Union Budget 2022 Highlights: The Union Budget is the annual report of India as a country. It contains the government of India's revenue and expenditure for the end of a particular fiscal year, which runs from April 1 to March 31. The Union Budget is the most extensive account of the government's finances, in which revenues from all sources and expenses of all activities undertaken are aggregated. It comprises the revenue budget and the capital budget. It also contains estimates for the next fiscal year. Keeping with recent tradition, Union Finance Minister Nirmala Sitharaman is expected to announce Union Budget 2022 on February 1 this year. This will be preceded by a virtual meeting of the Rajya Sabha floor leaders, ahead of the budget session of the Parliament, will be held on January 31. The meeting will be chaired by Chairman of the House and Vice President M Venkaiah Naidu. This year will be Sitharaman's fourth Budget after 2019, 2020 and 2021. She had read out the Budget from a tablet last year in parliament.
We can also await the "halwa ceremony", which is generally organised at the Finance Ministry headquarters in the Secretariat building’s North Block basement in the national capital. The Finance Minister kicks off the celebrations by stirring the dessert in a traditional kadhai (cauldron) and then serves it to her colleagues. The ministers of state (MoS Finance) and other top officials of the ministry are present during the ceremony. This ritual also sets the stage for a significant event soon after. The North Block becomes Fort Knox for 10-odd days up to the presentation of the Budget, where all officials and staff involved in the Budget-making process isolate themselves to maintain rigid secrecy about the document. The tradition has been carried out for decades in the basement of the North Block that also houses the special printing press, which printed the Budget documents from 1980 until 2020.
This live blog session has ended. Stay tuned to MoneyControl for more updates.
Budget 2022 | Present tax deduction rate on health insurance premiums should be increased, says SANA Insurance Brokers' Srinath Mukherji
Health insurance is no longer an option but a necessity, the importance of which was reinforced during the pandemic. However, India still remains largely underinsured due to household budget constraints, which can be corrected to a large extent if the government were to consider the following suggestions:
(A) Reduction in GST: Imposing 18% GST on health insurance premiums is a deterrent for the uninsured consumer to seek health insurance which is indispensable, now more than ever. Given that healthcare services carry nil to low GST in our country, nullifying the health insurance tax rate or reducing it to make it commensurate with medical services taxation will be a huge incentive for buyers, and will make health insurance more affordable for the middle- and lower-income groups.
(B) Higher tax benefits on health insurance premiums:The present tax deduction rate on health insurance premiums as per Section 80D of the Income Tax Act should be increased. It is recommended to double the 80D limitsfrom the current levels of Rs. 25,000 for individuals and Rs. 50,000 for senior citizens. These limits have not been revised for a few years now. Furthermore, the pandemic has led to increase in medical inflation as well as health insurance premiums. Increasing the tax benefits would motivate personal financial planning while boosting the disposable income of the working-class populace. This could in turn be utilized to opt for more comprehensive health insurance plans with enhanced sum insured and coverage. It would also help to improve health insurance penetration by encouraging people to purchase medical insurance, thereby allowing access to much needed high-quality medicare and treatment.
Budget 2022 | PLI Schemes must be extended to Robotics sector, says Addverb Technologies' CEO Satish Shukla
"During Covid-19, it became pretty evident that the entire premise of depending on the global supply chain won't work in the Covid era and to avoid disruptions India would need its own manufacturing base. Subsequently, the government has taken crucial steps in this direction by introducing the PLI Schemes, these PLI Schemes must also be extended to the Robotics sector as this will encourage global players to Make-In-India and also give a boost to Indian robotics companies. At present many Indian companies are importing the robots from outside, especially China and Robotics as a sector is poised for growth globally."
Budget 2022 | Expect govt will bring long-awaited National Logistics Policy into action, says FarEye's CEO Kushal Nahata
“We expect the government to bring the long-awaited National Logistics Policy (NLP) into action. The logistics industry is the backbone of the economy and the policy will help ease bottlenecks, and reduce costs. India’s logistics cost is approximately 14% of its GDP. The government must decrease the logistics cost to 8-10% of the GDP and bring it at par with other developing countries. The wide-ranging reforms in the NLP will act as a catalyst in making India a $5-trillion economy.
We want policy reforms that accelerate the pace of digitalisation to ensure sustainable growth in the future. We hope that the Union Budget will focus on increasing investments in modern technologies like AI, ML and Blockchain for greater transparency and cost management in the logistic industry.
We are expecting the government to fast track the new warehousing policy which focuses on the development of exclusive warehousing zones. 2022 also needs to expedite the creation of an online logistics marketplace that brings various stakeholders like LSPs, government agencies, rail, road and air cargo on a single platform."
Budget 2022 | Budget should provide consideration to boost liquidity support to NBFCs, says U Gro Capital's Shachindra Nath
"Union Budget 2022-23 is highly crucial to align Indian economy’s growth trajectory. It is essential that the Hon'ble Finance Minister announces effective measures to enable speedy recovery and growth of the MSMEs, considering the sector’s significant contribution to the economy. It is encouraging to see Government’s support for the MSME sector in last 12-15 months and we believe the efforts will only become more prominent in the time to come.
In past few years, operationally nimble and technologically oriented NBFCs and Fintechs have deepened the credit penetration to the underserved regions of the country. Hence, in the upcoming budget, policymakers should provide due consideration to boost liquidity support to the NBFCs as well as encourage frameworks like co-lending, which will greatly boost the reach of financial institutions and progress in the financial inclusion imperative. EASE 4.0 talks about Co – Lending between Banks and NBFC as a means to increase the credit penetration, however the treatment of Tax Deduction at Source (TDS) treatment for NBFC and Banks are different and that is proving to be a major operational challenge to accelerate credit. It is expected that TDS rules would be harmonised between Banks and NBFCs."
Budget 2022: Budget should ease off tax burden of 18% on term insurance policies, says Bharti AXA's Parag Raja
Sharing his expectation on the upcoming Budget, Bharti AXA Life Insurance's CEO Parag Raja opined that the government should ease off the tax burden of 18% on term insurance policies and bring down the GST rate in the range of 2-5% to benefit end users.
He said, "The ongoing pandemic has made Indians realise the importance of term insurance for the safety and security of their family. With the current level of under-penetration, the key task at hand is to make this significant financial protection tool more affordable for the masses and lucrative for taxpayers. We therefore propose to ease off the tax burden of 18% on term insurance policies and bring down the GST rate in the range of 2-5% to benefit end users."
He added, "For many years, life insurance is clubbed u/s 80C and the maximum tax benefit of Rs. 1,50,000 that an individual can avail gets divided with Pension Fund, NSC, PPF, SCSS, ELSS Mutual Funds, 5 years Bank FDs and Post Office Deposits. We propose a separate section under the income tax act which allows individuals to opt for an additional deduction over and above 80C for investing in a Life Insurance policy. With an increase in re-insurance premiums amidst the pandemic, there is also a need to provide enhanced deduction for insurance premium irrespective of the taxation regime opted by individuals/ HUF. This will reduce the social security burden of the Government."
Budget 2022: Natural gas sector seeks govt's focus to promote domestic producers
With Union Finance Minister Nirmala Sitharaman likely to present the Budget 2022, natural gas sector is seeking the governemnt;s focus to promote domestic producers.
Essar Exploration and Production Limited's Pankaj Kalra CEO opines, “The Union Budget 2022 is expected to provide the much needed boost to growth and recovery of the economy. With the Natural gas sector looking to be a major component in India’s energy economy and growth, the Government should have a strong focus to promote the domestic Natural Gas producers, which as a sector has seen limited progress.
GST has been a game changer for various sectors and one of the major and long standing demands of the Natural Gas sector is the inclusion of this sector in the GST gambit. Similarly the Govt. of India has announced a system of Production Linked Incentive (PLI) Schemes across 13 key sectors, including Renewables. The Natural Gas producers are committed to the cause of maximizing gas production in line with the vision of a National Gas based economy. Therefore, Natural Gas producers should also be included as a part of this incentive scheme, which will give them the required boost.
Decarbonizing the energy sector in India is also another aspect which is set to grow significantly in view of the COP 26 declaration of a 2070 timeframe. As energy transition processes are implemented by hydrocarbon producers, a comprehensive carbon trading policy and platform is very crucial, which will leapfrog the transition.”
Budget 2022: Centre to stay focused on capex to solve growth conundrum
Over the past few years, the government has had to repeatedly address a slowdown in economic growth. And even as it attempted to do so, the economy kept suffering fresh setbacks. First came the withdrawal of high-value banknotes in 2016. The adjustment pains caused by the 2017 implementation of the Goods and Services Tax (GST) regime followed. By late 2019, growth was said to be bottoming out, only for the coronavirus disease pandemic to send the economy into a technical recession in 2020. Unlike some other countries, India chose to tackle the economic fallout of the pandemic not through a consumption boost but a series of investment-promoting measures. The 2022 Budget is likely to be another step on this well-trodden path.
"The stance of the government over the last few years has been to promote investment-driven growth. Indeed, measures taken – such as reduction of corporate tax rates, unveiling the National Infrastructure Pipeline of Rs 102 lakh crore, and steps to promote domestic manufacturing through incentives under the production-linked incentive scheme – all point in the direction of promoting capex-driven growth," Morgan Stanley's economists noted last week.
According to the median of a Moneycontrol survey of 11 economists, the Centre may peg its capital expenditure target for FY23 at Rs 6.5 lakh crore. This would be over 17 percent higher than the FY22 Budget estimate. Of course, indications are that the target for FY22 may be beyond the Centre's reach. Read more here.
Budget 2022: All about 'halwa ceremony' and its significance
Union Finance Minister Nirmala Sitharaman will present the Budget for fiscal year 2022-23 on February 1, the tone of which will be set with the "halwa ceremony" - a tradition that marks the final stage of the Budget-making process. The "halwa ceremony" is generally organised at the Finance Ministry headquarters in the Secretariat building’s North Block basement in the national capital. The Finance Minister kicks off the celebrations by stirring the dessert in a traditional kadhai (cauldron) and then serves it to her colleagues. The ministers of state (MoS Finance) and other top officials of the ministry are present during the ceremony.
This ritual also sets the stage for a significant event soon after. The North Block becomes Fort Knox for 10-odd days up to the presentation of the Budget, where all officials and staff involved in the Budget-making process isolate themselves to maintain rigid secrecy about the document. Even the Finance Minister is bound by strict rules. However, she is the only one allowed to move in and out of the building during this period. Last year officials did not have to stay back as a paperless Budget was presented for the first time ever. Read more here.
Budget Chart of the Day: The pandemic tripped capex, will Budget help revive it? (MC PRO)
Capex growth in FY21 slumped, with most sectors seeing a deceleration. How’s the situation in FY22?... Read More
Budget 2022: How does the government’s budget impact fiscal deficit and the value of financial assets?
Covid-19 led to a massive transformation in fiscal and monetary policies across the globe. The reason was pretty evident–to reduce the damaging impact of the virus on growth, the economies needed artificial support and the policy making strived to provide it. We saw a coordinated monetary and fiscal action, with the government borrowing more to spend more and the central banks reducing rates to help the government borrow easily. This, however, is the outcome and not the objective. The objective of both actions was higher growth while having prices under control. It means maintaining a fine balance.
The government has to strike the ‘right’ fiscal-deficit target to keep the economy growing while also keeping it from overheating. Read full here.
Budget 2022: Thermal power companies eye coal-cess cut, signals on GST for electricity
Thermal power generation companies are pegging their hopes on finance minister Nirmala Sitharaman to recommend that electricity be brought under the purview of the goods and services tax in the upcoming Union Budget, which would translate into lower tariffs for consumers. The companies are also seeking a waiver or reduction of coal cess for power producers that have complied with sulphur oxide norms by adapting flue-gas desulphurisation equipment to significantly reduce emissions.
-- GST inclusion
-- Coal cess
-- Power infrastructure
Read more here
Daily Voice | As state polls near, Manish Jain of Ambit expects a game-changer Budget 2022
Finance Minister Nirmala Sitharaman will present the Union Budget at a time when the country looks for bold steps towards infrastructure upgrade, rural housing and income generation, among a host of other areas that call for serious measures as the economy wriggles out of the pandemic blues.
“In the run-up to the elections, we would expect a strong growth-oriented Budget and that can be a game-changer,” says Manish Jain, who is the Fund Manager at Ambit Asset Management. Sharing his views with Moneycontrol, Jain says he expects status quo on direct taxes in the Budget. Read the interaction here.
A Year After Budget 2021, I-T Department Clarifies Taxation Rules Of ULIP Gains
The renewal premiums paid on Ulips bought before February 1, 2021, will continue to be tax-exempt... Read More
Budget Expectations: KPMG's Top India Union Budget 2022-23 expectations
-- Tax neutrality for outbound mergers: extending tax neutrality to outbound mergers involving Indian entities in light of the increase in cross border merger activity
Reduction in headline corporate tax rate for foreign companies (including bank branches): reduction in headline corporate tax rate for foreign companies including bank branches to harmonise them with rates applicable to domestic companies.
-- Relaxation of tax deducted at source (TDS)/tax collected at source (TCS) provisions: all securities (including derivatives) should be specifically excluded from the ambit of TDS /TCS provisions applicable to purchase/sale of goods.
-- Rationalisation of provisions applicable to NBFCs: harmonising tax provisions applicable to NBFCs with banks including specifically by increasing the limit of deduction for NPA provisions, exempting TDS on interest income and exempting them from thin-capitalisation provisions.
-- Exemption for dividend income received from Companies operating in Indian Financial System Centre (IFSC): under the erstwhile dividend taxation scheme, companies operating in IFSC were exempt from applicability of dividend distribution tax (DDT). After the change in the dividend tax regime, dividend is made taxable in hands of shareholder. An exemption should be accorded to dividend income in the hands of shareholder received from a Company operating in IFSC
-- Petroleum under GST: consider the inclusion of petroleum products under GST regime
-- Input Tax Credit on goods/services used in Corporate Social Responsibility (CSR) activities: allowing input tax credit on goods and services used for CSR activity during the pandemic, especially considering that many companies have undertaken significant welfare measures in kind by supplying free PPE kits, sanitizers, masks and other necessities to government, local bodies and healthcare workers as a part of their CSR initiatives. (2/2)
Budget Expectations: KPMG's Top India Union Budget 2022-23 expectations
-- Realignment of income slabs/tax rates: realignment of income slabs and tax rates for individuals under both the normal and concessional tax regimes
-- Covid related relief: clarity on non-taxability of Covid vaccination and other medical supplies / benefits provided by employers to employees and their family members. Additionally, given the substantial costs involved in Covid treatment in hospitals, provision of a separate deduction for such treatment costs incurred by taxpayers for self or their family
-- BEPS 2.0 Implementation: clarity on the timelines for implementation of Pillar 1 and Pillar 2 proposals in India (including timelines for withdrawal of equalisation levy) and enabling a public consultation on implementing legislation prior to enactment
-- Significant Economic Presence (SEP) implementation: framing of rules for determining income that is attributable to an SEP in India. Exemption from return filing requirements for non-residents having an SEP in India if their income is not taxable under treaties
-- Weighted Deduction for Research and Development (R&D) expenses: reinstatement of the weighted deduction for R&D expenditure to encourage innovation of new products and technologies, particularly in the pharmaceutical and healthcare industry
-- Depreciation on Goodwill: allowing depreciation on goodwill arising from taxable transactions
-- Facilitating overseas listing: putting in place a regulatory framework to facilitate listing of Indian entities abroad either directly or through SPAC structures through necessary amendments in the SEBI, RBI regulations as well as tax law to provide tax exemptions for such overseas listing. (1/2)
Budget 2022| Budget to give further push to logistics & announce policy, sources say
The upcoming budget may provide a further push towards logistics, prioritizing government measures to reduce India's extremely high logistics costs, senior sources in the know said. It is also set to announce new measures to be undertaken as part of the National Logistics policy that has been in the making for more than 3-years now. The National Logistics Policy being formulated by the Commerce Department is touted to improve India’s trade competitiveness, create more jobs, improve India’s performance in global rankings and pave the way for India to become a logistics hub.
The policy will create a single-window e-logistics market, aim to double the employment in the sector currently pegged at 22 million, and make MSMEs competitive. Most importantly, it aims to reduce the logistics cost from the present 14 percent of GDP to less than 10 percent in the next 3 years. A government study has estimated that facilitating a 10 percent decrease in indirect logistics costs will directly translate to a growth of 5-8 percent in exports.
"The policy is dynamic and involved inputs from a plethora of government and 46 partner government agencies. It has a lot of moving parts and the initial timeline for completing all these were tighter than it should have been. But now, work is on its last legs. We expect the Finance Minister to mention the work in this regard in her budget speech and highlight some of the salient new features of the policy," a senior official said. Read morehere.
Budget 2022 | Expected: Strong policy focus on renewables
The investment requirements in the renewable energy sector remain significant, given the strong policy focus in the segment by the Government of India. This comes in the light of Prime Minister Narendra Modi’s announcement to increase the non-fossil-fuel-based capacity to 500 GW by 2030, from 150 GW currently, so as to meet 50 percent of energy requirement from renewable sources by then. This implies an annual renewable capacity addition of 42 GW over the next eight years. This, in turn, implies a significant investment potential at about Rs 20-22 trillion and additional investment of about Rs 12-15 trillion to augment transmission network as well as storage capacity. Further, superior tariff competitiveness of renewables for the off-takers both in the utility and commercial & industrial (C&I) segments as well as the sustainability initiatives for adoption of renewable energy remains the fundamental and structural demand driver for renewable energy investments.
Given the significant funding requirements in renewables, the availability of adequate long-term financing avenues at cost competitive rates remains important for achieving these targets. In this context, policy measures are expected to augment the long-term financing avenues for the renewable energy sector. Even assuming a 300-GW of renewable energy (excluding hydro) scenario by 2030, the share of renewable energy is expected to rise to about 28 percent in the overall energy mix. As a result, the transmission network strengthening and storage capacity to ensure the grid stability and balancing requirements remains critical. With this, the incentives and policy measures are also required to promote investments in the energy storage segment (which could be either in the form of battery storage, or pumped storage segment). Read more here.
Market LIVE Updates: Sensex tanks 1,100 pts, Nifty below 17,000; Maruti, TCS, Axis Bank most active
The BSE Sensexhas tanked 1,100 points and the Nifty below 17,000 points on January 26. Of stocks, Maruti Suzuki India, Tata Consultancy Services, and Axis Bank have been the most active. All the sectoral indices are trading in the red with realty, pharma, and IT indices are down by 2-3 percent. The BSE mid-cap and small-cap indices are also down 1-2 percent.Follow our LIVE blog here
The Moneycontrol Real Estate Show | Here's What Homebuyers Can Expect From Budget 2022
In this episode of The Moneycontrol Real Estate show, Moneycontrol's Vandana Ramnani talks to Gaurav Karnik, India Real Estate Leader at Ernst and Young, to know what homebuyers and investors can…... Read More
Budget 2022 should take a long-term view for the EV sector
The automobile sector, particularly the Electric Vehicle (EV) segment, has emerged as the elephant in the room, and India is on the cusp of heralding a revolution in electric mobility. According to a recent report by RBSA advisers, the Indian EV market is expected to grow at a compounded annual growth rate (CAGR) of 90 percent this decade, to touch $150 billion by 2030. This is a big chance for India to not just to meet its sustainability goals
This inevitable transition to EVs needs high capital investments in technology research and product development by startups and OEMs to build EV platforms, and introduce them to the market at a faster pace. The government too has envisioned a clear road map for a major transformation to EVs by 2030. The government’s keenness to eliminate the pre-existing roadblocks by making swift policy changes for sustainable mobility is encouraging growth in the segment.
While all this is good news, the challenge is that startups seem to be getting a short thrift. Read full here.
Budget 2022 in Parliament - Virtual meeting of Rajya Sabha floor members ahead of Budget on January 31
Virtual meeting of the Rajya Sabha floor leaders, ahead of the budget session of the Parliament, will be held on January 31. The meeting will be chaired by Chairman of the House and Vice President M Venkaiah Naidu (ANI)
India's Annual Budget Again Goes Green, Cuts Down On Printing To Bare Minimum
Since coming to power, the Modi government has curtailed printing of the Budget copies — initially cutting copies distributed to journalists and outside analysts and then reducing those provided to…... Read More
Budget 2022: Covid-hit theatre owners seek tax relief, capital support
Theatre owners, one of the hardest hit due to the Covid-19 outbreak that led to months of cinema closures, want the government to provide them tax relief and capital support in the upcoming budget. “We were the worst affected but somehow survived this situation,” Amit Sharma, MD of Miraj Cinemas, told Moneycontrol. “The problem now is growth capital and growth has been stagnant for the industry.”
While properties are available for acquisition, theatre owners are wary of adding screens due to the lack of capital. “Developers are ready with many screens but they are lying in the market as there are no takers because none of the multiplexes has growth capital with them,” Sharma said. “Whatever money they had or had borrowed has gone in losses. Hence, the major expectation is to provide us a line of credit so that we can invest money in growth for the cinema exhibition industry.”
About 1,000 screens – about 10 percent of the pre-pandemic total – are estimated to have shut down permanently, while screen additions by multiplexes have slowed over the past two years due to the Covid-19 impact. Screen expansion will continue to be slow in FY22 with top multiplexes such as PVR and INOX expected to add 40-50 screens compared with 80-90 screens before the pandemic. Exhibitors expect the budget to offer measures to help them launch more screens in India, which has a low count of about 8,000 screens. Read full here.
Budget 2022 | Infra spending, sops for green tech are key expectations
The global steel industry witnessed an unexpected V-shaped recovery since Q3 CY2020 as a combination of concerted fiscal and monetary policy actions by the governments and central banks across the globe injected record liquidity into the global economy to stimulate growth. What followed is a surge in earnings for domestic steelmakers during the last six quarters, with most companies reporting their best-ever profits, helping bring down the industry’s debt levels at an accelerated pace. While China led the first leg of the recovery in the global steel markets during CY2020 and the early part of CY2021, going forward, the sustenance of the upcycle in the second leg would hinge on the healthy demand momentum continuing outside of China.
In the 2022 Union Budget, a combination of a higher budgetary allocation along with a closer monitoring of progress and fund mobilisation for projects in the infrastructure and transportation sectors could provide a fillip to domestic steelmakers in FY2023. Read more on this here from Jayanta Roy is Senior Vice President and Group Head, and Ritabrata Ghosh is Assistant Vice President and Sector Head, ICRA.
WATCH - Budget 2022: What IT companies and startups want
Moneycontrol's Chandra R Srikanth takes you through the key asks from the booming IT and startup ecosystem in India. Will they get the booster shot?... Read More
Budget 2022 | Policymakers are trying to find a way to put the economy back on track, says Ankit Yadav of Market Maestroo
Ankit Yadav, wealth manager (USA) and director at Market Maestroo, feels agriculture will get more benefits from the budget this time due to some past events. Besides, autos, banks, NBFCs, fertilisers and cement will also be in focus and investors will have to keep an eye out on little-known speciality chemicals, Yadav says. “As a wealth manager, the foremost thing to watch in this budget is fiscal deficit.” Edited excerpts here
Market LIVE Updates: Sensex falls 1,000 pts amid weak global cues as US Fed signals rate hike in March
Sensex falls 1,000 points on January 27 amid weak global cues as US Federal Reserve signals rate hike in March. Tech Mahindra, Nestle India, Wipro, Grasim Industries and HDFC Bank were among major losers on the Nifty, while only gainer was ONGC. All the sectoral indices are trading in the red with IT index down more than 2 percent. Check the LIVE blog here
Daily Voice | Any Budget Move That Makes Indian Markets More Attractive Would Be Praised, Says Sonam Srivastava Of Wright Research
Budget 2022 | Markets will see a sharp rise on the Budget day primarily because of growth-related measures. Any policy that makes Indian markets more attractive than its peers would be praised... Read More
Budget 2022 | To boost economy, India needs a green Budget
This year’s budget for Y22-23 to be announced by Finance Minister Nirmala Sitharaman on February 1 is important for innumerable reasons. Let me focus on two of them; the economic devastation caused by the ongoing pandemic (the Omicron wave has pulverised the world just when it was beginning to look buoyant), and the imminent catastrophe awaiting humanity on account of Climate Change. India’s GDP collapse was astronomical following COVID-19, dropping to a debilitating -7.3 percent, a historic low in Y20-21. While there is a perceptible recovery thereafter, the promised V-curve has remained an elusive mirage.
At COP26 in Glasgow, Scotland, India made some aggressive commitments including net-zero emissions by 2070, and sizeable reductions by 2030. Past budgets have not done enough to reduce fossil fuel consumption. In this budget, the Finance Minister must step up. While the low-hanging fruits will be making EV’s affordable in the metropolitan cities to begin with (why is Elon Musk still struggling to get Tesla into India for three years?) and improvement in public transport, clean energy will require much more than that. Read full here.
Budget 2022: Here is what the bond market expecting
Union Budget 2021 undoubtedly was hailed as a trailblazing one for numerous bold reforms the Government proposed. Going into Budget 2022, there are three areas (Policy, structural and new issuances) wherein we would like to propose recommendations for the upcoming Budget in order to speed up bond markets' journey towards greater prosperity. With respect to the Policies laid down by the regulators, we would recommend a few suggestions which would help in deepening the bond market and entailing retail participation
-- Taxation Need to Rationalised
-- Inflation Indexed Tax Free Bonds
-- Retail Inclusion
-- Structural Changes Proposed for the Bond Market
Read full here
Market LIVE | SGX Nifty indicates a gap-down opening for the Indian indices
Trends on SGX Nifty indicate a gap-down opening for the broader index in India, with a loss of 238.50 points or 1.38 percent. The Nifty futures were trading around 16,982.50 level on the Singaporean Exchange at 730 IST.
Stay tuned for LIVE market updates and stock movements here
Budget 2022 | Must focus on execution of elements of last year's budget: Rahul Singh, CIO-Equities, Tata Mutual Fund
With only a few days left for Finance Minister Nirmala Sitharaman to present India's annual budget for the year 2022-2023, Rahul Singh, CIO-Equities of Tata Mutual Fund expects this budget to focus more on the execution of the elements of last year's budget, i.e., bad bank, privatization, steps for including G-secs in government bond index and more. The attempt to revive the investment cycle is much needed to sustain GDP growth at a higher trajectory of 7 percent and Singh believes that early signs of investment revival in the private sector are visible. A shift towards an accommodative fiscal policy, in addition to a monetary policy, is critical especially if the thrust of the additional spending continues to be on capital account rather than revenue expenditure.
"However, given the pressure on informal/MSME sector and recent commentary from consumer sector companies about lacklustre rural demand, social spending and higher subsidies are likely to continue in the upcoming Budget. Similarly, changes in direct taxation, if any, are likely to be minimal and targeted towards lower-income segments", he noted. Given the strong economic recovery, which has resulted in robust revenue collections, Singh thinks that government has enough elbow room to provide for higher capex growth and social sector spending like employment guarantee and cash transfer schemes. Read full here.
Budget 2022: Insurers urge higher 80 C investment limit; reduction in GST on health products
Insurance companies are seeking a separate deduction limit of Rs 1 lakh for insurance premium payment under Section 80 C of the Income Tax Act in the upcoming Union Budget to bring in more people under the ambit of insurance. The insurers also want reduction in the goods and services tax (GST) rate of 18 per cent currently applied on health insurance products to 5 per cent to make such products more affordable to common people. "The industry has long pending expectations from the policy makers for incentivizing people to get life insurance by giving a separate deduction limit of minimum Rs 1 lakh for insurance premium payment under Section 80C,” Tarun Rustagi Chief Financial Officer Canara HSBC OBC Life Insurance said.
Life insurance is a long-term solution, unlike other financial products which have a shorter investment horizon and are covered under the 80C provision. Currently, all financial purchases are clubbed under the same IT deduction section (80C) capped at Rs 1,50,000. Finance Minister Nirmala Sitharaman will present the Union Budget for 2022-23 on February 1. Read more here.
Good morning and welcome to Moneycontrol's LIVE coverage to the run-up of the Union Budget 2022 - which is all set to be announced on February 1.
The Union Budget is the annual report of India as a country. It contains the government of India's revenue and expenditure for the end of a particular fiscal year, which runs from April 1 to March 31. The Union Budget is the most extensive account of the government's finances, in which revenues from all sources and expenses of all activities undertaken are aggregated. It comprises the revenue budget and the capital budget. It also contains estimates for the next fiscal year.
Keeping with recent tradition, Union Finance Minister Nirmala Sitharaman is expected to announce Union Budget 2022 on February 1 this year. We bring you industry and sector-wise expectations for India's upcoming Budget.
Stay tuned for the latest news and developments!
