What is more important in this budget is what WASN’T said, not what was. But here’s the transcript of what I wrote at the Yahoo chat through the budget.
- Welcome to my live chat on Budget 2011. Folks, if you have questions throw it out at http://www.twitter.com/deepakshenoy
- 400,000 crores net borrowing, they say. Upwards of that is bad for bonds.
- That means Bank Stocks will hurt beyond that.
- People in the US don’t largely care about the budget, says Samir Arora. So FII selling may not be affected.
- 1 minute to go, if Mr. Mukherjee will be on the dot. Please excuse my misunderstanding of Bengali enunciations.
- GDP numbers = 8.2%
- Food inflation down to 9.3% in Jan 2011, says FM.
- Private investment needs to be moved up.
- We have reached pre-crisis growth momentum.
- Pranob-da is saying everything in one sentence. Consolidation, inflation, growth.
- Sensex is up 120 points, Nifty up 37 points
- "Gap in public accountability". Jeez. It’s a chasm.
- 2011-12 is a transition to result-oriented and transparent policy
- The necessary Sonia touching-feet reference has happened. We can now move on.
- 8.6% growth in 2010-11 in real terms. Agri growth 5.4%, industry 8.1% services 9.6%
- Food inflation was bad. Cereals, pulses in the beginning of year. Onion, Milk and chicken at later part.
- Shortcomings in marketing system are there, he says.
- Different arbitrageable prices are not acceptable says FM
- RBI measures will moderate inflation, he says. Ah.
- Exports have grown nearly 30%. $185bn. Imports $276bn, up 18%
- Expectations: 9% GDP growth. with +/- 0.25%
- Lower fiscal deficit and lower inflation seen.
- We have Godly references. Lakshmi and Indra gone. Thank goodness we don’t have the 1000 names of Vishnu.
- Each state needs 3% GDP deficit by 2014
- Come on. States to have only 25% of GDP as debt? That’s tough. anyways
- Direct Tax Code and GST will be huge reform, moderation of rates, simplification etc.
- Parliament
- GST convergence is happening: In This Session of
- DTC: 2012 seems pukka.
- NSDL to operate IT backbone of GST.Why isn’t NSDL public?
- Sensex +148, Nifty +46
- Yay! Subsidy very inefficient admit FM
- Direct transfers are better, says FM. Nandan Nilekani to do direct transfer of subsidy – kerosene, diesel, fertilizer.
- 22K cr. raised from public markets.
- We will maintain that momentum going forward. More public issues next year.
- Mutual Funds to accept direct investment from foreign investors!!!! WOW!
- FII investment in bonds goes to $40 bn! Fantastic.
- Insurance amendment bills will be in.
- banking act to be passed in parliament
- About new banking licences: RBI’s proposed changes to the
- 6,000 cr. to public sector banks for tier 1 equity
- anyway.
- CRAR of at least 9%. No big deal. that is there
- women.
- Microfin Equity Fund of 100 cr., 500 cr. to empower
- Lets revive microfinance, says FM.
- Rural Infra Dev. Fund corpus to 18K cr. From 16K cr.
- Additional money is for warehousing.
- SIDBI incremental lending: up to 5000 cr. from 4000 cr. for priority sector lending shortfall funding
- 3000 cr. for handloom cooperatives. Details need to be worked out by yet another committee.
- Minority sector lending up to 13.6%. banks to make it 15%.
- Rural housing fund goes to 3000 cr. from 2000 cr.
- Interest subventions of 1% to be made for 15 lakh loans
- Rural housing fund goes to 3000 cr. from 2000 cr.
- Fin Frauds: Central registration authority to be setup
- Guarantee housing loans by weaker sections of society ?
- Green revolution to be moved up
- Palm oil to be given impetus with more in there
- 300 cr. for implementation of veggie initiatives.Totally random 300 cr. that was.
- Ensure food = balanced nutrition. Thank you, FM bhai.
- 300 cr. to promote higher production of higher nutrition and education. I want more chocolate!
- 300 cr. Everyone, go to gym now.
- National mission for protein supplements is being launched:
- Fodder production acceleration – 300 cr. Number 3 is lucky for Pronob da. Number 420 is lucky for Congress.
- Are we getting Portugal’s budget?
- Farmers need access to money.
- Whoa! That is for bank loans.
- Credit increased: 3.75 trillion (lakh cr.) to 4.75 lakh cr.
- Interest subvention, crop loans at 7% to continue.
- 2%!). Nabard: 3000 cr. equity.
- Another 3% subvention for prompt repayers. (up from
- banks.
- 10,000 cr. to Nabard for prio-sector lending shortfall by
- Estimated 40% food wasted in India.
- PPP model is good, it seems.
- IIFC 25,000 cr. by 2012
- Infra dev: tax-free bonds of 30K cr.!
- IRFC 10 k cr, NHAI 10k cr. HUDCO 5 k cr Ports 5k cr.
- Auto market 2nd fastest growing in world.30% this year
- Hybrid and Electric cars: National mission to be launched.
- JNNURM buses and metro projects are on. Okay, we know that.
- Nifty up 75, Sensex +239
- Self assessment in customs duties. What does that mean? I like the sound of it though.
- Black money: Global Crusade against BM. Hajaar work in progress. Yeah, right!
- We have joined global task force for integrity. We will get thrown out soon. Okay, he didn’t say the second bit.
- NREGA wages enhanced for inflation."Significant" – what number?
- from 750 pm-> 1500 pm
- Anganwadi workers salary doubled: 1500->3000 pm. Helpers
- Demographic dividend needs education.
- UID access to secondary edu, providing skill: 52,057 cr. (up 24%)
- Sarva Shiksha abhiyaan 21,000 cr. (40% higher) WHOA!
- Innovation: I like that they want to prepare roadmap for innovation in India.
- 100 cr. grant to Kerala Animal science univ. (Yeah, elections are there this year, we know)
- Rs 400 cr. to IIT KGP. Rs 20 cr. IIM Cal.
- 200 cr. to some random univ.These are BIG amounts to totaly weird universities. And small amounts to stuff I know
- 500 cr. to national skill dev. fund.
- Currently: Infra public sector units should do well
- 80 yrs and above: pension amts will increase from Rs. 200 to Rs. 500 per month.(thank you, they say. It pays the cable bill for watching this budget.)
- Watch out folks. What is important is what is NOT said. Watch REC – there are no tax free bonds for it.
- Sensex+88, Nifty +33
- Rs 9 lakh for 100% disability for defence/paramilitary
- UID mission has taken off. 20 lakh aadhaar nos given.
- E-filing and e-payment of taxes have happened
- Need to review stamp act
- deducted simplified return form for presumptive taxed people
- Salaried employees may not need to file returns – if TDS is already
- e-stamping in all states.
- Total plan and non plan transfers up 23%
- 4.6% deficit for next year target that is
- 3.4% for 13-14 target
- Tax proposals coming now
- Exemption limit on tax from 1.6 lakh to 1.8 lakh Yay!
- Senior citizens age reduced from 65 to 60 – fabulous!
- another category 80 years +, 5 lakhs
- MAT increased to 18.5%.This is BAD for power sector and IT
- Bad for anyone that is low tax
- 20k per year infra bonds 2010-11 to continue one more ye
ar - Foreign companies dividends payable to Indian residents taxed at only 15%
- NO major tax incentives in direct tax.
- Direct tax proposals to lose 11K cr.- that never happens. They always make money
- Debt to Gdp = 44.2% in 2010-11.
- another 15 k cr. in t-bills.
- Fiscal deficit is 4.12 lakh cr. Other financing items, net market borrowing was 3.43 lakh cr.
- Very positive for Auto
- Central excise duty not to be changed!!!
- Indirect taxes are on now.
- Tatamotors, maruti, M&M
- Certain exemptions will be removed, but most will only come into GST
- Central excise duty in certain cases is going up – we need the full speech
- Nifty +50 Sensex +150
- This is a non-budget as it was expected to be.
- Fiscal borrowing is less – banks should be doing well.
- Travel service tax will increase? Some part of that was inaudible.
- Rice cakes for fodder: no customs duty; exports duty of 10%.
- Service tax stays at 10%
- Raw silk duty from 30% to 5% customs duty.(buy saris?)
- Export duty for iron ore is up to 20%
- Laserjet and Inkjet printer customs duty down to 5% from 10%
- Hydrogen fuel cell cars – 10% excise
- A/cs will get cheaper. Watch Voltas.
- LED excise duty down to 5% from 14%.Check out TV manufacturers
- Solar cell duties go to nil.
- Would you touch Mirc then? Interesting there
- Heritage work of Indian art – imports for exhibition to general public exempt
- High speed printing equipment duties at 5% stays.
- Excise duty exemptions for film for movies. Currently imported.
- Diapers go down to 1% duty! Wow!
- Hospitals that are central a/c go into service tax
- Hospitals that are central a/c go into service tax but only at 5pc.
- Life insurances apart from ULIPs also will get Service Tax?
- Diagnostic tests = 5pc as well. Except for govt. hospitals.
- Life insurances apart from ULIPs also will get Service Tax?
- Airline companies are falling.
- Service tax = better served with negative list rather than positive list. GST will address that.
- Indirect taxes = Net Rev. Gain of 11300 cr.
- Hotels will lose some – Service tax increased. Watch Indian Hotels, EIH and so on.
- Nifty +70 Sensex +227
- RelCapital, HDFC are beneficiaries
- Foreign nationals to invest DIRECTLY on MFs is a big big thing.
- FMCG should overall benefit. HUL and ITC should be positive.
