2023

RBI Governor Shaktikanta Das If you thought the good news stopped with the Budget 2023 slashing the tax burden on individuals, think again. The budget proposals are also likely to help stop the interest rate hikes by the Reserve Bank of India that have been raising your EMIs since last year. The Budget’s fiscal rectitude would be music to the ears of the members of RBI’s interest rate-setting panel. Finance Minister Nirmala Sitharaman not only met her deficit target for the current fiscal year and announced a lower target for the next but she also said that she would stick to the medium-term aim of below 4.5 percent of the GDP. The RBI’s monetary policy committee, which has been waging a war on red-hot inflation over the last year, is widely expected to raise interest rates by another 25 basis points when it meets February 6-8. The panel has raised interest rates by 225 basis points since April 2022. In October, the central bank failed to meet its inflation mandate after … [Read more...] about How Budget 2023 paves the way for RBI to pause rate hike after February

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × The government’s ambitious plan to monetise fully completed and operational infrastructure to raise funds for financing future projects, National Monetisation Pipeline (NMP), did not find any mention in the Union Budget for 2023-24, leaving sector experts and industry players bewildered. Ahead of the Budget, experts had said that the government may miss FY23's target of raising Rs 1.6 lakh crore by a huge margin but were hopeful of an update from the Finance Minister on February 1. “NMP, the National Monetisation Pipeline, was about offering fully completed and operational infrastructure assets on a PPP basis but was not mentioned,” said Shailesh Pathak, Director, Indian School of Public Policy, saying that it was a notable omission in the budget. On Jan 31, the Economic Survey of 2022-23 … [Read more...] about Budget 2023: The curious case of National Monetisation Pipeline’s omission

On August 23, 2021, the government announced the NMP with the aim to monetise existing infrastructure assets to raise funds to finance future projects. (Representative image) The Economic Survey of 2022-23 tabled on January 31 reiterated the government’s target to raise Rs 1.6 lakh crore during the current fiscal under the National Monetisation Pipeline (NMP). However, there is a disclaimer that this is only an indicative figure and the actual number may differ due to various factors. While the centre met its NMP target in its first year in 2021-22, it may miss the goal in FY23 by a significant margin, according to sector experts. Sectors like railways, telecom and petroleum may slip, they said. NMP’s second year, ie FY23's target is projected at Rs 1.6 lakh crore (27 percent of the overall NMP target) under Core-Asset Monetisation. This is an indicative value while the actual realisation for public assets may differ depending on the timing, transaction structuring, investor … [Read more...] about Economic Survey 2023 reiterates National Monetisation Pipeline target at 1.6 lakh crore but with a disclaimer

FM Sitharaman presented her fifth Union Budget on Feb 1, 2023. The Budget revenue projections for the next financial year are realistic and not conservative, revenue secretary Sanjay Malhotra has said. “Let me assure all of you that the numbers we have put forth are very much in line with the GDP numbers,” Malhotra told CNBC-TV18 at a post-budget event on February 2. If anything, they are an overestimate, as the government has not factored in relief on the direct tax side while making the projections, he added. The Budget for 2023-24, which was presented by Finance Minister Nirmala   Sitharaman on February 1, estimated that gross tax revenues will rise by 10.5 percent to Rs 33.61 lakh crore in line with the nominal GDP growth assumption of 10.5 percent. Also read: No major GST rationalisation, slab changes for now, says revenue secretary Finance Secretary TV Somanathan, too, on February 1 expressed confidence about the Budget numbers. Somanathan, however, did add that … [Read more...] about Budget 2023 revenue projections realistic, says revenue secretary

It would be too simplistic to assume that the demand for Old Pension Scheme would be the central issue on which the state elections of 2023 and the Lok Sabha election of 2024 would be contested. In a surprise shift, Maharashtra deputy chief minister Devendra Fadnavis has said the state government is “not negative” about the Old Pension Scheme (OPS). Earlier he had expressed his opposition to the OPS in the Maharashtra assembly. With the Maharashtra legislative council elections delivering an adverse result to the state government, will it rethink its position? Meanwhile, reports also indicate that Congress in Karnataka is seriously considering reintroduction of the OPS as a key poll promise for its 2023 election campaign. Why OPS Gained Steam Evidence does indicate that the Congress party promise of restoration of the OPS (if returned to office) did help the party in winning the assembly election in Himachal Pradesh (HP). But it would be an overstatement to say that … [Read more...] about Old Pension Scheme not a gamechanger for 2023 assembly polls or 2024 Lok Sabha elections

Nirmala Sitharaman with the Budget 2023 "bahi khata". (Image: ANI/Twitter) PRO Only Highlights - Quarterly performance largely backed by improved realisations - Medium-term triggers China plus and protectionist measures for tyre industry - Valuations not inexpensive; but improved medium-term outlook Ever since Prime Minister Narendra Modi came to power in 2014, there had been speculation whether he could become the Deng Xiaoping of India. One single step that will help draw the parallel between Modi and Deng is liberalising the country’s financial system further by freeing the white elephants (public sector banks) from state control through privatisation. The Chinese reformist leader broke with Mao’s ideology by opening up the Chinese economy, which triggered China’s economic renaissance unparalleled in the history... … [Read more...] about Can Budget 2023 deliver the Deng moment for India’s financial market?

The Union Budget 2023 strikes the right balance between growth and fiscal prudence. It has given consumption a big boost, putting more cash in the hands of individuals and shows commitment to clean energy and manufacturing while continuing its focus on agriculture, MSMEs, urban infrastructure and tourism. Stock gainers Beneficiaries of capex push Banks stands to benefit from Budget 2023 -24. Capex spend has been increased steeply and is almost double of pre-pandemic level which will boost credit growth. At the same time, adherence to medium-term fiscal consolidation (5.9% fiscal deficit target for FY24) and gross and net borrowing numbers in line with Street expectations will not exert pressure on yields/interest rates. ICICI Bank and SBI will be clear beneficiaries of capex driven credit growth. Larsen & Toubro which derives majority revenues from core engineering and construction business would benefit from in capex which was increased for third year in a … [Read more...] about Meet the key winners and losers from Budget 2023

FM Nirmala Sitharaman tabled Budget 2023 on February 1 The government has assumed a nominal GDP growth of 10.5 percent for 2023-24, the Budget 2023 presented by Finance Minister Nirmala Sitharaman said. At 10.5 percent, the nominal GDP growth assumption is in line with economists' expectations. A Moneycontrol poll had shown that economists expected the Budget 2023 -24 to assume a nominal GDP growth of 10.5 percent . "Nominal GDP for BE 2023-2024 has been projected at Rs 3,01,75,065 crore (Rs 301.75 lakh crore) assuming 10.5 percent growth over the estimated Nominal GDP of Rs 2,73,07,751 crore (Rs 273.08 lakh crore) as per the First Advance Estimates of FY 2022-23," the Budget documents said. The nominal GDP growth assumption for 2023-24 is one of the most crucial numbers in the Budget as it determines estimates such as the fiscal deficit and the growth in tax collections. Read More The Centre has benefitted from two years of very high nominal GDP … [Read more...] about Budget 2023: FY24 nominal GDP growth assumed at 10.5%

Public sector enterprises may look appealing to investors, but not many are willing to take a bite of those in the divestment list. (Representative image) Union Finance Minister (FM) Nirmala Sitharaman, budget 2023, has pitched for a review of the regulations by financial sector regulators in consultation with stakeholders. Presenting the last budget before the general elections in 2024, on February 1, Sitharaman suggested different financial sector regulators to carry out a review of regulations. Highlighting the need to ease and reduce the cost of compliance, Sitharaman said that financial sector regulators will be requested to carry out a comprehensive review of existing regulations. FM said: "They will consider suggestions from public and regulated entities. Time limits to decide the applications under various regulations will also be laid down." Existing regulations Read More The existing regulatory authorities include the Reserve Bank of India … [Read more...] about Budget 2023: FM pushes for review of financial sector regulations

Budget 2023 will focus on rebuilding fiscal space lost during the pandemic to counter new risks from a challenging global environment Presenting the Union Budget 2023, Finance minister Nirmala Sitharaman on February 1 announced that the urban infra development fund would be managed by National Housing Bank (NHB) and used by public agencies. "We expect to make available Rs 10,000 crore per annum for urban infra development fund," she said. Sitharaman also noted that 50-year interest-free loans would continue for states. “Continuing its focus on urban planning reforms to develop sustainable cities for tomorrow, the allocation of INR 10,000 crores to the NHB for infrastructure development, the highest ever railway outlay at Rs 2.4 lakh crore, and increased regional connectivity through 50 more additional airports, along with other projects will also boost regional connectivity and will add impetus for infrastructure development, especially in tier-2 and 3 cities which will … [Read more...] about Budget 2023: In push for infrastructure, National Housing Bank to make available Rs 10,000 crore