The state of world economy has been the most decisive
factor affecting the fortunes of every developing country.
The world economy has been witnessing a sliding trend in
growth, from 3.9 percent in 2011 to 3.1 percent in 2012 and 3 percent in
The economic situation of major trading partners of
India, who are also the major source of our foreign capital inflows,
continues to be under stress. United States has just recovered from long
recession, Euro zone, as a whole, is reporting a growth of 0.2
per cent, and China’s growth has also slowed down.
The economic challanges faced by our country are common
to all emerging economies.Despite these challanges, we have successfully
navigated through this period of crisis.
Apart from embarking on the path of fiscal consolidation,
the objectives of price stability, self sufficiency in food, reviving the
growth cycle, enhancing investments, promoting manufacturing, encouraging
exports, quickening the phase of implementation of projects and reducing a
stress on important sectors were the goals set in 2012-13.
De-controlling sugar, gradual correction of diesel
prices, rationalization of railway fares, were some of the courageous and
long over due decisions taken by the Government.
Applications were invited for issue of new bank licences.
DISCOMS, mostly sick are being restructured with generous
12.8 lakhs land titles covering 18.80 lakh hectare were
distributed under the Scheduled Tribes and Other traditional Forest Dwellers
The oppressive colonial law of 1894 was substituted with
the Right to Fair Compensation and Transparency in Land Acquisition
Rehabilitation and Resettlement Act.
National Food Security Act was passed assuring food to 67
percent of the population/
The new companies Act replaced a law of 1956 vintage.
The PFRDA Act was passed to establish a statutory
regulator for the New Pension Scheme.
Centrally Sponsered Schemes were restructured into 66
Programs for greater Synergy.
Funds under these programs will be released as Central
assistance to State Plan, thus giving greater authority and responsibility.
As a result, Central assistance to plans of States & UTs will rise
substantially from `136,254 crore in BE 2013-14 to `338,562 crore in
Record Capital expenditure of ` 257,641 crores in 2013-14
by public sector enterprises.
About 50,000 MW of Thermal and Hydel Power capacity is
under construction after receiving all clearances and approvals. 78,000 MW
of power capacity have been assured coal supply.
Liberalised FDI policy in tele-communication,
pharmaceuticals, civil aviation, power trading exchange, and multi brand
retail to attract large investment.
Approval to establish 2 semi conductor wafer fab units.
Approval of IT modernization project of Department of
Kudankulam Nuclear Power Plant Unit-I achieved
criticality and is generating 180 Milliion Units of power.
Fast breeder Reactor at Kalpakkam and 7 Nuclear Power
Reactors under construction.
National Solar Mission to add 4 Ultra Mega Solar Power
Projects each with the capacity of over 500 MW in 2014-15.
Ministry of MSME will create the ‘India Inclusive
Innovation Fund’ to promote grass root innovations with social returns to
support enterprises in the MSME sector with an initial contribution of `100
crore to the corpus of the fund.
A Venture Capital Fund to provide concessional finance to
Scheduled Caste will be set up by IFCI with an initial capital of ` 200
crore which can be supplemented every year.
The restructured ICDS, under implementation in 400
districts, will be rolled out in remaining districts from 1.4.2014.
A National Agro-Forestry Policy 2014 has been approved.
A mechanism for marketing minor Forest produce has been
introduced and an allocation of ` 444.59 crore has been made to continue the
Scheme in 2014-15.
A new Plan Scheme with an allocation of `100 crore has
been approved to promote
community radio station
New technologies such as JE vaccine, a diagnostic test
for Thalassaemia and Magnivisualizer for detection of Cervical cancer have
been delivered to people.
Additional Central Assistance to some States
A sum of `1200 crore as additional central assistance to
North Eastern states, Himachal Pradesh and Uttarakhand in this financial
Budgetary support to Railways has been increased from `
26,000 crore in BE 2013-14 to ` 29,000 crore in 2014-15.
It is proposed to indentify new instruments and new
mechanisms to raise funds for Railway Projects.
SC Sub-Plan and Tribal Sub-Plan, Gender Budget and Child
` 48,638 crore and ` 30,726 crore are allocated to
the SC Sub-Plan and Tribal Sub- Plan respectively.
Gender Budget and Child Budget has ` 97,533 crore and `
81,024 crore respectively. Non Plan Expenditure
Non Plan expenditure is estimated at ` 12,07,892 crore.
The expenditure on subsidies for food, fertilizer & fuel
will be ` 246,472 crore slightly
higher than the revised estimates of ` 245,453 crore in 2013-14.
` 115,000 crore has been allocated for food subsidies
taking in to account, Government‘s firm and irrevocable committment to
implement the National Food
Security Act throughout the country.
All the announcements concerning the Financial sector
made in the Budget Speech of February 2013 have been implemented.
` 11,300 crore is proposed to be provided for Capital
infusion in Public Sector Banks.
5,207 new branches have been opened against the target of
Bhartia Mahila Bank has been established.
` 6,000 crore and ` 2,000 crore have been provided to
Rural and Urban Housing Funds respectively.
The target of ` 700,000 crore of Agricultural Credit is
likely to be exceeded by the Banks. The target for 2014-15 is ` 800,000
` 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.