Monthly Archives: February 2010

Post Budget Effects….

  • Firstcall Research has come out with a review report on Union Budget 201011. The research firm says, it would be for the first time that the Government would target an explicit reduction in its domestic public debtGDP ratio.
  • Joseph Massey, MD CEO, MCX Stock Exchange gave his view on Union Budget 201011. He said, “Very balanced budget with greater focus on social reforms and infrastructure and simultaneously enabling and assuring industry of a stable tax regime.”
  • KRChoksey has come out with a review report on Union Budget 201011. The research firm says, through the budget FM has been able to achieve a fine balance between the dual objectives of maintaining growth at early stage of economic recovery and fiscal consolidation.
  • Madhu Kela, Head Equity Investments, Reliance Mutual Fund, says the issuance of bank licenses to NBFC companies is a positive move. “I think that will go a long way in ensuring that the penetration of financial products and services increases more rapidly that what it was before this.”
  • Ashok Wadhwa, Group CEO of Ambit Holdings Private Ltd said he was delighted with the budget, adding that many of these proposals were partially unexpected. The only “red herring” he said, was the increase in Minimum Alternate Tax.
  • Welcoming the Union Budget, Prime Minister’s Economic Advisory Council Head C Rangarajan said, “The fiscal deficit of 5.5% projected for the next fiscal appears to be very reasonable
  • Bharat Doshi, EDFinance Corporate Affairs at Mahindra Mahindra believes Finance Minister Pranab Mukherjee has done a good balance act. “The focus on growth as well as simultaneously managing fiscal deficitthat’s commendable”
  • The Minimum Alternate Tax (MAT) was increased from 15% to 18%. YM Deosthale, CFO Whole time Director, LT, says he reads it as one initiative to generate revenues. “It was a bit surprising because it has gone up to 18%. But ultimately overall on balance it was necessary to supplement resources, so I think from that perspective its okay.”
  • Padmakshi Financial Services has come out with its analysis for Budget 2010. According to the research firm, this budget proposal may impact negative for Aviation, Automobile, Banking Finance, FMCG Food Processing while Hotel, Infrastructure / Construction may see positive impact.
  • Reliance Securities has come out with its report on Union Budget 201011. According to research firm the FM has struck a balance between growth, inflation and fiscal prudence. He has laid down a clear path to reduce the fiscal deficit to permissible limits and the targets seem to be achievable thus encouraging and improving investment environment.
  • India Infoline has come out with its review on Union Budget 201011. According to the report, focus continued on flagship schemes, infrastructure and rural development. Education, healthcare and defence were also given material allocations as expected.
  • Maximus Securities has come out its review on Union Budget 201011. According to research firm the Budget is positive for Infrastructure, Power, Banking, NBFC, Pharma and Hotel Sectors while it is negative for Auto, Technology and PSU OMCs.
  • The government has pegged outgo towards food, fuel and fertiliser subsidy in 2010-11 at over 12 per cent lower than the revised estimates of this fiscal.
  • The Foreign Institutional Investors (FIIs) were net buyers of Rs 1,432.81 crore in futures and options segments on Friday.
  • The government on Friday proposed a one-time grant of Rs 200 crore for setting up effluent treatment plant at the Tirupur textiles cluster.
  • The Indian Rupee will this fiscal join the elite league of global currencies like US dollar, British pound and euro that have their unique symbols, Finance Minister Pranab Mukherjee said on Friday.
  • Air travel on all classes in both domestic and international sectors is likely to become costlier with the government expanding the scope of air transport services to attract service tax.
  • To improve connectivity in the North-eastern states, the Government today proposed an allocation of Rs 1,114 crore for development of rural roads and bridges in the Union Budget.
  • The Commonwealth Games to be held in the national capital this year has got Rs 2,296.43 crore in the Budget under several heads, with the Sports Ministry receiving the bulk of the money.
  • The National Investigation Agency (NIA), set up in the aftermath of Mumbai terror strikes last year, has been allocated Rs 16.33 crore in the general budget for 2010-11, a marginal hike of over Rs 1 crore from the last financial year.
  • In order to spur growth in the agriculture sector and reduce wastage of farm produce, Finance Minister Pranab Mukherjee today announced a series of tax reliefs that include concessional customs duty and exemption of service tax on setting up of cold chains.
  • “The Finance Minister has effectively handled the aspect of inclusive growth, sent the right signals from the fiscal discipline point of view and managed the fiscal deficit at 5.5 per cent,” Bombay Chamber of Commerce and Industry’s President, Bharat Doshi, told reporters here.
  • Finance Minister Pranab Mukherjee today proposed a higher plan expenditure of Rs 10,630 crore for the Power Ministry during 2010-11, 15 per cent up from Rs 9,230 crore for the current financial year.
  • Finance Minister Pranab Mukherjee today assured that the government would try to ensure that farmers do not have to spend more on fertilisers next fiscal, even though the government has removed the maximum retail price (MRP) system.
  • India’s human space flight programme got a major boost as the General Budget on Friday proposed a significant allocation to it and also sought increase in funds for setting up an indigenous global positioning system.
  • The Union Home Ministry has got a marginal 10 per cent hike in the Union Budget 2010-11 over last year’s allocation, that also pegs the expected expenses to 15 per cent less in the next fiscal.
  • Delhi Police was today allocated Rs 2,836.53 crore in the general budget for the next fiscal, which shows a decrease of Rs 127.50 crore from the previous one.
  • In a big boost to the development of the fairer sex, the Government today increased the allocation for development of women and children by almost 50 per cent.
  • With the government deciding to implement the Right To Education Act from April this year, the allocation for education sector witnessed an over 25 per cent increase in the Budget with the major chunk of the funds going to elementary education.
  • The government on Friday proposed to grant ‘project import status’ to Monorails in big cities, thereby allowing shipping in of equipment and parts for them at a much lower customs duty than the prevailing rates.
  • Cement prices are likely to go up by around Rs 8-10 per 50 kg bag with manufacturers saying that they may pass on the burden of hike in excise duty proposed in the Budget 2010-11 to customers.
  • Coal India Chairman Partha S Bhattacharya today welcomed the setting up of a coal regulator and auctioning of coal blocks for captive use.
  • The domestic steel companies such as SAIL and Tata Steel are likely to increase prices by about Rs 600 a tonne, on account of the increase in excise duty in the Budget.
  • At a time when Finance Minister Pranab Mukherjee has given individual tax payers a major benefit, President Pratibha Patil’s salary and allowances have come down by half.
  • As part of wall-fencing against any possible financial crisis in the country, the government on Friday proposed setting up a high-level panel for maintaining financial stability.
  • The 2010 budget has put emphasis on renewable energy while non-renewable and core power sectors have not seen any path-breaking measures, industry participants and analysts said.
  • Terming the Union Budget as “disappointing”, Karnataka Chief Minister B S Yeddyurappa on Friday expressed unhappiness over the Centre not paying heed to the state’s request for a farm loan waiver in flood-hit areas and the assistance for Bangalore infrastructure development.
  • In a steep drop in central assistance to Delhi, a plan outlay of Rs 1,228 crore was today allocated to the city Government in the Union Budget as against last year’s Rs 2,435 crore.
  • The External Affairs Ministry got a total allocation of Rs 6,375 crore for the year 2010-11 in the General Budget, with Rs 2,337 crore earmarked for various welfare programmes for countries like Nepal, Bhutan, Myanmar, Afghanistan and Maldives.
  • The economic growth slipped drastically to 6 per cent in the third quarter of the fiscal, around the same level witnessed during global financial meltdown, even as the government partially rolled back stimulus on the premise that the economy is on a rebound.
  • Apollo Hospitals Chairman Prathap Reddy said on Friday the Union Budget presented by Finance Minister Pranab Mukherjee had made a good effort at ensuring inclusive growth.
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