Preeti Sharma Assistant Professor, IITM

Budget prepared during emergency is interim. Interim means in the mid or before the actual date when the budget is supposed to be made. In an election year interim budget is prepared and later, after new govt. is formed the normal budget is prepared.

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Fiscal Consolidation, Price Stability, SelfSufficiency in Food, Reviving the Growth Cycle, Enhancing Investments, Promoting Manufacturing, Encouraging Exports, Quickening the Pace of Implementation of Projects, and Finding Practical Solutions to certain stressed sectors such as Petroleum, Power, Coal, Highways and Textiles.

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Finance Minister P Chidambaram presented Interim Budget 2014 in Lok Sabha on Monday, 17 Feb, to cover expenditure until the government's term ends in May. Since 2008 state of world economy has been most decisive factor impacting growth of many economies. World economic growth was 3.9 percent in 2011, 3.1 percent in 2012 and 3.0 percent in 2013.
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fiscal crisis, structurally high unemployment or underemployment, income disparity, governance failure, food crisis, and political and social instability are few problems that the economies are facing presently. Growth: GDP expansion in 2013/14 third and fourth quarters will be at least 5.2%

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The world economy reached only a subdued growth of 2.1% in 2013. Now most economies are experiencing a turnaround. The Indian Economy is expected to experience growth in Q2 of 2013-14 as 4.8 percent and growth for the whole year has been estimated at 4.9 percent. This means that growth in Q3 and Q4 of 2013-14 will be at least 5.2 percent.

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Headline inflation also called as WPI inflation is a measure of the total inflation within an economy and is affected by areas of the market which may experience sudden inflationary spikes such as food or energy. A measure of inflation that excludes certain items that face volatile price movements. Core inflation eliminates products that can have temporary price shocks because these shocks can diverge from the overall trend of inflation and give a false measure of inflation.

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Last year WPI headline inflation stood at 7.3 percent and core inflation at 4.2 percent. Through the year, inflation saw its ups and downs. At the end of January 2014, WPI inflation was 5.05 percent and core inflation 3.0 percent. Both the Government and the RBI have acted in tandem. Food inflation is still the main worry, although it has declined sharply from a high of 13.6 percent to 6.2 percent.

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Though exports are recovering after global slowdown, imports in India are down. This will impact many areas of the economy, like manufacturing, domestic trade and consumption. estimated merchandise exports of USD 326 billion, indicating a growth rate of 6.3 percent. However, imports are down, and this does not augur well for either manufacturing or domestic trade. Our aim must be robust growth in both exports and imports, with trade in balance over a period of time.

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Manufacturing is the Achilles' heel of the Indian economy. There is deceleration in investment in manufacturing. The National Manufacturing Policy has set the goal of increasing the share of manufacturing in GDP to 25 percent and to create 100 million jobs over a decade. Eight National Investment and Manufacturing Zones (NIMZ) have been announced along the Delhi-Mumbai Industrial Corridor .
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Additional capacities are being installed in major manufacturing industries such as steel, cement, refinery, power and electronics. Several measures have been taken to promote micro, small and medium enterprises including establishing technology centres and common facility centres, and launching the Khadi mark.

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budget have also facilitated Infrastructure Debt Funds to provide take-out finance for infrastructure projects and ease the pressure on the banking system.

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In order to promote entrepreneurship among the scheduled castes and to provide concessional finance to them, IFCI will set up a Venture Capital Fund for Scheduled Castes. Government has approved the National Agro-Forestry Policy 2014 which has multiple objectives including employment, productivity, conservation and adaptation.

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A new plan scheme with an allocation of `100 crore has been approved to promote community radio stations. Ministry of Health and Family Welfare has delivered new technologies to the people: the JE vaccine, a diagnostic test for Thalassaemia, and a Magnivisualizer for detection of cervical cancer.

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allocation for defence has been enhanced by 10 percent from Rs.203,672 crore in BE 2013-14 to Rs.224,000 crore in 2014-15. One Rank One Pension

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National Food Security Act, 2013 (also Right to Food Act), was signed into law September 12, 2013 This law aims to provide subsidized food grains to approximately two thirds of India's 1.2 billion people Under the provisions of the bill, beneficiaries are to be able to purchase 5 kilograms per eligible person per month of cereals at the following prices: rice at 3 (4.8 US) per kg wheat at 2 (3.2 US) per kg coarse grains (millet) at 1 (1.6 US) per kg.

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Food security means availability of sufficient food grains to meet the domestic demand as well as access, at the individual level, to adequate quantities of food at affordable prices. The problem of food security is now looked from the perspective of right based approach than the welfare based approach

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75% rural and 50% of the urban population are entitled for three years from enactment to five kg food grains per month at 3 (4.8 US), 2 (3.2 US), 1 (1.6 US) per kg for rice, wheat and coarse grains (millet), respectively The states are responsible for determining eligibility The Public Distribution System is to be reformed State Food Commissions will be formed for implementation and monitoring of the provisions of the Act The cost of the implementation is estimated to be $22 billion(1.25 lac crore), approximately 1.5 % of GDP

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Worlds largest welfare scheme Bill is recognised as a form of investment into human capital It will enhance purchasing power of the weaker sections of society

Opposition leader Murli Manohar Joshi has described it as Vote Security Bill The Bill will aggravate problem of food inflation Severe imbalance is expected in the production of oilseed and pulses

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