Finance Minister P. Chidambaram presented the interim budget for the fiscal year 2014/15 on Monday to cover expenditure until the government's term ends in May.
His speech was repeatedly disrupted by protests over the proposed division of a southern state.
Growth
GDP expansion in 2013/14 third and fourth quarters will be at least 5.2 percent
Fiscal Deficit
* Fiscal deficit projected at 4.1 percent of GDP in 2014/15
* Fiscal deficit seen at 4.6 percent of GDP in 2013/14
* Says need to bring down fiscal deficit to 3 percent of GDP by 2016/17
Current Account Deficit
* Current account deficit for 2013/14 projected at $45 billion
* Forex reserves to rise by $15 billion by end of 2013/14
Borrowing
* Gross market borrowing seen at 5.97 trillion rupees in 2014/15
* Net market borrowing at 4.07 trillion rupees
* Debt repayment in 2014/15 seen at 1.897 trillion rupees SPENDING
* Plan expenditure for 2014/15 seen at same level as previous 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
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 rates for manufacturing of 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
Finance Minister Comments
Our objectives were fiscal consolidation, reviving growth cycle, and enhancing manufacturing, said Chidambaram. I can confidently assert that the fiscal deficit is declining, the current account deficit is constrained, inflation is moderated; exchange rate is stable, he said. I wonder how many have noted the fact the Indian economy is 11th largest in the world, he said. The fortunes of India will have significant impact on world economy in the future.
