SlideShare uma empresa Scribd logo
1 de 17
Baixar para ler offline
UNION BUDGET
   2012 - 2013


          Presented By:

       CEREBRAL ADVISORS
  Assimilate  Analyze  Advise
The 2012 -13 Budget
                        pledged to cut fiscal
                        deficit from 5.9% this
                       year to 5.1% next year




Aiming to rise GDP growth
 to 7.6% along with fiscal
consolidation, the budget
 seeks to raise additional
 Rs.40K Crs in fresh taxes
India Inc
         Proposal                               Impact
Excise duty & Service tax rate       Prices need to be raised, margins
raised to 12% from 10%               may get affected.
Investment in Infrastructure to go   More opportunities for private
up to Rs.50 lakh crore in 12th       sector to invest in PPP projects.
plan.
Repatriation of dividends from       Companies will be encouraged to
foreign subsidiaries of Indian       bring foreign exchange.
Companies will continue at 15%
up to 31 March 2013.
New sectors to be added for
purposes of Investment linked        Incentive for investment
deductions.
Capital Market
         Proposal                              Impact
Reduction of STT on delivery base    Transaction cost will come down
sale & purchase of shares from
0.125 to 0.1 %
Introduced Rajiv Gandhi equity       Deepening of equity market with
saving scheme allowing 50% IT        higher retail participation.
reduction to new retail investors
who invest up to Rs.50K directly
& whose annual income is below
Rs.10 lakhs.
Qualified     foreign    investors   Deepening of corporate debt
allowed to invest in corporate       market
bond market.
IPO of Rs.10 Crs & above will only   Cost of issuing shares will come
be in electronic form.               down & allows more investors.
Tax Payers
          Proposal                              Impact
Individual exemption limit raised    Provided tax relief of Rs.2000
to Rs.200000
Allow deduction of Rs.10000 for      More benefits for senior citizens
interest from savings account
Upper limit of 20% to be raised to   Tax benefit of Rs.20000
Rs.10 lakh from Rs.8 lakh
Allow deductions of Rs.5000 for
preventive health check-up           Health awareness
Economy
         Proposal                              Impact
Rs.30000 crore to be raised from    Retail investors will get PSU
disinvestment in 2012 – 13          shares
Provision regarding                 Minimise transfer pricing
implementation of Advance           litigation. Big boost to IT & BPO
pricing agreement to be             service providers
introduced in finance bill, 2012
Rs.15888 crore to be provided for   Banks will be better equipped to
capitalisation of public sector     face competition
banks & financial institutions
Tax free bonds of Rs.60000 crores   More long term financing
for financing infrastructure        instruments for infrastructure
projects in 2012 - 13               projects
Couple of changes that can matter
              Tax Evaders under scrutiny
1% tax at source on transfer of immovable property worth over Rs.50
lakhs in urban areas, Rs.20 lakhs in other.
1% tax at source on cash purchase of jewellery over Rs.2 lakhs & more.
 30% tax on any unaccounted money even if it is within exemption limit.
Compulsory filing of income tax returns for those having assets outside
India.
Tax authorities can open cases for up to 16yrs if undisclosed foreign
income is found.
Stiff penalty on undisclosed income if found in search.
Withholding taxes on gold & property will be effective from July & October
2012.
Govt boosts spending on health, education, food
    scheme & rural development to fuel growth

Slowdown in industry drags GDP growth to 6.9% in FY12, but it may
accelerate to 7.6% in FY13.
Government slashes MGNREGA spending by 17.5% to Rs.33000 crore for
2012 -13
Rural Health gets a push with a 34% increase in allocation for NRHM to
Rs.28820 crore.
Education budget hiked 21.6% to Rs.25555 crore. Credit guarantee fund
scheme for students proposed.
Fiscal consolidation is largely revenue driven
Gross tax revenue will rise to 10.6% of GDP in 2012 – 13 from 10.1% in
current fiscal
Centre’s debt will drop to 45.5% of GDP in FY13 against 50.5% target set by
13th finance commission
New indirect taxes will net Rs.45940 crores for the government but it will
forego Rs.4500 crores on direct taxes
Over all expenditure will rise 13.1% but revenue expenditure will grow
only 10.7%
                                       Things could go wrong if:
Non tax revenue falls short again – Rs.30000 crores from disinvestment
becomes an uphill task & if Rs.40000 crores from spectrum may not come
because of uncertainties in the sector
Crude price rally could derail subsidies – At Rs.1.9 lakh crore, the
provision for subsidies is below the revised estimates of Rs.2.2 lakh crore
Growth does not recover as envisaged – Govt is counting on an ambitious
7.6% GDP growth to deliver a strong 19.5% tax growth
Continued….


Fuel subsidy assumption of Rs.43600 crores and fertiliser subsidy
assumption of Rs.61000 crores appear too low and slippages on these
items could lead to an increase in fiscal deficit by 50 – 60 bps from the
target of 5.1%



                                                         To Conclude:

Liquidity will remain tight due to continued overhang of Government
borrowings. A lot will depend on crude oil prices, global financial markets
          and capital flows and RBI’s take on interest rate cuts.
As an Investor
     No need to worry about Fiscal
           Deficit, it’s fine
Rs.48663 Crs is the net FII inflows into India Equities since
                     the last budget
Some Interesting Facts:

UPA’s so called populism has resulted in excellent economics
India has grown 7.7% CAGR since the recession in 2008 against Brazil’s
3.9% and Russia’s 1.3%
India will over take China in GDP growth rate
RBI must give the Govt credit for having lowered financial risk in the
economy while growing briskly
India’s Debt/GDP ratio stands at 63% & the Interest/Budgetary Receipts at
31% (these measures & not the fiscal deficit, are the correct ways to
assess financial risk in an economy from an investor point of view)
China while growing faster, has piled on unsustainable levels of debt in
doing so, its Debt/GDP ratio stands at 155% now and will hot 180 – 200%
by 2016, or $22 trillion. India has grown while decreasing debt & interest
ratios sharply.
Some Reasons to Reconsider Equities…

The Macro Economic Rationale:
   Inflation is on its way down
   Interest rates have peaked
   GDP growth will pick up
   Corporate earnings will improve

The Investing Rationale:
   Equity valuation are reasonable - 1yr forward P/E at 15.2
   Returns on debt assets will reduce
   Gold prices have run up sharply
   Billions of $ likely to enter Indian Markets shortly – So far $10 trillion
   worth of liquidity pumped in by central banks in developed countries since
   2008 financial crisis
Continued…


Global markets are flushed with liquidity at this moment and it looks like
markets are entering into a bull phase
FII’s have poured in $9 billion so far this financial year
FII flows may continue since the federal reserve has promised to keep the
interest rates at near zero levels till 2014
The pressure in Europe is also easing after the European Central Bank
pumped in over Euro 1trillion into banks, banishing the danger of
sovereign credit crisis
Investors are also hoping RBI to cut rates during the monetary policy in
April 2012, which will in turn boost the growth.
Sensex Scenarios for December 2012


                         25539 (+58%)
                          Best Case




16466
Dec’ 11                               Source: Morgan Stanley
Indian Union budget 2012 - 13
DISCLAIMER:
This document / presentation has been prepared by Cerebral Advisors and is meant for the recipient for use as intended and
not for circulation. This document should not be reported or copied or made available to others. The information contained
herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that
information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very
nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as
such. Cerebral Advisors does not guarantee the accuracy, adequacy or completeness of any Data in the Report and is not
responsible for any errors or omissions or for the results obtained from the use of such Data. Cerebral Advisors, its partners /
directors and employees, will not in any way be responsible for the contents of this report. The securities discussed in this
report may not be suitable for all investors. Investors must make their own investment decision based on their own
investment objectives, goals and financial position and based on their own analysis. Cerebral Advisors during the normal
course of business, from time to time, may solicit from or perform investment. Cerebral Advisors especially states that it has
no financial liability whatsoever towards any investments based on this research report.

Mais conteúdo relacionado

Mais procurados

ICICI Prudential - Mutual Fund - Value Fund-Series 20 Infographic Investors
ICICI Prudential - Mutual Fund - Value Fund-Series 20 Infographic InvestorsICICI Prudential - Mutual Fund - Value Fund-Series 20 Infographic Investors
ICICI Prudential - Mutual Fund - Value Fund-Series 20 Infographic Investorsiciciprumf
 
The World This Week -7th to 12th Sept, 2015
The World This Week -7th to 12th Sept, 2015The World This Week -7th to 12th Sept, 2015
The World This Week -7th to 12th Sept, 2015Karvy Private Wealth
 
The World This Week September 10 - Septemebr 14 2012
The World This Week  September 10 - Septemebr 14 2012The World This Week  September 10 - Septemebr 14 2012
The World This Week September 10 - Septemebr 14 2012Karvy Private Wealth
 
Netscribes Budget Analysis 2013 : Missing the woods for the trees
Netscribes Budget Analysis 2013 : Missing the woods for the treesNetscribes Budget Analysis 2013 : Missing the woods for the trees
Netscribes Budget Analysis 2013 : Missing the woods for the treesNetscribes, Inc.
 
The World This Week: July 15 - July 19, 2013
The World This Week: July 15 - July 19, 2013The World This Week: July 15 - July 19, 2013
The World This Week: July 15 - July 19, 2013Karvy Private Wealth
 
Economic Survey - Government’s evaluation of demonetisation (note bandi in po...
Economic Survey - Government’s evaluation of demonetisation (note bandi in po...Economic Survey - Government’s evaluation of demonetisation (note bandi in po...
Economic Survey - Government’s evaluation of demonetisation (note bandi in po...D Murali ☆
 
NPS (NATIONAL PENSION SCHEME) PPT
NPS  (NATIONAL PENSION SCHEME) PPTNPS  (NATIONAL PENSION SCHEME) PPT
NPS (NATIONAL PENSION SCHEME) PPTCA Nitin Pathak
 
The world this week august 20 - august 24 2012
The world this week   august 20 - august 24 2012The world this week   august 20 - august 24 2012
The world this week august 20 - august 24 2012Karvy Private Wealth
 
The world this week July 21 - July 26
The world this week July 21 - July 26The world this week July 21 - July 26
The world this week July 21 - July 26Karvy Private Wealth
 
Banking Sector Budget 2012-13
Banking Sector Budget 2012-13Banking Sector Budget 2012-13
Banking Sector Budget 2012-13Rishav Raj
 
The World This Week January 14 - January 18 2013
The World This Week   January 14 - January 18 2013The World This Week   January 14 - January 18 2013
The World This Week January 14 - January 18 2013Karvy Private Wealth
 
The world this week april 16 - april 20 2012
The world this week   april 16 - april 20 2012The world this week   april 16 - april 20 2012
The world this week april 16 - april 20 2012Karvy Private Wealth
 
The world this week June 23 - June 28
The world this week  June 23 - June 28The world this week  June 23 - June 28
The world this week June 23 - June 28Karvy Private Wealth
 
Year End Market & Macro Review for 2017 & Outlook for 2018 by Bajaj Allianz L...
Year End Market & Macro Review for 2017 & Outlook for 2018 by Bajaj Allianz L...Year End Market & Macro Review for 2017 & Outlook for 2018 by Bajaj Allianz L...
Year End Market & Macro Review for 2017 & Outlook for 2018 by Bajaj Allianz L...Bajaj Allianz Life Insurance
 
Factsheet (February 2022) | ICICI Prudential Mutual Fund
Factsheet (February 2022) | ICICI Prudential Mutual FundFactsheet (February 2022) | ICICI Prudential Mutual Fund
Factsheet (February 2022) | ICICI Prudential Mutual Fundiciciprumf
 

Mais procurados (20)

Union Budget FY13 - A perspective
Union Budget FY13 - A perspectiveUnion Budget FY13 - A perspective
Union Budget FY13 - A perspective
 
Nps ppt
Nps pptNps ppt
Nps ppt
 
ICICI Prudential - Mutual Fund - Value Fund-Series 20 Infographic Investors
ICICI Prudential - Mutual Fund - Value Fund-Series 20 Infographic InvestorsICICI Prudential - Mutual Fund - Value Fund-Series 20 Infographic Investors
ICICI Prudential - Mutual Fund - Value Fund-Series 20 Infographic Investors
 
Article 1.2 savings
Article 1.2  savingsArticle 1.2  savings
Article 1.2 savings
 
Budget 2022-23.pdf
Budget 2022-23.pdfBudget 2022-23.pdf
Budget 2022-23.pdf
 
The World This Week -7th to 12th Sept, 2015
The World This Week -7th to 12th Sept, 2015The World This Week -7th to 12th Sept, 2015
The World This Week -7th to 12th Sept, 2015
 
The World This Week September 10 - Septemebr 14 2012
The World This Week  September 10 - Septemebr 14 2012The World This Week  September 10 - Septemebr 14 2012
The World This Week September 10 - Septemebr 14 2012
 
Economic Capsule - February 2015
Economic Capsule - February 2015Economic Capsule - February 2015
Economic Capsule - February 2015
 
Netscribes Budget Analysis 2013 : Missing the woods for the trees
Netscribes Budget Analysis 2013 : Missing the woods for the treesNetscribes Budget Analysis 2013 : Missing the woods for the trees
Netscribes Budget Analysis 2013 : Missing the woods for the trees
 
The World This Week: July 15 - July 19, 2013
The World This Week: July 15 - July 19, 2013The World This Week: July 15 - July 19, 2013
The World This Week: July 15 - July 19, 2013
 
Economic Survey - Government’s evaluation of demonetisation (note bandi in po...
Economic Survey - Government’s evaluation of demonetisation (note bandi in po...Economic Survey - Government’s evaluation of demonetisation (note bandi in po...
Economic Survey - Government’s evaluation of demonetisation (note bandi in po...
 
NPS (NATIONAL PENSION SCHEME) PPT
NPS  (NATIONAL PENSION SCHEME) PPTNPS  (NATIONAL PENSION SCHEME) PPT
NPS (NATIONAL PENSION SCHEME) PPT
 
The world this week august 20 - august 24 2012
The world this week   august 20 - august 24 2012The world this week   august 20 - august 24 2012
The world this week august 20 - august 24 2012
 
The world this week July 21 - July 26
The world this week July 21 - July 26The world this week July 21 - July 26
The world this week July 21 - July 26
 
Banking Sector Budget 2012-13
Banking Sector Budget 2012-13Banking Sector Budget 2012-13
Banking Sector Budget 2012-13
 
The World This Week January 14 - January 18 2013
The World This Week   January 14 - January 18 2013The World This Week   January 14 - January 18 2013
The World This Week January 14 - January 18 2013
 
The world this week april 16 - april 20 2012
The world this week   april 16 - april 20 2012The world this week   april 16 - april 20 2012
The world this week april 16 - april 20 2012
 
The world this week June 23 - June 28
The world this week  June 23 - June 28The world this week  June 23 - June 28
The world this week June 23 - June 28
 
Year End Market & Macro Review for 2017 & Outlook for 2018 by Bajaj Allianz L...
Year End Market & Macro Review for 2017 & Outlook for 2018 by Bajaj Allianz L...Year End Market & Macro Review for 2017 & Outlook for 2018 by Bajaj Allianz L...
Year End Market & Macro Review for 2017 & Outlook for 2018 by Bajaj Allianz L...
 
Factsheet (February 2022) | ICICI Prudential Mutual Fund
Factsheet (February 2022) | ICICI Prudential Mutual FundFactsheet (February 2022) | ICICI Prudential Mutual Fund
Factsheet (February 2022) | ICICI Prudential Mutual Fund
 

Destaque

Destaque (13)

Union budget 2014 2015
Union budget 2014 2015Union budget 2014 2015
Union budget 2014 2015
 
Lanco
LancoLanco
Lanco
 
Budget terminologies1
Budget terminologies1Budget terminologies1
Budget terminologies1
 
2013-14 Government of Alberta Annual Report
 2013-14 Government of Alberta Annual Report 2013-14 Government of Alberta Annual Report
2013-14 Government of Alberta Annual Report
 
Budget 2012 - 2013
Budget 2012 - 2013 Budget 2012 - 2013
Budget 2012 - 2013
 
Union budget of 2013 14
Union budget of 2013 14Union budget of 2013 14
Union budget of 2013 14
 
Financial Analysis of Jaiprakash Associates Ltd
Financial Analysis of Jaiprakash Associates LtdFinancial Analysis of Jaiprakash Associates Ltd
Financial Analysis of Jaiprakash Associates Ltd
 
Analysis of Union Budget 2017
Analysis of Union Budget 2017Analysis of Union Budget 2017
Analysis of Union Budget 2017
 
Budget Ppt
Budget PptBudget Ppt
Budget Ppt
 
Types of budget
Types of  budgetTypes of  budget
Types of budget
 
Budget methods
Budget methodsBudget methods
Budget methods
 
Union Budget
Union BudgetUnion Budget
Union Budget
 
Core competence
Core competenceCore competence
Core competence
 

Semelhante a Indian Union budget 2012 - 13

Navkar financial-newsletter-jan-22
Navkar financial-newsletter-jan-22Navkar financial-newsletter-jan-22
Navkar financial-newsletter-jan-22SandipShah62
 
Wallet4wealth Newsletter-Jan-2022
Wallet4wealth Newsletter-Jan-2022Wallet4wealth Newsletter-Jan-2022
Wallet4wealth Newsletter-Jan-2022WALLET4WEALTH
 
Indian Budget 2011-12 Analysis
Indian Budget 2011-12 Analysis Indian Budget 2011-12 Analysis
Indian Budget 2011-12 Analysis gotu65
 
Budget highlights february 2013
Budget highlights  february 2013Budget highlights  february 2013
Budget highlights february 2013nagendrakumar461
 
Shrambal distributors-newsletter-jan-22
Shrambal distributors-newsletter-jan-22Shrambal distributors-newsletter-jan-22
Shrambal distributors-newsletter-jan-22VikashDidwania2
 
Budget 2019 - Impact and Analysis
Budget 2019 - Impact and AnalysisBudget 2019 - Impact and Analysis
Budget 2019 - Impact and Analysisiciciprumf
 
Impact analysis - Budget 2019
Impact analysis - Budget 2019Impact analysis - Budget 2019
Impact analysis - Budget 2019iciciprumf
 
The monthly newsletter by seeman fiintouch LLP January 2021
The monthly newsletter by seeman fiintouch LLP January 2021The monthly newsletter by seeman fiintouch LLP January 2021
The monthly newsletter by seeman fiintouch LLP January 2021Ashis Kumar Dey
 
GIIS Financial Newsletter Jan-22
GIIS Financial Newsletter Jan-22 GIIS Financial Newsletter Jan-22
GIIS Financial Newsletter Jan-22 Deepak Jha
 
Deloitte India: What the union budget 2021 brings?
Deloitte India: What the union budget 2021 brings?Deloitte India: What the union budget 2021 brings?
Deloitte India: What the union budget 2021 brings?aakash malhotra
 
The World This Week March 05 - March 09 2012
The World This Week  March 05 - March 09 2012The World This Week  March 05 - March 09 2012
The World This Week March 05 - March 09 2012Karvy Private Wealth
 
Economic Survey 2016-17
Economic Survey 2016-17Economic Survey 2016-17
Economic Survey 2016-17EdelmanIndiaPA
 
India Union Budget 2016 - An Overview | A BDO India Publication
India Union Budget 2016 - An Overview | A BDO India PublicationIndia Union Budget 2016 - An Overview | A BDO India Publication
India Union Budget 2016 - An Overview | A BDO India PublicationOperations BDO
 

Semelhante a Indian Union budget 2012 - 13 (20)

Budget 12 13
Budget 12 13Budget 12 13
Budget 12 13
 
Budget 12 13
Budget 12 13Budget 12 13
Budget 12 13
 
Ppt on budget
Ppt on budgetPpt on budget
Ppt on budget
 
Budgey 2011
Budgey 2011Budgey 2011
Budgey 2011
 
Navkar financial-newsletter-jan-22
Navkar financial-newsletter-jan-22Navkar financial-newsletter-jan-22
Navkar financial-newsletter-jan-22
 
Wallet4wealth Newsletter-Jan-2022
Wallet4wealth Newsletter-Jan-2022Wallet4wealth Newsletter-Jan-2022
Wallet4wealth Newsletter-Jan-2022
 
7KCR Newsletter_Jan_22
7KCR Newsletter_Jan_227KCR Newsletter_Jan_22
7KCR Newsletter_Jan_22
 
Indian Budget 2011-12 Analysis
Indian Budget 2011-12 Analysis Indian Budget 2011-12 Analysis
Indian Budget 2011-12 Analysis
 
Budget2011
Budget2011 Budget2011
Budget2011
 
Budget highlights february 2013
Budget highlights  february 2013Budget highlights  february 2013
Budget highlights february 2013
 
Shrambal distributors-newsletter-jan-22
Shrambal distributors-newsletter-jan-22Shrambal distributors-newsletter-jan-22
Shrambal distributors-newsletter-jan-22
 
Budget 2019 - Impact and Analysis
Budget 2019 - Impact and AnalysisBudget 2019 - Impact and Analysis
Budget 2019 - Impact and Analysis
 
Impact analysis - Budget 2019
Impact analysis - Budget 2019Impact analysis - Budget 2019
Impact analysis - Budget 2019
 
Budget2012 2013
Budget2012 2013Budget2012 2013
Budget2012 2013
 
The monthly newsletter by seeman fiintouch LLP January 2021
The monthly newsletter by seeman fiintouch LLP January 2021The monthly newsletter by seeman fiintouch LLP January 2021
The monthly newsletter by seeman fiintouch LLP January 2021
 
GIIS Financial Newsletter Jan-22
GIIS Financial Newsletter Jan-22 GIIS Financial Newsletter Jan-22
GIIS Financial Newsletter Jan-22
 
Deloitte India: What the union budget 2021 brings?
Deloitte India: What the union budget 2021 brings?Deloitte India: What the union budget 2021 brings?
Deloitte India: What the union budget 2021 brings?
 
The World This Week March 05 - March 09 2012
The World This Week  March 05 - March 09 2012The World This Week  March 05 - March 09 2012
The World This Week March 05 - March 09 2012
 
Economic Survey 2016-17
Economic Survey 2016-17Economic Survey 2016-17
Economic Survey 2016-17
 
India Union Budget 2016 - An Overview | A BDO India Publication
India Union Budget 2016 - An Overview | A BDO India PublicationIndia Union Budget 2016 - An Overview | A BDO India Publication
India Union Budget 2016 - An Overview | A BDO India Publication
 

Último

Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...mwangimwangi222
 
Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Guillaume Ⓥ Sarlat
 
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTESACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTESKumarJayaraman3
 
The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...Antonis Zairis
 
Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707harshan90
 
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an EntrepreneurIntroduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an Entrepreneurabcisahunter
 
Buy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxBuy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxPrecize Formely Leadoff
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.KumarJayaraman3
 
2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation2024.03 Strategic Resources Presentation
2024.03 Strategic Resources PresentationAdnet Communications
 
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismTaipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismBrian Lin
 
Stock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfStock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfMichael Silva
 
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoRWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoCoinGecko
 
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...Matthews Bantsijang
 
Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingHenry Tapper
 
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptx
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptxSlideshare - ONS Economic Forum Slidepack - 18 March 2024.pptx
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptxOffice for National Statistics
 
LIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptxLIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptxsonamyadav7097
 
Contracts with Interdependent Preferences
Contracts with Interdependent PreferencesContracts with Interdependent Preferences
Contracts with Interdependent PreferencesGRAPE
 

Último (20)

Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
 
Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024
 
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTESACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
 
The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...
 
Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707
 
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an EntrepreneurIntroduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
 
Commercial Bank Economic Capsule - March 2024
Commercial Bank Economic Capsule - March 2024Commercial Bank Economic Capsule - March 2024
Commercial Bank Economic Capsule - March 2024
 
Buy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxBuy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptx
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
 
2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation
 
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismTaipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
 
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
 
Stock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfStock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdf
 
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoRWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
 
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
 
Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB funding
 
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptx
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptxSlideshare - ONS Economic Forum Slidepack - 18 March 2024.pptx
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptx
 
Monthly Economic Monitoring of Ukraine No.230, March 2024
Monthly Economic Monitoring of Ukraine No.230, March 2024Monthly Economic Monitoring of Ukraine No.230, March 2024
Monthly Economic Monitoring of Ukraine No.230, March 2024
 
LIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptxLIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptx
 
Contracts with Interdependent Preferences
Contracts with Interdependent PreferencesContracts with Interdependent Preferences
Contracts with Interdependent Preferences
 

Indian Union budget 2012 - 13

  • 1. UNION BUDGET 2012 - 2013 Presented By: CEREBRAL ADVISORS Assimilate Analyze Advise
  • 2. The 2012 -13 Budget pledged to cut fiscal deficit from 5.9% this year to 5.1% next year Aiming to rise GDP growth to 7.6% along with fiscal consolidation, the budget seeks to raise additional Rs.40K Crs in fresh taxes
  • 3. India Inc Proposal Impact Excise duty & Service tax rate Prices need to be raised, margins raised to 12% from 10% may get affected. Investment in Infrastructure to go More opportunities for private up to Rs.50 lakh crore in 12th sector to invest in PPP projects. plan. Repatriation of dividends from Companies will be encouraged to foreign subsidiaries of Indian bring foreign exchange. Companies will continue at 15% up to 31 March 2013. New sectors to be added for purposes of Investment linked Incentive for investment deductions.
  • 4. Capital Market Proposal Impact Reduction of STT on delivery base Transaction cost will come down sale & purchase of shares from 0.125 to 0.1 % Introduced Rajiv Gandhi equity Deepening of equity market with saving scheme allowing 50% IT higher retail participation. reduction to new retail investors who invest up to Rs.50K directly & whose annual income is below Rs.10 lakhs. Qualified foreign investors Deepening of corporate debt allowed to invest in corporate market bond market. IPO of Rs.10 Crs & above will only Cost of issuing shares will come be in electronic form. down & allows more investors.
  • 5. Tax Payers Proposal Impact Individual exemption limit raised Provided tax relief of Rs.2000 to Rs.200000 Allow deduction of Rs.10000 for More benefits for senior citizens interest from savings account Upper limit of 20% to be raised to Tax benefit of Rs.20000 Rs.10 lakh from Rs.8 lakh Allow deductions of Rs.5000 for preventive health check-up Health awareness
  • 6. Economy Proposal Impact Rs.30000 crore to be raised from Retail investors will get PSU disinvestment in 2012 – 13 shares Provision regarding Minimise transfer pricing implementation of Advance litigation. Big boost to IT & BPO pricing agreement to be service providers introduced in finance bill, 2012 Rs.15888 crore to be provided for Banks will be better equipped to capitalisation of public sector face competition banks & financial institutions Tax free bonds of Rs.60000 crores More long term financing for financing infrastructure instruments for infrastructure projects in 2012 - 13 projects
  • 7. Couple of changes that can matter Tax Evaders under scrutiny 1% tax at source on transfer of immovable property worth over Rs.50 lakhs in urban areas, Rs.20 lakhs in other. 1% tax at source on cash purchase of jewellery over Rs.2 lakhs & more. 30% tax on any unaccounted money even if it is within exemption limit. Compulsory filing of income tax returns for those having assets outside India. Tax authorities can open cases for up to 16yrs if undisclosed foreign income is found. Stiff penalty on undisclosed income if found in search. Withholding taxes on gold & property will be effective from July & October 2012.
  • 8. Govt boosts spending on health, education, food scheme & rural development to fuel growth Slowdown in industry drags GDP growth to 6.9% in FY12, but it may accelerate to 7.6% in FY13. Government slashes MGNREGA spending by 17.5% to Rs.33000 crore for 2012 -13 Rural Health gets a push with a 34% increase in allocation for NRHM to Rs.28820 crore. Education budget hiked 21.6% to Rs.25555 crore. Credit guarantee fund scheme for students proposed.
  • 9. Fiscal consolidation is largely revenue driven Gross tax revenue will rise to 10.6% of GDP in 2012 – 13 from 10.1% in current fiscal Centre’s debt will drop to 45.5% of GDP in FY13 against 50.5% target set by 13th finance commission New indirect taxes will net Rs.45940 crores for the government but it will forego Rs.4500 crores on direct taxes Over all expenditure will rise 13.1% but revenue expenditure will grow only 10.7% Things could go wrong if: Non tax revenue falls short again – Rs.30000 crores from disinvestment becomes an uphill task & if Rs.40000 crores from spectrum may not come because of uncertainties in the sector Crude price rally could derail subsidies – At Rs.1.9 lakh crore, the provision for subsidies is below the revised estimates of Rs.2.2 lakh crore Growth does not recover as envisaged – Govt is counting on an ambitious 7.6% GDP growth to deliver a strong 19.5% tax growth
  • 10. Continued…. Fuel subsidy assumption of Rs.43600 crores and fertiliser subsidy assumption of Rs.61000 crores appear too low and slippages on these items could lead to an increase in fiscal deficit by 50 – 60 bps from the target of 5.1% To Conclude: Liquidity will remain tight due to continued overhang of Government borrowings. A lot will depend on crude oil prices, global financial markets and capital flows and RBI’s take on interest rate cuts.
  • 11. As an Investor No need to worry about Fiscal Deficit, it’s fine Rs.48663 Crs is the net FII inflows into India Equities since the last budget
  • 12. Some Interesting Facts: UPA’s so called populism has resulted in excellent economics India has grown 7.7% CAGR since the recession in 2008 against Brazil’s 3.9% and Russia’s 1.3% India will over take China in GDP growth rate RBI must give the Govt credit for having lowered financial risk in the economy while growing briskly India’s Debt/GDP ratio stands at 63% & the Interest/Budgetary Receipts at 31% (these measures & not the fiscal deficit, are the correct ways to assess financial risk in an economy from an investor point of view) China while growing faster, has piled on unsustainable levels of debt in doing so, its Debt/GDP ratio stands at 155% now and will hot 180 – 200% by 2016, or $22 trillion. India has grown while decreasing debt & interest ratios sharply.
  • 13. Some Reasons to Reconsider Equities… The Macro Economic Rationale: Inflation is on its way down Interest rates have peaked GDP growth will pick up Corporate earnings will improve The Investing Rationale: Equity valuation are reasonable - 1yr forward P/E at 15.2 Returns on debt assets will reduce Gold prices have run up sharply Billions of $ likely to enter Indian Markets shortly – So far $10 trillion worth of liquidity pumped in by central banks in developed countries since 2008 financial crisis
  • 14. Continued… Global markets are flushed with liquidity at this moment and it looks like markets are entering into a bull phase FII’s have poured in $9 billion so far this financial year FII flows may continue since the federal reserve has promised to keep the interest rates at near zero levels till 2014 The pressure in Europe is also easing after the European Central Bank pumped in over Euro 1trillion into banks, banishing the danger of sovereign credit crisis Investors are also hoping RBI to cut rates during the monetary policy in April 2012, which will in turn boost the growth.
  • 15. Sensex Scenarios for December 2012 25539 (+58%) Best Case 16466 Dec’ 11 Source: Morgan Stanley
  • 17. DISCLAIMER: This document / presentation has been prepared by Cerebral Advisors and is meant for the recipient for use as intended and not for circulation. This document should not be reported or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Cerebral Advisors does not guarantee the accuracy, adequacy or completeness of any Data in the Report and is not responsible for any errors or omissions or for the results obtained from the use of such Data. Cerebral Advisors, its partners / directors and employees, will not in any way be responsible for the contents of this report. The securities discussed in this report may not be suitable for all investors. Investors must make their own investment decision based on their own investment objectives, goals and financial position and based on their own analysis. Cerebral Advisors during the normal course of business, from time to time, may solicit from or perform investment. Cerebral Advisors especially states that it has no financial liability whatsoever towards any investments based on this research report.