This is the 9th Financial Budget Presented By Current Finance Minister P Chidambaram. Since this is the last budget before 2014 General Elections this budget was expected to be a peoples budget. Exemptions given in the budget is going to impact the current fiscal deficit. But some of the analyst says budget is going t be a relief for the struggling consumer goods industry. Mr P Chidambaram in his speech said this is his 10 point agenda to make India 3rd largest economy in the world. Please find the highlights of the interim Financial Budget 2014-15.
- There is no Change in the tax slabs. They are same as previous year.
- Excise duty on Small Cars, two wheelers , commercial vehicle reduced to 8 percent from the current 12 percent.
- Factory Gate tax to be 10 percent from 12 percent last year.
- Utility Vehicle will attract a tax of 24 percent which was earlier 30 percent
- Tax has been reduced to 20 from the current 24 percent.
- Plans to manufacture mobile phones in India to reduce its cost
- soaps will see a reduced price as manufacturing units will see a tax exemption.
- Rice to become cheaper as some part of service tax has been exempted
- Expenditure is expected to be same as last year that is Rs 5.55 trillion.
- Total spending on food, fertilisers and fuel at 2.5 trillion rupees
- Government will provide Rs 112 billion capital to state run banks
- Proposed to set up public debt capital.
- RBI will make steps for Give growth and less inflation by formulating different policies.
- Growth : GDP growth is expected to be 4.9
- Fiscal Deficit : Is seen at 4.6 Percent as per the expected 4.8 percent. Projected Fiscal deficit for 2014/15 is expected to be 4.1 percent.
- Had forcasted the deficit to 3 percent of GDP by 2016/17
- Defence budget has been increased by 10 percent from last year
Overall this is a people pleasing financial budget. This is surely going to impact the fiscal deficit. Initial reaction from the corporate house is an OK kind of budget.