The much awaited stimulus package is announced by RBI to augment domestic and forex liquidity and to ensure that credit continues to flow to productive sectors of the economy. Following measures have been taken:
Reduce the repo rate under the liquidity adjustment facility (LAF) by 100 basis points from 6.5 per cent to 5.5 per cent with immediate effect.
Reduce the reverse repo rate under the LAF by 100 basis points from 5.0 per cent to 4.0 per cent with immediate effect.
Reduce the cash reserve ratio (CRR) of scheduled banks by 50 basis points from 5.5 per cent to 5.0 per cent from the fortnight beginning January 17, 2009.
Effects:
Reduction in the CRR will inject additional liquidity of around Rs. 20,000 crore to the financial system. It is expected that the reduction in the policy interest rates and the CRR will further enable banks to provide credit for productive purposes at appropriate interest rates. Cumulative amount of primary liquidity made available to the financial system through various measures initiated by the Reserve Bank is over Rs. 3,00,000 crore.
Taking the signal from the reductions in the repo and reverse repo rates, all public sector banks and several private sector and foreign banks have reduced their benchmark prime lending rates (BPLRs). Notably, the top five public sector banks have reduced their BPLRs from a range of 13.75-14.00 per cent as on October 1, 2008 to a range of 12.00-12.50 per cent presently. These rates are likely to reduce further to bolster demand for home loans, which is a good sign for reality sector.
The monetary stimulus package will be beneficial for corporate bonds. Buoyant liquidity as evident from the LAF windows, with banks parking over Rs. 60000 crores, followed with rate cuts will propel contraction in the shorter end of the rate spectrum, which will provide opportunity for short term funds as well as income funds.
Friday, January 2, 2009
RBI - cuts CRR by 50bps; repo & reverse repo by 100bps
The much awaited stimulus package is announced by RBI to augment domestic and forex liquidity and to ensure that credit continues to flow to productive sectors of the economy. Following measures have been taken:
Reduce the repo rate under the liquidity adjustment facility (LAF) by 100 basis points from 6.5 per cent to 5.5 per cent with immediate effect.
Reduce the reverse repo rate under the LAF by 100 basis points from 5.0 per cent to 4.0 per cent with immediate effect.
Reduce the cash reserve ratio (CRR) of scheduled banks by 50 basis points from 5.5 per cent to 5.0 per cent from the fortnight beginning January 17, 2009.
Effects:
Reduction in the CRR will inject additional liquidity of around Rs. 20,000 crore to the financial system. It is expected that the reduction in the policy interest rates and the CRR will further enable banks to provide credit for productive purposes at appropriate interest rates. Cumulative amount of primary liquidity made available to the financial system through various measures initiated by the Reserve Bank is over Rs. 3,00,000 crore.
Taking the signal from the reductions in the repo and reverse repo rates, all public sector banks and several private sector and foreign banks have reduced their benchmark prime lending rates (BPLRs). Notably, the top five public sector banks have reduced their BPLRs from a range of 13.75-14.00 per cent as on October 1, 2008 to a range of 12.00-12.50 per cent presently. These rates are likely to reduce further to bolster demand for home loans, which is a good sign for reality sector.
The monetary stimulus package will be beneficial for corporate bonds. Buoyant liquidity as evident from the LAF windows, with banks parking over Rs. 60000 crores, followed with rate cuts will propel contraction in the shorter end of the rate spectrum, which will provide opportunity for short term funds as well as income funds
Reduce the repo rate under the liquidity adjustment facility (LAF) by 100 basis points from 6.5 per cent to 5.5 per cent with immediate effect.
Reduce the reverse repo rate under the LAF by 100 basis points from 5.0 per cent to 4.0 per cent with immediate effect.
Reduce the cash reserve ratio (CRR) of scheduled banks by 50 basis points from 5.5 per cent to 5.0 per cent from the fortnight beginning January 17, 2009.
Effects:
Reduction in the CRR will inject additional liquidity of around Rs. 20,000 crore to the financial system. It is expected that the reduction in the policy interest rates and the CRR will further enable banks to provide credit for productive purposes at appropriate interest rates. Cumulative amount of primary liquidity made available to the financial system through various measures initiated by the Reserve Bank is over Rs. 3,00,000 crore.
Taking the signal from the reductions in the repo and reverse repo rates, all public sector banks and several private sector and foreign banks have reduced their benchmark prime lending rates (BPLRs). Notably, the top five public sector banks have reduced their BPLRs from a range of 13.75-14.00 per cent as on October 1, 2008 to a range of 12.00-12.50 per cent presently. These rates are likely to reduce further to bolster demand for home loans, which is a good sign for reality sector.
The monetary stimulus package will be beneficial for corporate bonds. Buoyant liquidity as evident from the LAF windows, with banks parking over Rs. 60000 crores, followed with rate cuts will propel contraction in the shorter end of the rate spectrum, which will provide opportunity for short term funds as well as income funds
Heads of Income
Heads of Income
Under chapter 4 of Income Tax Act, 1961 (Section 14), income of a person is calculated under various defined heads of income. The total income is first assessed under heads of income and then it is charged for Income Tax as under rules of Income Tax Act. According to Section 14 of Income Tax Act, 1961, there are following heads of income under which total income of a person is calculated:
Heads of Income:
Salary
House Property
Profit in Business/ Profession
Capital gain
Heads of Income: Other Sources
Every type of income comes under a specified heads. But there are few incomes, which don't come under any of following heads:
Salary
House Property
Profit In Business/ Profession
Capital Gains
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So under Section 56(2) of Income Tax Act,1962 all such income comes in this heads of income. There are following incomes which are taxed under this heads
Income coming as a dividend paid by a company to an assessee
Income coming from winning in lottery, crossword puzzles, races, card games, gambling or other such sports
Income coming as an amount received by assessee from his employer as a fund for welfare of employee
Income as an interest on securities
Income coming by letting on hire machinery, plant, furniture, building or other goods Income coming from insurance policy
Thursday, January 1, 2009
Snapshots of 2008 : the world of stock markets
Snapshots of 2008 As we know 2008 is a very bad year in the world of stock markets across the world why it so worst let us know the eye popping facts.
1. stock markets overall loss 40.00 lakh crores
2. More than 1000 companies are below their book value
3. IPOs collected 19,360 crores only, majority of IPOs flop
4. Rel power created world record in collecting 11,700 crore . total issue money is nearly 7.5 lakh crore which is created tremors in other side world.
5. Current midcap capitalization is only 4 lakh crore
6. Small cap is just 1.15 lakh crore (see how it battered )
7. Liquid funds gone negative because of (ABS & MBS )
8. Total stock market cap today is only 20.00 lak crore
9. mutual funds AUM is less than 4.00 lakh crore
10. more than 3600 hedge funds have gone bust in this year across the world
11. US sub prime no need of explanation u know better (FEd bank, japan, USA banks interest 0) now
12.US big scam is “Medoff “more than 50.00 billion.
What is this scam it is called ponji scheme (jantar mantar scheme ) virtually speaking VINIVINC similar , because of this scam HSBC bank lost almost 2.00 billion dollars Jurassic park director spilberg’s charity company have gone bankruptcy many more charities , hospitals, trusts have gone.
What is ABS Asset backed securities (next mail will discuss elaborately)
What is MBS Mortgage backed securities These instruments are very dangerous because of this US monoliths have gone bankruptcy
Did u know how many crores of ABS & MBS are there in the mutual fund industry?
60,000 crores of (time bombs) Which are all the mutual funds are holding will tell u in next entry with % of holding Please share your valuable suggestions which will be a great help for new comers, let us encourage them Share your knowledge it is a way to achieve immortality
1. stock markets overall loss 40.00 lakh crores
2. More than 1000 companies are below their book value
3. IPOs collected 19,360 crores only, majority of IPOs flop
4. Rel power created world record in collecting 11,700 crore . total issue money is nearly 7.5 lakh crore which is created tremors in other side world.
5. Current midcap capitalization is only 4 lakh crore
6. Small cap is just 1.15 lakh crore (see how it battered )
7. Liquid funds gone negative because of (ABS & MBS )
8. Total stock market cap today is only 20.00 lak crore
9. mutual funds AUM is less than 4.00 lakh crore
10. more than 3600 hedge funds have gone bust in this year across the world
11. US sub prime no need of explanation u know better (FEd bank, japan, USA banks interest 0) now
12.US big scam is “Medoff “more than 50.00 billion.
What is this scam it is called ponji scheme (jantar mantar scheme ) virtually speaking VINIVINC similar , because of this scam HSBC bank lost almost 2.00 billion dollars Jurassic park director spilberg’s charity company have gone bankruptcy many more charities , hospitals, trusts have gone.
What is ABS Asset backed securities (next mail will discuss elaborately)
What is MBS Mortgage backed securities These instruments are very dangerous because of this US monoliths have gone bankruptcy
Did u know how many crores of ABS & MBS are there in the mutual fund industry?
60,000 crores of (time bombs) Which are all the mutual funds are holding will tell u in next entry with % of holding Please share your valuable suggestions which will be a great help for new comers, let us encourage them Share your knowledge it is a way to achieve immortality
Friday, June 13, 2008
Shariah Investment - Islamic Investment
The term ‘Islamic Investment ’ in this article means a joint pool wherein the investors contribute their surplus money for the purpose of its investment to earn halal profits in strict conformity with the precepts of Islamic Shari’ah. The subscribers of the Fund may receive a document certifying their subscription and entitling them to the pro-rata profits actually accrued to the Fund. These documents may be called ‘certificates’ ‘units’ ‘shares’ or may be given any other name, but their validity in terms of Shari’ah, will always be subject to two basic conditions:
Firstly, instead of a fixed return tied up with their face value, they must carry a pro-rata profit actually earned by the Fund. Therefore, neither the principal nor a rate of profit (tied up with the principal) can be guaranteed. The subscribers must enter into the fund with a clear understanding that the return on their subscription is tied up with the actual profit earned or loss suffered by the Fund. If the Fund earns huge profits, the return on their subscription will increase to that proportion; however, in the case the Fund suffers loss, they will have to share it also, unless the loss is caused by the negligence or mis-management, in which case the management, and not the Fund, will be liable to compensate it.Secondly, the amounts so pooled together must be invested in a business acceptable to Shari’ah. It means that not only the channels of investment, but also the terms agreed with them must conform to the Islamic principles.Keeping these basic requisites in view, the Islamic Investment Funds may accommodate a variety of modes of investment, which are discussed briefly in the following paragraphs.
Conditions for investment in SharesIn the light of the foregoing discussion, dealing in equity shares can be acceptable in Shari’ah subject to the following conditions:1. The main business of the company is not violative of Shari’ah. Therefore, it is not permissible to acquire the shares of the companies providing financial services on interest, like conventional banks, insurance companies, or the companies involved in some other business not approved by the Shai’ah, such as the companies manufacturing, selling or offering liquors, pork haram meat, or involved in gambling, night club activities, pornography etc.2. If the main business of the companies is halal, like automobiles, textiles etc, but they deposit their surplus amounts in an interest-bearing account or borrow money on interest, the share-holder must express his disapproval against such dealings, preferably by raising his voice against such activities in the annual general meeting of the company.3. If some income from interest-bearing accounts is included in the income of the company, the proportion of such income in the dividend paid to the shareholder must be given to charity, and must not be retained by him. For example, if 5% of the whole income of a company has come out of interest-bearing deposits, 5% of the dividend must be given to charity.4. The shares of a company are negotiable only if the company owns some illiquid assets. If all the assets of a company are in liquid form, i.e. in the form of money, they cannot be purchased or sold except on par value, because in this case the share represents money only and the money cannot be traded in except at par
Equity FundIn an equity fund the amounts are invested in the shares of joint stock companies. The profits are mainly achieved through the capital gains by purchasing the shares and selling them when their prices are increased. Profits are also achieved by the dividends distributed by the relevant companies.It is obvious that if the main business of a company is not lawful in terms of Shari’ah, it is not allowed for an Islamic Fund to purchase, hold or sell its shares, because it will entail the direct involvement of the share holder in that prohibited business.Similarly the contemporary Shari’ah experts are almost unanimous on the point that if all the transactions of a company are in full conformity with Shari’ah, which includes that the company neither borrows money on interest nor keeps its surplus in an interest bearing account, its shares can be purchased, held and sold without any hindrance from the Shari’ah side. But evidently, such companies are very rare in the contemporary stock markets. Almost all the companies quoted in the present stock market are in some way involved in an activity, which violates the injunctions of Shari’ah. Even if the main business of a company is halal, its borrowings are based on interest. On the other hand, they keep their surplus money in an interest bearing account or purchase interest-bearing bonds or securities.
Shariah Investment guideline..
Most conventional financial products currently on offer to Muslims in the Indian Market are incompatible with
Islamic religious principles; there is a recognized demand for alternatives within this niche community.” Islam forbids the paying and receiving of interest, and involvement in companies having high degree of impure
interest income or high debt or those involved in banking, life insurance, alcohol, tobacco, gambling,
Non-Halal meat or pornography. Muslims in India are currently forced to opt out of the conventional
financial system or compromise their beliefs. Muslims aspire to invest in accordance with Islamic
principles but investment products and services in India are invariably incompatible with Shari’ah principles.
1) Exclude companies if Total Debt divided by Trailing 12-Month Average Market Capitalization
is greater than or equal to 33%.
2) Exclude companies if the sum of Cash and Interest Bearing Securities divided by Trailing
12-Month Average Market Capitalization is greater than or equal to 33%.
3) Exclude companies if Accounts Receivables divided by Trailing 12-Month Average Market
Capitalization is greater than or equal to 49%.
Companies in Sahriah List.
1) ETC Network
2) Vardhrana holding
3) Vaibhav Gem
4) plastiblends
Thursday, February 28, 2008
Union budget 2008-2009
Highlight of Union Budget
Direct tax proposals revenue neutral
Central Sales Tax cut to 2% from 3%
Banking cash transaction tax withdrawn
Securities Transaction Tax (STT) rates unchanged
DDT unchanged at 15%
Govt to introduce commodities transaction tax, like STT
Five year tax holiday for promoting cultural tourism.
Five year tax holiday for setting up hospitals in tier II and tier III regions for providing healthcare in rural areas from April 1, 2008.
Fresh facilities, encouragement to sports and guest houses exempted from Fringe Benefit Tax.
Levy of STT only on option premiums
Short-term cap gains hiked to 15%
Fresh facilities, encouragement to sports and guest houses exempted from Fringe Benefit Tax.Production of seeds added to VAT list
5-year tax holiday for setting up hospitals in non-urban cities
10% income tax for income in the range of Rs 1.5-3 lakh
30% Income Tax For Income above Rs 5 Lakh
No change in corporate tax
Personal income tax exemption slab for women at Rs 1.8 lakh
PERSONAL INCOME TAX EXEMPTION SLAB AT RS 1.5 LAKH
Filter, non-filter cigarettes to be taxed at par
Excise duty on bulk cement at Rs 400/tonne
Exise cut on all pharma goods at 8% vs 16%
Excise duty on some paper types cut to 10% from 12%
Excise duty on hybrid cars cut from 24% to 14%
Excise duty on buses & chassis cut from 16% to 12%
Customs exempt to continue only for naptha for fertilisers
CENVAT reduced from 16% to 14% on all goods
CIGARETTES TO BE TAXED MORE
Customs on steel melting, aluminium melting cut to 0% vs 5%
Customs duty on phosphoric acid cut to 5% vs 7.5%
Few IT, hardware components exempted from customs duty
TAX: no duty on set-top boxes
Customs duty on few bulk drugs cut to 5% vs 10%
Customs duty on project imports cut to 5% vs 7.5%
Customs duty on steel scrap cut to 0% vs 5%
No change in peak customs duty
Fiscal target under FRBM Act to be met
Revenue deficit for 2007-08 at 1.4% against estimated 1.5%
FY09 fiscal target at 2.5% of GDP
Current yr fiscal deficit at 3.1% vs Budget est of 3.3%
Plan expenditure estimate at Rs 2,43,386 cr
Rs 50 cr to National Tiger Conservation Authority
Allocation of Rs 624 cr in 2008-09 for Commonwealth Games
6th Pay Commission to submit report by March 31
Three schemes to be introduced for providing social security to unorganised sector workers.
Rs 750 crore for upgradation of 300 ITIs in 25 districts.
Rs 32,676 crore as subsidy to Public Distribution System.
PDS -- Public Distribution System -- through smart cards in Haryana and Chandigarh to start on pilot basis.
Defence allocation upped to Rs 1,05,000 cr from Rs 96,000 cr
Defence allocation hiked by 10%
Differences in state duties, levies hampering securities mkt
States to help develop national securities market
Allocation for TUF at Rs 1090 cr up from Rs 911 cr
PAN requirement extended to all financial mkts
PAN sole identification in securities market
Allocation for Textile Upgradation Fund to be more than doubled.
To launch exchange traded forex, rate derivative mkt
Dollar sterilisation cost via MSS at Rs 8,351 cr for 2007-08
To allocate Rs 12,966 cr to National Highway Plan in FY09
To create risk capital fund in SIDBI
Urge to open bidding for 5 more UMPPs
Rs 450 cr provision for textile parks
All 30 integrated textile parks approved
NELP-VII to attract investments worth $3.5-8 bn
Coal regulator to be established, more reforms in coal, electricity
National fund for power transmission, distribution
Plan Rs 800 cr for accelerating power reform in FY09
Bank of Mah says should not be negative if govt reimburses
Growth in cap goods still healthy at 20.2%
Looking at moving to nutrient-based fertiliser subsidies
FDI in Apr-Dec USD12.7 bn; FII USD18 bn
Rs 50,000 cr WAIVER FOR FARMERS
Total agri loan waiver estimated at Rs 50,000 cr
Debt waiver scheme to be completed by June 2008
Rescheduled loans also eligible for waiver
One-time settlement scheme for other farmers
Waiver amounts to 4% of total bank loans
Complete loan waiver for marginal farmers with 1-2 hec holding
Complete waiver of all loans to marginal & small farmers
Scheme of debt waiver and relief for Small and marginal farmers
Govt proposes move to nutrient based fertilser subsidies scheme
Rs 18 cr allocated for coffee in FY09
National agri insurance plan to get Rs 64 cr in FY09
Perpetual fund for rubber, cardamom in FY09
Rubber Fund to get Rs 19 cr in FY09
Special purpose tea fund to get Rs 40 cr in FY09
Irrigation resources fin to have Rs 100 cr capital
To set up irrigation, water resources finance corp
24 major, 750 irrigation projects in FY09
FY09 Irrigation outlay seen at Rs 20,000 cr Vs Rs 11,000 cr
Aim to hike farm contribution to GDP to 1.6% in 11th Plan
75% farm credit by Scheduled Cmmercial Banks
288 PSU Bank Branches to be opened in backward areas by March
Plan addl Rs 10,000 cr capital expenditure this year
Agri credit target at Rs 2.8 lakh cr for 2008-09
LIC to cover all women SHGs linked to Banks
3 National Fin Corporations for weaker sections get Rs 105 Cr
Allocation To Ministry For Minorities Doubled To Rs 1000 Cr
National Minority Development Fin Corporation gets Rs 75 cr
Allocation to North-East at Rs 16,447 cr vs Rs 14,365 cr
Rs 300 cr allocated to desalination plant to be set up near Chennai
Rajiv Gandhi Drinking Water Mission To Get Rs 7300 Cr From Rs 6500 Cr
Allocation to ICDS hiked to Rs 6,300 cr
Allocation To JNURM Hiked To Rs 6,866 Cr From Rs 5,482 Cr
NREGS extended to all 596 rural districts; allocated Rs 16,000 cr
Rs 1,042 cr allocated for Polio eradication in UP, Bihar
Health Cover Of Rs 30,000 For Every Worker In BPL Category
To allot Rs 100 cr to IT Ministry to link knowledge institutes
Impact of US slowdown on EMs not clear
Allocation of Rs 16,534 cr for health in '08-'09
National Rural Health Mission Allocation Hiked by 15%
Govt To Set Up 3 IITs; One Each In AP, Bihar, Rajasthan
To set up 3 IISCs in Bhopal and Trivandrum
Midday meal scheme extended to upper primary classes in all blocks
Sarva Shiksha Abhiyan will be provided Rs 13,100 cr
16 Central Universities To Be Set Up
6,000 high quality schools to be built by FY09
FY09 Gross Budgetary Support At Rs 2.4 Lakh Cr
Education, health allocation up 20%
Bharat Nirman Programme gets allocation of Rs 31280 cr
'Can Do Better' On Ensuring More Inclusive Growth
FY08 Farm Growth Seen At 2.6%
Agri Credit Doubled In First 2 Yrs Of UPA Govt
Need to be vigilant on global risks
Govt, RBI To Jointly Take Temporary Steps To Manage Cap Inflows
Capital Inflows In Excess Of Economic Deficit
To Take Steps On Foreign Inflows To Ensure Stable Mkts
Govt will monitor foreign fund inflow: FM
Global Markets Weak Since Aug, Impact On Local Market Unclear
8% GDP Growth In 12 Successive Quarters
Keeping inflation under check cornerstone of govt policy
FM Says Confident Of Maintaining 8.8% GDP Growth
Agriculture estimated to grow at 2.6% in FY08
Q3 Mfg Growth At 9.3% Vs 11.3% (YoY)
Q3 Farm Growth At 3.2% Vs~3.4% (YoY)
Q3 GDP At 8.4% Vs 9.1% (YoY)
Direct tax proposals revenue neutral
Central Sales Tax cut to 2% from 3%
Banking cash transaction tax withdrawn
Securities Transaction Tax (STT) rates unchanged
DDT unchanged at 15%
Govt to introduce commodities transaction tax, like STT
Five year tax holiday for promoting cultural tourism.
Five year tax holiday for setting up hospitals in tier II and tier III regions for providing healthcare in rural areas from April 1, 2008.
Fresh facilities, encouragement to sports and guest houses exempted from Fringe Benefit Tax.
Levy of STT only on option premiums
Short-term cap gains hiked to 15%
Fresh facilities, encouragement to sports and guest houses exempted from Fringe Benefit Tax.Production of seeds added to VAT list
5-year tax holiday for setting up hospitals in non-urban cities
10% income tax for income in the range of Rs 1.5-3 lakh
30% Income Tax For Income above Rs 5 Lakh
No change in corporate tax
Personal income tax exemption slab for women at Rs 1.8 lakh
PERSONAL INCOME TAX EXEMPTION SLAB AT RS 1.5 LAKH
Filter, non-filter cigarettes to be taxed at par
Excise duty on bulk cement at Rs 400/tonne
Exise cut on all pharma goods at 8% vs 16%
Excise duty on some paper types cut to 10% from 12%
Excise duty on hybrid cars cut from 24% to 14%
Excise duty on buses & chassis cut from 16% to 12%
Customs exempt to continue only for naptha for fertilisers
CENVAT reduced from 16% to 14% on all goods
CIGARETTES TO BE TAXED MORE
Customs on steel melting, aluminium melting cut to 0% vs 5%
Customs duty on phosphoric acid cut to 5% vs 7.5%
Few IT, hardware components exempted from customs duty
TAX: no duty on set-top boxes
Customs duty on few bulk drugs cut to 5% vs 10%
Customs duty on project imports cut to 5% vs 7.5%
Customs duty on steel scrap cut to 0% vs 5%
No change in peak customs duty
Fiscal target under FRBM Act to be met
Revenue deficit for 2007-08 at 1.4% against estimated 1.5%
FY09 fiscal target at 2.5% of GDP
Current yr fiscal deficit at 3.1% vs Budget est of 3.3%
Plan expenditure estimate at Rs 2,43,386 cr
Rs 50 cr to National Tiger Conservation Authority
Allocation of Rs 624 cr in 2008-09 for Commonwealth Games
6th Pay Commission to submit report by March 31
Three schemes to be introduced for providing social security to unorganised sector workers.
Rs 750 crore for upgradation of 300 ITIs in 25 districts.
Rs 32,676 crore as subsidy to Public Distribution System.
PDS -- Public Distribution System -- through smart cards in Haryana and Chandigarh to start on pilot basis.
Defence allocation upped to Rs 1,05,000 cr from Rs 96,000 cr
Defence allocation hiked by 10%
Differences in state duties, levies hampering securities mkt
States to help develop national securities market
Allocation for TUF at Rs 1090 cr up from Rs 911 cr
PAN requirement extended to all financial mkts
PAN sole identification in securities market
Allocation for Textile Upgradation Fund to be more than doubled.
To launch exchange traded forex, rate derivative mkt
Dollar sterilisation cost via MSS at Rs 8,351 cr for 2007-08
To allocate Rs 12,966 cr to National Highway Plan in FY09
To create risk capital fund in SIDBI
Urge to open bidding for 5 more UMPPs
Rs 450 cr provision for textile parks
All 30 integrated textile parks approved
NELP-VII to attract investments worth $3.5-8 bn
Coal regulator to be established, more reforms in coal, electricity
National fund for power transmission, distribution
Plan Rs 800 cr for accelerating power reform in FY09
Bank of Mah says should not be negative if govt reimburses
Growth in cap goods still healthy at 20.2%
Looking at moving to nutrient-based fertiliser subsidies
FDI in Apr-Dec USD12.7 bn; FII USD18 bn
Rs 50,000 cr WAIVER FOR FARMERS
Total agri loan waiver estimated at Rs 50,000 cr
Debt waiver scheme to be completed by June 2008
Rescheduled loans also eligible for waiver
One-time settlement scheme for other farmers
Waiver amounts to 4% of total bank loans
Complete loan waiver for marginal farmers with 1-2 hec holding
Complete waiver of all loans to marginal & small farmers
Scheme of debt waiver and relief for Small and marginal farmers
Govt proposes move to nutrient based fertilser subsidies scheme
Rs 18 cr allocated for coffee in FY09
National agri insurance plan to get Rs 64 cr in FY09
Perpetual fund for rubber, cardamom in FY09
Rubber Fund to get Rs 19 cr in FY09
Special purpose tea fund to get Rs 40 cr in FY09
Irrigation resources fin to have Rs 100 cr capital
To set up irrigation, water resources finance corp
24 major, 750 irrigation projects in FY09
FY09 Irrigation outlay seen at Rs 20,000 cr Vs Rs 11,000 cr
Aim to hike farm contribution to GDP to 1.6% in 11th Plan
75% farm credit by Scheduled Cmmercial Banks
288 PSU Bank Branches to be opened in backward areas by March
Plan addl Rs 10,000 cr capital expenditure this year
Agri credit target at Rs 2.8 lakh cr for 2008-09
LIC to cover all women SHGs linked to Banks
3 National Fin Corporations for weaker sections get Rs 105 Cr
Allocation To Ministry For Minorities Doubled To Rs 1000 Cr
National Minority Development Fin Corporation gets Rs 75 cr
Allocation to North-East at Rs 16,447 cr vs Rs 14,365 cr
Rs 300 cr allocated to desalination plant to be set up near Chennai
Rajiv Gandhi Drinking Water Mission To Get Rs 7300 Cr From Rs 6500 Cr
Allocation to ICDS hiked to Rs 6,300 cr
Allocation To JNURM Hiked To Rs 6,866 Cr From Rs 5,482 Cr
NREGS extended to all 596 rural districts; allocated Rs 16,000 cr
Rs 1,042 cr allocated for Polio eradication in UP, Bihar
Health Cover Of Rs 30,000 For Every Worker In BPL Category
To allot Rs 100 cr to IT Ministry to link knowledge institutes
Impact of US slowdown on EMs not clear
Allocation of Rs 16,534 cr for health in '08-'09
National Rural Health Mission Allocation Hiked by 15%
Govt To Set Up 3 IITs; One Each In AP, Bihar, Rajasthan
To set up 3 IISCs in Bhopal and Trivandrum
Midday meal scheme extended to upper primary classes in all blocks
Sarva Shiksha Abhiyan will be provided Rs 13,100 cr
16 Central Universities To Be Set Up
6,000 high quality schools to be built by FY09
FY09 Gross Budgetary Support At Rs 2.4 Lakh Cr
Education, health allocation up 20%
Bharat Nirman Programme gets allocation of Rs 31280 cr
'Can Do Better' On Ensuring More Inclusive Growth
FY08 Farm Growth Seen At 2.6%
Agri Credit Doubled In First 2 Yrs Of UPA Govt
Need to be vigilant on global risks
Govt, RBI To Jointly Take Temporary Steps To Manage Cap Inflows
Capital Inflows In Excess Of Economic Deficit
To Take Steps On Foreign Inflows To Ensure Stable Mkts
Govt will monitor foreign fund inflow: FM
Global Markets Weak Since Aug, Impact On Local Market Unclear
8% GDP Growth In 12 Successive Quarters
Keeping inflation under check cornerstone of govt policy
FM Says Confident Of Maintaining 8.8% GDP Growth
Agriculture estimated to grow at 2.6% in FY08
Q3 Mfg Growth At 9.3% Vs 11.3% (YoY)
Q3 Farm Growth At 3.2% Vs~3.4% (YoY)
Q3 GDP At 8.4% Vs 9.1% (YoY)
Union Budget 2008-2009- Sector Impact
- Sector Impact
Corporate Bond market to reduce Interest Costs: Positive For Infrastructure Companies
10% Higher Defence Allocation: Positive BEL, BEML, Astra Micro, Zen, M&MSmart Cards for PDS, National Electronic Trading Projects: TCS, HCL in Focus
NELP VII focus: Positive for E&P Cos and FDI in Oil & Gas Sector
Higher Outlay for Swan Project; Focus Tulip IT
Higher TUF Outlay: Positive Textile companies
New T&D Fund; Positive for Areva T&D, Jyoti Structures, EMCO
Urge To Open Bidding For Five More UMPP's: Positive for Power Generation Companies
Subvention Payment To Neutralize: Negative Impact For PSU Banks
Higher Rural Thrust; PSU Bank's Credit Quality To Be Impacted
Farmer Oriented Policies: Positive For Oswal Chem, Deepak FertFarmer Oriented Policies: Positive For Advanta, Kaveri Seeds
Shift To Nutrient Based Subsidy Mooted: Positive for Fertiliser Co's
Govt To Waive Off Agri Loans; Negative For PSU Banks Crop Insurance Scheme for Tea; Positive for Jayshree Tea, Williamson
Higher Rural Thrust; PSU Bank's Credit Quality To Be Impacted
Higher Focus on Seed Cultivation; Positive for Monsanto, Advanta
Higher Irrigation Outlay: Positive for Welspun Guj, Jindal Saw, Ratnamani
Increased Subvention from Govt for Agri Loans; Positive For All PSU Banks
Higher Agri Credit: Positive for Punjab Tractors, Jain Irrigation
Increased Allocation to Bharat Nirman Program; Positive For Infra Sector
Increase In Education Spending; Positive For Paper Prod, Todays Writing
Increase In Education Spending: Positive For Malu Paper,Rama Newsprint
Increased Focus On Health Sector; Positive For Pharma CosHigher Outlay For Polio, HIV Eradication; Positive for Panacea Biotech & Cipla
Educational sector: Employment pool for KPO's will benefit IT sector
20% Higher Outlay For Education; Positive for Educomp, Everonn, Aptech, NIIT, Navneet Publication
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