Budget 2018 Highlights: Arun Jaitley’s booster dose for rural India, bitter pill for investors

<p>WATCH | Udayan Mukherjee decodes Budget 2018, terms it a disappointment for investors</p>

  • Budget 2018: Indian Railways set to get a major security upgrade

    Budget 2018: Indian Railways set to get a major security upgrade

    Railway Minister Piyush Goyal said he had a plan to introduce an effective and modern ETCS II system – a radio-based cab signaling equipment – on the railway network.

  • Feb 01, 10:00 PM (IST)

    Budget 2018: Jaitley reintroduces standard deduction of Rs 40,000 for salaried individuals

    Budget 2018: Jaitley reintroduces standard deduction of Rs 40,000 for salaried individuals

    Finance Minister Arun Jaitley has chosen to bite the bullet for the benefit of the salaried individuals by reintroducing standard deduction.

  • Feb 01, 09:33 PM (IST)

    Rana Kapoor, MD & CEO, Yes Bank 
    “In the backdrop of past reforms culminating into early green shoots for investments, a credible rise in allocation for infrastructure by 21% accompanied by broadening of corporate tax relaxation for MSMEs, a chiseled focus on generating livelihood creation in agriculture and rural sectors via new Operation Green and National Health Protection schemes, incentives to enhance employment in labor intensive sectors of textile, leather and footwear will ensure a stronger consumption and investment impetus in FY19. In addition, the global economy led revival in exports will truly allow India’s growth to become multi-dimensional henceforth.The fiscal strategy appears to be channelizing spending to sectors that have the potential to maximize backward and forward linkages in the economy through capacity enhancement and job creation.”
    Vishwavir Ahuja, MD&CEO, RBL Bank, said “The budget has done a reasonable job of balancing populist imperatives and growth orientation. With its stated shift in focus from “ease of doing business to ease of living for poorest”, increased outlays on social objectives, including education, affordable housing, healthcare it has ticked  all the right boxes in the pre-election year….However, there is a slight divergence from our expectations on fiscal deficit levels for both FY18 and FY 19, government’s commitment to fiscal glide path needs to come out more clearly as that is necessary to help ease the prevailing worries in the bond market. The introduction of LTCG without indexation could have been avoided – the revenue expectation of Rs. 20,000 crore could be a steep ask.”
    Zarin Daruwala, CEO, India, Standard Chartered Bank, said, “The Budget has taken in a wide-angle view, attending to the ‘Aam Aadmi’ of the country. The outreach it has managed to achieve cutting across the spectrum – rural and infra sectors, MSME, salaried, and retired classes – while staying on course with fiscal consolidation has struck a fine balance between the needs of growth, social development, and investor confidence which is a commendable achievement in my view.”

  • Feb 01, 09:26 PM (IST)

    Budget 2018: Apple phones may get costlier as govt hikes customs duty on imported mobiles

    Budget 2018: Apple phones may get costlier as govt hikes customs duty on imported mobiles

    If you have been planning to buy a mobile phone but haven’t yet, it may be time to do it soon as it is set to cost more.

  • Feb 01, 09:26 PM (IST)

    Union Budget 2018: How your money will be impacted

    Union Budget 2018: How your money will be impacted

    While this year Union Budget was a mix bag of both expectations and a few surprises, we list out a few broad points which will have an impact on how you save, invest, borrow, and insure.

  • Feb 01, 09:25 PM (IST)

    Government trying to hoodwink people, has polls on its mind: Left

    Government trying to hoodwink people, has polls on its mind: Left

    The Left parties called the budget a “big jumla” (rhetoric) of the government which has elections on its mind.

  • Feb 01, 09:23 PM (IST)

    Bankers hail Budget 2018 but flag concerns on expenditure overruns

    Bankers hail Budget 2018 but flag concerns on expenditure overruns

    Bankers have hailed the Budget as a holistic document addressing key issues to push growth, but have flagged concerns on expenditure overruns.

  • Feb 01, 09:23 PM (IST)

    Budget 2018: Easing pressure on banks, FM directs companies to bond market

    Budget 2018: Easing pressure on banks, FM directs companies to bond market

    SEBI has already started work on the front and has set up a separate department to roll out this measure, which was part of the 2016 HR Khan committee report, on the fast track.

  • Feb 01, 09:22 PM (IST)

    WHO welcomes announcement of govt-funded healthcare programme

    WHO welcomes announcement of govt-funded healthcare programme

    Lauding India’s announcement of a new health protection scheme and allocating Rs 52,000 crore to the sector in the Budget, the WHO today said they were “significant” steps towards Universal Health Coverage (UHC), something the global health body has been advocating for.

  • Feb 01, 09:21 PM (IST)

    Telecom sector to create 4 lakh new jobs in 5 years: Manoj Sinha

    Telecom sector to create 4 lakh new jobs in 5 years: Manoj Sinha

    The telecom sector is expected to create 4 lakh new jobs over period of 5 years and contribute significantly to GDP, as the Budget for 2018-19 seeks to enhance telecom infrastructure in the country, telecom minister Manoj Sinha today said.

  • Feb 01, 09:13 PM (IST)

    “People in rural India will have more money in hand and spend for consumption. That, in turn, will help corporate India. The biggest beneficiaries of this Budget are the medium, small and micro enterprises (MSMEs) – the units which can create massive employment opportunities,” said Chandra Shekhar Ghosh, Managing Director, Bandhan Bank.

    “Besides ensuring easy access to bank loans, the government is working on measures to address the bad loans and stressed accounts of the MSMEs. The exemption on interest income on bank deposits (from Rs10,000 to Rs 40,000 a year) and rise in the limit of health insurance premiums and medical expenditure will help senior citizens lead a dignified life.”

  • Feb 01, 07:43 PM (IST)

    “Exemptions on interest from banks FD of Senior Citizens to Rs 50,000 may increase the flow of funds to banks. Bank credit off take may pick up on cement and construction sector due to the focus on rural housing, rural roads and rural infrastructure spending,” said Subramaniakumar, MD & CEO, Indian Overseas Bank.

    “Reduction in tax rate to 25% for MSME who have reported turnover of up to Rs 250 crore, will not only create job prospects but also expand their business by additional investments which in turn will increase the demand for credit. Allocation of  Rs 10,000 crore under telecom infrastructure areas for easy internet access to 50 million rural Indians will help the financial inclusion initiatives of the banks,” he said.

  • Feb 01, 07:19 PM (IST)

    “A very comprehensive Budget comprising key measures that would have a positive impact on various segments including tenant farmers, 10 crore poor families, senior citizens, among others. Combined with these, the idea of a national gold policy and integration of the TReDS platform with GSTN for the SME are all significant policy changes aimed at transforming the overall economy,” said Rajnish Kumar, Chairman, SBI.

    “Further, retaining net market borrowings for FY19 at almost the same level as in the current year will compensate for higher fiscal deficit envisaged in the Budget.”

  • Feb 01, 07:13 PM (IST)

    “The Union Budget 2018-19 has done a commendable job in holistically addressing the various priorities of the Indian economy. It has addressed social sector priorities and charted out a clear plan to boost infrastructure, while maintaining fiscal discipline,” said Chanda Kochhar, MD and CEO, ICICI Bank.

    “Expenditure has been divided between budgetary and non-budgetary sources. The adoption of a maximum level for public debt to GDP will instil even more confidence in the fiscal framework. The far-reaching National Health Protection Scheme, which will be the largest of its kind in the world, along with measures taken to enhance education, skilling and research & development are indeed welcome steps,” she said.

  • Feb 01, 06:53 PM (IST)
  • Feb 01, 06:27 PM (IST)

    Reacting to the Budget 2018, Govind Shrikhande, Customer Care Associate & Managing Director, Shoppers Stop, said that overall it appears to be a Bharat Budget aimed to inject rural growth and maintain the fiscal deficit at 3.3%. But on the flipside, lack of definitive measures to drive consumption leaves us wanting.

    “On the business side, we were expecting a change in Corporate Taxation for big companies however that did not make the cut – pun intended. We were also hopeful that the FM would reduce and revise GST rates for pertinent categories to drive consumption and contain inflation. Instead, we are met with an increase in customs duty for Perfumes, Toiletries, Sunglasses and Footwear by almost 10% which will have a significant impact on prices, directly driving inflation and impacting consumption. This coupled with the introduction of 10% LTCG tax (exceeding 1 lac) in the equities market may dampen consumer sentiment,” he said.

  • Feb 01, 06:19 PM (IST)

    It’s a super flop Budget, there is no mechanism to meet the projection. The expectations were high but the country did not get anything to cheer about, said Mamata Banerjee, reports CNN News18

  • Feb 01, 06:09 PM (IST)
  • Feb 01, 05:52 PM (IST)
  • Feb 01, 05:42 PM (IST)

    CLICK HERE | Budget 2018: Govt tempers spectrum auction hopes, eyes 50% jump in telecom collection

    CLICK HERE | Budget 2018: Govt tempers spectrum auction hopes, eyes 50% jump in telecom collection

    The government has tempered its expectation from the spectrum auction for the coming financial year, given that most of the companies in the sector are not in the best of health and may hence not bid aggressively.

  • Feb 01, 05:19 PM (IST)

    Rs 80,000-crore divestment target is reasonable, nothing stops us from increasing it later, Adhia said.

    We would like to keep divestment candidates under radar to avoid price manipulation, he added.

  • Feb 01, 05:11 PM (IST)

    We are already on the cusp, in terms of oil prices, as of now consumers can live with the prices but if need be in future, we may consider cut in excise duty cut on petrol & diesel, said Adhia.

  • Feb 01, 05:09 PM (IST)

    While Excise duty on petrol/diesel has been cut by Rs 2, road cess has been increased by Rs 2. Virtually there is no change in retail price of petrol & diesel, said Adhia.

  • Feb 01, 05:07 PM (IST)

    Talking about the health scheme, Hasmukh Adhia said that it is centrally sponsored scheme, most probably it will be 60:40 split between Centre and States. The modalities are still being worked out like sharing ratio, model.

    Budget 2018 allocates Rs 2,000 crore for National Healthcare Scheme.We Will take 6 months to launch the scheme and are yet to decide if the scheme will follow insurance model or trust model, he said.

  • Feb 01, 05:06 PM (IST)

    Budget 2018 will give new wings to aspirations of the poor, said BJP chief Amit Shah. Shah was refering to measures aimed at giving a boost to farmers, infrastructure, rural sector and small and medium enterprises.

    Shah posted a number of tweets as Finance Minister Arun Jaitley made announcements while presenting his fifth budget to highlight their significance, especially for the poor and weaker sections.

  • Feb 01, 04:48 PM (IST)

    Mutual fund houses will now have to pay a Dividend Distribution Tax (DDT) of 10 percent on dividends declared under equity schemes.

    This will make dividend payout and capital gains equitable in terms of tax for equity funds.

    Currently, mutual funds pay DDT of 28.84 percent on dividends declared under debt schemes, while there is no DDT on equity-oriented mutual fund schemes. Also, DDT is not applicable for mutual fund schemes that invest at least 65 percent of its assets in equities.

    source;-moneycontrol.