About Rs 295 crore has been earmarked for expenditure on salaries and travel by Cabinet ministers, ministers of state and ex-prime ministers for the 2018-19 financial year, which is a reduction of 29 per cent from over Rs 400 crore allocated for the ongoing fiscal.
Bankers have hailed the Budget as a holistic document addressing key issues to push growth, but have flagged concerns on expenditure overruns.
"Directionally, this Budget will not have much impact on the equity market, it will move largely on relative valuation and earnings growth in FY19," says Shailendra Kumar, CIO at Narnolia Securities Limited.
Budget 2018 continued to put a strong focus on infrastructure development, which is in line with the expectations, says Rakesh Tarway Head Research, Reliance Securities.
The government through the much awaited budget announced bonanzas to farmers and to micro-small-and medium enterprises. Infrastructure, healthcare and education also highlighted in the speech
"Overall, the thrust of this budget is on infrastructure development, which is what the tourism industry has always represented to the government," says Peter Kerkar, Group, CEO, Cox & Kings Ltd.
The fiscal deficit, at 3.5 percent in FY18 is, on expected lines and the projected number for FY19, at 3.3 percent, should not go down too badly with the market or rating agencies in the long term.
The Budget has taken India’s middle class out of equation and is a disappointment for investors, senior journalist and market expert Udayan Mukherjee told Moneycontrol Editor Santosh Nair, analysing an event that has been dubbed ‘election Budget’.
As investors, the most impactful budget provision was the re-introduction of LTCG at 10 percent on equities after a long break of 13 years, writes Kalpen Parekh
The mobile phone industry has appreciated the budget proposal to hike customs duty on mobile phones saying it will increase the share of local manufacturing.
Also, he said the government will come out with road map to effectively tackle the issue pertaining to non-performing assets and stressed accounts of micro, small and medium enterprises.
In the Budget for 2018-19, Finance Minister Arun Jaitley increased custom duty on CKD (completely knocked down) imports of motor vehicles, motor cars, motor cycles from 10 per cent to 15 per cent. Further, duty on CBU (completely built units) imports of motor vehicles (trucks and buses) has been hiked from 20 per cent to 25 per cent.
The Minority Affairs Minister said the budgetary allocation to his ministry has been increased from Rs 4,197 crore in 2017-18 to Rs 4,700, which is a raise of Rs 505 crore.
In his first reaction after the presentation of the budget, Modi congratulated Finance Minister Arun Jaitley and his team while emphasising that the budget prepared by them will create new opportunities for rural India.
Already the individual tax payer was getting benefit of Rs 19,200 under transport allowance and Rs 15,000 crore under the medical allowance. Both these components add to the tax benefit of Rs 34,200 crore per annum.
The government today said it would provide tax relief to facilitate insolvency resolution proceedings to help make stressed companies more attractive to potential buyers.
According to a document of the Budget for 2018-19, the allocation has been significantly hiked for "Regional Directors, Official Liquidators and Other Expenditure with reference to various bodies under Companies Act".
In an interview with CNBC-TV18, Hasmukh Adhia, Secretary, Finance, Ajay Narayan Jha, Secretary, Expenditure, Rajiv Kumar, Vice Chairman at NITI Aayog, Subhash Garg, Secretary, Economic Affairs, Arvind Subramanian, Chief Economic Advisor, Neeraj Kumar Gupta, Secretary, DIPAM, Rajiv Kumar, Secretary, Department of Financial Services, Vanaja N Sarna, Chairman at CBEC, Sushil Chandra, Chairman of CBDT and Ravi Shankar Prasad, Minister for Law & IT gave their take on Arun Jaitley's Union Budget 2018 and their outlook on the road ahead.
Spent on rural roads out of total allocation for Rural development is also enhanced in big way and these will boost demand industries explosives.
The need to boost agriculture is understandable. After all, this is the sector that has been languishing for long.
Subsidies on food, fertiliser and petroleum have been pegged higher by 15 per cent to Rs 2.64 lakh crore for the 2018-19 fiscal.
The BHIM app, which was launched by the government in December 2016 has recorded around over 2.2 crore downloads so far
Bihar Chief Minister Nitish Kumar today lauded the Union Budget, saying it contained appreciable initiatives for the agriculture and health sectors.
The government will borrow Rs 4.07 lakh crore from the market in 2018-19, around Rs 73,000 crore lower than the current fiscal.
Nearly 24 CPSEs are up for strategic divestment and all are progressing well, said DIPAM Secretary Neeraj Kumar Gupta.