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The future movements in the markets over the next month or so will be decided by the contents of the Budget 2018. Lately both the major indices in India has scaled record heights, the Sensex has crossed the 36000 mark whereas the Nifty has also breached the 11000 level.The future movements in the markets over the next month or so will be decided by the contents of the Budget 2018. Although in the period leading up to the  Budget  utmost secrecy is observed but some information does filter through, other than that rumours and informed speculations are also what that drives the sentiments of the markets. Generally there are negative sentiments and expectations attached to the Budget thus investors usually postpone buying decisions before the Budget is tabled. Thus in the past mostly the benchmark index has fallen in the month leading up to the Budget and the markets both Sensex and Nifty have seen gains after the Budget has been delivered. This has been the trend in si...

Will the Modi govt's last full Union Budget before general elections 2019 will be a populist one? All eyes are now on FM Arun Jaitley's Budget speech on Thursday As Finance Minister Arun Jaitley gets set to present Budget 2018, the last full Union Budget of the Narendra Modi-led central government in its present term, there is an anticipation that he will somewhat shed his prudent stance in favour of a more populist stance one. The view emanates from the fact that this will be the finance minister’s last chance to please the voters through a Budget 2018 before 2019 general elections. Populism in the government’s annual budget could assume policy decisions like lower tax rate for the salaried class, lower corporate tax rates in tune with Trump’s benevolence for the corporate class in the US and big bonanzas for India’s farmers. If the Economic Survey, prepared by Chief Economic Advisor Arvind Subramanian and his team is anything to go by, Jaitley has all the am...

The government met leaders of political parties at a meeting in Parliament House on Sunday and also sought their cooperation The government on Sunday said it would "leave no stone unturned" to ensure the passage of the triple talaq Bill in the Budget session of Parliament starting Monday, and asserted that it would talk to various parties for a consensus on the issue. The government met leaders of political parties at a meeting in Parliament House on Sunday and also sought their cooperation in ensuring the success of the crucial session during which the Union Budget would be presented. The all-party meeting was attended by Prime Minister Narendra Modi, Union ministers Rajnath Singh, Arun Jaitley and Ananth Kumar, besides leaders of the Opposition and other parties. Speaker Sumitra Mahajan also held a dinner meeting with party leaders for the session's smooth functioning and said the leaders had assured her of their cooperation. ALSO READ:  Centre...

BJP govt faces this situation as it heads into its last full budget before general elections in 2019 With India’s urban population rising by 11 million annually–the equivalent of adding a Bengaluru every year–and urban voters forming a major vote base for the Bharatiya Janata Party (BJP), making money and management available for cities would appear to be a priority. But promises of smart cities and managing growth to provide jobs and housing for the coming urban population jump from 377 million in 2011 to 600 million in 2031–with 20% of this growth expected to come from rural distress and migration–are, currently, displaying little progress. Less than a quarter of central funds for four major national programmes for India’s urban renewal have been used, according to an IndiaSpend analysis of government data. Since urban development is a state subject, state governments implement these national schemes with central assistance playing a key role. State and urban bodies...

In the Union Budget 2018-19, Finance Minister Arun Jaitley could reinforce his Modi govt's thrust on skill enhancement to aid job creation to help India effectively leverage its demographic dividend The upcoming  Budget 2018 , which Finance Minister Arun Jaitley will present on February 1, is expected to be more significant than other recent ones, especially as it is coming after a year full of radical reforms by the Narendra Modi government such as demonetization of high-value currency notes, implementation of the goods and services tax (GST) and a new bankruptcy regime. The year 2017 ended on a high with gross domestic product (GDP) growth in the July-September quarter standing at 6.3%, indicating the significant impact of the two structural reforms — GST and demonetisation — is now behind us and, hopefully we could expect an upward growth in 2018. I am hopeful that this year, too, there will be a thrust on skill enhancement to aid job creation. This would us le...

The budgetary allocation aims to subsidise the purchase of machinery by farmers in a bid to curb stubble burning The severity of Delhi's air pollution woes has earned the issue a place in the Centre's allocations in  Budget 2018 . According to reports, an amount of Rs 10 billion (1,000 crore) will be allocated under Budget 2018 to combat problems like stubble burning, which has been attributed as a major cause for Delhi's now-notorious air quality. In an effort to clean up the capital's air, or at least make it more breathable, and end the residents' annual exercise of choking under a blanket of smog, the Centre has decided to earmark Rs 10 billion (1,000 crore) in the upcoming Budget to curb the practice of stubble burning in Delhi's neighbouring states like Punjab and Haryana, the Times of India reported on Thursday. ALSO READ:  India among five worst nations in curbing environmental pollution How will the Centre put a stop to stubble burning...

Mr. Kalirona stated that if the government supports the manufacturing sector of mobile industry, it would support our Prime Minister's vision of "Make in India". The entire nation has their eyes set on the fifth and last full-fledged Union Budget in Narendra Modi’s government to be presented in Lok Sabha. This Union Budget will be presented on February 1, 2018, by Mr. Arun Jaitley, our Finance Minister. This Union Budget has a lot of significance as it is presented after two big financial decisions made in Mr. Modi’s government- Demonetization and GST. The previous year’s budget was also very unique as railway budget and general budget were presented on the same day. Everybody is expecting some statement to be made about their respective sector in this Union Budget. There is anticipation that mobile phones may become cheaper after February 1, 2018. Union Budget 2018 : Smartphones to go cheaper? Mobile phones are seen in every common man’s possession,...

India's yearly Union Budget is when the government lay out its finances, estimates, policies and much more. This is also when the government accounts for its revenue and expenditure. India’s yearly  Union Budget 2018  is when the government lay out its finances, estimates, policies and much more. This is also when the government accounts for its revenue and expenditure. But the budget is much more than that, the union budget of India has its own rich history, it’s an occasion when our democracy is celebrated, it’s a festival of sought. James Wilson, Finance Member of the India Council presented the first Budget in India on February 18, 1869. The first Budget of Independent India was presented by the first Finance Minister of India R.K. Shanmukham Chetty on 26th November 1947 at 5 pm. The tradition of presenting the Budget at 5 pm was a colonial tradition that was practised till 2001, this was when the then FM Yashwant Sinha changed it and started presenting the budget ...

Markets eyeing details on fiscal math, increased focus on infra, LTCG on equity investments The current market rally a month before the  Budget 2018  proposals are announced on February 1 is the best in over a decade, with the S&P BSE Sensex and the Nifty50 indices gaining over six per cent so far in calendar year 2018 and crossing the 36,000- and 11,000-levels, respectively, for the first time ever on Tuesday. Though most analysts do not expect the proposals to be hugely populist, brokerages would keep a close watch on how the government manages the fiscal situation a year before the country goes to polls scheduled in May 2019, and changes, if any, to the existing norms of long-term capital gains tax (LTCG) on equities. While analysts peg the fiscal deficit for FY19 to be around 3.2 per cent, any change to the LTCG tax structure on equities could be a sentiment damper, analysts say. Increased allocation for infrastructure such as affordable housing, road...

The Budget allocation for Ministry of Agriculture and allied activities has grown by 114% since 2010-11 As Finance Minister Arun Jaitley gets down to deliver his fifth annual Budget for the 2018-19 financial year, all eyes will be on his announcements for the rural sector which is going through a downturn in the last few years. Two consecutive droughts along with a sharp fall in incomes have turned agriculture unprofitable resulting in massive agitations in several parts of the country. According to some estimates, in the 2017 Kharif season alone, an estimated Rs 360 billion has been denied to farmers for not being able to sell their produce at the state-mandated Minimum Support Price (MSP). The fall in farm incomes not only threatens to dent the ruling BJP electorally but could also raise a big question mark on the government’s promise to double incomes by 2022. In this perspective, Business Standard looks at budgetary allocation for agriculture and allied sectors in...

The impressive numbers will come in handy for Finance Minister Arun Jaitley to hew close to the budgeted fiscal deficit number of 3.2% of GDP The disinvestment department has been told to bring a sum of Rs 1 trillion to the Budget table for FY18. Fresh from the success of crossing the annual disinvestment target for the first time, the finance ministry feels the department should be able to reach the sum by March 2018. “We have been told to make use of the buoyant market conditions to reach the magic figure,” a source in the know of the developments told Business Standard. Over the weekend, state-owned Oil and Natural Gas Corporation (ONGC) has bought out the entire 51 per cent government stake in downstream Hindustan Petroleum Corporation Ltd for Rs 369.15 billion. With this sale, the total earnings from disinvestment in the financial year FY18 will reach Rs 912.53 billion. The  Budget 2018  estimate for sell-off for the year had stood at Rs 750 billion, which t...

The government has periodically increased the income tax slabs from Rs 22,000 in 1990-91 to Rs 2.5 lakh in 2014-15 With rise in personal disposable income post 7th Pay Commission, the income tax exemption limit needs to be raised by Rs 50,000 to Rs 300,000 a SBI report said today. The move will benefit around 75 lakh people, it said. The SBI's Ecowrap report further said that if the exemption limit of interest payments under housing loan is increased to Rs 250,000 for existing home loan buyers, from Rs 200,000 now, it will benefit 75 lakh home loan buyers and cost the government just about Rs 75 billion. Finance Minister Arun Jaitley is set to present the fifth and final full  budget 2018  of the current government on February 1. The government has periodically increased the income tax slabs from Rs 22,000 in 1990-91 to Rs 2.5 lakh in 2014-15. "Due to 7th pay commission, the personal disposable income has been increased, so we believe there is a n...

Jaitley will present the Union Budget, the fifth and final one of the current the government, on February 1 Finance Minister Arun Jaitley was scheduled to be one of the key speakers at the India-specific sessions at the World Economic Forum (WEF) in Davos, but he will now not be travelling to the Swiss town. A finance ministry source said the change in plan was because the FM was needed in New Delhi to devote time to the  Budget 2018  . Apart from Prime Minister Narendra Modi, Jaitley was to be one of the six Union ministers scheduled to attend the WEF. The FM was earlier scheduled to be in Davos on January 24 to take part in the key “country strategy dialogue on India”. Commerce and Industry Minister Suresh Prabhu and Petroleum and Natural Gas Minister Dharmendra Pradhan were to join Jaitley in this session. Sources confirmed the change in the FM’s itinerary barely 24-hours after the Ministry of External Affairs (MEA) had held a press conference on Friday to...

The Federation of Indian Animal Protection Organisations has also demanded increased funds for street animal care through the Animal Welfare Board of India With the Union  Budget 2018  just days away, an animal rights body has asked the government to allocate funds for a host of animal issues, including for maintenance of gaushalas and development of grazing land. Spelling out their expectations from the Budget, the Federation of Indian Animal Protection Organisations (FIAPO) has also demanded increased funds for street animal care through the Animal Welfare Board of India, among others. Varda Mehrotra, Director of FIAPOa, urged the government to allocate special funds for running animal birth control programmes for dogs, funds for regulating slaughterhouses and for setting up and proper functioning of State Animal Welfare Boards. Mehrotra said there are nearly 4,000 gaushalas that are functional across the country but only a few (maintained by religious ...

On the criticism related to demonetisation and GST, Modi said his government's achievements were much beyond these two reforms Budget 2018 Countering the allegation that his government had reneged on the promise of creating 10 million jobs a year, Prime Minister Narendra Modi quoted a recent study showing seven million jobs had been created in the formal sector alone in the current financial year. “This data of seven million jobs is not like building castles in the air. It has been calculated by an independent agency on the basis of EPFO (Employees’ Provident Fund Organisation) figures,” Modi said in a television interview, days before leaving for Davos to attend the World Economic Forum meet. One should also count the opportunities that were being created in the informal sector, he added. “As many as 100 million people have taken loans from the Prime Minister Mudra Yojana without any bank guarantee. Loans to the tune of Rs 4 trillion have been disbursed. ...

The apparel export body has made around 8-10 demands ahead of the Budget 2018 Reeling from a continued fall in export growth and marginal refunds on the goods and services tax (GST), the Apparel Export Promotion Council (AEPC) has written to the government, seeking 12-15 types of relief. They want the duty drawback and the refund of state levies (ROSL) to be restored to pre-GST levels, and also exemptions from the new indirect tax for exporters. Growth of apparel exports has clocked a negative 39 per cent, 11 per cent and 8 per cent, respectively, in October, November and December last year, according to H K L Magu, chairman, AEPC. Now, in the run-up to the  Union Budget 2018 , the export body has sought incentives from the government, to boost exports. It wants the duty drawback on cotton apparels to be restored to pre-GST rates of 7.5 per cent and the ROSL of 3.5 per cent. They also want to be exempted from 18 per cent GST for air freight. After the GST roll...

Through this, the government will address inverted duty structures-finished goods facing lower duty than the inputs that go into them Make in India is set to get a major boost in  Budget 2018  through a customs duty rejig, according to a report. However, these measures are likely to pinch customers' pocket as they could make imported high-end mobile phones and electronic goods expensive. Basic customs duty may be imposed on components such as printed circuit boards, camera modules and displays that are allowed duty-free entry now. Custom duty rejig in Budget 2018 Customs Duty may be revised on certain other selected goods. Through this, the government can address inverted duty structures—finished goods facing lower duty than the inputs that go into them. Post implementation of Goods and Services Tax (GST), customs duty is the only levy which still falls under the central government's domain. In December 2017, the government had raised basic customs duty...

The chief Business Officer of India Real Estate Property Site lists the various demands of the real estate sector from Finance Minister Arun Jaitley's Union Budget 2018-19 and explains how they could help the sector The year 2017 was a landmark one in terms of policy directives. The real estate market witnessed a temporary setback on account of reforms like Real Estate (Development & Regulation) Act (RERA) and Goods and Services Tax (GST). However, after withstanding the aberrations, the market now seems to be settling down to the changes, which are envisioned to bring long-term benefits. The New Year has started with hopes of a market revival, especially on the back of positive policy roll-outs in the upcoming Union Budget 2018-19. Every year, the  Union Budget 2018  presents an opportunity to the government to work towards the revival of Indian real estate and address the looming concerns that afflict various stakeholders. Budget 2017 doled out several bene...

Punjab Finance Minister Manpreet Singh Badal asked the Centre to announce a farm debt waiver for the entire country At the pre-Budget consultations of Finance Minister Arun Jaitley with state finance ministers on Thursday, ministers representing state governments run by Congress, Left parties and regional parties flagged the revenue drop faced by states after the goods and services tax (GST) roll out and flagged agrarian distress. Bihar Deputy Chief Minister Sushil Modi, who represented the Janata Dal (United)-Bharaitya Janata Party (BJP) coalition government in his state, demanded more central assistance for key schemes and revise wages for unskilled workers under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). He suggested the Centre advance the fiscal year to start from January 1, and increase income tax exemption limit from Rs 250,000 to Rs 300,000. Punjab Finance Minister Manpreet Singh Badal asked the Centre to announce a farm debt waiver f...

The next budget needs to have several policy measures to give a stimulus to the agricultural sector, Icra said The forthcoming  Budget 2018  should provide several policy measures to give a stimulus to the troubled agricultural sector, which in turn would help the cash-straved fertiliser companies, says a report. The next budget needs to have several policy measures to give a stimulus to the agricultural sector such as on irrigation, crop insurance and agricultural credit to help fertiliser players, Icra said in a pre-budget report today. The fertiliser sector is highly regulated with controls on several aspects pertaining to their business. The urea sector works on normative cost-plus-return framework, with controls on farm gate prices, distribution and gas allocation. The difference between retention price and farm gate price net of dealer margins is paid as subsidy to the industry, which is variable in nature depending on the energy price trends. A...

India is doing very well internationally and is 13th in terms of foreign tourists arrival and 7th in the Asia Pacific, the minister said India, which saw a record number of Foreign Tourist Arrivals (FTA) of 10 million in 2017, is targeting to double this number in next three years, Minister of State Tourism K J Alphons on Thursday said. "We crossed 10 million FTAs in 2017 and if we include non-resident Indians visiting the country then the number went up to over 17 million. In dollar terms our earnings have gone up by 20.2 per cent, which is a very good growth compared to the world tourism that grew by less than five per cent," the minister said on the sidelines of OTM 2018. These are very encouraging numbers and the government is working towards doubling both the FTAs and foreign exchange earnings in the next three years, he added. "To make this possible we are working with the state governments and with the industry, as they have a big role to pla...

One way the government could give job creation a boost is by tweaking taxation laws to provide companies an incentive for hiring Job creation is one of Modi government's biggest challenges, with the Opposition using what it calls the government's poor performance in this regard as a stick to beat the prime minister's economic policies with. With Budget 2018 less than a month away, and with employment generation reportedly being a key theme this year, one way the government could give job creation a boost is by tweaking taxation laws to provide companies an incentive for hiring. India already provides tax benefits to incentivise job creation by companies. However, according to a Times of India report, certain lacunae in the rules have kept many companies, particularly from the services sector, from reaping the benefits of such incentives. In view of this, according to the national daily, the government could tweak Section 80JJAA -- which sets out conditions und...

The ONGC-HPCL deal is likely to fetch the government Rs 300 billion, the report said quoting sources Eyeing Rs 1 trillion  Budget 2018  target through disinvestment for next fiscal, the Modi government may end FY18 with Rs 900 billion selloff, almost twice the record figure of Rs 460 billion achieved last year, on the back of its stake sale in Hindustan Petroleum Corporation (HPCL) to Oil and Natural Gas Corporation (ONGC), according to The Time of India report. The deal is likely to fetch the government Rs 300 billion, the report said quoting sources. The sale of the government's stake in HPCL to ONGC is stuck on valuation. According to persons close to the development, the effort was to close the deal before the end of this month but the government was looking at getting a higher value for its 51.1 per cent stake in HPCL. Based on the current market capitalisation, a 51 per cent in HPCL is valued at Rs 323 billion, about Rs 23 billion higher than in las...

As per existing regulations, if there are losses in a fund at the end of its life, the same cannot be passed onto its investors At a time when Finance Minister Arun Jaitley and his team would be getting set for Union Budget 2018-19, the private equity industry is seeking a pass-through of losses at the fund level for Category 1 and Category 2 alternative investment funds (AIFs). According to the existing regulations, if there are losses in a fund at the end of its life, the same cannot be passed onto its investors. ‘‘This is a big issue with VC or infra funds. Over a fund life of eight-to-nine years, a fund may end up with one or two loss-making firms,” says Gopal Srinivasan, president, Indian Private Equity & Venture Capital Association. The regulations say that profits can be passed onto investors, but losses have to be kept at the fund level. Interestingly, Sebi’s original venture capital regulations of 1996 allowed this. These were replaced by Sebi’s AIF regul...

To provide relief to home buyers as well as encourage investment in under-construction properties The "Housing for All by 2022" mission has set the stage for a robust recovery in the residential property market. In the past two years, we have seen an unprecedented focus on reforms channelised through the Benami Transactions (Prohibition) Amendment Act 2016, demonetisation, Real Estate Regulatory Act (RERA) and the Goods and Services Tax (GST) regime. So, this time, the Budget for FY2018-19 will be much more critical than ever. The provisions, if moved in positive directions, will have the power to continue the momentum and cement home buyers' confidence. While so many tough decisions have already been taken, it will be worthwhile to rationalise further the direct tax structures impacting home buyers. I believe that there is room for improvement in some of the prime income tax (IT) provisions meant to incentivise the home buyers. Deduction on home loan in...

The news sent benchmark 10-year bond yields down over 15 basis points India has cut its additional market borrowing requirement by more than half for the financial year ending in March to Rs 200 billion ($3.13 billion), Economics Affairs Secretary S C Garg said on Twitter. The news sent benchmark 10-year bond yields down over 15 basis points. Last month, the finance ministry had said that the government is likely to borrow additional Rs 500 billion ($7.79 billion) in 2017/18 fiscal year that ends in March. Click To Read :  Budget 2018

Aiming to boost the struggling agriculture and rural economy, and encourage clean energy, the Council is expected to rationalise rates A fortnight ahead of the  Union Budget 2018 , the Goods and Services Tax (GST) Council is likely to take up rationalisation of rates of about 70 items, of which at least 40 are services. Amendment in rules may also be taken up to simplify filing and plug some of the loopholes. A fitment committee of officers has made these recommendations to the Council, which will meet on Thursday. With the aim to boost struggling agriculture and rural economy, and encourage clean energy, the Council is expected to rationalise rates of agriculture implements and unconventional fuel buses. It is the last Council meeting before Finance Minister Arun Jaitley presents his last full Budget on 1 February, before general elections in 2019. “Around 40 to 50 services will be taken up for a rate revision in the Council meeting. These are services that were ...