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July 6, 2009, 12:57: Pranab Mukherjee introduces Finance Bill, 2009 in Lok
Sabha.
July 6, 2009, 12:54: BUDGET: Finance minister also surprised the markets by keeping quiet on Foreign Direct Investment. This also hurt the sentiment.
July 6, 2009, 12:53: Construction: Restore full exemption on goods such as pre-fabricated slabs.
July 6, 2009, 12:50: The markets have been highly disappointed with the Budget proposals, but this could be a for the short-term, say experts.
July 6, 2009, 12:49: Customs Duty to be reduced on drugs for heart treatment.
July 6, 2009, 12:49: Proposal to restore optional 4 per cent CENVAT on cotton
textiles beyond fibre stage.
July 6, 2009, 12:49: Excise duty on fibre for cheaper cloth reduced.
July 6, 2009, 12:49: Full exemption from excise duty on pre-fabricated
concrete slabs to help construction industry.
July 6, 2009, 12:49: Excise duty on petrol-driven small trucks reduced to 10
per cent.
July 6, 2009, 12:49: Full exemption from excise duty on branded jewellery.
July 6, 2009, 12:48: Service tax exempted for exporters on select services.
July 6, 2009, 12:48: Service Tax to be extended to lawyers on technical
advice.
July 6, 2009, 12:48: Indirect Tax will result in net gain of Rs 2000 crore
this year while Direct Tax proposals are revenue neutral.
July 6, 2009, 12:46: The only thing that was expected from him and he did deliver on it was the abolition of the draconian Fringe benefit Tax.
July 6, 2009, 12:46: In a big surprise, the finance minister totally bypassed the issue of divestment. Sale of loss-making PSUs could have boosted the market sentiment, but that was not to be.
July 6, 2009, 12:45: Why are the markets falling so badly? There was no big picture vision in the Budget. The fiscal deficit is at a huge 6.8% of the GDP and no big announcements were made to address the issue. No structural changes that speak of a long-term vision were indicated in the Budget. It appears to be a hurriedly put together effort, with small bits to keep a vocal middle class quiet (the raising of tax exemption limit by Rs 10,000)...
July 6, 2009, 12:42: ALERT! Sensex loses 743.41 points to 14,169.64
July 6, 2009, 12:41:
July 6, 2009, 12:41: ALERT! ALERT! ALERT!
BSE Sensex down 710.25 points to 14,202.80
NSE Nifty down 152.95 points at 4,271.30
July 6, 2009, 12:41: BSE Sensex down 710.25 points to 14,202.80
NSE Nifty down 152.95 points at 4,271.30
July 6, 2009, 12:40: Aggressive investors should buy into textile stocks which are now available at dirt cheap prices, says PN Vijay, portfolio manager, on CNBC Awaaz. This sector could become as powerful as the IT sector five years down the line, he adds.
July 6, 2009, 12:40: Custom duty on LCD panels cut from 10% to 5%, says the FM. There will be an imposition of 5% custom duty on set top boxes, he adds. This is bad news for Dish TV, Sun TV, Airtel, Videocon and WWIL.
July 6, 2009, 12:38: Customs duty on gold and silver import increased.
July 6, 2009, 12:38: Customs Duty to be reduced on drugs for heart treatment.
July 6, 2009, 12:38: Manufacturing growth, which was negative during last
year till March this year, appears to be barely turning the corner, says Mukherjee.
July 6, 2009, 12:37: Check out the Rediff Budget Coverage for simplified details on http://business.rediff.com/money/budget09.html
July 6, 2009, 12:36: Customs duty on LCD panels halved from 10% to 5%.
July 6, 2009, 12:36: Gram Sadak Yojana allocation has been hiked up 59% to Rs 12000 crore, says the Finance Minister, reports CNBC TV18. UID project allocation is Rs 120 crore and Rs 2000 crore will be allocated to rural housing fund, says the FM.
July 6, 2009, 12:36: Indian Union Budget 2009-2010: Spending on higher education to be increased and allocation of Rs 2130 crore to set up more IIT and NIITs. A central university has been proposed in each state, says the FM.
July 6, 2009, 12:35: Indian Union Budget 2009-2010: FBT and Commodity Transaction Tax are to be abolished and MAT (minimum alternative tax) rate to be increased to 15% versus 10% of book profit, says the Finance Minister, reports CNBC TV18. Propose to extend sunset clause by one year and tax holidays for exporters is extended to 2011, he adds
July 6, 2009, 12:35: Aggressive investors should buy into textile stocks which are now available at dirt cheap prices, says PN Vijay, portfolio manager, on CNBC Awaaz. This sector could become as powerful as the IT sector five years down the line, he adds.
July 6, 2009, 12:34: ALERT! SENSEX tanks 628.01 points to 14,285.04
July 6, 2009, 12:34: ALERT! SENSEX tanks 628.01 points to 14,285.04
July 6, 2009, 12:32: Customs duty of 5 per cent being levied on import of
set-top boxes used under Conditional Access System (CAS).
July 6, 2009, 12:31: ALERT! Income tax incentives on education loans expanded to
cover vocational studies after schooling.
July 6, 2009, 12:31: Small businesses up to Rs 40 lakh (Rs 4 million0 turnover exempted from filing advance tax returns.
July 6, 2009, 12:31: 5% customs duty on set top boxes.
July 6, 2009, 12:30: ALERT! Markets give thumbs down to budget proposals. Sensex down 601 points at 14,420!
July 6, 2009, 12:30: ALERT! Markets give thumbs down to budget proposals. Sensex down 601 points at 14,420!
July 6, 2009, 12:30: ALERT! Markets give thumbs down to budget proposals. Sensex down 601 points at 14,420!
July 6, 2009, 12:29: 100 per cent tax deduction for donations for electoral
funds to improve transparency in political funding.
July 6, 2009, 12:28: 100 per cent tax deduction for donations for electoral
July 6, 2009, 12:28: 100 per cent tax deduction for donations for electoral
funds to improve transparency in political funding.
July 6, 2009, 12:28: New pension system trust exempted from security
transaction tax and dividend distribution tax.
July 6, 2009, 12:28: Minimum Alternate Tax on book profits increased to 15
per cent from 10 per cent.
July 6, 2009, 12:28: Proposal to incentivise business. I propose to start
Investment linked tax benefits in areas of agriculture and national grid, says Mukherjee.
July 6, 2009, 12:28: 10 per cent surcharge on personal income tax removed.
July 6, 2009, 12:28: Ten per cent surcharge on personal income tax removed.
July 6, 2009, 12:25: Commodity transaction tax is abolished
GST to come into effect from April 01, 2010
Corporate tax unchanged
FBT abolished
July 6, 2009, 12:25: Commodity transaction tax is abolished
GST to come into effect from April 01, 2010
Corporate tax unchanged
FBT abolished
July 6, 2009, 12:24: Breaking News! FBT and CTT abolished
July 6, 2009, 12:24: ALERT! Sensex plunges 414.65 pts to 14,498.40
July 6, 2009, 12:23: ALERT! No change in Corporate Tax.
July 6, 2009, 12:23: TAX! Personal income tax exemption limit for senior citizens
raised by Rs 15,000.
July 6, 2009, 12:22: TAX! I propose to raise by Rs 10,000 the exemption limit for
women on income tax. For all others, Rs 10,000 up from Rs 1,50,000, says Mukherjee.
July 6, 2009, 12:22: BREAKING NEWS! Commodities Transaction Tax abolished!
July 6, 2009, 12:22: TAX SLABS RAISED: PERSONAL INCOME TAX EXEMPTION RAISED BY RS 10,000. For Senior Citizens exemption raised by Rs 15,000
July 6, 2009, 12:22: bREAKING NEWS: Personal income tax exemption limit raised by Rs 10,000.
July 6, 2009, 12:21: Breaking news: FRINGE BENEFIT TAX ABOLISHED.
July 6, 2009, 12:21: Share of direct taxes has increased to 56 per cent in
2008-09 over 41 per cent in 2007-08.
July 6, 2009, 12:20: Direct Tax code to be released in 45 days along with
discussion paper.
July 6, 2009, 12:20: To further improve the efficiency of tax system, I
propose to set up two authorities for advance ruling, says Mukherjee.
July 6, 2009, 12:20: Effort is to improve tax collection by eliminating
distortions in tax system and expanding the base.
July 6, 2009, 12:19: ALERT! SENSEX continues to plummet: down 430.54 points to
14,482.51.
July 6, 2009, 12:19: ALERT! SENSEX continues to plummet: down 430.54 points to
14,482.51.
July 6, 2009, 12:19: BREAKING NEWS! M.A.T HIKED TO 15% OF BOOK PROFITS
July 6, 2009, 12:18: BREAKING NEWS! SECURITIES TRANSACTION TAX cut
July 6, 2009, 12:18: BREAKING NEWS! Commodities Transaction Tax abolished!
July 6, 2009, 12:16: TAX SLABS RAISED: PERSONAL INCOME TAX EXEMPTION RAISED BY RS 10,000.
For Senior Citizens exemption raised by Rs 15,000
July 6, 2009, 12:15: BREAKING NEWS: Personal income tax exemption limit raised by Rs 10,000.
July 6, 2009, 12:15: Personal income tax exemption limit raised by Rs 10,000.
July 6, 2009, 12:14: BREAKING NEWS! FBT ABOLISHED
July 6, 2009, 12:14: ALERT! SENSEX plummets 418.92 pts to 14,494.13.
July 6, 2009, 12:13: FRINGE BENEFIT TAX ABOLISHED.
July 6, 2009, 12:13: TAX: FRINGE BENEFIT TAX ABOLISHED.
July 6, 2009, 12:13: Tax holidays extended by 1 more year.
July 6, 2009, 12:13: TAX: SURCHARGE ON income tax phased out.
July 6, 2009, 12:12: Tax proposals! Income Tax rates exemption limit to raised from Rs 180,000 to 190,000 for women.
July 6, 2009, 12:12: Tax proposals! Income Tax rates exemption limit to 2.25,000 to 2,40,000 for senior citizens.
July 6, 2009, 12:12: Tax proposals! No change in Corporate Tax.
July 6, 2009, 12:12: Tax proposals! Income Tax rates exemption limit to raised from Rs 180,000 to 190,000 for women.
July 6, 2009, 12:11: Tax proposals! Income Tax rates exemption limit to 2.25,000 to 2,40,000 for senior citizens.
July 6, 2009, 12:10: Tax proposals! No change in Corporate Tax.
July 6, 2009, 12:10: ALERT! SENSEX down 340.47 pts at 14,572.58.
July 6, 2009, 12:9: Fiscal deficit in 2009-10 is proposed at 6.8 per cent of
GDP.
July 6, 2009, 12:9: Defence gets Rs 1,41,703 crore for 2009-10, a 34 per cent
hike from 2008-09 budgetary allocation of Rs 1,05,600 crore.
July 6, 2009, 12:7: TAX PROPOSALS! New direct tax code to be released in 45 days.
July 6, 2009, 12:7: Plan expenditure, for both Centre and States, to go up by
Rs 61,000 crore over the interim budget.
July 6, 2009, 12:6: Total budget expenditure for 2009-10 will Rs 10,28,032
crore, crossing Rs 10 lakh crore mark for the first time since Independence.
July 6, 2009, 12:5: FISCAL deficit seen at 6.8 per cent of GDP.
July 6, 2009, 12:4: Crop loan at 6 pc interest for farmers
The government today announced loans at a subsidised interest rate of 6 per cent for farmers who pay their dues in time, which is one per cent less than what others would get. "
I am also happy to announce that for this year the government will pay an additional subvention of one per cent as an incentive to those farmers who repay their short term crop loan on schedule. Thus the interest rate for these farmers will come down to 6 per cent per annum," Finance Minister Pranab Mukherjee said in the Budget 2009-10.
The Centre has allocated Rs 411 crore more in this budget for this purpose over and above the allocation made during the interim budget, he added.
Mukherjee said the governmnet would continue the interest subvention scheme on short term crop loan of up to Rs 3 lakh at seven per cent interest rate.
The government also hiked the target of agricultural credit for 2009-10 to Rs 3,25,000 crore after achieving last year's target when the government had disbursed Rs 2,87,000 crore of farm loan as against the target of Rs 2,80,000 crore.
Mukherjee said the debt waiver scheme, announced during 2008-09 budget, would be extended till December 31 this year, in view of delay in monsoon. The Rs 71,000 crore scheme, which covered four crore farmers, had ended in June 2009. He also announced setting up a task force to examine a large number of farmers in parts of Maharashtra who had been left out of this scheme as they had taken loans from private money lenders.
July 6, 2009, 12:3: Crop loan at 6 pc interest for farmers
The government today announced loans at a subsidised interest rate of six per cent for farmers who pay their dues in time, which is one per cent less than what others would get.
July 6, 2009, 12:3: FM announces hike in allocation for Commonwealth Games.
July 6, 2009, 12:2: I propose to allocate Rs 500 crore for rehabilitation of
internally displaced Tamils in Sri Lanka, says Mukherjee.
July 6, 2009, 12:2: Rs 1,000 crore for rebuilding infrastructure damaged by
the recent 'Aila' cyclone in West Bengal.
July 6, 2009, 12:1: CORRECTION: Budget expenditure crosses Rs 10 LAKH crore for the first time, says FM, (and not Rs 10,000 crore as stated earlier).
July 6, 2009, 12:1: Allocation for Commonwealth Games increased to Rs 3,472
crore from Rs 2,112 crore.
July 6, 2009, 12:0: Rs 2,113 crore allocated for IITs and new IITs.
July 6, 2009, 12:0: One lakh dwelling units for paramilitary forces personnel
to be constructed.
July 6, 2009, 12:0: Budget expenditure crosses Rs 10,000 crore for the first time, says FM.
July 6, 2009, 11:59: ALERT! The stock market greeted the Budget presentation with resounding thumbs-down. Sensex down 295.83 points at 14,617.22. It has however gained a bit. A while ago, it was down 339 points.
July 6, 2009, 11:57: New pension benefits for 12 lakh jawans and Junior
Commissioned Officers from July.
July 6, 2009, 11:57: Hike in allocation for Minorities ministry.
July 6, 2009, 11:54: First Unique Identification Card to citizens to roll out
in 12-18 months. I propose provision of Rs 120 crore for the project, says the finance minister. Infosys co-founder Nandan Nilekani is heading this project, after he quit the Infosys board.
July 6, 2009, 11:54: Under National Action Plan on climate change, eight
national missions are being launched. For one of the missions, National Ganga Project, Government proposes to increase allocation to Rs 562 crore.
July 6, 2009, 11:53: Allocation for National Rural Health Mission to be
raised by Rs 257 crore over and above the outlay in the interim budget.
July 6, 2009, 11:53: ATERT! SENSEX LOSES 339.59 points to 14,573.46. Markets give a thumbs down to the Budget.
July 6, 2009, 11:52: One rank, one pension for ex-servicemen, says FM.
July 6, 2009, 11:52: Unique ID plan rollout in 12 to 18 months, says FM. IT whizkid Nandan Nilekani will be heading this huge exercise.
July 6, 2009, 11:51: Action initiated to provide social security to
unorganised sector workers, says Mukherjee.
July 6, 2009, 11:51: Modernisation of national exployment exchanges to be
carried out.
July 6, 2009, 11:51: Full interest subsidy for students taking courses in
approved institutions. 5 lakh (500,000) students to benefit.
July 6, 2009, 11:50: ALERT! Sensex now down 196.16 points at 14,716.89.
July 6, 2009, 11:49: National Mission for Female Literacy with emphasis on
minorities, Scheduled Castes and Scheduled Tribes to be launched. Fifty per cent of all rural women to be brought into self-help group programmes.
July 6, 2009, 11:48: ALERT! SENSEX LOSES 190.10 points to 14,722.95! Gives a thumbs down to Pranab's Budget proposals till now!
July 6, 2009, 11:48: Rashtriya Mahila Kosh corpus to be raised from Rs 100
crore to Rs 500 crore.
July 6, 2009, 11:48: Rs 2,000 crore for rural housing fund under National
Housing Bank.
July 6, 2009, 11:48: For Indira Awas Yojana, allocation to be increased by 63
per cent in 2009-10 to touch Rs 8,800 crore.
July 6, 2009, 11:48: Allocation for flagship Bharat Nirman progamme is being
raised by 45 per cent.
July 6, 2009, 11:48: NREGA coverage increased from 3.39 crore households in
2007-08 to 4.74 crore households in 2008-09.
July 6, 2009, 11:47: ALERT! SENSEX LOSES 190.10 points to 14,722.95! Gives a thumbs down to Pranab's Budget proposals till now!
July 6, 2009, 11:46: An allocation of Rs 39,100 crore to be made for NREGA in
2009-10, an increase of 144 per cent.
July 6, 2009, 11:46: Work on National Food Security scheme for providing food
at cheaper rates to the poor has begun, says Mukherjee.
July 6, 2009, 11:45: Government is committed to provide Rs 100 a day as wages
under NREGA, says Mukherjee.
July 6, 2009, 11:45: 'Aam admi' is the focus of all our programmes and schemes, says Mukherjee.
July 6, 2009, 11:45: Rs 100 crore to be given as one time grant in aid to
expand banks in unbanking areas.
July 6, 2009, 11:45: Banks and insurance firms to remain in public sector.
July 6, 2009, 11:45: IT returns to be made simpler, says Mukherjee.
July 6, 2009, 11:45: An expert committee to be set up to advise on viable and
sustainable pricing system for imported petroleum products, says Mukherjee.
July 6, 2009, 11:45: Subsidy regime for fertilisers to change to nutrient-
based rather than price-based.
July 6, 2009, 11:43: ALERT: SENSEX SLIPS 91.19 points to 14,821.86.
July 6, 2009, 11:43:
Infrastructure growth to get a boost
Finance Minister Pranab Mukherjee said the Indian Infrastructure Financial Corporation Limited (IIFCL) will evolve a financing mechanism for giving increased support to infrastructure projects.
The IIFCL will refinance 60 per cent of bank loans for public-private partnership projects (PPP) projects.
The Infrastructure growth should be 9 per cent of the GDP, Mukherjee said.
July 6, 2009, 11:43: ALERT: SENSEX SLIPS 91.19 points to 14,821.86.
July 6, 2009, 11:42: Rs 7,000 crore to rural electrification scheme.
July 6, 2009, 11:42: Check out the Rediff Budget Coverage for simplified details on http://business.rediff.com/money/budget09.html
July 6, 2009, 11:42: To return to FRBM target for fiscal discipline at the earliest, says Mukherjee.
July 6, 2009, 11:41: Saral Form II to be reintroduced, says FM. In 4 years, filing tax returns online to be made easier.
July 6, 2009, 11:38: Extension of stimulus package for print media by another
six months beyond June 30 in view of the economic downturn. This will give a much needed boost to the print media.
July 6, 2009, 11:37: PSUs are national wealth, says FM.
July 6, 2009, 11:37: Banks and insurance companies outside the divestment plan.
July 6, 2009, 11:36: Direct transfer of subsidy to farmers being worked out.
July 6, 2009, 11:34: JNNURM support up by 87%
Will create 12 million job a year
Rs 3.25 lakh gross agiculture credit for current year
July 6, 2009, 11:34: To initiate institutional measures to control fiscal deficit
To return FEBM target as the earliest
Govt to extend tax weiver on some exports to March 2010
Irrigation programme outlay increased 75% to 1,000 crore
July 6, 2009, 11:33: Extension of stimulus package for print media by another
six months beyond June 30 in view of the economic downturn.
July 6, 2009, 11:33: Extension of interest subvension scheme extended up to
March 2010 to cover sectors like handicrafts and handlooms.
July 6, 2009, 11:32: Allocation for market development assistance scheme
enhanced by 148 per cent.
July 6, 2009, 11:32: Export Credit Guarantee scheme extended till March 2010.
July 6, 2009, 11:32: Govt to set up expert panel for petroleum product pricing as the domestic oil prices should be in tune with global prices.
July 6, 2009, 11:31: The proposals till now augur well for the automobile and the real estate sectors.
July 6, 2009, 11:29: 75% hike for accelerated irrigation, announces the FM.
July 6, 2009, 11:28: Sensex slips into the red: down 43.06 points at 14,869.99.
July 6, 2009, 11:27: Fiscal deficit: We need institutional reforms to being fiscal deficit down, says the FM.
July 6, 2009, 11:27: Export Credit Guarantee scheme extended till March 2010.
July 6, 2009, 11:27: Additional allocation of Rs 1,000 crore for accelerated
irrigation project.
July 6, 2009, 11:27: Incentives in interest rates to farmers to pay back
agriculture loans in time.
July 6, 2009, 11:25: Target for agriculture credit raised to Rs 3,25,000 crore
in 2009-10 from Rs 287,000 crore.
July 6, 2009, 11:24: Pranab announces sops for exporters.
July 6, 2009, 11:24: Central assistance for storm-water drainage project
increased to Rs 500 crore from Rs 200 crore in the interim
budget.
July 6, 2009, 11:24: Allocation for Jawaharlal Nehru Urban Renewal Mission
increased by 87 per cent to Rs 12,887 crore.
July 6, 2009, 11:23: Allocation for urban poor for provision for housing and
basic amenities to be raised to Rs 3,973 crore in the current year.
July 6, 2009, 11:23: Indian Infrastructure Finance Company Limited will
re-finance commercial bank loans upto 60 per cent in critical projects through public private partnership to the tune of Rs 1,00,000 crore to raise investment in the sector.
July 6, 2009, 11:22: Allocation for urban poor for provision for housing and
basic amenities to be raised to Rs 3,973 crore in the current year.
July 6, 2009, 11:22: Additional budget allocation for farmers.
July 6, 2009, 11:21: Hike in allocation for Mumbai flood management.
July 6, 2009, 11:21: Housing allocation hiked under Rajiv Awaas Yojana.
July 6, 2009, 11:21: Agricultre: Pranab announces proposals to boost farm sector.
July 6, 2009, 11:20: Allocations for highways being stepped up by 23 per cent.
July 6, 2009, 11:19: Fiscal deficit grew from 2.7 per cent to 6.8 per cent of
GDP, says the Finance Minister. Total fiscal stimulus during 2008-09 amounts to Rs 186,000 crore.
July 6, 2009, 11:19: Indian Infrastructure Financial Corporation Limited (IIFCL) to evolve financing mechanism for giving increased support to infrastructure projects.
July 6, 2009, 11:18: Mumbai floods: More funds allocated to help Mumbai fight floods during rains.
July 6, 2009, 11:17: He also said that more stimulus packages are needed.
July 6, 2009, 11:17: NHAI allocation up by 23 per cent. National Highways, that is.
July 6, 2009, 11:17: He said that sustenance of high or 9 per cent growth will not be easy, but he would strive for it.
July 6, 2009, 11:17: He said that sustenance of high or 9 per cent growth will not be easy, but he would strive for it.
July 6, 2009, 11:16: Budget, he says, is not the only instrument of change, implying that the nation can look forward to other announcement through the year...
July 6, 2009, 11:14: Mukherjee intends to make pre-budget consultations with
state finance ministers an annual affair.
July 6, 2009, 11:14: He wants the Budget to be a 'more participatory' exercise.
July 6, 2009, 11:13: Growth rate in 2008-09 dipped to 6.7 per cent from average 9 per cent growth in previous three fiscal years, says Mukherjee.
July 6, 2009, 11:13: Economic crisis: The worst is behind us, says the FM.
July 6, 2009, 11:12: Government plans to bring back the economy to the high
GDP growth rate of nine per cent at the earliest, says
Mukherjee.
July 6, 2009, 11:11: There has been a strong rise in flow of foreign capital, despite the economic slowdown, he says,.
July 6, 2009, 11:10: Another challenge, says FM , is to broaden inclusive growth agenda.
July 6, 2009, 11:10: Main challenge, says FM, is to return to 9% growth rate.
July 6, 2009, 11:9: BSE Sensex is up 85.46 points at 14,998.51 and the NSE Nifty is up 29.95 to 4,454.20.
July 6, 2009, 11:8: One Budget cannot solve all problems, says FM, implying that this Budget might not really be the Dream Budget that people want... but let's hear more
July 6, 2009, 11:7: Prnab says that he would try to ensure that the agriculture sector grows at 4%, boosting GDP growth of the country.
July 6, 2009, 11:6: The first challenge is to get back Indian to 9% grwoth rate, says the FM.
July 6, 2009, 11:6: He says that the UPA's victory is a mandate for inclusive growth.
We will do all we can for the growth of the country, he says.
July 6, 2009, 11:5: Finance Minister Prnab Mukherjee has begun his Budget Speech.
July 6, 2009, 11:5: The gems and jewellery industry wants the continuation of the existing credit limits to exporters with good track record, and improving credit facilities.
Introduction of Presumptive Tax/Turnover Tax as a permanent solution for the peculiar nature of the industry characterized by the daily price fluctuation which causes disputes on taxation.
Industry seeks for rationalization of interest rate at par or below the international interest rates. It also urges RBI to make dollar finance available at LIBOR + 1% to the banks financing the gem & jewellery industry up to 31st December 2011; as against LIBOR + 3.5% and extra charges of handling and commissioning.
July 6, 2009, 11:3: There could be some respite to the IT-ITES Companies if the STP scheme is continued and there is some relief on the FBT regulations. Recently, the IT-ITES Companies have seen a rally in the markets on signs of bottoming out and recovery of IT spent with some signs of recovery in US economy.
July 6, 2009, 11:3: If the STP Scheme (Section 10A/10B) is extended which is most likely for one year atleast, there would be some relief for IT Companies and their bottomline would be boosted. In case the tax exemption on STP units is not extended, the effective tax rate is estimated to increase to the 18-24% range (up from 11-17% currently) depending on the offshore/onsite mix, proportion of revenues from SEZ units and the contribution from the domestic business. The impact would be more pronounced in case of mid-cap companies and ITES/BPO units.
Regarding FBT, we expect some business expenditure may be removed from the net of FBT.
July 6, 2009, 11:3: The IT industry is recommending that the tax exemption for STPs continue for another 10 years (beyond 2010) so that companies can continue availing of benefits and have the time to adjust to the SEZ framework, which will take the next 2 or 3 years to really get operational.
July 6, 2009, 11:2: Tax incidence on cigarettes and alcohol might be raised, making them more expensive.
July 6, 2009, 11:1: Exemptions possible for infrastructure projects to bring down the costs.
July 6, 2009, 11:1: Uniform excise duty should be levied on cement.
July 6, 2009, 11:0: Automobiles: Pranab might roll back the additional charge of Rs 15,000 to Rs 20,000 on utility vehicles/cars above 1500 cc.
Some benefits are anticipated under income tax for product development/capital expenditure.
July 6, 2009, 10:58: Some benefits in personal income tax, increase in exemption limit of home loan interest and schemes to divert investment into infrastructure, are also expected.
A tax amnesty scheme could be considered in the to address the rising fiscal deficit.
Agriculture revisions are expected in the urea policy to attract new investments.
July 6, 2009, 10:58: Pranab might announce quite a few economic reform plans.
July 6, 2009, 10:57: Budget Deficit: The government might the Budget Deficit beyond the 5.5 per cent set in an interim and pre-election budget in February.
Divestment: The finance minister is likely to announce plans to divest the govt’s shareholding in some public sector companies to help fund rural and social programmes.
This will prop up the stock markets further.
July 6, 2009, 10:50: Sensex loses some gains. It is now up 74.68 points at 14,987.73. The NSE Nifty is up 24.80 points at 4,449.05.
July 6, 2009, 10:46: The government is trying to encourage lending to breathe fresh life into the real estate and banking segments, which are currently coping and bouncing back from the ill effects of a realty market crash and global recession.
One of the possible ways the government could opt to do this is by including a recommendation for increasing the tax slab for home loans in the upcoming Budget announcement slated for July 6, 2009.
This will favour the person opting for a new home loan and will specifically be for the tax concessions on the interest rate. Currently, taxpayers opting for housing loans get income tax exemption on interest payment of up to Rs 1.5 lakh (Rs 150,000) per year.
Sources indicate that the income tax exemption limit for interest payment of home loans is likely to be increased to Rs 2.5 lakh (Rs 250,000) for the upcoming year.
July 6, 2009, 10:45: A stimulus package for the industry could also be announced.
July 6, 2009, 10:45: He could also hike FDI limits into more industry sectors.
July 6, 2009, 10:45: The finance minister might allocate more funds for infrastructure, health care and education.
July 6, 2009, 10:45: The budget may seek to strike a balance between social orientation and growth while maintaining fiscal discipline.
July 6, 2009, 10:43: The budget may seek to strike a balance between social orientation and growth while maintaing fiscal discipline.
July 6, 2009, 10:35: Finance Minister Pranab Mukherjee has arrived in Parliament and will be delivering the Budget Speech in about 25 minutes from now. Stand by!
July 6, 2009, 10:34: Check out the Rediff Budget Coverage for simplified details on http://business.rediff.com/money/budget09.html
July 6, 2009, 10:32: Some industry captains expect another stimulus package to help boost the export sector.
Oil companies might see some budgetary support.
July 6, 2009, 10:32: The finance minister might announce a long-term plan to cut down burgeoning fiscal deficit, while still announcing plans to boost infrastructure.
July 6, 2009, 10:30: Sectors like pharmaceuticals, textile machinery, food processing, paper and auto, including two-wheelers and tyres, are expected to get relief in excise duty, but like last year, Pranab could also prune excise duty exemptions to maintain revenue collections.
July 6, 2009, 10:30: Pranab might also announce massive funds for social sector projects like National Rural Employment Guarantee, Sarva Shiksha Abhiyan, rural health and power sectors, without try to disturb fiscal discipline.
July 6, 2009, 10:30: Reports say that the finance minister might announce a cut in excise duty rates across the board.
July 6, 2009, 10:30:
July 6, 2009, 10:30: Fringe Benefit Tax is likely to be scrapped.
Industry does not see any cuts in Corporate Tax being announced.
Securities Transaction Tax might be reduced. It won’t be phased out, but if treated as advance tax, people will be happy.
July 6, 2009, 10:29: So what could happen in the Budget this time? Here are some points that experts say the finance minister might announce:
The minimum income threshold limit for income tax payer is at Rs 110,000, and people are looking to the finance minister to raise it. More income in the pockets of consumers will boost demand for consumer goods as well as household savings for investment.
July 6, 2009, 10:29: Stock market observers say that caution has to be maintained as sharp intra-day volatility is expected.
Mixed fund inflows into the domestic equities and the global market trend will be closely monitored for further direction. Among the key local indices, the Nifty has good support around 4400 and upside till 4470-4500 levels.
July 6, 2009, 10:28: The Sensex is up 118.52 points, or 0.79%, at 15,031.57. The NSE Nifty is up 27.00 points, or 0.61%, at 4,451.25.
July 6, 2009, 10:21: FM not to attend post-Budget press conference.
Finance Minister Pranab Mukherjee, reports say, will not participate in the customary interaction with the media after the Budget pronouncements.
Thus, unlike in the past, he will not be present in the customary press conference to clarify the proposals he makes in the Budget.
Instead, finance ministry bureaucrats will face questions from the media.
Mukherjee had done the same thing even during the interim budget that he presented on February 16 this year.
But on July 7, a full day after he presents the Budget, the finance minister will meet with industry captains. It is here perhaps that he is likely to make his first comments on the Budget.
July 6, 2009, 10:21: Pranab Mukherjee the first finance minister to present Budgets on either side of an election and the first to do so after a quarter-century gap.
When finance minister Pranab Mukherjee rises in the Lok Sabha on Monday to present the Union Budget for 2009-10, he would have earned a unique distinction.
No other finance minister in independent India has presented an interim Budget before the elections and then followed that up with a regular Budget for the same year after being voted back to power.
July 6, 2009, 10:19: Check out the Rediff Budget Coverage for simplified details on http://business.rediff.com/money/budget09.html
July 6, 2009, 10:18: With Railway Minister Mamata Banerjee announcing a feel-good, yet a slightly reform-oriented Rail Budget, Finance Minister Pranab Mukherjee too is expected to present a feel good Budget today. But will he?
July 6, 2009, 10:17: Meanwhile, the stock market opened up, rising by over a 100 points to rule above 15,000 points. Currently, the BSE Sensex is up 107.33 points at 15,020.38, up 0.72%.
The NSE Nifty is up 75.40 points at 4,424.25, up 1.73%.
July 6, 2009, 10:14: There are a lot of expectations from the finance minister this time around. The industry and the common man are waiting with bated breath to see what Pranab unveils for them.
July 6, 2009, 10:14: With the general polls over and the Congress-led UPA government winning the confidence of voters who voted for a stable government, the Congress has a great chance to lead the country on to the growth path. On the other hand, it has no excuse this time around for not delivering, unlike the last time around when its coalition partner, the Left, put paid to most of its reform policies. With the Left no longer around as a hurdle, the government is relatively free to take tough measures.
July 6, 2009, 10:14: Reports suggest that the Budget is likely to propose higher Plan spending of Rs 40,000 crore, bringing the total Central government support to the Plan spending of the Centre and the states to Rs 3,25,000 crore, or 5.45% of the forecast GDP of 2009-10.
This boost to Plan spending would represent the Centre’s commitment to both sustaining the fiscal stimulus and the ruling coalition’s political commitment to inclusive growth.
July 6, 2009, 10:13: FM not to attend post-Budget press conference.
Finance Minister Pranab Mukherjee, reports say, will not participate in the customary interaction with the media after the Budget pronouncements.
Thus, unlike in the past, he will not be present in the customary press conference to clarify the proposals he makes in the Budget.
Instead, finance ministry bureaucrats will face questions from the media.
Mukherjee had done the same thing even during the interim budget that he presented on February 16 this year.
But on July 7, a full day after he presents the Budget, the finance minister will meet with industry captains. It is here perhaps that he is likely to make his first comments on the Budget.
July 6, 2009, 10:13: The middle-class and the industry are wishing for a 'dream' Budget, like the former finance minister P Chidrambaram presented in 1997-98. Given that the Congress-led UPA is on a far more firm footing than in the last 5 years, people expect a bonanza from Finance Minister Pranab Mukherjee in terms of relief in income tax and excise duties.
July 6, 2009, 10:12: Finance Minister Pranab Mukherjee, who will be presenting his 4th Budget in Parliament, might take into account the tough reformist stance of the Economic Survey tabled on July 2. If that happens, the industry might be happy, but not necessarily the common man. Of course, the stock markets will get the required booster to soar, if the finance minister takes a reformist path.
July 6, 2009, 9:13: Please join us at 10.30 a.m. for the LIVE Commentary on the Union Budget 2009-10, as we bring to you Finance Minister Pranab Mukherjee's Budget proposals even as he delivers the Budget Speech in the Lok Sabha.
The Budget Speech will begin at 11.00 a.m.
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