Real-time Stock quotes, portfolio, LIVE TV and more.
Feb 27, 2010, 12.35 PM IST
Padmakshi Financial Services has come out with its analysis for Budget 2010. According to the research firm, this budget proposal may impact negative for Aviation, Automobile, Banking & Finance, FMCG & Food Processing while Hotel, Infrastructure / Construction may see positive impact.
Padmakshi Financial budget analysis 2010:
Reduction in Fiscal Deficit and Interest Rate Stability:
Maintaining high GDP growth in the range of 8‐9% and at the same time narrowing the fiscal deficit was the focus of the budget FM announced to reduce the gap to 5.5% of GDP in the year starting April 1 from 6.9% the previous year. Reduction in fiscal deficit expected to be achieved through: • Divestment in PSUs to the tune of Rs. 40,000 crores • 3G spectrum auction expected to generate Rs. 35,000 crores • Direct/Indirect Tax contribution approx. Rs. 5.8 Lakh crores Government also plans to scale down its borrowing program to 3.4 Lakh crores for 2010‐2011 as against 4.5 Lakh crores for the year 2009‐2010. The reduced government borrowing program is a positive sign for the Bond Market as the Interest Rate environment will remain stable.
Inflation: This budget will sow seeds for higher inflation. The higher tax exemption for individuals is likely to increase the disposable income to the tune of Rs. 26,000 crores. Also, higher fuel prices along with the stimuli‐rollback in the form of excise duty hike by 200 bps will also lead to higher prices.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click here
May 20 2013, 12:21
- in Rupee
May 20 2013, 12:21
- in Commodities