>Benefit from Budget 2010-11 (RELIGARE SECURITIES)

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

Highlights:
■ 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