Budget 2008-09 impact analysis: Ventura Sec
2008-03-01 14:46:58 Source : Moneycontrol.com Print Version
Ventura Securities has come out their budget (2008-09) analysis report. According to the report, “The budget, coming on the backdrop of global slowdown and uncertain international stock markets, has tried to be both prudent and progressive. The farm loan waiver, increasing in IT limit, cut in excise duty all point to an effort that is aimed in ensuring that the growth engine does not slow down”
Report says, “ At the least case, Indian economy is expected to grow at 8.7% as per estimates. The growth story that got started in 2003-04 is very much in place and was largely driven by the domestic consumption. India is one of the few countries that is domestic led economy save and except may be Software. This budget has given the financial stimulus by cutting duties, increasing IT limit thereby not only getting goods to be cheaper but leaving more money in the hands on the consumer and both these acts would push consumption.
The report also says that it is a Dream Budget for farmers.
“Debt waiver has been the highlight of this budget not only for its impact on farmers but also on the financial health of the banking system. It needsto be understood that the entire write off of Rs 60,000 crore is about 2.75% of the total assets in the banking system. Of these some must have already been provided as per the prudential norms prescribed by RBI that is followed by all banks. Whilst the total figure is known, it is not known as to how much will each and every bank will have to provide and this will play out over a period of time. There might be some trepidation in so far as investments in banks are concerned as the amount has not been provided in the budget though the government is confident of finding ways to compensate and are yet to spell it out.”
Key Highlights of Budget 2008-09
For further detail on budget highlights and impact on sectors click on attachment......