Budget 2018: Govt cuts extra loans to Rs 200 bn, FY18 fiscal deficit could reach 3.4%

Union Budget 2018

In December last year, the Centre had stated that it would raise an additional Rs 500 billion from the market in this financial year


BUDGET NEWS :  The authorities has announced that it’s miles decreasing additional borrowing to Rs 2 hundred.00 billion from Rs 500.00 billion in advance, in the contemporary monetary yr (FY18), signalling to markets and specialists approximately the Centre’s dedication to financial consolidation.


however even then, the economic deficit may reach up to a few.four in keeping with cent of gross domestic product (GDP), higher than the three.2 in keeping with cent pegged within the budget for 2017-18.


This discount in borrowing largely came due to the fact the government expects the Reserve financial institution of India (RBI) to transfer to it a higher-than-predicted surplus in FY18, a few senior authorities sources have confirmed independently to enterprise standard. except, direct taxes have come to the assist to the government, rising by means of 18.7 according to cent till January 15, towards the finances target of 15.7 per cent for FY18, consistent with figures launched via the authorities on Wednesday.





Budget 2018: Will infra industry get an allocation boost from FM Jaitley?

Infrastructure, real estate, realty

Industry wants the government to focus on reducing timelines from project conception to completion


BUDGET NEWS :  it’s miles believed that funding in India’s infrastructure enterprise might yield more impact if all associated projects are deliberate and brought at the same timeline. that is visible as key to the achievement specifically of commercial corridors and nodes being planned. below the Sagarmala initiative, ports at the moment are being integrated with roads, railways, and coastal business zones/SEZs. committed freight corridors can be a key component, although there appears to be restricted development after the primary  corridors.


commercial enterprise general and % examine the prevailing state of affairs of the infrastructure area, key troubles facing it, and what the industry wants from Finance Minister Arun Jaitley in the approaching Union budget 2018-19.


Key troubles facing the sector

  • integrated planning and transport of tasks
  • Investments in infrastructure could yield greater impact if all related tasks also are deliberate and brought at the same timeline
  • this will be key to the success of industrial Corridors and Nodes being planned
  • below the Sagarmala initiative, ports at the moment are being included with roads, railways and coastal industrial zones/ SEZs. devoted Freight Corridors may be a key thing of this approach



Budget 2018: Why LTCG tenure should be increased, and STCG scrapped

Image result for Budget 2018: Why LTCG tenure should be increased, and STCG scrapped

BUDGET NEWS :  A suggestion for Finance Minister Arun Jaitley before Union Budget 2018-19 would be to increase the definition of period of holding from one year to two years


It’s that time of the year while all of us turn youngsters and ask for gifts from our very very own Santa – the finance minister. needs for increase in fundamental exemption limit, tax-saving funding restrict and interest deduction for self-occupied residence’s limit are the perennial preferred toys sought by means of us.


This yr, beforehand of finances 2018, the demands are shriller, considering that it’s far the closing full price range earlier than the elections in 2019. And, Finance Minister Arun Jaitley is expected to offer items. What issues me is who pays for the invoice that continuously comes with …


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Budget 2018: Retailers seek industry status, simple GST, better FDI norms

Finance budget 2018

The industry is also seeking relaxed FDI regime for multi-brand retail trade as also incentives to be provided for setting up warehousing and cold-chain storage facilities


BUDGET  NEWS  :  In the run as much as the price range, retailers have asked the authorities to simplify GST gadget and furnish industry popularity to the arena for easier get right of entry to to finance and entice greater investments.


besides, the enterprise is likewise seeking cozy FDI regime for multi-logo retail trade (MBRT) as also incentives to be provided for putting in place warehousing and cold-chain storage facilities.


In a pre-budget desire listing, the outlets association of India (RAI) said invoices issued to BTC (financial institution transfer compliant) customers need to be simplified and the want for manual signature and more than one copies to get GST refund need to be eliminated.


“RAI has highlighted numerous sensible troubles and operational challenges confronted by way of retailers almost about GST and have protected a few recommendations based totally on the identical,” RAI CEO Kumar Rajagopalan stated.


seeking simplification of the procedure for GST refund, he stated, “GST invoices issued to BTC clients need to be in addition simplified through getting rid of the mention of HSN (harmonised gadget of nomenclature) codes on them, eliminating the need for manual signature and a couple of copies.”


on the call for for enterprise reputation for retail region, Rajagopalan stated, “this sort of step could provide the sector with guide in accessing the financial system and as a result allow for greater investment inside the quarter and also permit the critical area to be eligible for all guide and incentives as relevant to other industries.”



Budget 2018: Private investors seek pass-through of losses at fund level

Photo: Shutterstock

As per existing regulations, if there are losses in a fund at the end of its life, the same cannot be passed onto its investors


BUDGET NEWS  :  At a time while Finance Minister Arun Jaitley and his crew would be getting set for Union finances 2018-19, the non-public fairness industry is seeking a skip-via of losses on the fund level for category 1 and category 2 opportunity investment funds (AIFs).


in step with the present guidelines, if there are losses in a fund on the cease of its life, the identical cannot be surpassed onto its investors. ‘‘this is a massive difficulty with VC or infra budget. Over a fund lifestyles of 8-to-nine years, a fund may additionally emerge as with one or two loss-making companies,” says Gopal Srinivasan, president, Indian non-public equity & mission Capital association.


The policies say that earnings may be surpassed onto investors, but losses must be kept on the fund level. curiously, Sebi’s authentic task capital rules of 1996 allowed this. those have been replaced by Sebi’s AIF regulations in 2012. ‘‘If the skip-through is authorized, buyers will take more dangers. They received’t mind taking losses in a single or  businesses in the event that they realize they’ll get the whole benefit,” says Srinivasan.


finances 2018: personal traders are trying to find skip-via of losses at fund degree

The industry is in search of a similar pass-via of losses at fund stage for category 3 AIFs or hedge finances, which had an investible pool of Rs 226 billion remaining 12 months. ‘‘Hedge funds isn’t referred to inside the income Tax Act. As a end result, every assessing officer takes an independent view on them. What we’re saying is please deliver a formal tax regime for AIF-three with some kind of bypass-thru machine,” says an investor.


AIFs, which grew fifty five consistent with cent in FY17, contributed 19 consistent with cent of VC/PE inflows in FY17. The changes may want to growth the glide of domestic capital into AIFs, which is best sixteen in keeping with cent in India as compared to 60 per cent in China. IVCA has additionally suggested that large charitable and spiritual trusts, be allowed to invest in AIFs.  The enterprise is also looking for decrease lengthy-term capital gains tax (LTCG).



Budget 2018: Modi govt targets disinvestment receipts of Rs 900 billion

Govt gears up for divestment drive

The ONGC-HPCL deal is likely to fetch the government Rs 300 billion, the report said quoting sources


BUDGET NEWS   :Eyeing Rs 1 trillion price range goal via disinvestment for next economic, the Modi authorities can also stop FY18 with Rs 900 billion selloff, nearly twice the report figure of Rs 460 billion done final yr, on the back of its stake sale in Hindustan Petroleum agency (HPCL) to oil and herbal gas corporation (ONGC), in step with The Time of India file.


The deal is possibly to fetch the authorities Rs 300 billion, the document stated quoting resources.


The sale of the government’s stake in HPCL to ONGC is caught on valuation. consistent with humans near the development, the attempt became to shut the deal before the quit of this month however the government was searching at getting a better price for its 51.1 in keeping with cent stake in HPCL.


primarily based at the present day marketplace capitalisation, a 51 in keeping with cent in HPCL is worth Rs 323 billion, approximately Rs 23 billion better than in final July whilst the Union cabinet had cleared the promote-off. but, reports advise that after evaluating the advertising community, physical property and emblem value of HPCL, the valuation might be round Rs 450 billion.


The cabinet Committee on economic Affairs had given in-principle acclaim for the strategic sale on July 19 last year.


Read more:  BUDGET 2018-19

Budget 2018: Jaitley’s speech, deficit data to decide rupee’s fate in 2018

Budget 2018

How Modi fares in reining in the fiscal deficit while seeking to jump-start activity may determine the currency’s direction for the remainder of the year, analysts say


BUDGET NEWS :  Don’t let the rupee’s electricity idiot you, strategists say. The rally that boosted the foreign money to the most powerful in 32 months will possibly be brief-lived. The rupee is facing headwinds as accelerated power expenses threaten to growth inflation and get worse public finances in a state that imports most of its oil needs. investors are also bracing for better government spending as top Minister Narendra Modi is set to take measures within the February finances to revive an financial system that’s forecast to develop at the slowest pace in four years.


How Modi fares in reining within the financial deficit while seeking to jump-start pastime may determine the forex’s direction for the the rest of the year, analysts say.


“The price range may want to properly set the tone for the rupee in 2018,” said Aditya Pugalia, Dubai-primarily based director of economic markets at Emirates NBD PJSC, the second one maximum-correct forecaster in Bloomberg’s quarterly scores. “A slip-up at the deficit should add a layer of uncertainty.”


Emirates NBD predicts the rupee will weaken to sixty five in step with dollar via the stop of March. Mizuho financial institution Ltd., the 1/3-first-class forecaster in Bloomberg’s survey, sees it depreciating to 65.60, while the median estimate in a Bloomberg survey is 64.50. The rupee superior to 63.2463 on Jan. eight, the most powerful considering April 2015. It rose 0.three percent Monday to sixty three.4175.



Patanjali to be ‘non-profit’ firm, aims to beat HUL next year in sales

Patanjali, Baba ramdev

Ramdev pointed out that Patanjali has spent over Rs 100 billion by now in charity



BUDGET NEWS   :  Yoga guru Baba Ramdev stated Patanjali Ayurved Ltd could be converted right into a ‘non-profitable’ corporation, which would plough again its income to the society. On Tuesday, the Haridwar-primarily based organization additionallyintroduced its foray into e-commerce for its FMCG objects, partnering fundamental players within the area, including Amazon and Flipkart, and focused on over Rs 10 billion (Rs 1,000 crore) this yr itself.
Addressing a press convention, Ramdev said: “We consider our partnerships with e-commerce gamers will help take Patanjali products to extra consumers in city and rural areas in a handy and green manner. we are concentrated on sales of Rs 10 billion yearly through on-line sales.”
Patanjali also desires to overtake the us of a’s largest patron goods business enterprise Hindustan Unilever in sales. The company reported FY17 sales of Rs 10,561 crore, a third that of the indexed HUL, which reported sales of Rs 34,487 crore. Ramdev stated Patanjali crossed Rs 10 crore in online sales in December and is targeting greater than Rs 1,000 crore this 12 months itself from e-commerce.



Farmers selling cheap, so why do fruits and veggies cost you a bomb?

Budget 2018

Foodgrain production in 2016-17 is estimated at 276 million tonnes and in 2017-18 it is targeted at 275 million tonnes

BUDGET NEWS  : As Finance Minister Arun Jaitley gets all the way down to finalise his budget Speech, which many trust could be targeted on the farm zone, the December information on consumer meals fee index (CFPI) and its wholesale price counterpart need to provide some perception.


The CFPI-based totally inflation for the month of December rose to 4.ninety six in step with cent year-on-yr from four.35 consistent with cent in November. In comparison, the wholesale rate index-based totally meals inflation declined from 6.06 per cent in November to 4.seventy two according to cent in December. As such, retail rate food inflation has crossed past wholesale price one for the primary time in the current months.


although this divergence within the movement of inflation isn’t uniform across all commodities in the institution however the index numbers are a pointer to the truth that while farmers hold to reel underneath the impact of low upward thrust in fees annoying the misery state of affairs in rural regions, customers in cities aren’t getting farm items that reasonably-priced.



GST Council meet on Jan 18; discussion on real estate inclusion key agenda

GST council meet

Earlier in November, Finance Ministry chaired a meeting with real estate developers over GST to be levied on properties


BUDGET NEWS :  An important goods and services Tax (GST) Council meet in advance of the Union finances is scheduled on January 18.


consistent with resources, dialogue of actual property inclusion in GST is the important thing time table of this assembly.



“discussion of actual property inclusion in GST is the key schedule of the GST Council that is scheduled to meet on January 18th,” a senior government legit advised ANI privy to the deliberations.


He in addition brought that the GST Council in all likelihood will not attain a decision on this, but a serious dialogue is predicted though.


moreover, states like Delhi and Jammu Kashmir are very eager to carry real property quarter under the GST ambit.


earlier in November, Finance Ministry officers chaired a assembly with actual property developers over GST to be levied on houses owned by way of private developers.


The assembly observed the 23rd GST Council assembly that become held in Guwahati, wherein it changed into determined that actual estate could be introduced beneath the ambit of the taxation scheme.