Actionable insights on equities, fixed-income, macros and personal finance Start 14-Days Free Trial
Actionable investing insights Get Free Trial

Budget 2015: Live Updates

We will be constantly updating this post with tweets from our Twitter handle(@capitalmind_in).


1:08 pm: 9. There’s a black money bill, there’s a DTC, a GST – all reform is supposed to be there.

1:02 pm: 8. GAAR deferral and prospective only taxation is good. Tax department needs to listen.

12:59 pm: It will be better to set up a company than to earn money yourself.

12:59 pm: Gross borrowings of 7 lakh cr then? Fisc deficit at 5.3 lakh cr. plus maturity of 1.7 lakh cr.

12:49 pm: The law on arb funds hasn’t really been changed, has it? Or is it hidden in annexures?

12:48 pm: 7. the Increase in surcharge by 2% for income > 1 crore will hurt the ultra rich, but no one else cares.

12:47 pm: 6. Removing wealth tax is huge. This kind of thing shouldn’t have existed in the first place.

12:46 pm: I believe just the new committee formation will add 1% of GDP. Or it better because that 8% is just voodoo.

12:46 pm: All the GDP that will come will be from investments, which they are promoting.

12:45 pm: Which means government spending will be muted. You pay more to spend, so you’ll spend less.

12:44 pm: 5. There are no major spends, and lots of major tax increases. Yet, states take a bulk.

12:43 pm: 4. Corporate taxes remain the same, but next year, you will find taxes go down. But next year has a next years budget.

12:43 pm: Other than that there are no major changes for personal taxes.

12:43 pm: 3. There’s something about NPS increases, health insurance exemptions raised to 25K.

12:41 pm: Excise is up immediately to 12.5% it seems. Thanks

12:41 pm: Ok so service tax has to be notified. Wait for it.

12:40 pm: Nifty now negative?

Nifty Down


12:39 pm: 2. The increase in defense spend is next to nothing. All that defence move? There’s no money for it. Sorry.

12:39 pm: Indirect tax rates are increased with immediate effect. 14% applies from tomorrow, AFAIK. Can someone confirm?

12:39 pm: 1. Duties and taxes are up everywhere. You will see prices go up everywhere. From tomorrow.

12:38 pm: Our quick takes are coming up. This is before we look at the details, so we’ll be apologizing profusely later.

12:37 pm: So that was the budget speech, ladies and gentlemen. Jaitley sat it through. Now, drink some coffee.

12:35 pm: Jaitley’s done. No one know what really happened!

12:33 pm: The devil is in the annexures. Stay posted.

12:33 pm: Net tax increases will be only 15,000 cr. What a waste of time!

12:32 pm: Yoga is a charitable thing now, it seems.

12:32 pm: What is 4, 44,000 cr. benefit? Huh?

12:31 pm: Transport allowance increased form 800 to 1600 per month. (Very cool)

12:29 pm: Investments in Sukanya Smriti, plus interest received is tax free.

12:29 pm: To provide social safety net: Additional deduction of Rs. 50K for NPS ! Cool.

12:29 pm: Limit of deduction for NPS is increased to 1.5 lah (from 1 lakh).

12:28 pm: Senior citizens get a 30,000 rupee insurance limit. 80 yrs+ get 30K for hospital bills.

12:27 pm: Increase of deduction in health insurance premium from 15,000 to 25,000 rupees. Thanks!

12:27 pm: Ooh. benefits to mid-class coming;

12:26 pm: 14% ! we expected this but so did everyone else.

12:25 pm: Service tax will be increased to 14%. Whammy!

12:24 pm: Leather footwear of >1000 per pair is cut to 6% excise. Bad luck, Relaxo.

12:24 pm: Excise duties moved to 12.5%.

12:23 pm: MAT for FIIs – capital gains not subject to MAT.

12:21 pm: 9000 cr. on the 2% additional surcharge.

12:20 pm: Rich should pay more. So wealth tax removed. 2% higher surcharge for income > 1 cr. Whoa.

12:20 pm: Nifty at high of the day?

12:20 pm: How can reducing customs duty be helping make in india?

12:20 pm: No 80c increases, no changes in current laws?

12:19 pm: Okay that’s it for direct? No tax cuts, no new exemptions.

12:19 pm: Facilitate tech inflow into startup, rate of royalty taxes down from 25% to 10%

12:18 pm: GAAR is deferred by 2 years. FIIs will be happy. GAAR only prospective beyond 2017.

12:17 pm: Mere presence of fund mgr in India = doesn’t hurt offshore tag.

12:17 pm: Pan needed to do transactions more than 1 lakh.

12:15 pm: Promo of domestic manufacturing, tax pass through for AIF 1s and 2s. (Not that big a deal)

12:14 pm: Real estate will just die, you think?

12:14 pm: Domestic black money: Benami transaction bill to come soon

12:14 pm: Any forex is held against the act, then gone case.

12:14 pm: You stock option holders please note.

12:14 pm: Offense of not declaring foreign assets = tax dept will take away everything.

12:13 pm: If he has cut 2017 taxes but not for 2016, then what’s he gonna do next budget?

12:12 pm: Black money rules coming.

12:10 pm: Exemptions to indiv tax payers will continue. jeez.

12:10 pm: Rationalization of exemptions. Meaning you don’t get all that stuff that saved you the five% anyways.

12:09 pm: Next four years tax rate to be cut. But not this year!!!

12:09 pm: Reduction on corp tax to 25% over four years. Nice.

12:08 pm: Stable, non adversarial policy, fight against black money.

12:07 pm: Now for taxes.

12:07 pm: 12 lakh crore total revenues? This is bull.

12:06 pm: Tax receipts at 14.49 lakh cr. Devolution to states is 5.23 lakh cr. Center: about 10 lakh cr.

12:05 pm: Budget Estimates: Total expenditure is 17 lakh cr?

12:05 pm: Defense spend increase is TINY. Just OROP will probably cost that much extra?

12:04 pm: Nifty now negative.

12:03 pm: Defense to get 246K cr. from 222K cr. (Not enough!)

12:02 pm: Arunachal to get film making and gaming industry

12:02 pm: States being urged to spend in development.

12:01 pm: 22,000 cr. for housing and urban dev.

12:00 pm: FMC and SEBI to be merged. MCX hit?

11:59 am: Interim to making holding company for Banks.

11:59 am: Autonomous bank board bureau. Big HR thingy to find stuff that make PSBs ompetitive.

11:57 am: IIMs in J&K, AP.

11:57 am: IIT in Karnataka, Dhanbad too.

11:57 am: AIIMS in Punjab, TN, HP, Assam, Kashmir.  

11:56 am: Fully IT based scholarship authority.

11:55 am: National Skills Mission, again. Does this ever work?

11: 54 am: Regulatory reform in infra. But don’t know what.

11: 54 am: Resolution of disputes through a bill which will do something that doesn’t involve bashing each other up.

11: 53 am: Market at 8865. That’s off the highs but still positive for the day.

11:52 am: Big for M&M? Electric cars to get enthu.

11:52 am: Everyone gets visa on arrival it seems. Okay.

11:52 am: “What about Kolar?” abeyaar, kolar is heritage site?

11:51 am: All others feeling miffed their favourite heritage sites not in list.  

11:51 am: Develop heritage sites: Churches of Goa, Hampi, Elephanta cave, Kumbalgarh, Rani ka [], Leh Palace, Varanasi, Jallianwala bagh

11:49 am: Foreign Investment in AIFs will be allowed. FPI/FDI difference to be removed.

11:48 am: Measures to incentivize credit or debti transactions. Nice! Big for banks.

11:47 am: Reduce black money by cash. All Jan dhan have rupay card.

11:47 am: 3. Indian gold coin with ashoka chakra. Reduce demand for coins minted outide.

11:46 am: 2. Dev. Soverign Gold Bond, bond will carry fixed rate of interest. Redeems in cash in face value of gold.

11:46 am: 1. Gold monetization scheme, allow depositors of gold will earn interest in their metal account.

11:46 am: India imports 800 to 1000 tons of gold each year. we have 20,000 tons of gold, neither traded nor monetized.

11:45 am: Employee can choose ESI versus health insurance. Nice.

11:45 am: EPF and ESI have hostages rather than clients! Well put, Mr Jaitley.

11:45 am: Direct tax competive, no exemptions, no tax from intermediaries. Modern indirect tax regime. (This is a hope, I think)

11:44 am: Indian financial code. Ooh.

11:44 am: Something big happening in the Capital Control space? No details.

11:43 am: Finally! Treasury mgmt to be govt job?

11:43 am: Public debt management agency! Replaces RBI’s thingy?

11:42 am: Fin markets: Need to deepen bond markets.

11:41 am: Enhance MNREGA allocation by 5000 cr. Jaitley now trolling Mallikarjun Kharge.

11:40 am: Markets not very happy right now.

11:39 am: Appoint committee to prepare draft legislation to replace permissions with regulatory thing. Very cool!

11:38 am: Investors spend time in getting permissions. 14 regulatory permissions now in one source.

11:38 am: Ports now: Private and public

11:37 am: SETU to get 1000 cr. ! Crowdfunding startups?

11:37 am: Self Employment and Talent Utilization – incubation and help to startups!!! I’m signing on!

11:37 am: More liberal system for raising global funds, seed capital etc are challenges

11:36 am: India has big IT industry. Growing interest in startups.

11:36 am: 5.”Atal Innovation Mission” – Foster culture of innovation. WhatThe

11:35 am: Tax free infra bonds in rail, road, irrigation.

11:35 am: National Investment and infra fund. Govt pays 20,000 cr. The fund then raises debt. Puts money into infra fin companies.

11:33 am: SCs: 30000 cr. STs: 20000 cr. and so on. Didn’t rhear what it was for

11:32 am: Physical aids and Accessibility devices given by govt to the old poor. Nice!

11:31 am: Unclaimed deposits of 3000 cr. in PPF -> Senior Citizens Welfare Fund. To Pay premiums of old age pensioners, BPL’ers,etc.

11:30 am: This is not huge. You might think it is but it’s not.

11:30 am: Upto Rs. 1000 per year for 5 years, govt pays 50% of a new pension scheme.

11:30 am: Defined pension: Oh goodness.

11:29 am: National Insurance scheme – Rs. 200,000 at Rs. 12 per year. Whatay.

11:29 am: Another huge thing: India wide social security

11:28 am: NBFCs more than 500 cr. will get access to SARFAESI! HDFC and others is very good

11:27 am: Comprehensive Bankruptcy Code!!!!

11:26 am: Only 34,699 cr for MNREGA! Yay!

11:25 am: 8.5 lakh cr. for agri credit?  

11:25 am: The numbers thrown around are very very big.

11:24 am: Farmers now. Agri production, soil and weather. 5300 cr. for microirrigation.

11:23 am: Jaitley now sits.

11:23 am: 11.5 cr. LPG customers have got LPG subsidies.

11:22 am: Yay! Subsidies to be worked around. Nice.

11:21 am: This is big. That’s a deficit higher by 0.3%, or about 40,000 cr.

11:20 am: 3.9% for FY16! THat’s higher than the 3.6% earlier planned.

11:20 am: Will reach fisc deficit in 3 years not two. Big spending coming?

11:19 am: Drastically reduced fiscal space, and 7th Pay Comm. Let’s not rush into fiscal thingy.

11:19 am: Fiscal target of 3% and then there is a “But…” , Whoa.

11:18 am: Nominal growth is lower=taxes are lower.

11:18 am: Agri, Education, Health, Roads+rural infra is still center’s responsibility.

11:17 am: 62% of receipts will be devolved to states.

11:17 am: 1. Agri incomes 2. Investment sucks. 3. Manufacturing sucks. 4. Fiscal discipline

11:15 am: This is all we “need” to do. Thanks Mr. Jaitley. Now what are we doing?

11:15 am: Support new startups, it seems!

11:14 am: Rural urban divide cut – ensure connectivity of all villages.

11:14 am: 80,000 secondary school, 75,000 additions in senior/middle Wow, but where is this going to come from?

11:12 am: 2 cr. of houses in urban, 4 cr. in rural. A toilet, a road, one member should be employed. – the goal?

11:11 am: Growth in 2015-16 will be 8% to 8.5%. [We think this is just magic]

11:09 am: 50 lakh toilets already built. 6 crore toilets to be built. Positive for Sintex?

11:07 am: Action has been taken on fin inclusion, health, women, employment, non-adversarial tax admin and so on. [What’s next?]

11:05 am: In Nov 2012, CPI inflation was 11%, CAD deficit was huge and investment community had almost written us off.

11:04 am: Common man and woman and youth and child. Politically correct

11:03 am: India is better than the world. till now in a summary. Ok lets move on.

11:01 am: Item number 1: Shri Arun Jaitley ji

11:01 am: The drama begins.

10:43 am: 20 minutes to action. is coming your way.



Subscribe to Capital Mind:

To subscribe to new posts by email, once a day, delivered to your Inbox:

[wysija_form id=”1″]


Also, do check out Capital Mind Premium , where we provide high quality analysis on macro, fixed income and stocks. Also see our portfolio which has given stellar returns in our year, trade by trade as we progress. Take a 30-day trial:

[wysija_form id=”2″]

Like our content? Join Capitalmind Premium.

  • Equity, fixed income, macro and personal finance research
  • Model equity and fixed-income portfolios
  • Exclusive apps, tutorials, and member community
Subscribe Now Or start with a free-trial