Feb 17, 2014 11:15 (IST)
Finance minister P Chidambaram - attempting to be heard above the sloganeering of lawmakers protesting against the Telangana Bill as he presented his interim budget for 2014 - today said the government has managed to contain both the fiscal deficit and the current account deficits and has kept them below target.
He called out to all political parties to "pledge that we will do nothing that will affect the stability of the Indian economy."
With general elections only months away, Mr Chidambaram cannot announce big bang reforms or tax changes, but can list the achievements of his government in his report card on the economy over the last year.
Following are the highlights of his speech:
Global cues not to overly hit India, India held its head above water during global crisis
Fiscal deficit for 2013-14 will be contained at 4.6%
Export seen at $326 billion showing 6.3 per cent year-on-year growth
Growth for FY14 estimated at 4.9%; Q3, Q4 growth seen at 5.2%
I reject the argument of policy paralysis
Let history be the judge of last 10 years
Economy in much better shape now than it was two years ago
10-year trend growth rate at 6.2 per cent, UPA I and II delivered above trend rate
Fiscal deficit down, CAD down, inflation moderated and growth picking up
Merchandise export to grow by 6.8% to USD 326 billion
3 more industrial corridors - Chennai-Bangalore, Bangalore-Mumbai, Amritsar-Kolkata - under various stages of implementation
GDP growth rate in Q3 and Q4 of 2013-14 will be at least 5.2%
Power capacity rises to 234,600 MW in 10 years
Expenditure on education has risen from Rs 10,145 crore 10 years ago to Rs 79,251 crore this year
Sugar decontrol, gradual correction of diesel prices, application for new bank licenses, sick electricity distribution companies restructured
Plan expenditure to remain unchanged at 5.55 lakh crore in 2014-15
Government fully committed to Aadhaar project. Even critics of the project will realise it's a tool of empowerment
Budgetary support to Railways increased
PSUs to achieve record capex of Rs 2,57,645 crore in 2013-14
500 MW fast breeder nuclear reaction in Kalpakkam to be ready shortly; 7 nuclear power reactors under construction
National Solar Mission to undertake 4 ultra mega solar power projects in 2014-15
Rs 1,200 crore additional assistance to N-E states to be released before end of the year
Rs 1,000 crore grant for Nirbhaya Fund will be non-lapsable; another Rs 1,000 crore to be given next fiscal
Non planned expenditure at 12.7 lakh crore
Fuel subsidy pegged at Rs 65,000 crore, food subsidy at Rs 1.15 lakh crore in 2014-15
Fuel subsidy worth Rs 35,000 crore to be rolled over in 2014-15
Rs 3,370 crore to transferred to 2.1 crore LPG users; Government committed to Aadhaar-based LPG transfer but scheme on hold temporarily
Defence allocation up 10% at Rs 2.24 lakh crore
Government has accepted principle of one rank, one pay for defence forces. Rs 500 crore estimated requirement for implementing one-rank-one-pay scheme for armed forces in 2014-15
Food subsidy will be Rs 1,15,000 crore for implementation of National Food Security Act
Budgetary support to Railways increased from Rs 26,000 crore to Rs 29,000 crore 2014-15
Rs 2,46,397 crore allocated for food, fertilizer and fuel subsidy
I have kept Rs 5,55,322 crore for plan expenditure
Re-capitalise public sector banks
Fortunes of China and India has an impact on the whole world
UPA government has clear line of sight to the goals we have set for ourselves
Fiscal consolidation - achieve target of 3% deficit
In a developing economy, we must accept that when our aim is high growth there will be moderate inflation
In next three decades, India's nominal will be on third rank after US and China
RBI must strike a balance between price stability and growth
States have the fiscal space to bear a reasonable proportion for allocation of flagship programmes
Disappointed that we have not been able to implement GST (goods and services tax)
To place DTC Bill for public comments
Minority bank accounts have swelled to 43,53,000 by 2013-14 from 14,15,000 bank accounts 10 years ago
Rs 6000 crore to rural housing fund, Rs 2000 crore for urban housing fund
Moratorium on interest on student loans taken before March 31, 2009; to benefit 9 lakh borrowers
Excise duty on small cars, motorcycles, scooters reduced from 12 to 8 per cent till 30.06.2014.
Excise duty on consumer durables cut from 12 to 10 per cent till 30.6.2014.
Cut excise duty on mid segment cars to 20% from 24%
Duty cut on SUV cars from 30% to 24%
He called out to all political parties to "pledge that we will do nothing that will affect the stability of the Indian economy."
With general elections only months away, Mr Chidambaram cannot announce big bang reforms or tax changes, but can list the achievements of his government in his report card on the economy over the last year.
Following are the highlights of his speech:
Global cues not to overly hit India, India held its head above water during global crisis
Fiscal deficit for 2013-14 will be contained at 4.6%
Export seen at $326 billion showing 6.3 per cent year-on-year growth
Growth for FY14 estimated at 4.9%; Q3, Q4 growth seen at 5.2%
I reject the argument of policy paralysis
Let history be the judge of last 10 years
Economy in much better shape now than it was two years ago
10-year trend growth rate at 6.2 per cent, UPA I and II delivered above trend rate
Fiscal deficit down, CAD down, inflation moderated and growth picking up
Merchandise export to grow by 6.8% to USD 326 billion
3 more industrial corridors - Chennai-Bangalore, Bangalore-Mumbai, Amritsar-Kolkata - under various stages of implementation
GDP growth rate in Q3 and Q4 of 2013-14 will be at least 5.2%
Power capacity rises to 234,600 MW in 10 years
Expenditure on education has risen from Rs 10,145 crore 10 years ago to Rs 79,251 crore this year
Sugar decontrol, gradual correction of diesel prices, application for new bank licenses, sick electricity distribution companies restructured
Plan expenditure to remain unchanged at 5.55 lakh crore in 2014-15
Government fully committed to Aadhaar project. Even critics of the project will realise it's a tool of empowerment
Budgetary support to Railways increased
PSUs to achieve record capex of Rs 2,57,645 crore in 2013-14
500 MW fast breeder nuclear reaction in Kalpakkam to be ready shortly; 7 nuclear power reactors under construction
National Solar Mission to undertake 4 ultra mega solar power projects in 2014-15
Rs 1,200 crore additional assistance to N-E states to be released before end of the year
Rs 1,000 crore grant for Nirbhaya Fund will be non-lapsable; another Rs 1,000 crore to be given next fiscal
Non planned expenditure at 12.7 lakh crore
Fuel subsidy pegged at Rs 65,000 crore, food subsidy at Rs 1.15 lakh crore in 2014-15
Fuel subsidy worth Rs 35,000 crore to be rolled over in 2014-15
Rs 3,370 crore to transferred to 2.1 crore LPG users; Government committed to Aadhaar-based LPG transfer but scheme on hold temporarily
Defence allocation up 10% at Rs 2.24 lakh crore
Government has accepted principle of one rank, one pay for defence forces. Rs 500 crore estimated requirement for implementing one-rank-one-pay scheme for armed forces in 2014-15
Food subsidy will be Rs 1,15,000 crore for implementation of National Food Security Act
Budgetary support to Railways increased from Rs 26,000 crore to Rs 29,000 crore 2014-15
Rs 2,46,397 crore allocated for food, fertilizer and fuel subsidy
I have kept Rs 5,55,322 crore for plan expenditure
Re-capitalise public sector banks
Fortunes of China and India has an impact on the whole world
UPA government has clear line of sight to the goals we have set for ourselves
Fiscal consolidation - achieve target of 3% deficit
In a developing economy, we must accept that when our aim is high growth there will be moderate inflation
In next three decades, India's nominal will be on third rank after US and China
RBI must strike a balance between price stability and growth
States have the fiscal space to bear a reasonable proportion for allocation of flagship programmes
Disappointed that we have not been able to implement GST (goods and services tax)
To place DTC Bill for public comments
Minority bank accounts have swelled to 43,53,000 by 2013-14 from 14,15,000 bank accounts 10 years ago
Rs 6000 crore to rural housing fund, Rs 2000 crore for urban housing fund
Moratorium on interest on student loans taken before March 31, 2009; to benefit 9 lakh borrowers
Excise duty on small cars, motorcycles, scooters reduced from 12 to 8 per cent till 30.06.2014.
Excise duty on consumer durables cut from 12 to 10 per cent till 30.6.2014.
Cut excise duty on mid segment cars to 20% from 24%
Duty cut on SUV cars from 30% to 24%