Budget 2015

25Feb

Union Budget 2015-16 India Suggestion : FM needs to kickstart investment cycle

India today requires an accelerated rate of economic growth because we require jobs. We require 10 million jobs a year for the next 10 years. How do we kickstart investments, that is the question and with that in mind we have talked about giving incentives or making it easier for investments to happen so that it becomes viable.

So one side is the investment, but the other side we have also said one must move towards increasing consumption and savings and for that we have recommended instead of Rs 2.5 lakh as cut-off for income tax, please raise that. Please give other benefits to individuals who can have savings or have money for investments.

So we have to look at both sides but the objective is in the national interest of what is good for the growth of the economy so that we can provide jobs for our 10 million jobs a year for the next ten years and we have to give that a kickstart.

25Feb

Union Budget 2015-16 India Update : Fiscal reforms to determine ratings: Moody’s

Moody’s Investors Service said on Wednesday that its assessment of India’s credit ratings will be determined mainly by the extent of its fiscal reforms, not recent revisions to its economic growth data.

The comments come a day after rival Standard & Poor’s said India must boost growth, cut its fiscal deficit and fulfil promises of financial and fiscal reforms in order to justify an upgrade in its credit rating.

The Government on Saturday will present its Fiscal Budget for the new fiscal year starting in April amid high hopes that it will find a way to boost capital spending while exercising fiscal restraint.

“The upward revisions of India’s GDP growth based on methodological and base year updates – highlight the strength of the economy, but do not impact Moody’s overall assessment of the sovereign’s credit profile,” the agency said.

“Rather, fiscal and structural reform policies will determine the extent to which accelerating growth will buttress the sovereign credit profile.”

Moody’s added that rising private external debt levels and banking sector challenges will also continue to pose sovereign credit risks.

India this month changed the way it measures Asia’s largest economy and said under the new methodology the economy expanded 7.5 percent year-on-year during the last quarter, higher than 7.3 percent growth recorded by China in the latest quarter.

As a result, Moody’s said it now expected 7.5 percent growth for the year ending in March 2015.

However, the new government readings have left economists confused as it is at odds with other indicators such as industrial production, trade and tax collection figures, which suggest the economy is still suffering from slack.

Moody’s rates India at “Baa3”, the lowest investment grade rating, with a “stable” outlook. That is in line with S&P and Fitch Ratings.

25Feb

Union Budget 2015-16 India Predictions : Announcements on capex & infra critical

Union Budget 2015-16 will be a defining moment for both the Indian economy as well as the market. The mood of the market seems to be very positive and IT and pharma companies are likely to well in the near-term. But the focus in the Budget will be on what Finance Minister Arun Jaitley has to announce for the infrastructure sector and what measures will be taken by the government to revive capital expenditure.

25Feb

Union Budget 2015-16 India Expectation : Expect commodity transaction tax to be removed, Says MCX

MCX is hoping that the commodity transaction tax will be removed in the upcoming Union Budget, according to PK Singhal, Joint Managing Director . In an interview with CNBC-TV18, Singhal says Taiwan is the only other country which levies a CTT.

He says commodity trading volumes have come down significantly since the imposition of CTT, and this is also leading to grey market transactions in which the government gets no revenue at all. Average daily turnover on MCX has fallen from Rs 50,000 crore to Rs 30,000 crore since CTT was introduced, Singhal says.

MCX has regained the market share it lost in the aftermath of the scam at NSEL, Singhal says. He feels the shifting of the Forwards Market Commission to the Finance Ministry from the Consumer Affairs Ministry is a positive step.

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