ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Web Stories
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Real Estate
    • Home Buyers
    • Builders
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • IPL 2023
    • Karnataka Elections 2023
    • Viral
    • Education
    • Jobs
Read in App
Business News » Union Budget News

What to expect in today's Budget; a final roundup

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
What to expect in today's Budget; a final roundup
Ministry of Finance said that they will do away with plan and non- plan expenditure as it expresses expenditure as capital and revenue. Photo of Prime Minister Narendra Modi. Image Source: Reuters

The Union Budget which will be declared on February 1, a month prior to its usual timeline will present consolidated funds for the centre as well as Indian railways.

Ministry of Finance said that they will do away with plan and non- plan expenditure as it expresses expenditure as capital and revenue.

“The Budgeted fiscal deficit for FY17 (3.5% of GDP) will be easily met due to steep increase in excise revenues (8MFY16 excise revenue is up 46%) on account of higher excise duties on diesel and gasoline, which will more than offset likely lower non-tax revenues owing to lower spectrum auction revenues and lower divestment amount compared to the budget target of Rs 565 billion,” analysts from the Retail Research team of HDFC Securities Ltd said in a report dated January 30.

Here is what you can expect in today’s budget announcement:

1. Cut in Corporate income tax for FY18 by 100-150 bps:
All fast moving consumer goods (FMCG) companies and multi-national companies, whose effective tax rate is currently high could benefit from this announcement as corporate income tax is expected to be lower by 100 to 150 bps.

However, the analysts said that there will be simultaneous end to certain exemptions and a reduction in minimum alternate tax, which was a move to bring such companies under the I-T net, Section 115JA.

Companies coming under MAT would benefit from this announcement. As well as insurance companies could be hit as tax on insurance is expected to increase from the current 12.5% rate.

2. Adherence to the Gross fiscal deficit target of 3% of GDP in FY18
The analysts said that the expected leeway of upto 3.3% of GDP expected by most analysts may not be taken by finance ministry. Hence the fiscal spending expected to the extent of 0.3% of GDP may not materialise.

3. Increase in service tax from the current 15% and surcharge to 18%.
Hospitality, telecom and media companies are expected to be most hit by this decision.

4. Some form of Universal Basic Income in a pilot phase
In the Economic Survey presented by the finance ministry yesterday the report said that the UBI will not be a replacement but however an additive measure in the social programmes.

The report also said that some form of UBI in a pilot phase will be established which is expected to provide a basic income ranging from Rs 4,800 to Rs 12,000 per capita per year.
People on the 0.45% threshold of the poverty line will be considered for this scheme.

5. Railways may receive Rs 20,000 crore in Safety Funds and general infrastructure
Additional spends on railways’ general infrastructure as well as safety funds considering the many accidents that took place last year could be to the tune of Rs 20,000 crore or more.

6. Rural and agricultural expenditure
The government is also likely to present expenditures on rural and agricultural infrastructure, skill building and employment generation.

“Rural and social sector spend may be upped after they were cut by 0.7-0.8% of GDP over the last 5 years. Government’s spending priorities to remain directed towards creating assets rather than giving subsidies,” the analysts said.

7. Subvention, tax benefits and more credit to SME, farmers.
Small and medium enterprises as well as farmers could look forward to more tax benefits which is likely to boost employment and create spending power.

8. Customs duty on gold to be cut from the current 10%
 The analysts expect that jewellery companies will face a one-time hit due to inventory market to market.

9. Customs duty may be hiked
The analysts estimated a hike on metals imports like that on steel which is currently 10-12.5% and aluminium which is currently at 7.5%.

“Domestic companies manufacturing these will benefit and it will offset to some extent the ill effects of withering away of MIP provisions on steel,” the analysts said.

10. Orders by Road companies and railways will rise
Funded mostly off the balance sheet, the analysts expect orders by road companies and railways to rise.

“Similarly spend on low cost housing could go up sharply. All these have historically helped in employment generation. It will boost infrastructure and employment generation,” the analysts added.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Union Budget 2017Budget FY18Indian Union Budget 2017Economic SurveyEconomyBudget ExpectationsFinance MinistryRailway Budgetcorporate income taxIncome tax slabs
Written By: ZeeBiz WebTeam
Updated: Wed, Feb 01, 2017
08:46 am
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Jan Dhan Accounts get a boost from Budget 2018 Jan Dhan Accounts get a boost from Budget 2018
Budget 2018: Jaitley raises fiscal deficit target to 3.5% for FY18 Budget 2018: Jaitley raises fiscal deficit target to 3.5% for FY18
Will govt take measures to upgrade digital infra in Budget 2018? Will govt take measures to upgrade digital infra in Budget 2018?
Will this upcoming Budget cheer common man, corporates? Will this upcoming Budget cheer common man, corporates?
Budget 2018: Extension of short-term capital gains tax on stocks to 3 years sought Budget 2018: Extension of short-term capital gains tax on stocks to 3 years sought

LATEST NEWS

Evergreening of loans: FinMin seconds RBI Governor Shaktikanta Das's caution to private banks

Finance Minister Sitharaman reviews progress of infra projects under NICDIT

8 killed, 20 injured as bus falls off bridge in Jammu

Apollo Hospitals Q4 results: Net profit jumps 50% but fails to keep up with analysts' estimates

Sobha's share price zooms on strong Q4 results; should you buy at current levels?

5 smartphones under Rs 12,000 with good storage, battery performance

Mazagon Dock dividend: Board announces Rs 6.86/share payout

US stock markets close mixed, Nvidia's 3% rise offsets debt ceiling jitters

IPL Winners: CSK lift Tata IPL 16 trophy, beat GT by 5 wickets - Check winners list from 2008 to 2023 here

Crude oil prices slide 4% on worries about US debt ceiling, OPEC+ talks

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. Indiadotcom Digital Private Limited. All Rights Reserved.
LIVE TV