1)Cars are cheaper, cellphones dearer
The Interim Budget has some good news and some bad for consumers.Two-wheelers and cars will be cheaper while low-end mobile phones will be a bit more expensive due to changes in excise duty. Auto-makers, including Tata Motors, Hyundai, Maruti Suzuki and Honda Cars India, have already announced that they would be passing on the benefits of the excise duty cut to the consumer.Phones that cost less than Rs. 2,000 are set to cost more after Mr. Chidambaram’s decision to levy a uniform excise duty on phones across price bands.Phones that cost less than Rs. 2,000 were earlier levied an excise duty of 1 per cent. They will now be levied a 6 per cent duty. Industry analysts said this could translate into a 4-5 per cent hike.“This will add to the costs of entry-level phones less than Rs. 2,000 and is likely to add to the burden of consumers of low-end phones,” said P Balaji, Managing Director Nokia India.
2)President’s rule in Delhi
Barely two-and-a-half months after the Delhi Assembly elections, which brought the Aam Aadmi Party led by Arvind Kejriwal to power, Central rule was imposed in the State.Mr. Kejriwal quit the post last week after the Assembly rejected the Delhi Jan Lokpal Bill at the admission stage itself. In a suo moto statement in Parliament, Union Home Minister Sushil Kumar Shinde said based on the report of the Delhi Lt Governor Najeeb Jung and the recommendation of the Union Cabinet on April 15, the President has accepted the resignation of Mr. Kejriwal and also approved the imposition of President’s rule while keeping the Legislative Assembly in suspended animation.The Kejriwal government had recommended dissolution of the Assembly to facilitate fresh elections. An Assembly in suspended animation means that parties can exercise the option of exploring formation of a government at a future date.
3)Kiran may quit today; President’s Rule likely
Chief Minister may seek Governor’s appointment anytime after mid-dayFinally taking the bow after a vain fight against the State bifurcation, Chief Minister N. Kiran Kumar Reddy is likely to resign on Tuesday once Parliament takes up debate on the AP Reorganisation Bill 2013.
4)At last, ‘one rank, one pension’ for armed forces
Less than a week after Congress vice-president Rahul Gandhi batted for ex-servicemen favouring their demand for ‘one rank, one pension’, Finance Minister P. Chidambaram on Monday announced that the government had accepted the principle for the defence forces.While presenting the Vote-on-Account in the Lok Sabha, Mr. Chidambaram allocated Rs.500 crore for the fund, a decision that is likely to benefit about 24 lakh retired armed forces personnel.“This decision will be implemented prospectively from the financial year 2014-15,” he said.One rank, one pension basically means that soldiers of the same rank and the same length of service get the same pension, irrespective of their retirement date.
5)Student loan burden eases
Finance Minister P. Chidambaram announced an interest subsidy on education loans taken up to March 31, 2009, a move that will benefit about nine lakh students. According to the scheme, the government will pay the outstanding interest liability till December 31, 2013. Students, however, would have to pay interest from January 1, 2014. The Minister, who was of the view that student-borrowers ‘deserve some relief’, said Rs. 2,600 crore would be set aside in the current financial year itself to waive interest on outstanding loans. This amount will be transferred to Canara Bank, which is the designated banker for the Central Scheme for Interest Subsidy (CSIS).
6)All post offices to run on new technology from 2015
Interim budget makes no mention of a banking licence sought by India PostUnion Finance Minister P. Chidambaram said in his interim Budget speech on Monday that Rs.4,909 crore was being spent on modernisation of all 1.55 lakh post offices, and the project would be completed by 2015.In the budget estimates for 2014-15, of the total plan outlay of Rs. 800 crore, Rs. 506 crore has been allocated for information technology induction in and modernisation of postal operations.Government sources said such a huge spend on modernisation would not only make services efficient and transparent but would also support the Department’s plan to open banks as it was eyeing a banking licence.Approved by the Cabinet Committee of Economic Affairs in November 2012, the modernisation has to be implemented through eight projects. All rural post offices will be provided with handheld devices for financial transactions, a solar panel for charging it, a biometric reader for immediate identification and a thermal printer.
7)Nirbhaya Fund gets Rs. 1,000 cr. more
The government proposes to increase the grant to the Nirbhaya Fund by Rs. 1,000 crore and make it a permanent, non-lapsable fund.Announcing this in the interim budget, Finance Minister P. Chidambaram said the government had approved two proposals that would receive support from the Nirbhaya Fund announced in the Budget for 2013-14.
8)Earnings from PSU dividend, profit jump
Government pressure on public sector undertakings to pay more dividend seems to have worked as the exchequer got Rs.88,188 crore in this financial year, which is Rs.14,320 crore more than the earlier estimate. As per the budget document presented in Parliament, public sector enterprises, including banks, are expected to contribute Rs.88,188 crore in the form of dividend and profit to the government in the current financial year. Originally, the government had expected to get Rs.73,866 crore, of which Rs.29,870 crore had been targeted from PSUs and Rs.43,996 crore from banks. The government estimates it will get Rs.77,229 crore from dividend and profits in 2014-15.
9)Govt to raise Rs.39,000 cr from communication
The government expects to raise Rs.38,954 crore in the next financial year from communication services, including proceeds from spectrum auction and related charges. In 2014-15, the government expects revenue of Rs.38,954.02 crore from communication services, which include receipts from spectrum sale, licence fees and one-time spectrum charges, according to the Interim Budget presented by Finance Minister P. Chidambaram.
10)Single record for all financial assets
In a move to simplify record keeping and ensure greater tax compliance, the government plans to introduce a single data point that will track all financial records, like investments, of an individual. This is among the five steps that Finance Minister P Chidambaram has outlined in the Interim Budget 2014-15 to deepen the financial market. The steps include comprehensively revamp the ADR, GDR scheme and enlarge the scope of depository receipts, liberalise the rupee denominated corporate bond market and deepen and strengthen the currency derivatives market to enable Indian companies to fully hedge against foreign currency risks. Besides, the Interim Budget has envisaged creation of one record for all financial assets of every individual and to enable smoother clearing and settlement of international investors looking to invest in Indian bonds. The concept of one record for all financial assets is currently being looked into by the sub-committee of the FSDC.
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