Union Budget 2014-2015

Contents

• Introduction

• History

• Five major schemes

• Positive & negative aspects of Union Budget

• Highlights

• Indian Economy

• Some other Facts and figures

• Conclusion

• Quiz

Introduction

The budget is a document that states expenditure and income of the Government for the current financial year and which reflects the direction of Government policies and priorities.

The Union Budget of India, referred to as the annual Financial Statement in Article 112 of the Constitution of India , is the annual budget of the Republic of India , presented each year on the last working day of February by the Finance Minister of India in Parliament .

The budget has to be passed by the House before it can come into effect on April 1, the start of India 's financial year.

UNION BUDGET 2014-15

The Union Budget of India for 2014-2015 presented by P. Chidambaram , the Finance Minister of India on 17th February 2014.

These budgetary proposals would be applicable from 1 April 2014 to 31 March 2015.

History

The word “Budget” is derived from an early 15th century French word, “Bougette”, which means purse or a leather bag. According to several popular accounts, Bougette or the purse was used by the British Chancellor to carry his papers, which he presented to the British Parliament. But, it was only in the year 1873 that the word was used particularly to describe an annual financial statement.

India’s first Union Budget was presented by Mr. R K Shanmukham Chetty, who served as a Finance Minister in Jawaharlal Nehru’s cabinet, on November 26, 1947. The Finance Minister, Pranab Mukherjee’s budget speech 2011-12 was the 80st budget presentation in the history of independent India.

TOP 5 SCHEMES IN BUDGET 2014-2015

1) MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE ACT(MGNREGA)

MINISTRY OF RURAL DEVELOPMENT

It provides at least 100 days of work at not less than Rs.60/day which varies by state. 36.7 million rural households have benefitted so far in 2012-13, while 49.8 million rural

households benefitted in 2011-12. Implemented in 626 to 640 districts across the country. It can cost upto Rs. 34000 crore as it was allocated in Budget 2014-2015. Rs. 33000 crore was spent in budget 2013-2014 according to the revised estimates.

2) INTEGRATED CHILD DEVEOPMENT SERVICES SCHEME(ICDS)

MINISTRY OF WOMAN AND CHILD DEVELOPMENT

Aims to provide supplementary nutrition ,health check-ups and referral services for children below 6 years and pregnant and lactating mothers.

Pre-school education is offered to children between 3 & 6 years. Provide nutrition and health education to women in the 15-45 years age group. Rs. 18,321 crore was allocated in Budget 2014-2015. Rs. 14,767 crore was spent in 2013-2014 according to the revised estimates.

INDIRA AWAS YOJNA(IAY)

3) INDIRA AWAS YOJNA(IAY)

MINISTRY OF RURAL DEVELOPMENT

The main aim of Indira Awas Yojna is to provide permanent houses to widows, ex-servicemen, people living below poverty line etc.

Rs. 16000 crore was allocated in Budget 2014-2015. Rs. 11865 crore was spent in 2013-2014 according to the revised estimates.

4) MID DAY MEAL PROGRAMME

MINISTRY OF HUMAN RESOURCEDEVELOPMENT

The goal of the Mid Day Meal is to encourage school enrolment and attendance as well as improve children’s nutrition.

It is the world’s largest school feeding programme that reaches about 12 crore children in over 12.65 lakh primary and upper primary nationwide including government aided schools as well as students who study under the Education Guarantee Scheme(EGS) and Army Institute Of Education(AIE) centres.

5) PRADHAN MANTRI GRAM SADAK YOJNA(PMGSY)

MINISTRY OF RURAL DEVELOPMENT

Centrally sponsored road programme to connect villages, launched in 2000. Aims to provide connectivity to about 1,58,891 unconnected habitations with population of

500 people and above and 250 persons and above in hill state and desert areas. Aims to upgrade 3.75 lakh km. of existing rural roads. Rs. 6737 crore was allocated in Budget 2014-2015. Rs. 3872 crore was spent in 2013-2014 according to the revised estimates.

Positive aspects of Union Budget

Women and Child Development(18321 cr.)

Poverty Elimination(6000 cr.)

Stimulate growth as govt. had slashed excise duty(from 12% to 10%)

Strengthen the capacity of Central Armed Police Forces by modernization and providing new equipment and technology

Health and Family Welfare(33,725 cr.) Drinking water and sanitation ministry(15,260 cr.) Social Justice and Empowerment Ministry(6730 cr.) Railways as budgetary support(29000 cr.) Provide nutrition and health education to women(age 15-45 )

More employment in the economy

Negative aspects of Union Budget

Corruption

Lack of proper management

HIGHLIGHTS

No change in the income tax rate

Rs 2,46,397 crore. allocated for food, fertiliser and fuel subsidy

2% cut on excise duty on capital goods like electrical machinery

2% cut on excise duty on Computers/Laptops and digital Cameras

National Solar Mission to undertake 4 ultra mega solar power projects in 2014-15

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

2% cut on excise duty on TVs, refrigerators, washing machines etc.

2% cut on excise duty on wide range of electrical household products like bulb, gadgets etc.

Excise duty on SUVs cut from 30% to 24 %

Budgetary support to railways at Rs 29,000 crore in 2014-15

6% excise duty for all mobile phones

Soaps, TV, fridge to be cheaper now

Indian Economy

In the fiscal year 2012-13 Indian economy slowed down and on August 28th 2013, value of the Indian Rupee touched all time low of 68.80 against the US dollar. Agriculture, textile manufacturing, services, retail, tourism, mining, banking and finance, energy and power and infrastructure are few of the most important sectors of economy in India. Indian economy has huge potential and in the years to come it is expected to become one of the largest economies in the world.

Some other Facts and figures

Which Finance Minister presented full budget maximum number of times: Morarji Desai – 10 times P. Chidambaram – 9 times Pranab Mukherjee – 7 times

On the basis of nominal GDP, Indian economy is:

The tenth-largest in the world.

On the basis of purchasing power parity:

It is the third-largest in the world.

On the basis of per-capita income:

Rank of India is 141st by nominal GDP and 130th by GDP purchasing power parity (PPP). If India keeps on moving with the same pace then it will become the third largest economy in the world with projected GDP (PPP) at $13,716 bn.

According to the statistics of WTO International Statistics India is the 12th largest importer and the 19th largest exporter across the world.

Agriculture is the most prominent and important sector of Indian economy. In total farm output, India ranks second across the world and India is the largest producer of milk, jute and pulses.

India has the fourth largest rail network in the world. The total track length is 114,500 kilometers.

This one is really astonishing – India is home to 122 billionaires and at the same time world’s home to the largest number of poor.

Conclusion

Quiz