Saturday, February 27, 2010

>Benefit from Budget 2010-11 (RELIGARE SECURITIES)

Budget has proposed reduction in tax plan making more money available for common man to increase consumption.

GDP – growth expected at 7.2% in 2009-10 and 8.5% in 2010-11
Additional Banking License to Private players / NBFC
Growth– Manufacturing sector grows 18.5% in Q3 FY2010
Fiscal deficit– pegged at 6.9% for 2009-10 and 5.5% for 2010-11
Lower rolling fiscal deficit targets for 2011-12 at 4.8% and 2012-13 at 4.1% of GDP augur well for Market.
Disinvestment– Rs. 25000 cr to be raised by disinvestment in PSUs.
Government borrowing – Net borrowing by govermnt in 2010-11 is lower than expectation, standing at Rs. 3.45 lac crore. Gross borrowing stands at Rs. 4.57 trillion.
Infrastructure thrust – Rs. 1.73 lac crore allocation to infrastructure development. This stands at 46% of the total planned allocation.
Water resources– emphasis on rain water harvesting and eco-friendly measures
Foreign Trade– boost to export sector by extending interest subvention on select exports, standing at 2%.
Budget Estimates

  • Plan Expenditure – stands at Rs.3.73 trillion, rising 15% from previous year
  • Non Plan Expenditure – stands at Rs.7.36 trillion, rising 6% from previous year
  • Fiscal Deficit stands at Rs.3.81 trillion.

To read the full report: BENEFITS FROM BUDGET