into 66 programmes and central assistance to plans of States and Union Territories will rise substantially from Rs. 136,254 crore in BE 2013-14 to Rs. 338,562 crore in 2014-15.
The Finance Minister Shri P. Chidambaram informed the House that the Public Sector Enterprises will achieve a new record in capital expenditure of Rs. 257,641 crore in 2013-14.
Presenting the Report Card for 2013-14, the Finance Minister Shri P. Chidambaram informed about various other economic initiatives taken by the Government during the current financial year are:
• About 50,000 MW of Thermal and Hydelpower capacity is under construction and 78,000 MW of power capacity has been assured coal supply.
• The FDI policy was liberlised.
• Approval was granted to establish two semi-conductor wafer fab units.
• IT modernization of the Department of Posts with an outlay of Rs. 4,909 crore.
• Kudankulam Nuclear Power Plant Unit I achieved criticality and is generating 180 million units of power.
• 500 MW prototype fast breeder reactor at Kalpakam is nearing completion.
• National Solar Mission exceed the target and achieved 1,684 MW of grid connected solar power.
• Initial contribution of Rs. 100 crore to the corpus of ‘India Inclusive Innovation Fund’ under Ministry of MSME.
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A Non–Statutory Public Debt Management Agency to be Established
A non–statutory Public Debt Management Agency (PDMA)shall be established that can begin work in 2014-15. Presenting the Interim Budget 2014-15 the Union Finance Minister Shri P. Chidambaram said that pursuant to the announcement in the Budget speech of 2011-12, Government is ready with the Public Debt Management Agency Bill.
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Forward Contracts (Regulation) Act to be Amended
The Forward Contracts (Regulation) Act- FCRA shall be amended to strengthen the regulatory framework of the commodity derivatives market. Presenting the Interim Budget 2014-15 in the LokSabha today, the Union Finance Minister Shri P. Chidambaram said that Honorable Members will recall the payment crisis in the National Spot Exchange Limited (NSEL).
Following the transfer of the subject to the Ministry of Finance, swift action was taken to sequester NSEL and to ensure that there was no spill over of the crisis to the other regulated segments of the financial market.
SOURCE - CLICK HERE
Number of Steps Envisaged to Deepen The Indian Financial Market
The Government has envisaged number of steps to deepen the Indian Financial markets. Presenting the Interim Budget 2014-15, the Union Finance Minister Shri P. Chidambaram outlined the steps as below:
· To comprehensively revamp the ADR/GDR scheme and enlarge the scope of Depository Receipts;
· To liberalise the rupee-denominated corporate bond market;
· To deepen and strengthen the currency derivatives market to enable Indian companies to fully hedge against foreign currency risks;
· To create one record for all financial assets of every individual;
· To enable smoother clearing and settlement for international investors looking to invest in Indian bonds.
SOURCE - CLICK HERE
More Than 41 Lakh Women Self Help Groups Provided Credit By December 2013
More than 41 lakh Women Self Help Groups (SHG’s) have been provided credit at the end of December 2013. Presenting the Interim Budget in the LokSabha today, the Union Finance Minister Mr. P. Chidambaram said that ten years ago, only 9,71,182 women SHG’s had been credit linked to banks. At the end of December 2013, 41,16,000 women SHG’s have been provided credit and the outstanding amount of credit was Rs 36,893 crore.
SOURCE - CLICK HERE
ONE RANK ONE PENSION ACCEPTED FOR DEFENCE SERVICES.
fiscal deficit for 2013-14 will be 4.6 percent of GDP. Current Account Deficit (CAD) will be pegged to$45 billion.
Food inflation still the main worry. declines sharply from 13.6 percent to 6.2 percent.
In the current year, agriculture growth UP at 4.6 percent.
merchandise export 2013-14 $ 326 billion, up by 6.3 percent.
Defence allocation up by 10 percent.
Government will contribute Rs. 1000 crore to Nirbhaya Fund.
Big Excise relief to automobile and capital goods industry. Attempts to boost domestic production of mobile handsets.
67 cases of illegal Off-shore Accounts detected. Action underway to determine tax liability. Prosecutions for willful tax evasion launched in 17 other cases.
The Union Finance Minister Shri P. Chidambaram today sought to present UPA Government’s ‘unparalleled’ growth record, rejecting the argument of policy paralysis. He also outlined a vision for the future with ten major tasks that must be undertaken by the Government of the day. Keeping the fiscal deficit at 4.1 percent of GDP and acceding to the long-pending demand of one rank one pension among defence personnel were other key highlights of the Interim Budget presented by him.
The Minister enumerated path-breaking decisions taken by the Government in 2013-14. These include decontrol of sugar, gradual correction of diesel prices, rationalization of railway fare, starting the process for issue of new bank licenses and restructuring of DISCOMS.
Asserting that the economy is more stable today than what it was two years ago, the Minister said that the fiscal deficit is declining, the current account deficit has been contained, inflation has moderated, the quarterly growth rate is on the rise, the exchange rate is stable, exports have increased, and hundreds of projects have been unblocked.
The Cabinet Committee on Investment (CCI) and the Project Monitoring Group were setup. Thanks to the swift decisions taken by them, by the end of January, 2014, the way was cleared for completing 296 projects with an estimated project cost of Rs. 660,000 crore.
Shri Chidambaram stated that decline in GDP observed in the first quarter of 2013-14 will be arrested and the growth cycle will turn in the second quarter. He expressed the confidence that growth in Q3 and Q4 of 2013-14 will be at least 5.2 percent.
The Finance Minister stated that the annual GDP growth in the last ten years of UPA Government has been above the growth rate of 6.2 percent for the last 33 years. While it was 8.4 percent during UPA-I, it was 6.6 percent during UPA-II.
The Interim Budget estimates the plan expenditure in 2014-15 at Rs. 555,322 crore, almost the same as in the previous year. The non-plan expenditure has been raised slightly to Rs. 12,07,892 crore. Fiscal deficit for 2013-14 is likely to be contained at 4.6 percent of GDP and for 2014-15 at 4.1 percent.
PERFORMANCE
The Finance Minister Shri Chidambaram gave examples of fast growth in various sectors in the last ten years. India produces 263 million tonnes of foodgrains now as compare to 213 million tonnes ten years ago. Similar fast growths have taken place in coal production, power capacity and rural roads. Central Government’s expenditure on education has risen to Rs. 79,451 crore as compared to Rs. 10,145 crore ten years back. Expenditure on health has risen to Rs. 36,322 crore from Rs. 7,248 crore in a decade, the Minister said.
Agriculture sector has shown ‘stellar performance’ in 2013-14. Foodgrain production is estimated 263 million tonnes. Production of sugarcane, cotton, pulses, oilseeds and quality seeds has reached new records. Agricultural exports are likely to cross $ 45 billion. Agricultural credit is likely to touch 7,35,000 crore, exceeding the target of Rs. 7,00,000 crore. In the current year, agricultural GDP growth is estimated at 4.6 percent.
Merchandise exports rose by 6.3 percent in 2013-14 to $326 billion.
Eight National Investment and Manufacturing Zones (NIMZ) have been announced and another 5 NIMZ approved in-principle.
Infrastructure has grown by valuable addition to national highways, rural roads, railway tracks and port capacity. Besides, 19 oil and gas blocks were given out for exploration in 2013-14 and 7 new airports are under construction.
MAJOR PROPOSALS
The Government has accepted the principle of ‘one rank one pension’ for the defence forces and has allocated Rs. 500 crore for this purpose.
The target of agricultural credit has been raised to Rs. 8,00,000 crore. The effective rate of interest on farm loans, after interest subvention and incentive for prom payment, has been maintained at 4 percent.
Defence allocation has been enhanced by 10 percent to Rs. 2,24,000 crore. A moratorium period for all education loans taken upto 31.3.2009 has been proposed. It will benefit nearly nine lakh students borrowers by way of reduced interest burden. Rs. 2,600 crore have been allocated for this purpose.
The Government will contribute Rs. 1000 crore to the Nirbhaya Fund on top of Rs. 1000 crore provided earlier.
Rs. 1200 crore Additional Central Assistance is being provided to the North-Eastern States, Himachal Pradesh and Uttarakhand.
A venture capital fund for Scheduled Castes is proposed to be set up with an initial capital of Rs. 200 crore.
The restructured ICDS, which is being implemented in 400 districts, will be rolled out in the remaining districts.
Rs. 1000 crore is being proposed to the National Skill Development Cooperation in view of its success in providing skills to the youth.
A VISION FOR THE FUTURE
Among the tasks identified for the health of the economy in the years to come, the Minister called for keeping the fiscal deficit at 3 percent of GDP, promoting foreign investment, keeping inflation at a moderate level, and time- bound implementation of financial sector reforms. He also emphasized the need to rebuild infrastructure and promote manufacturing. Keeping subsidies under check, addressing the decay in cities and skill development will need to be given emphasis. States must share costs of flagship programmes so that more resources can be allocated to defence, railways etc.
REVENUE PROPOSALS
To give relief to automobile industry which is registering unprecedented negative growth, it is proposed to reduce the excise duty for the small cars, motor cycles, scooters and commercial vehicles by 4 percent. It will be cut from 12 percent to 8 percent.
The excise duty on SUVs is proposed to be reduced by 6 percent. From 30 percent to 24 percent.
In case of large and mid-segment cars, it is proposed to reduced excise duty by 3 percent i.e. 27/24% to 24/20%. All these reduced rates will be applicable upto June 30, 2014.
To stimulate growth in capital goods and consumer non-durable, it is proposed to reduce the excise duty from 12 to 10 percent on all goods for a period up to June 30, 2014. It is applicable to all goods falling under Chapter 84 and 85 of the Schedule to the Central Excise Act.
To encourage the domestic production of mobile handsets and reduce the dependence on imports, it is proposed to restructure the excise duty for category of mobile handsets. The rates will be 6 percent with CENVAT credit or 1 percent without CENVAT credit.
To boost domestic production of soaps and oleo chemicals, it is proposed to rationalize the customs duty structure on non-edible grade industrial oils and fractions, fatty acids and fatty alcohols at 7.5 percent.
It is proposed to withdraw the exemption from CVD on similar imported machinery to encourage domestic production of the specified road construction machinery.
The Government has succeeded in obtaining information in 67 cases of illegal Off-shore Accounts and action is underway to determine the tax liability as well as impose penalty. Prosecutions for willful tax evasion have been launched in 17 other cases.
Setting-up a Research Funding Organization that will fund research projects selected through a competitive process. Contributions to that organization will be eligible for tax benefit.
The Direct Taxes code (DTC) is ready and it will be placed on the website for a public discussion. The Finance Minister appeals to all political parties to resolve to pass the GST laws and the DTC in 2014-15.
SOURCE - CLICK HERE
Major Relief for Education Loan Borrowers, 9 Lakh Student Borrowers to Benefit
The Union Finance Minister Shri P. Chidambaram has announced a Moratorium period for all education loans taken-up to 31.3.2009 and outstanding on 31.12.2013. Government will take over the liability for outstanding interest as on 31.12.2013, but the borrower would have to pay interest for the period after 1.1.2014. Nearly 9 lakh students borrowers will benefit to the tune of approximately Rs2,600 crore.
Presenting the Interim Budget in the LokSabha today, the Union Finance Minister ShriChidambaram said that a sum of Rs 2,600 crore will be provided in the current financial year itself and this amount will be transferred to the Canara Bank. Mr. P. Chidambaram said that the Central scheme for interest subsidy was introduced in 2009-10 in respect of education loans disbursed after 1.4.2009. However, students who had borrowed before 31.3.2009 struggled to pay interest during the period of study and they deserved some relief.
Shri P. Chidambaram informed that ten years ago, only a few thousand students- mostly the well-connected- got education loans. At the end of December 2013, Public Sector Banks had 25,70,254 student loan accounts and the amount outstanding was Rs. 57,700 crore.
Lending to Minority Communitiessoar to Rs 66,500 Crores
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Volume of lending to the Minority Communities had soared from Rs 4,000 crore in the year 2004-5 to Rs.66,500 crore in the year 2013-14. Presenting the Interim Budget in the Lok Sabha today, the Union Finance Minister, P. Chidambaram said that ten years ago, the Minorities had 14,15,000 bank accounts in 121 districts of India where there is concentration of Minorities. At the end of March 2013, they had 43,52,000 accounts and volume of lending rose to Rs 66,500 crore. Loans to Minorities Communities in the whole country stood at Rs.211,451 crore at the end of December 2013.
Target of Agriculture Credit of 8 Lakh Crore For 2014-15
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The Finance Minister Shri P. Chidambaram has set a target of Rs 8 lakh crore of Agriculture credit for the year 2014-15. Presenting the Interim Budget in the LokSabhatoday, The Union Finance Minister P. Chidambaram said that the banks will exceed the target of Rs7 lakh crore of Agriculture credit fixed for the current yeari.e 2013-14.
The Finance Minister also announced that the interest subvention scheme shall continue in 2014-15. Under this scheme, a subvention of 2 percent and an incentive for 3 per cent for prompt payment is provided. This reduces the effective rate of interest on farm loans to 4 per cent. An amount of Rs 23,924 crore has been released under this scheme so far.
Rs 11,200 Crores Provided for Capital Infusion in the Public Sector Banks
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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. The Union Finance Minister Mr. P Chidambaram made this announcement while presenting the Interim Budget in the Parliament today.
The Finance Minister informed that the Public Sector Banks have opened 5207 branches so far and nearing the goal of installing an ATM at every branch. Mr P. Chidambaram said that bankers have assured that they will be able to contain the NPA’s, recover more loans and build healthier balance sheets as the economy turns.
Public Sector General Insurance Companies Open 1849 Offices in Towns With Population of 10,000 Or More
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The four Public Sector General Insurance Companies have opened 1849 offices in towns with population of 10,000 or more to serve peri-urban and rural areas. This information was given by the Union Finance Minister Shri P. Chidambaram while presenting the Interim Budget 2014-15 in the Lok Sabha today. He said that Life Insurance Corporation have opened 1252 offices in towns with a population of 10,000 or more to serve peri-urban and rural areas. The Public Sector General Insurance Companies are moving steadily to achieve the goals set for them.
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