Union Budget Preview 2011-12: Fairwealth Securities
Fairwealth Securities has come out with a report on Union Budget Preview 2011-12.
February 23, 2011 / 13:58 IST
Fairwealth Securities has come out with a report on Union Budget Preview 2011-12.
Union Budget Preview 2011-12:Actions taken in FY11:- Disinvestments worth ~ Rs 227 billion
- Allocation of 3G spectrum and Broadband Wireless Access that fetched over Rs 1000 billion
- Increased Spending on Infrastructure and Social sector
Grey Areas that remain a major cause of Concern:- High WPI Inflation, especially food inflation
- Current Account Deficit at elevated levels
- Fiscal Deficit that may further widen in FY12 in the absence of appropriate measures
- Rising prices of Crude oil that may stoke fuel inflation further and fiscal deficit in case crude oil prices go beyond USD 100 per barrel and Government continues to bear the fuel subsidy
Actions Expected in Union Budget 2011-12:- Tax reforms such as implementation of GST and DTC
- De regulation of Diesel Prices to contain under recoveries
- Subsidies to Oil and Gas, Fertilizer, Food etc
- Relaxation of FDI norms in sectors like BFSI, Media, Retail etc
- Restoration of Service tax to 12%
- Introduction of Infrastructure fund
Key Expectations
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