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Government of India
Ministry of Finance
17-February-2014 12:47 IST
Asserting that the economy is more stable today than what it was two years
ago, the Minister said that the fiscal deficit is declining, the current account deficit
has been contained, inflation has moderated, the quarterly growth rate is on the
rise, the exchange rate is stable, exports have increased, and hundreds of projects
have been unblocked.
Shri Chidambaram stated that decline in GDP observed in the first quarter of
2013-14 will be arrested and the growth cycle will turn in the second quarter. He
expressed the confidence that growth in Q3 and Q4 of 2013-14 will be at least 5.2
percent.
The Finance Minister stated that the annual GDP growth in the last ten years
of UPA Government has been above the growth rate of 6.2 percent for the last 33
years. While it was 8.4 percent during UPA-I, it was 6.6 percent during UPA-II.
MAJOR PROPOSALS
The Government has accepted the principle of one rank one pension for the
defence forces and has allocated Rs. 500 crore for this purpose.
The target of agricultural credit has been raised to Rs. 8,00,000 crore. The
effective rate of interest on farm loans, after interest subvention and incentive for
prom payment, has been maintained at 4 percent.
The Government will contribute Rs. 1000 crore to the Nirbhaya Fund on top
of Rs. 1000 crore provided earlier.
Rs. 1200 crore Additional Central Assistance is being provided to the NorthEastern States, Himachal Pradesh and Uttarakhand.
Among the tasks identified for the health of the economy in the years to
come, the Minister called for keeping the fiscal deficit at 3 percent of GDP,
promoting foreign investment, keeping inflation at a moderate level, and timebound implementation of financial sector reforms. He also emphasized the need to
rebuild infrastructure and promote manufacturing. Keeping subsidies under check,
addressing the decay in cities and skill development will need to be given
emphasis. States must share costs of flagship programmes so that more resources
can be allocated to defence, railways etc.
REVENUE PROPOSALS
To give relief to automobile industry which is registering unprecedented
negative growth, it is proposed to reduce the excise duty for the small cars, motor
The Direct Taxes code (DTC) is ready and it will be placed on the website
for a public discussion. The Finance Minister appeals to all political parties to
resolve to pass the GST laws and the DTC in 2014-15.
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