Helping You Build Wealth With Honest Research
Since 1996. Read On...

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Revealed
India's Third Giant Leap

This Could be One of the Biggest Opportunities for Investors




Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.

AD

Can Budget keep UPA in driver's seat?
Mon, 4 Mar Pre-Open

The Budget 2014 was announced on the 28th of February with a lot of expectations. However, we believe that P Chidambaram, in his 8th budget address managed to play it very safe without announcing any big-bang reforms. While there wasn't much to appreciate in the Budget, there wasn't much to criticize either. But, has he done enough to secure the UPA another term in the hot seat?

The Finance Minister made three promises, to women, to the youth and to the poor. In order to empower women he launched Rs 10 bn fund called 'Nirbhaya' to boost the security of women in public spaces. He also announced the launch of a women's only bank with an Rs 10 bn initial capital. He also spoke about starting skill development institutions in order to train people for the job market. For the poorer section of society, P Chidambaram had the direct benefits transfer (DBT) scheme, to expand through India over a year or so. Pensions, maternity benefits, scholarships and so on will also fall under the DBT scheme. Plus an Rs 2,000 tax rebate was announced for those earning less than Rs 5 lakh per annum. Tax benefits were also offered to farmers repaying loans on time. Tax incentives were also offered on home loans upto Rs 2.5 m.

On the other hand, a 10% surcharge was levied on the incomes of people with a taxable income over Rs 1 crore. Duties on luxury cars, yachts and bikes were increased. Cigarettes and cigars were made costlier. Phones which cost over Rs 2,000 will also attract extra duties next month onwards. In a way P Chidambaram played Robin Hood during the budget. Effective tax rates for the rich were increased and lowered for the poor. But, can these moves secure a vote bank and keep the UPA in the driver's seat?

Well, this time around there is no Rs 600-700 bn farm loan waiver planned. This move in 2009 helped change the political fortunes of the congress party. In fact, the cash strapped government needs all the money it can receive either through tax income, divestments or through sale of resources like radio waves and spectrum. Well, while there are some incentives for the vote bank population, they aren't spectacular. With the fiscal deficit number grimly looking down at the Finance Minister, he had no choice but to tighten his belt rather than issue a populist budget.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Can Budget keep UPA in driver's seat?". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited).

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.