Chapter on Finance

The Ministry of Finance is responsible for administration of finances of the Government. It is concerned with all economic and financial matters affecting the country as a whole including mobilization of resources for development and other purposes. It regulates expenditure of the Government including transfer of resources to the states. This Ministry comprises 5 departments namely:

  1. Economic Affairs
  2. Expenditure
  3. Revenue
  4. Disinvestment
  5. Financial Services

 ECONOMIC GROWTH

  • As per the provisional estimates, released by the Central Statistics Office, the growth rate of Gross-Domestic Product (GDP) at factor cost at constant (2004-05) prices is estimated at 4.7% in 2013-14.
  • Gross domestic saving as proportion of GDP at current market prices is estimated at 1% in 2012-13.
  • Gross capital formation is estimated to be 8% of the GDP at current prices in 2012-13.

AGRICULTURE

  • The overall area coverage is 02 lakh hectares under foodgrains during 2013-14 as compared to 1207.76 lakh hectares during 2012-13.
  • This represents a significant increase of 39.27 lakh hectares in the area coverage as compared to the last year.
  • There has been an increase of:
  • 01lakh hectares area coverage under rice
  • 85 lakh hectares in area coverage under coarse cereals and pulses
  • 99 lakh hectares under oilseeds
  • Sugarcane has marginally increased to 50.32 lakh
  • Area coverage under cotton has slightly declined.

 INDUSTRY

  • The Index of Industrial Production (IIP) based industrial growth during 2013-14 was (-) 0.1% compared to 1.1% growth achieved in the previous year.
  • Out of the three broad sectors, while electricity sector recorded the highest growth during 2013-14.
  • The mining and the manufacturing sectors recorded negative growth during this period.
  • The electricity sector grew at 6.1%, however, the mining and the manufacturing sectors declined by 0.6% and 0.8% during 2013-14.
  • The capital goods sector recorded negative growth, both during 2013-14 (-3.6%) as well as 2012-13 (-6.0%).
  • In terms of industries, 10 out of the 22 industry groups (as per 2-digit NIC-2004) in the manufacturing sector have shown negative growth during 2013-14.
  • The industry group ‘Radio, TV and communication equipment and apparatus’ has shown the highest negative growth of (-)27.3%, followed by (-)15.7% in ‘Office, accounting and computing machinery‘ and (-)13.8% in ‘Furniture Manufacturing“.
  • On the other hand, the industry groups ‘Wearing apparel, dressing and dyeing of fur’ has shown the highest positive growth of 20.7% followed by 14.5% in ‘Electrical Machinery and Apparatus’ and 9.0% in ‘Chemicals and Chemical Products‘.

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