A Budget means profits are anticipated, while a balanced budget means that revenues are expected to equal expenses. A deficit budget means expenses will exceed to revenues. Budget means which periodically changed. A budget is a microeconomics concept that shows the trade off made when one good is exchanged from another. Presenting the budget in the lok Sabah Monday, Finance Minister P Chidambaram projected a massive 18 percent rise in tax revenues for 2014/15 which is far above the projected growth-plus-inflation projection for the economy. The difference between the two estimates works out to Rs 81,225 corer for the year or about 5 percent of the estimates for government receipts in FY15. As Chidambaram has also kept no fiscal room for the 14th commission award, due in October. He has budgeted for a 4.1 percent fiscal deficit in FY15 instead easing up on fiscal consolidation by giving the automobile, mobile handset and other consumer durable sector which will run through a phase in the economy. GDP growth has improved and will be 4.9 % for the current year. In 2012-2013 the economically it showed low of 4.5 %. The full Budget for 2014-2015 will be presented by the new government in June- July. There are some key highlights.
- Growth for next five year should be 5 %.
- 6 pc excise duty for all mobile phones.
- Excise duty on SUV Cs reduced to 24%, on large cars to 20%.
- FM reduces excise duty on capital goods from 12% to 10%.
- Budgetary support to railways at Rs 29,000 corer in 2014-2015.
- Govt remains fully committed both Adhar.
- Seven new airports under construction.,
- He promises 1 million jobs.
- FDI policy has been liberalized to attract larger investment.
- Foreign exchange reserves up by $15 billion.
- Agriculture credit will cross $45 billion against $ 41 in 2012-2013.
- CAD will be contained at 4.6 %.
- Exports have recovered sharply.
- Cut excise duty reductions on larger vehicles.
- No major changes in tax rates.
- Target from stake sale run firms for 2013/2014 revised to 258.41 billion rupees.
- Total spending on Food, fertilizers and fuel at 2.5 trillion rupees in 2014/15.,
- Factory Gate tax to be reduced to 10% from 12% on capital goods, consumers durable.
- Cabinet approves Interim budget for 2014/15.