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nion Finance Minister P Chidambaram on 17th February 2014 (Monday) presented his interim Union Budget 2014. Leaving direct taxes untouched, he slashed excise duty on cars, SUVs and two-wheelers, and capital goods and consumer durables to boost

manufacturing and growth. Presenting the interim Union Budget for 2014-15, he also provided service tax exemption for storage and warehousing of rice like it was done in case of paddy last year. Also, blood banks have been exempted from its purview. Below are the Highlights of Union Budget 2014-15.

GROWTH

GDP expansion in third and fourth quarters of 2013/14 estimated at 5.2 percent. Growth for the whole year expected at 4.9 percent.

FISCAL DEFICIT

Fiscal deficit seen at 4.6 percent of GDP in 2013/14, below target of 4.8 percent. Fiscal deficit projected at 4.1 percent of GDP in 2014/15 Says need to bring down the deficit to 3 percent of GDP by 2016/17

CURRENT ACCOUNT DEFICIT

Current account deficit for 2013/14 estimated at $45 billion from last fiscal year's $88 billion.

Forex reserves to rise by $15 billion by end of 2013/14

BORROWING/DEBT SERVICING

Gross market borrowing for 2014/15 seen at 5.97 trillion rupees, net market borrowing at 4.57 trillion rupees.

Government plans to buy back/switch bonds of 500 billion rupees in 2014/15. Ways and Means advances for 2014/15 estimated at 100 billion rupees Debt repayment in 2014/15 seen at 1.397 trillion rupees Interest payments seen rising to 4.27 trillion rupees in 2014/15 from a revised estimate of

3.8 trillion rupees for the current fiscal year.

PRIVATISATION

Target from stake sale in state run firms for 2013/14 revised to 258.41 billion rupees Target for 2014/15 increased to 569.25 billion rupees

U

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SPENDING

Plan expenditure for 2014/15 seen at 5.55 trillion rupees, the same level as the previous fiscal year

Non plan spending estimated at about 12.08 trillion rupees in 2014/15

SUBSIDIES

Total spending on food, fertilisers and fuel at 2.5 trillion rupees in 2014/15 Food subsidy estimated at 1.15 trillion rupees, fertiliser subsidy at 679.71 billion rupees.

Petroleum subsidy seen at 634.27 billion rupees versus revised figure of 854.8 billion rupees for 2013/14.

DEFENCE

Spending raised to 2.24 trillion rupees in 2014/15, up 10 percent year on year.

EXPORTS

Merchandise exports seen at $326 billion in 2013/14, up 6.3 percent year on year. Agriculture exports expected to touch $45 billion in 2013/14, up from $41 billion in

2012/13

TAX PROPOSALS

No major change in tax rates Factory gate tax to be reduced to 10 percent from 12 percent on some capital goods,

consumer durables Cut excise duty on small cars, two wheelers, commercial vehicles to 8 percent from 12

percent Recommends excise duty reductions on larger vehicles Restructure of factory gate tax for mobile handsets

BANKS RESTRUCTURING

Govt to provide 112 billion rupees capital infusion in state run banks in 2014/15 Propose to set up public debt management office to start5 work from 2014/15

BUDGET ESTIMATE

The current financial year will end on a satisfactory note with the fiscal deficit at 4.6 percent (below the red line of 4.8 percent) and the revenue deficit at 3.3 percent.

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Fiscal Deficit in 2014-15 estimated to be 4.1 percent which will be below the target set by new Fiscal Consolidation Path and Revenue Deficit is estimated at 3.0 percent.

The estimate of Plan Expenditure is `555,322 crore. Non Plan expenditure is estimated at `12,07,892 crore.

FINANCE MINISTER COMMENTS

Resurgence in exports, global economic revival and moderation in inflation point to better outlook for Indian economy in 2014/15.

"I can confidently assert that the economy is more stable today than what it was two years ago. The fiscal deficit is declining, the current account deficit has been constrained, 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."

India's economy now the 11th largest in the world, he said.

Interim Budget at a Glance

Figures in Rs.000 Crore

2012-13 Actuals

2013-14 Budget Estimates

2013-14 Revised Estimates

2014-15 Budget Estimates

Revenue Receipts 877.6 1,056.3 1,029.3 1,167.1 Capital Receipts 532.8 609.0 561.2 596.1 Total Receipts 1,410.4 1.665.3 1,590.4 1,763.2 Non-Plan Expenditure 996.7 1,110.0 1,114.9 1.207.9 Plan Expenditure 413.6 555.3 475.5 555.3 Total Expenditure 1.410.4 1,665.3 1,590.4 1,763.2 Revenue Deficit 365.9 379.8 370.3 382.9 Fiscal Deficit 490.6 542.5 524.5 528.6 Primary Deficit 177.4 171.8 144.5 101.6

Chidambarams Budgets :

P. Chidambaram Presented the Union Budget for the 9th Time on 17th February 2014 His earlier Budgets are

o 1996-97 o 1997-98 o 2004-05 o 2006-2007 o 2007-08

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o 2008-09 o 2013-14 o 2014-15 (Interim Budget)

Note : The record of Maximum Presentations of Budget (8 budgets and 2 interims) was held by Mr. Morarji Desai.