Highlights Interim Budget 2014: Mobiles, SUVs Cheaper; Defense Allocation Increased
By Johnlee Varghese | February 17, 2014 7:05 PM EST
Indian Finance Minister P Chidambaram on Monday presented the interim budget for the fiscal year 2014-15. The interim budget covers the expenditure until the government's term ends in May.
India's FM Chidambaram
Here are the Budget 2014 highlights:
- No major change in tax rates
- Excise duty on mobile handset will be 6 percent on CENVAT credit to encourage domestic production.
- Excise duty has been reduced from 12 percent to 10 percent for capital goods and consumer durables.
- Excise duty cut for small cars is down to 8 percent from 12 percent. Excise duty on SUVs down by 6 percent from 30 to 24 percent. Excise duty on two-wheelers is also down to 8 percent. Excise duty on medium cars down from 24 percent to 20 percent.
- Finance Minister has announced a moratorium on interest on student loans taken before 31 March 2009. He says it will benefit 9 lakh borrowers.
- Government to provide ₹112 billion capital infusion in state run banks in 2014-15.
- The defense budget has also been increased by 10 percent to ₹2.24 trillion.
- The government has accepted the long-standing demand of the defense personnel for one rank one pension scheme. In the speech, the finance minister said "Rs 500 crore will be transferred in 2014-15 for implementing the 'one rank one pay' decision."
- Chidambaram says that the UPA government remains fully committed to the Aadhaar scheme. "In course of time the critics of Aadhar will realise that this is a tool for empowerment. 57 crore UID numbers have been created so far," he says. FY15 plan expenditure has been kept at ₹5.55 lakh crore.
- Growth estimated in 2013-14 at 4.9 percent.
- No policy paralysis.
- 100 million jobs to be created in a decade.
- 19 oil blocks allocated.
- Seven new airports under construction.
- Central assistance of ₹3,38,562 lakh crore in 2014-15.
- Construction underway for 50,000MW of conventional pow
- India not unaffected by events in global economy.
- Fiscal deficit at 4.6 percent.
- Current account deficit at $45 billion.
- Hope to add $15 billion to forex reserves.
With Agency Inputs
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