Model representation to be submitted to Head of the office for grant of One Increment

VOTE-ON ACCOUNT BUDGET 2013-2014 HIGHLIGHTS

Finance minister P Chidambaram presented the interim budget for the fiscal year 2014-15 on Monday to cover expenditure until the government's term ends in May.

Growth:

• GDP expansion in 2013/14 third and fourth quarters will be at least 5.2%

Fiscal Deficit:

• Fiscal deficit seen at 4.6 percent of GDP in 2013/14

Chidambaram's interim budget: Cars cheaper, indirect tax cuts unveiled

• Says need to bring down fiscal deficit to 3% of GDP by 2016/17

Current Account Deficit:

• Current account deficit for 2013/14 projected at $45 billion

• Forex reserves to rise by $15 billion by end of 2013/14

Borrowing:

• Gross market borrowing seen at 5.97 trillion rupees in 2014/15

• Net market borrowing at 4.07 trillion rupees

• Debt repayment in 2014/15 seen at 1.897 trillion rupees

• Ways and Means advances for 2014/15 estimated at 100 billion rupees

Privatisation:

• Target from stake sale in state run firms for 2013/14 revised to 258.41 billion rupees

• Target for 2014/15 at 569.25 billion rupees

Spending:

• Plan expenditure for 2014/15 seen at same level as previous year

• Non plan spending estimated at about 12.08 trillion rupees in 2014/15

Subsidies:
• Total spending on food, fertilisers and fuel at 2.5 trillion rupees in 2014/15

• Food subsidy estimated at 1.15 trillion rupees, fertiliser subsidy at 679.71 billion rupees. Petroleum subsidy seen at 634.27 billion rupees versus revised figure of 854.8 billion rupees for 2013/14.

Defence:
• Spending raised to 2.24 trillion rupees in 2014/15, up 10% year on year

Exports:• Merchandise exports seen at $326 billion in 2013/14, up 6.3% year on year.

• Agriculture exports expected to touch $45 billion in 2013/14, up from $41 billion in 2012/13 

Tax Proposals:

• No major change in tax rates

• Factory gate tax to be reduced to 10% from 12% on some capital goods, consumer durables

• Cut excise duty on small cars, two wheelers, commercial vehicles to 8% from 12%

• Recommends excise duty reductions on larger vehicles

• Restructure of factory gate tax rates for manufacturing of mobile handsets

Banks Restructuring:

• Govt to provide 112 billion rupees capital infusion in state run banks in 2014/15

• Propose to set up public debt management office to start5 work from 2014/15

Finance minister comments:

Resurgence in exports, global economic revival and moderation in inflation point to better outlook for Indian economy in 2014/15.

Our objectives were fiscal consolidation, reviving growth cycle, and enhancing manufacturing, said Chidambaram.

Manufacturing needed an immediate boost, he said. I can confidently assert that the fiscal deficit is declining, the current account deficit is constrained, inflation is moderated; exchange rate is stable, he said.

India's economy now the 11th largest in the world, he said.