Tag: Budget2019

Interim Budget 2019: What’s in store for investors, taxpayers, economy?

From doling out sops for the farm sector and providing some relief to the individual income-tax payers, here’s what leading brokerages expect from the budget
Interim Budget 2019

with barely a few days left for the NDA (National Democratic Alliance) government to present the Interim-Budget 2019, most domestic and foreign brokerages expect the measures to have a populist undertone ahead of the general elections scheduled for April / May 2019.

From doling out sops for the farm sector and providing some relief to the individual income-tax payers, here’s what leading brokerages expect.

CLSA

The pressure to further expand the farmer welfare programme ahead of the 2019 national elections is high for PM Modi. A possible announcement of a nationwide direct farmer support scheme is quite likely, or possibly even earlier. A Telangana-style scheme could cost ~ Rs1.2trn, further complicating fiscal maths, as it could be a recurring liability. The RBI’s possible large dividend might help just one time.

The GST-led tax revenue shortfall of 75-80bps of GDP is not reflected in the reduced government expenditure for FY19 due to off-balance-sheet funding, which is not a sustainable solution and will create its own problems later and distort the reported Fiscal Deficit for FY19.

We expect the ‘real’ government expenditure growth to slow down. The impact on capex will be even greater if the farmer support scheme is implemented. ITC should see some relief rally, as the budget is unlikely to tinker with tobacco taxation.

Explainer: What is an interim budget? What FM Jaitley can and cannot do

This will be the last Budget of the current BJP-led NDA government before the 2019 General Elections
Image result for finance minister of india

With just a few months left before the Narendra Modigovernment formally completes its tenure, Finance Minister Arun Jaitley will present NDA regime’s firstinterim budget on February 1, 2019.
As this will be the ruling BJP government’s last budget before the upcoming Lok Sabha elections, here’s an explanation of what an interim budget actually means.
What is an interim budget?
An interim budget is presented by a government which is going through a transition period or is in its last year in office ahead of the general elections. Traditionally, an incumbent government cannot present a full-fledged Union Budget in the election year. Instead, the Finance Minister presents an interim budget during the joint sitting of Rajya Sabha and Lok Sabha in the Parliament, the livemint reported.

Read More —-> Click Here