Budget 2018 LIVE: Will Arun Jaitley ease tax rates amid fiscal challenges?

The annual Union Budget 2018-2019 will be tabled by Arun Jaitley on Thursday. Follow Business Standard for LIVE updates

7:41 AM

Benchmark 10-year bond yields have fallen 135 bps and the NSE share index has surged 55 per cent since Modi took power in May 2014.

7:35 AM

In July 2017, the Department of Economic Affairs (DEA) had cited the opinion of the attorney general to the government and the CAG on this issue: “Sebi is not obliged to remit from its general fund to the public fund account under Article 266(2) of the Constitution of India. Therefore, it would not be appropriate to deviate from the legislative intent of Parliament as elucidated in Section 14 of Sebi Act, 1992.”

7:34 AM

The issue of retention of surplus funds was first highlighted in 2008 by the CAG.

7:33 AM

Sources said this time around, Sebi has not objected to the government’s proposal on transfer of funds.

7:31 AM

According to a 2017 report of the CAG, these regulatory bodies together hold surplus cash of Rs 60.6 billion as of March 2017.

7:26 AM

The Centre has been eyeing these resources, which would enable it to reduce the fiscal deficit.

7:26 AM

Capital markets regulator, the Securities and Exchange Board of India (Sebi), has agreed to transfer Rs 16.7 billion of its surplus funds to the government.

7:23 AM

Sources said the FM’s fifth and final Budget speech of the current term of the Narendra Modi government will be truly bilingual, with Jaitley speaking at length in Hindi to reach out to the Hindi heartland.

7:22 AM

Finance Minister Arun Jaitley is likely to deliver significant portions of his Budget speech on Thursday, particularly those related to the farm sector, in Hindi.

7:19 AM

Cement production remained the biggest growth puller, rising by 19.6 per cent in December and building on the 18.4 per cent growth the month before.

7:18 AM

This was lower than the 5.3 per cent growth in the corresponding period of 2016-17.

7:18 AM

Data issued by the commerce and industry ministry showed the eight segments cumulatively grew four per cent in the first nine months (April to December) of this financial year.

7:16 AM

This dip in core sector growth rates have raised questions over a broad-based revival in industrial demand that seemed to have been heralded by the November figures.

7:14 AM

The country's output from eight core sectors rose four per cent in December, slowing from the much larger growth of 7.4 per cent in November

7:10 AM

Markets will be focused on how much India widens its fiscal deficit beyond the 3 per cent of gross domestic product projected for 2018/19.

10:09 PM

The target Jaitley had previously set out was to lower the fiscal deficit to 3.2% of the GDP in the current financial year and to 3% in 2018-19, the Budget for which he would present in the Lok Sabha tomorrow.

 

10:05 PM

Jaitley has to stick to the roadmap of narrowing one of Asia's largest budget deficits, as failing which, India may fall on the wrong side of global investors and credit rating agencies which had late last year handed out a rare sovereign upgrade.

9:56 PM

Scrapping the colonial-era tradition of presenting the Budget at the end of February, Jaitley had for the first time presented the annual accounts on February 1 last year.

The Budget presentation was advanced by a month to ensure that proposals take effect from April 1, the beginning of the new financial year.

9:52 PM

In the first eight months of 2017-18, fiscal deficit reached 112% of the target, stoking fears of a fiscal slippage. The shortfall was largely due to reduced dividends from government companies, which the government looks to bridge through stake sale in state-owned firms like HPCL.

9:50 PM

Chief Economic Adviser Arvind Subramanian earlier this week stating that a pause in the fiscal consolidation plan can't be ruled out while Niti Aayog Vice-Chairman Rajiv Kumar saying the government is likely to stick to the target.

9:48 PM

Some kind of incentives to boost exports of certain sectors may be announced while there may be announcements for start-ups as well as for promoting entrepreneurship.

9:44 PM

Ahead of Budget 2018 mixed performance for rail-related stocks
 

Analysts suggest one needs to be selective and pick only those stocks where there is earnings visibility and on-ground execution of projects

9:42 PM

Also constraining Jaitley would be the rise in global oil prices, which can stoke inflation as well as widen current account deficit.

9:41 PM

There are talks that tax break on capital gains from stock investments may go and it remains to be seen if Jaitley will finally show some movement on his 2015 promise to lower corporate tax rate to 25% from 30% over four years.

9:37 PM

Also on Jaitley's menu may be upping spending on infrastructure projects like highways and modernisation of railways to boost economic growth that is at a four-year low.

9:37 PM

There is also an expectation that common man may get some relief in income tax by way of an increase in the exemption limit.

9:35 PM

With the recent elections in Gujarat indicating erosion of BJP's rural vote base, Jaitley may also unveil incentives for the farm sector.

9:34 PM

The Budget may see new rural schemes and step up of funding towards existing programmes like MNREGA, rural housing, irrigation projects and crop insurance.

9:28 PM

Budget 2018: From rural focus to corporation tax, click here to read the mutual fund industry expectations

9:20 PM

Slamming the Centre a day ahead of the Union budget, West Bengal Chief Minister Mamata Banerjee said that devolution of central funds to the states had been deferred from the first day to the middle of the month.