Chidambaram introduces interim budget 2014-15

New Delhi: The union Finance Minister P Chidambaram presented an interim budget for the coming fiscal year on Monday. He sought Parliament's approval for expenditure through vote-on-account, which will allow the government to cover its expenditure beyond the current fiscal. He spoke on the achievements of the UPA government during last five years and beyond that.

The Highlights of the budget are:

• Cut in excise duties on products like autos to support the manufacturing sector, extend an interest subsidy on bank loans to exporters, farmers, and offer tax concessions for poorer regions. Service tax can also be tinkered with. Excise duty and service tax currently stand at 12 per cent.
• More funds for the healthcare and infrastructure sectors, more rural jobs as well as outline the government's stance on food subsidies.
• Cut duty on gold imports
• Proposed for one rank one pension for the Armed Forces

Saving rate is healthy and no major reduction in investment. 296 projects worth Rs.6.6 lakh crore have been cleared. 2014 current account deficit will be contained at $45 billion. Exports have recovered and expected to grow to $326 billion, up by 6.4%. Seven new airports are under construction, added railway tracks, highways and rural roads under the PMGSY. Steps being taken to promote medium and small manufacturing unit. Three manufacturing zones are under advanced stages of preparatory work. Eight national manufacturing zones have been approved along the Delhi-Mumbai corridor.

Risks to capital flows have been accentuated due to global conditions; rupee came under pressure. Among emerging economy currencies, the rupee was affected the least. FD is declining, CAD is constrained, inflation is moderated; exchange rate stable. The UPA's govt's record in growth is unparalleled. The installed power capacity has been augmented. Today we have more than 3.9 lakhs of rural roads. Health allocation has also been increased. UPA I and UPA II have delivered above the growth rate. We are not simply looking back; we are looking forward.

We took strong and courageous decisions. The new Land Act was notified to put to rest the oppressive colonial Land Act of 1894. Centrally sponsored schemes were restructured. About 50,000 MW of thermal and hydro capacity is under construction. The IT modernization project of the dept of posts will be operational soon. The Kalpakkam nuclear reactor is nearing completion. Govt has approved the National Agro Forestry Policy which will enhance employment. The northeast states, Himachal Pradesh and Uttarakhand deserve special attention. We now have capability in cryogenics and are largely self reliant.