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ARIJIT DAS (Fin/03) SRIJIT DUTTA TITHI SAHOO
SUMMER of 69
PARAKRAM MAJUMDAR ESHITA SADHUKHAN ATANU GHOSH
For Budget 2010-11, click on above Pdf icon
Forecasting of Fiscal Deficit by Budget 2010-11
Particular Fiscal Deficit
FY 2009-10 6.8% of GDP
FY 2010-11 5.5% of GDP
FY 2011-12 4.8% of GDP
FY2012-13 4.8% of GDP
Facts About Budget 2010-11 1. Targets 9% Growth. 2. The Government expects that the fiscal deficit will come down to 5.5% of GDP during the financial year 2010 - 2011 3. Allocation to rail increased to 15,800 cr. 4. Plan to create 12 million jobs . 5. Fiscal stimulus of 1,86,000 Cr. provided. 6. Urban areas get Rs 3937 Cr. 7. IT exemption limit has been raised. 8. Limit raised by Rs 10,000 for taxpayers including women. 9. Higher public investment in infrastructure. 10.Rs 2113 Cr. for IITs and NITs.
Effects of Budget On Auto sector: Budget
Petrol prices to rise by Rs 2.67/lit & Diesel rates by Rs 2.58/lit. Small cars will continue to get excise duty relief of 4%. Excise on large cars, SUVs, MUV raised to 22% from 20%. Excise duty on two-wheelers slashed from 10% to 8%. Decrease the demand of Car.
Price is not going to change and Demand of small cars will increase (Because of tax relaxation). Price is going to increase and Demand of large cars, SUVs, MUV is going to decrease. Price is going to decrease so, demand will increase.
Automakers Announced Increase in Vehicle’s Prices:-
• • •
Marui to cost 2% more. Hyundai to increase price by Rs. 6,000-25,000 Toyota to increase prices by Rs. 15,000.
Effects of Budget On TAX: Budget
10% - Income between 1.6 lakhs and 5 lakhs 20% - Income between 5 lakhs and 8 lakhs 30% - Income over 8 lakhs
More money in hand of general people and that will increase overall purchasing power of India.
Effects of Budget On Oil sector: Budget
The Finance Minister has proposed a duty roll-back on petroleum prices. A basic duty of five percent on crude oil, 7.5 percent on diesel and petrol, and 10 percent on other products is proposed
• • This means the overall cost of petroleum products will go up. This means the overall cost of petroleum products will go up. The government is moderating the prices as a steep hike will push the inflation further up, which is already beyond comfortable levels.
Effects of Budget On Hospitality sector: Budget
The Finance Minister has announced some tax benefits for the hotel industry, especially on investments in the economy segment •
This is a positive development as it will give a boost to the investmentintensive hospitality sector, and indirectly have a positive impact on tourism
Effects of Budget On Infrastructure sector: Budget Effect
The allocation has been increased by almost 13 percent for road infrastructure improvement and defense projects.
This is a positive development for companies in the infrastructure development space
Effects of Budget On Power & Energy sector: Budget
• • The Finance Minister has announced a cess (clean energy) on domestic and imported coal. On the other hand, the Finance Minister has provided a boost to wind energy and solar energy-related companies by cutting duty on wind farm units. •
This will have a negative impact on the companies that are operating in this segment
Effects of Budget On IT sector: Budget
No further extension of the tax holiday (STPI) for IT sector. •
So, there is chance of decrease of share price of IT companies.
Conclusion:There will be significant foreign capital fund flow increment. With the budget 2010, let us hope to see our country shining and bright in the coming future…….