B&E This Month

Interim Union Budget 2014-15

Interim Budget 2014-15 was presented in the Lok Sabha by FM P. Chidambaram on February 17, 2014. Most called it a populist announcement, right before the nation goes to the polls. The FM came down hard on the super-rich by announcing a surcharge of 10% on citizens earning an income above Rs.10 million per annum. Excise duty on four-wheelers, two-wheelers, SUVs and capital goods and consumer durables were reduced to boost consumer expenditure that would not only mean a growth in manufacturing sector but would also push the growth of India’s GDP to higher levels. Plan expenditure in 2014-15 has been kept at Rs.5.55 trillion, while the non-plan expenditure has been estimated at Rs.12.08 trillion. While the government has decided to infuse capital worth Rs.112 billion into State-run banks in 2014-15, the following allocations have been marked for the said ministries: Rs.337.25 billion – Ministry of Health & Family Welfare, Rs.673.98 billion – Ministry of HRD, Rs.152.60 billion Drinking water and sanitation ministry, Rs.67.30 billion – Social Justice & Empowerment Ministry, Rs.60 billion – Ministry of Housing and Poverty Allegation, Rs.210 billion – Ministry of Women and Child Development, Rs.290 billion – Minstry of Railways (as budgetary support). Also, the government has announced one-rank-one-pension scheme for defence personnel from 2015.