Current Affairs - 18th Feb 2014

Interim budget, 2014

Finance Minister P. Chidambaram presented the interim budget of the UPA 2 government on 17 February in the parliament. This is an interim budget because after general elections this year, the new government will manifestate the budget according to its plan. The main points of this budget are as follows:-

1. Current account deficit for the year 2013-14 was reduced to $45 billion or 4.2% of GDP as compared to 4.8% for the last year.

2. No changes in the current tax slab. The previous tax slab rate to be followed which is as follows:-
- 0 to 2,00,000 - No tax
- 2,00,001 to 5,00,000 - 10%
- 5,00,001 to 10,00,000 - 20%
- Above 10,00,000 - 30%

India Income tax slabs 2013-2014 for Senior citizens (Aged 60 years but less than 80 years-

- 0 to 2,50,000 - No tax
- 2,50,001 to 5,00,000 - 10%
- 5,00,001 to 10,00,000 - 20%
- Above 10,00,000 - 30%

3. “One rank one pension” (OROP) policy for Defence forces. Under this scheme equal pensions for those of who've retired in a particular year, whilst holding the same position as those who've retired in another year will be given. So, a sepoy retired in the year 1995 will get the same pension as the one who retired later.

4. Foreign exchange rises by $15 billion by the end of this fiscal.

5. Fiscal deficit at 4.1% of GDP.

6. 4.9% GDP rate for the fiscal year 2013-14.

7. Rs.1, 15,000 crore allocated for food subsidy whereas Rs.65, 000 crore for fuel subsidy.

8. Agricultural growth to be 4.6% of GDP.

9. Interest on Educational loans taken upto March 31, 2009 will be waived by the union government and 2600 crore are allocated for this. Such students will have to pay the interest from 1 January 2014.

10. Defence budget for 2014-15 increased by 10% to Rs. 2, 24,000 crore.

11. National Solar Mission to add 4 Ultra Mega Solar Power Projects each with the capacity of over 500 MW in 2014-15.

12. A venture capital fund for schedule castes launched with Rs. 200 crore.

13. Nirbhaya fund to be extended to 1000 crore in 2014-15 to ensure the safety and dignity of women.

14. Non Plan expenditure is estimated at ` 12, 07,892 crore.

15. ` 11,300 crore is proposed to be provided for Capital infusion in Public Sector Banks.

16. ` 23,924 crore has been released under the Interest Subvention Scheme on farm loans, with effective rate of interest on farm loans at 4 percent including subvention of 2 percent and incentive of 3 percent for prompt payment..

17. Excise duty on small cars, motorveichles, and scooters reduced to 8% from earlier 12%.

18. Excise duty on SUVs reduced to 24% from previous 30%.

19. The estimate of Plan Expenditure is `555,322 crore.

Matteo Renzi, New PM of Italy

After Italian Prime Minister Enrico Letta left after a tumultuous 10 month tenure which was highly criticized by the opposition, Matteo Renzi became the new and youngest ever PM of Italy.