UNION INTERIM BUDGET- NO INCOME TAX CHANGES, ELECTION BUDGET

Finance minister P. Chindambaram presented interim Union budget on Monday 17th of February, 2014. The main focus of the Budget was 10 years ago to today, i.e. the achievments of UPA government. The whole speech presented the achievements of UPA government and not much changes were made.

HIGHLIGHTS OF BUDGET IS GIVEN BELOW:

FISCAL DEFICIT- 4.6% in the year 2013-14

CURRENT ACCOUNT DEFICIT-  Deficit for 2013-14 projected at $45 billion

ESTIMATES FOR FISCAL YEAR 2014-15

Fiscal Deficit- 4.10%
Revenue Deficit- 3.00 %
Growth for Fiscal Year 2014- 4.90%

Planned Expenditure - 565322 crore
Non Planned expenditure- 1207892 crores
 

FUND ALLOCATION

1 Nirbhaya Fund- another 1000 crore to be alloted in next Fiscal year.
2. National Skill Development corporation-  1000 crore
3. Railway Budget- 29000 crores from 26000 crores
4. Pension Fund- 500 crores
5. HRD Fund- 67388
6. Tribal Fund-  4379 crores
7. Gender Budget- 97000 crore
8. Children Budget- 87000 crores
9. Non Planned Budget- 12 Lakhs crores
10. Fuel Subsidy - 65000 crores
11. Food Subsidy- 115000 crores
12. Defence- 10 % increase - 224000 crore
13. Capital Infusion in PSU Bank- 11200 crore.
14. Rs 200 crore Venture Fund with IFCI

TAXATION

Direct Tax- 

No changes in Income Tax rates

A scientific research organization will be set up- Tax exemption for contribution given to such organizations.

Indirect Tax-

Excise Duty changes-
Excise Duty on Capital Duty  reduced to 10% which are falling under Chapter 84 & 85
Excise Duty reduced from 12 to 8% for Small cars and bikes
Excise duty on SUV reduced from 30% to 24%

Excise duty on Large and Mid-segment cars have been cut to 20% from 24%

Excise Duty on Domestic Mobile- 6% with Cenvat Credit and 1% without cenvat credit

Service Tax exempted on 2 services-
1. Loading, Unloading, Warehousing, Storage of Rice exempted
2. Cord Blood Bank exempted from Service Tax



OTHER POINTS-

1. One Rank One Pension Scheme to be started
2. 39144 km road has been made in Rural Areas
3. 10 crore employment in next 10 years.
4. 29350 MW electricity capacity increase
5. 3370 crores LPG subsidy

6. 3 more industrial corridors - Chennai-Bangalore, Bangalore-Mumbai, Amritsar-Kolkata - under various stages of implementation

7. 7 new airports under construction

8. 19 oil blocks were given out for exploration

9.  In a relief to Indian students that have taken an education loan from PSU Banks, the Finance Minster announced a moratorium period for interest on all education loans taken from March 2009 to December 2013, the move will benefit 9 lakh students.