Debt relief scheme extended for another six months.

FM message: Pay on time, pay less

Business Standard

Join NPS, get Rs 1,000

The finance minister should be congratulated for presenting a Budget proposal that explicitly states the government&rsquo;s resolve to accelerate the current growth rate into double digits over the coming years, while simultaneously spelling out a roadmap for fiscal consolidation. He has also increased the allocation for investment in infrastructure and provided additional tax breaks to incentivise individuals to participate in infrastructure financing.

Budget is light on structural reforms

On the revenue side, rolling back some of the excise tax cuts from last year is appropriate at this juncture. The target of Rs 40,000 crore in disinvestment receipts, if achieved fully, will not only support the fiscal position but also galvanize investor sentiment further. Measures to widen income tax slabs and reduce the income tax surcharge on domestic companies will benefit the economy by improving tax administration.

Attempts to lower deficit will benefit the economy

The Budget has not disappointed the market, which is a departure from previous years. It has been presented against conflicting objectives such as the need to return to fiscal prudence, maintain growth momentum and reduce the government&rsquo;s borrowing programme. Given these circumstances, Finance Minister Pranab Mukherjee deserves kudos for adopting a cautious, yet pragmatic stance.

FM deserves kudos for adopting cautious stance

This is a Budget that will cheer most constituents and yet it is a responsible Budget. It satisfies the conservative fiscal deficit watcher and the social development cheerleader at the same time. The focus is on growth, on individual enterprise, rural and agricultural reform, financial reform and social development, at the same time.

It is growth that is enabling social development

RBI to issue guidelines soon, will insist on diversified holding.

Usual suspects line up for banking licences

Experts think the move is a good opportunity for investment bankers.

Market expects disinvestment fillip

I would rate this as a fine Budget with lots of positives and very few wrinkles. The notion of the government playing the role of an enabler and focussing on the disadvantaged elements of society while allowing private entrepreneurial spirits to flower is a defining thought. The focus on fiscal prudence is a much-needed one and the roadmap is very encouraging.

Very few wrinkles

In my view, this Budget has tremendous clarity as to what this government will do over the next few years.

Fisc on the mend

Of this, Rs 15,000 crore will come from the World Bank.

Govt banks get Rs 16,500 cr capital boost

Over a dozen non-banking finance companies, including those from industrial houses like Tatas, Birlas, Anil Ambani-led Reliance group and Bajaj Group, are lining up plans to seek banking licences once the Reserve Bank of India (RBI) comes up with relevant guidelines.

Over a dozen firms vying for banking licences

Press Trust of India

The Reserve Bank of India (RBI) is likely to announce draft guidelines on the compensation packages of the private sector bank chiefs by next month, a move aimed at aligning the salary structures with business performance.

RBI norms on pvt sector bank CEOs' salaries soon

Insurance major Prudential is in talks to buy the Asian unit of American International Group (AIG) for an estimated $30 billion, says a media report.

UK's Prudential in talks with AIG to buy Asian ops

At the end of 2008, banks were staring at a slowing economy, souring retail loans and a tanking stock market. The focus, especially of private and foreign banks, was on containing losses rather than growing.

What to expect in 2010

If 2009 was a year when three of the country&rsquo;s largest private sector financial services groups saw new faces at the top, next year could see over a dozen new faces lead state-owned financial sector entities.

A dozen banks to get new chiefs this year

National Bank for Agriculture and Rural Development (Nabard), which recently increased the corpus of its Tribal Development Fund (TDF) to Rs 600 crore, has launched six projects for the integrated development of tribals in Karnataka.

Nabard launches six projects in state

The World Bank has approved the National Cyclone Risk Mitigation Project (NCRMP) for implementation in Orissa.

World Bank approves NCRMP

Yields on 10-year government securities are expected to touch 8 per cent, thanks to expectations of an end to easy-money policy, prospects of large government borrowings and rising inflation.

G-sec yield may touch 8%

The rupee opened 2009 at 48.77 to a dollar. It continued to depreciate until the middle of March. Then, it began to strengthen till the close of the year.

Rupee to appreciate further

It is very tough to predict what the interest rate scenario will be like. Right now, there is plenty of liquidity and credit growth is slow. So, there is no natural pressure on interest rates. However, if there is regulatory action and liquidity is sucked out, and credit growth picks up, as we believe it will next year, we could see a rise in interest rates. So, the key factors are regulatory action and credit growth.

Where are interest rates headed?

Finance News: Latest investing news and finance headlines straight from Business Standard.

Page 2724 - Finance News