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P Chidambaram slashes excise duty for automobiles, leaves taxes unchanged

Monday, 17 February 2014 - 9:52am IST | Agency: DNA web desk
  • P Chidambaram

Finance Minister P. Chidambaram presents the interim budget in the Lok Sabha today.

The following are the highlights from the speech of Finance Minister P. Chidambaram who presented the interim budget for 2014-15 in the Lok Sabha:

* Challenges we face common to emerging economies.

* India not unaffected by events in global economy.

* Fiscal deficit at 4.6%. Read

* Current account deficit at $45 billion.

* Hope to add $15 billion to forex reserves.

* Finance Minister Chidambaram tables budget papers in Lok Sabha.

*  Cabinet approves Interim Budget for 2014-15.

* Chidambaram begins his speech as MPs create a ruckus over Telangana, lots of noise in Parliament.

* Fiscal deficit to be contained at 4.6% of GDP in 2013-14. 

*  "I can confidently assert that the economy is more stable today than it was two years back," said Chidambaram.

* 3 more industrial corridors - Chennai-Bangalore, Bangalore-Mumbai, Amritsar-Kolkata - under various stages of implementation. 

* WPI inflation at 5.05 percent in January

* Core inflation at 3%. Read: Food inflation still remains a worry

* Food grain production in 2013-14 estimated at 263 million tonnes. Read: Agriculture credit to cross Rs 7 lakh crore; exports to surge over $45 billion

* Exports estimated at $326 billion in current fiscal.

* Over 29,000 MW of power capacity added during fiscal.

* Expenditure on education has risen from Rs 10,145 crore 10 years ago to Rs 79,251 crore this year. 

* Average growth under UPA's ten year rule was 6.2% against 5.9% during NDA period of 1999-2004. 

* Average growth under UPA-I was 8.4% and UPA-II 6.6%. 

* 'One rank one pension' to be implemented for Defence personnel.

* Growth estimated in 2013-14 at 4.9%.

* No policy paralysis.

* 100 million jobs to be created in a decade.

* 19 oil blocks allocated.

* Seven new airports under construction.

* Central assitance of Rs.3,38,562 lakh crore in 2014-15.

* Construction underway for 50,000MW of conventional power.

* Four solar generation plants of 500 MW each to be constructed in 2014-15.

* Four solar generation plants of 500 MW each to be constructed in 2014-15.

* Community radio to be promoted with Rs100 crore.

* Budgetary support to Railways increased from Rs 26,000 crore to Rs 29,000 crore 2014-15. 

* Current account deficit to be $45 billion this year Read

* Plan expenditure at Rs.5 lakh 55,322 crore in 2014-15.

* Defence expenditure enhanced 10 percent to Rs.2 lakh 24,000 crore.

* Budgetary support to railways at Rs29,000 crore in 2014-15.

* One rank one pension demand accepted; to be implemented with Rs500 crore in 2014-15.

* Two projects sanctioned under Nirbhaya Fund; original Rs1,000 crore made non-lapsable; another Rs1,000 crore granted.

* Central assistance of Rs3,38,562 lakh crore in 2014-15.

* Construction underway for 50,000MW of conventional power.

* Four solar generation plants of 500 MW each to be constructed in 2014-15.

* Four solar generation plants of 500 MW each to be constructed in 2014-15.

* Community radio to be promoted with Rs100 crore.

* Growth estimated in 2013-14 at 4.9%.

* No policy paralysis.

* 100 million jobs to be created in a decade.

* 19 oil blocks allocated.

* Seven new airports under construction.

* WPI inflation at 5.05% in January.

* Core inflation at 3%.

* Food grain production in 2013-14 estimated at 263 million tonnes.

* Exports estimated at $326 billion in current fiscal.

* Over 29,000 MW of power capacity added during fiscal.

* Challenges we face common to emerging economies.

* India not unaffected by events in global economy.

* Fiscal deficit at 4.6%.

* Current account deficit at $45 billion.

* Hope to add $15 billion to forex reserves.

* Plan expenditure in 2014-15 at Rs5 lakh 55,322 crore; non-plan expenditure at Rs12 lakh 7,892 crore.

* Fiscal deficit to be at 4.1% in 2014-15.

* Duties cut to revive economy.

* Excise on small cars/two-wheelers lowered to 8 percent, on SUVs to 24 percent, on large cars to 20%.

* Blood banks exempted from service tax.

* Research funding organisation to be created to promote scientific R&D.

* Rs65,000 crore for fuel subsidies.

* India's economy at 11th; aiming to be third.

* Fiscal deficit at 3%. Read

* PPP model to be increasingly viewed.

* All taxes on exports to be waived for manufacturing sector.

* Plan expenditure at Rs5 lakh 55,322 crore in 2014-15.

* Defence expenditure enhanced 10% to Rs2 lakh 24,000 crore.

* Budgetary support to railways at Rs29,000 crore in 2014-15.

* One rank one pension demand accepted; to be implemented with Rs500 crore in 2014-15.

* Two projects sanctioned under Nirbhaya Fund; original Rs1,000 crore made non-lapsable; another Rs1,000 crore granted. Read

* Central assistance of Rs3,38,562 lakh crore in 2014-15.

* Construction underway for 50,000MW of conventional power.

* Four solar generation plants of 500 MW each to be constructed in 2014-15.

* Four solar generation plants of 500 MW each to be constructed in 2014-15.

* Community radio to be promoted with Rs100 crore.

* Growth estimated in 2013-14 at 4.9%.

* No policy paralysis. Read

* 100 million jobs to be created in a decade.

* 19 oil blocks allocated.

* Seven new airports under construction.

* WPI inflation at 5.05% in January.

* Core inflation at 3%.

* Food grain production in 2013-14 estimated at 263 million tonnes.

* Exports estimated at $326 billion in current fiscal.

* Over 29,000 MW of power capacity added during fiscal.

* Challenges we face common to emerging economies.

* India not unaffected by events in global economy.

* Fiscal deficit at 4.6%.

* Current account deficit at $45 billion.

* Hope to add $15 billion to forex reserves.

* Exchange rate has stabilised Read

"No one is speaking about downgrades now," said the finance minister, referring to the threats given by some global credit rating agencies to lower India's economic outlook that could have rendered junk status to Indian bonds and triggered a flight of capital.

"The economy is more stable today than it was two years ago," said the minister while presenting what was India's 83rd national budget and the 9th such personal exercise for Chidambaram.

The main budget for the financial year 2014-15 will be presented by the new government that will come to power after the general elections, the schedule for which is likely to be announced by the Election Commission soon.

Giving specific numbers, Chidambaram said fiscal deficit for 2013-14 was contained at 4.6% of GDP, against the target of 4.8 percent, and the current account deficit was lower at $45 billion, compared with $88 billion for the previous fiscal.

The finance minister also said the inflation has come down to 5.05%, against 7.3% when the budget was presented last year. Core inflation, which excludes items that see volatility in prices, was also down at 3% from 4.2%, he added.

Chidambaram quotes his favourite poet Tiruvalluvar and ends Budget 2014 speech.

Read: Chidambaram may tinker with indirect taxes
 

Leaving direct taxes untouched, Finance Minister P Chidambaram today slashed excise duty on cars, SUVs and two-wheelers, and capital goods and consumer durables to boost manufacturing and growth.

Presenting the Interim Budget for 2014-15, he also provided service tax exemption for storage and warehousing of rice like it was done in case of paddy last year. Also, blood banks have been exempted from its purview.

The 1 per cent surcharge on 'super-rich' having income above Rs1 crore in a year, and the 5 per cent surcharge on corporates imposed last year, has been allowed to lapse with the Finance Minister saying, "In keeping with the conventions I do not propose to make any announcements regarding changes to the tax laws."

The Budget document does not give figures of the indirect tax concessions, which are valid up to June 30, 2014 and could be reviewed later. They will be notified later in the day.

He justified the excise duty reliefs saying, "However, the current economic situation demands some interventions that cannot wait for the regular Budget. In particular, the manufacturing sector needs an immediate boost." To encourage domestic production of mobile handsets, he restructured the excise duty for all categories fixing it at 6% with CENVAT credit or 1% without CENVAT credit.

Customs duty structure on non-edible grade industrial oils and its fractions, fatty acids and fatty alcohols has been pegged at 7.5% to encourage to domestic production of soaps and oleo chemicals.

Similarly, a concessional customs duty of 5% on capital goods imported by Bank Note Paper Mill India Pvt Ltd has been provided to encourage to indigenous production of security paper for printing currency notes.

Giving Budget estimates, the Minister said the current financial year will end on a satisfactory note with the fiscal deficit at 4.6%, below the redline of 4.8 per cent, and the revenue deficit at 3.3%.

The fiscal deficit for 2014-15 has been pegged at 4.1%, which will be below the target of 4.2% set by the new fiscal consolidation path. Revenue deficit is estimated at 3%.

Plan expenditure for the coming fiscal has been fixed at Rs555,322 crore, unchanged from current year, and non-Plan expenditure at Rs12,07,892 crore, marginally higher than 2013-14. 


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