| The Budget is growth oriented and impacts all sections, including women, students and minorities. There is also a commitment to a better financial discipline and reining in revenue deficit.
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| Many of Kelkar Committee recommendations have been implemented in the Budget through the removal of exemptions under the deductions of Section 80 series, raising exemption limits and lowering of corporate tax rate, and lowering basic customs duty from 20 per cent to 15 per cent.
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| On the personal taxes front, raising the basic exemption limits would raise the disposal income in the hands of the consumers. The tax to GDP ratio would move up, as implementation of VAT would improve compliance.
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| The amendments to the Banking Regulation Act 1949 to do away with the upper and lower boundaries for SLR, will provide greater lending power to the banks, lower corporate taxes will generally warrant re-rating in the banking sector as a whole.
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| There will be lower dilution of equity, as preference capital would be used to comply with Basel II norms.
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| The lower excise duties would increase operating margins of tyre manufactures and hence a case for increased profitability of all tyre manufacturers. The special package to rehabilitate sick industrial units in the sugar sector will make them more commercially viable.
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| The allocation of Textile Upgradation fund to modernise units would help bring about efficiency, dereservation of items from the small scale sector would help companies to scale up operations.
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| The lower customs duty on crude and lowering of income tax would result in additional earnings for downstream oil companies. |
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Content Guide
