Highlights from the Interim Budget 2014-15
By Avani Kapur, Smriti Iyer, 17 Feb 2014

This document highlights the key features of the interim budget 2014-15 that was released on 17th February, 2014.  

The final budget will be released post elections in July 2014. Please keep track of the analysis of the final budget on the AI website. Last year's briefs are available here.

  • Overview
  • In 2013-14 there has been lower than expected growth which has consequently led to lower than estimated revenues. The country will not be able to spend the budgeted plan expenditure. The non plan expenditure will exceed the budget by a marginal amount. Thus, no significant change in the plan and non-plan expenditures for 2014-15. Total plan expenditure of the government for 2014-15 is  5,55,322 cores; Non-plan expenditure 12,07,892 crores.
  • The overall Gross Domestic Product (GDP) growth is estimated at 4.9 percent for the year 2013-14 The Fiscal deficit is 4.6 percent of the GDP.
  • The Revenue deficit is at 3.3 percent.
  • Core inflation is 3 percent and Wholesale Price Index (WPI) inflation is 5.05 percent.
  • Food inflation though still high has reduced from 13.6 percent  to 6.2 percent in the last one year
  • Report Card: 10 years ago and now

The table below highlights some of the main changes in the past 10 years.

 

10 years ago

2013-14 BE

Food grain production

213 million tonnes

263 million tonnes

Rural roads under PMGSY (in km)

51,511 kms

389,578 kms

Education spending

 10145 crores

 79451 crores

Health spending

 7248 crores

 36322 crores

 

  • Social Sector Initiatives

The plan allocation for some key ministries, schemes and sub-plans is as follows:

Name of Ministry / Sub-plan

Allocation in   crores

Ministry of Minority Affairs

3,711

Ministry of Tribal Affairs

4,379

Ministry of Social Justice and Empowerment

6,000

Ministry of Panchayati Raj

7,000

Ministry of Drinking Water and Sanitation

15,260

Ministry of Women and Child Development

21,000

Ministry of Health and Family Welfare 

33,725

Ministry of Human Resource Development 

67,398

Ministry of Rural Development

82,202

Scheduled Caste Sub-plan

48,638

Scheduled Tribe Sub-plan

30,726

Gender Budget

97,533

Child Budget

81,024

Food Subsidy

115,000

  • The North East states, Himachal Pradesh and Uttarakhand have been provided with an additional central assistance of  1200 crores.
  • New initiatives
  • An allocation of   444.59 crores has been made towards marketing minor forest produce.
  • A scheme to promote community radio stations has been allocated  100 crores.
  •   200 crores have been allocated to promote entrepreneurship and provide concessional finance among the scheduled caste (SCs). This will be done through Industrial Finance Corporation of India (IFCI) who will set up a Venture Capital fund for SCs.
  • For Skill Development, the National Skill Certification and Monetary Reward Scheme has been launched in August 2013. 168,043 youth have been enrolled and 46 percent of them have completed their training
  • Finance Sector
  • Proposal to provide  11,200 crores for capital infusion in public sector banks.
  • The Bhartiya Mahila bank has been inaugurated. A corpus of 8000 crores has been provided for housing ( 2000 crores for Urban Housing Fund and  6000 crores for Rural Housing fund).
  • Banks are expected to exceed the target of  700000 crores of agricultural credit.
  • The SHG network has grown from 9,71,182 women being linked to banks to 41,16,000 women in the last decade.
  • Important Legislations passed
  • 12.8 lakhs land titles covering 18.80 lakh hectare were distributed under the Scheduled Tribes and Other traditional Forest Dwellers Act
  • New companies Act passed to replace a law of 1956.
  • The Right to Free and Compulsory Education Act passed in 2009.
  • National Food Security Act was passed.
  • The Pension Fund Regulatory and Development Authority Act (PFRDA) was passed which establishes a new pension system

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