india needs to review public spending and improve its fiscal position

8/8/2019 India Needs to Review Public Spending and Improve Its Fiscal Position

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India needs to review public spending and improve its fiscal position, Finance Minister

Pranab Mukherjee said on Friday, kicking-off the presentation of his budget for the fiscal

year that starts on April 1.

Following are the major sectors that are likely to gain or lose from the proposals of the

budget:

WINNERS:

* Construction and engineering companies such as Larsen & Toubro, GMR Infrastructure,

Jaiprakash Associates and Gammon Infra on proposal to invest 1.73 trillion rupees ($7.4

billion) on infrastructure in 2010/11.

The capital good index was up 1.8 per cent by 0804 GMT, in line with the rise in the broader

market.

* Real estate firms such as DLF, Unitech and Sobha Developers after the budget proposed

to give developers tax deductions on existing projects and relaxed norms for built-up area.

The sector index was up 4.8 per cent.

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* Drugmakers such as Dr Reddy's Laboratories, Cipla and Biocon after weighted deduction

on in-house research and development expenses was proposed to be raised to 200 per cent

from 150 per cent now.

* Hospitality services providers such as Indian Hotels, EIH and Taj GVK Hotels on proposal

to allow firms setting up new two-star and above hotels to claim investment-linked taxdeduction.

* State-run bank shares such as State Bank of India, Andhra Bank, Canara Bank and Bank

of India on proposal to provide 165 billion rupees ($3.6 billion) for recapitalisation. The sector

index was up 3.3 per cent.

* Education service providers such as Educomp Solutions, NITT and Aptech after the budget

increased allocation to the education sector to 1.38 trillion rupees in the union budget.

... contd.

The budjet is an eyewash as far as pensioners are concerned. At least the Govt. pensions should

be tax free.

Tax on Govt. pension incomeBy: sundaram | 27-Feb-2010Reply |ForwardAs usual this time also

the finance minister has not addressed the need of the pensioners. The income for pensioners in

particular the Govt. pensioners should be completely exempt from tax. They do not have much of

an investment to gain from sops for the same. The pension income should be completely exempt

from any tax. It must be recognised that they are required to pay for all the additional taxation on
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goods and services though their income is fixed to what they are eligible by way of pension as

determined at the time of their retirement.

Arm twisting for low salaried individualsBy: Mahesh | 27-Feb-2010Reply |Forward It has made

the higher salaried richer and the lower middle class is armtwisted to fund Rs.20,000 in the guise

of "Savings"for Govt's infrastructure Bonds to save tax. Very clever because more than 80% of

Govt.salaried Tax payers fall easy prey for fleecing in this category. If he "saves" where will he

find money fund the daily requirements of inflated grocery items and transport. PM should have

raised the tax ceiling from 1.6 to 1.8 lakhs and then provided this "savings" clause additionally.

Budget does not excite Aam Aadmi once againBy: Vikram Kharvi | 26-Feb-2010Reply| Forward

While the FM has increased the IT slabs, there is not much to rejoice for a common man. There

has been an increase in the Petrol/Diesel costs, i.e. Rs. 2.67 a litre and Rs.2.58 per litre, This will

also impact the prices of all commodities. In last 1 year there is a 100% hike in every commodity.

The peanut reduction in taxes on the face while increasing petrol prices is actually like

backstabbing the common man.The current tax slabs are infact adversely impacting the net take

home pay of the salaried aam aadmi. An individual earning income through business or

profession is allowed to claim a deduction in respect of any business expenditure incurred by him.However, a salaried individual is left with no such options. Even the clause relating to standard

deduction to salaried individuals has been omitted by the Finance Act 2005, leaving no such

benefit to the salaried individuals.Atleast the zero-tax slab should have been raised to 2-2.5

lakhs, instead of 1.6 lakhs

MUMBAI: India needs to review public spending and improve its fiscal position, Finance

Minister Pranab Mukherjee said on Friday, kicking-off the presentation of his budget for the fiscal year that starts on April 1.

Following are the major sectors that are likely to gain or lose from the proposals of thebudget:

WINNERS: Construction and engineering companies such as Larsen & Toubro, GMRInfrastructure, Jaiprakash Associates and Gammon Infra on proposal to invest Rs 1.73trillion ($7.4 billion) on infrastructure in 2010/11.

The capital good index was up 1.8 per cent by 0804 GMT, in line with the rise in the broader market.

Real estate firms such as DLF, Unitech and Sobha Developers after the budget proposed

to give developers tax deductions on existing projects and relaxed norms for built-uparea. The sector index was up 4.8 per cent.

Drugmakers such as Dr Reddy's Laboratories, Cipla and Biocon after weighted deductionon in-house research and development expenses was proposed to be raised to 200 percent from 150 per cent now.

Hospitality services providers such as Indian Hotels, EIH and Taj GVK Hotels on
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proposal to allow firms setting up new two-star and above hotels to claim investment-linked tax deduction.

State-run bank shares such as State Bank of India, Andhra Bank, Canara Bank and Bankof India on proposal to provide 165 billion rupees ($3.6 billion) for recapitalisation. The

sector index was up 3.3 per cent.

Education service providers Educomp Solutions, NIIT Ltd and Aptech after the budgetincreased allocation to the education sector to 1.38 trillion rupees in the union budget.

LOSERS: Outsourcers such as Infosys Technologies, Tata Consultancy Services andWipro on no mention of extension of a tax holiday scheme for software firms in thebudget speech. The tax break ends in March 2011. The sector index was flat in a firmmarket.Cigarette makers such as ITC Ltd after the budget proposed to raise excise duty ontobacco products. Shares in ITC were down 3.6 per cent, after having fallen as much as 4

per cent earlier.

"Control over fiscal deficit comes more from containing expenditure. Even morecommendable is making the deficit more transparent by not issuing oil or fertiliserbonds," Rao said.

Mumbai: India needs to review public spending and improve its fiscal position,Finance Minister Pranab Mukherjee said on Friday, kicking-off the presentation of hisbudget for the fiscal year that starts on April 1.

Following are the major sectors that are likely to gain or lose from the proposals of the

budget:

WINNERS:

* Construction and engineering companies such as Larsen & Toubro, GMRInfrastructure, Jaiprakash Associates and Gammon Infra on proposal to invest 1.73trillion rupees ($7.4 billion) on infrastructure in 2010/11.

The capital good index was up 1.8 per cent by 0804 GMT, in line with the rise in thebroader market.

* Real estate firms such as DLF, Unitech and Sobha Developers after the budgetproposed to give developers tax deductions on existing projects and relaxed norms forbuilt-up area. The sector index was up 4.8 per cent.

* Drugmakers such as Dr Reddy's Laboratories, Cipla and Biocon after weighteddeduction on in-house research and development expenses was proposed to be raised to200 per cent from 150 per cent now.


4/5

* Hospitality services providers such as Indian Hotels, EIH and Taj GVK Hotels onproposal to allow firms setting up new two-star and above hotels to claim investment-linked tax deduction.

* State-run bank shares such as State Bank of India, Andhra Bank, Canara Bank and

Bank of India on proposal to provide 165 billion rupees ($3.6 billion) for recapitalisation.The sector index was up 3.3 per cent.

* Education service providers such as Educomp Solutions, NITT and Aptech after thebudget increased allocation to the education sector to 1.38 trillion rupees in the unionbudget.

LOSERS:

* Outsourcers such as Infosys Technologies, Tata Consultancy Services and Wipro on nomention of extension of a tax holiday scheme for software firms in the budget speech.

The tax break ends in March 2011. The sector index was flat in a firm market.

* Cigarette makers such as ITC after the budget proposed to raise excise duty on tobaccoproducts. Shares in ITC was down 3.6 per cent, after having fallen as much as 4 per centearlier.

Union Budget 2010: Winners andlosersIndia needs to review public spending and improve its fiscal position,

Finance Minister Pranab Mukherjee said on Friday, kicking-off thepresentation of his budget for the fiscal year that starts on April 1.

Following are the major sectors that are likely to gain or lose from the proposals

of the budget:

WINNERS:

* Construction and engineering companies such as Larsen & Toubro, GMR

Infrastructure, Jaiprakash Associates and Gammon Infra on proposal to invest

1.73 trillion rupees ($7.4 billion) on infrastructure in 2010/11.

The capital good index was up 1.8 per cent by 0804 GMT, in line with the rise in

the broader market.

* Real estate firms such as DLF, Unitech and Sobha Developers after the budget

proposed to give developers tax deductions on existing projects and relaxed

norms for built-up area. The sector index was up 4.8 per cent.

* Drugmakers such as Dr Reddy's Laboratories, Cipla and Biocon after weighted

deduction on in-house research and development expenses was proposed to be

raised to 200 per cent from 150 per cent now.


5/5

* Hospitality services providers such as Indian Hotels, EIH and Taj GVK Hotels on

proposal to allow firms setting up new two-star and above hotels to claim

investment-linked tax deduction.

* State-run bank shares such as State Bank of India, Andhra Bank, Canara Bank

and Bank of India on proposal to provide 165 billion rupees ($3.6 billion) for

recapitalisation. The sector index was up 3.3 per cent.

* Education service providers such as Educomp Solutions, NITT and Aptech after

the budget increased allocation to the education sector to 1.38 trillion rupees in

the union budget.

LOSERS:

* Outsourcers such as Infosys Technologies, Tata Consultancy Services and Wipro

on no mention of extension of a tax holiday scheme for software firms in the

budget speech. The tax break ends in March 2011. The sector index was flat in a

firm market.

* Cigarette makers such as ITC after the budget proposed to raise excise duty ontobacco products. Shares in ITC was down 3.6 per cent, after having fallen as

much as 4 per cent earlier.

Source: Financial Express

india needs to review public spending and improve its fiscal position

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