Annual Budget 2018

Annual budget2018 in simple language means a projected income and expenditure for the entire 12 months. The Annual budgets apply to a fiscal year or calendar year. There is a need to create an annual budget for a country, as it is not possible to levy taxes as and when the income is needed and spend money in whichever sphere the government decides. Keeping the limited resources, a well-planned Union budget is created by indicating the income and expenditure.

What is Union Budget?

Our parliamentary system works on West Minister model. Our Annual budget is approved subject to the approval of legislature at both center and state levels. The Annual financial statements is presented before both the houses of Parliament. This is also termed as the budget of the Union government. The expenditure estimates included in the budget has to be presented before the Lok Sabha in the form of “Demand for Grants”.

Union Budget Date

In Our country, the budget is presented on a fixed date as decided by the President. This year The Union Budget 2018 will be presented on February 1, Parliamentary Affairs Minister Ananth Kumar announced on 5th of January. The minister further stated that the budget session of the parliament will be conducted from January 29 to April 6, 2018.
The Phase 1 of the session will be held from January 29 to February 9 while the second phase will be from March 5 to April 6, as told by Mr. Kumar.

Budget 2018: Steps to Stimulate the Manufacturing Sector

India’s recent jump of 30 positions on the ease of doing business ranking by the World Bank is definitely a welcome trend. But still much has to be done; further cut in red tape, taking up challenging reforms and identifying and removing bottlenecks are just some of the steps which are needed to further cement India’s position as a lucrative and viable investment destination. A vibrant manufacturing sector is a must for a vibrant economy and budget 2018 provides the FM with a unique opportunity to further push for reforms and boost the manufacturing sector. In the past the government has stated that it wants and expects 25% of the India’s GDP to come from the Manufacturing sector by the year 2022, up from the current 16%. Also under the PM Narendra Modi's Make in India scheme the government expects that the manufacturing sector will create 10 crore jobs by 2020. Although in India the manufacturing sector has grown over the years yet the growth has been slower when compared to the rivals in the neighborhood. By 2020, it is expected that India will become the fifth largest manufacturing hub in the world. For India's manufacturing sector to compete and outshine the likes of China much work will be required by the government in the Budget 2018-19.

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Union Budget 2018: Impact on Smartphones in India

The entire nation has their eyes set on the fifth and last full-fledged Union Budget in Narendra Modi’s government to be presented in Lok Sabha. This Union Budget will be presented on February 1, 2018, by Mr. Arun Jaitley, our Finance Minister. This Union Budget has a lot of significance as it is presented after two big financial decisions made in Mr. Modi’s government- Demonetization and GST. The previous year’s budget was also very unique as railway budget and general budget were presented on the same day.

Everybody is expecting some statement to be made about their respective sector in this Union Budget. There is anticipation that mobile phones may become cheaper after February 1, 2018.

Union Budget 2018: Smartphones to go cheaper?
Mobile phones are seen in every common man’s possession, especially youth. Youth is expecting cheaper handsets for use. The CEO and Director of COMIO Smartphones, Sanjay Kalirona said that the GST has to be reduced from 12%-5% and offer tax reductions to promote the mobile industry market in India. This should help in making mobiles affordable to the common man, especially youth. All the industrialists are looking up to Union Budget’s support for acceptable budgetary allocation for the growth of the mobile industry.

Budget 2018: After record growth, India's renewables progress is slipping

BUDGET 2018 - In line with its climate-change commitments and domestic pollution concerns, India has one of the world’s largest programmes to expand renewables–a tripling of capacity over the next five years.

But after two years of record expansion, the diversion of a national clean-energy cess to subsidise GST (goods and services tax)-induced losses and a new import duty to protect domestic manufacturers of solar equipment threaten to derail India’s ambitious 2022 target.

This is why February 1, 2018–the day the ruling Bharatiya Janata Party (BJP) will present its last full budget before the 2019 general elections–is of particular significance to the renewables sector, which comprises electricity from solar, wind, hydro and bio power.

These are the issues the budget must contend with: India has missed yearly renewable expansion targets since 2016; no more than 29% of the clean energy cess–a major source for funding renewables in the country–has been spent over six years, with Rs 56,700 crore diverted in 2017 to subsidise GST losses; a new import duty on solar modules from China, Taiwan and Malaysia threatens to increase production costs and record low solar tariffs; and the rural poor may miss a renewables job boom, if a workforce cannot be trained.
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Overseas investors demand status-quo on LTCG tax from Budget 2018

The Asia Securities Industry and Financial Markets Association (Asifma), a lobby for overseas investors, met with finance ministry officials last week amid buzz that the holding period to avail long-term capital gains (LTCG) in equities could be raised in the Union Budget.

Sources said foreign portfolio investors (FPIs) urged the government not to take such a decision as it would further escalate the cost of transaction and impact incremental flows into domestic equities.

Transaction cost for dealing with Indian shares is already one of the highest worldwide.

The recent policy measures taken by the government such as tweaks to the tax agreement with Mauritius and additional curbs on participatory notes (p-notes) have increased both the cost and the compliance burden on FPIs.

Experts say any further tweak could put India in a disadvantageous position compared to other emerging markets (EMs).

“FPIs are concerned about any tweak to the current long-term capital gains tax framework. It could also lead to a significant drop in FPI flows and lower the revenue for the government arising out of securities transaction tax (STT). Hence, we met the government officials to explain our apprehensions,” said a source.

58% banks report rise in bad loans in July-December period, reveals Survey

The percentage of banks reporting a rise in non performing assets (NPAs) in July-December last year has reduced significantly, indicating stability in credit environment, according to a report.

The latest round of the Ficci-IBA survey drew responses from 19 public sector, private and foreign banks representing 59 per cent of the banking industry by asset size.

According to the survey, 58 per cent of the respondent banks reported a rise in NPAs, significantly lower than 80 per cent in the previous round. Infrastructure, metals and engineering goods were key contributors to the bad debt.

However, only 28 per cent banks reported a rise in the number of requests for the restructuring of loans as compared to 40 per cent in the previous round.

For the forthcoming Union Budget, the banks demanded full tax deduction on the NPA provisioning; reduction in corporate tax rate; and accelerated investments in infrastructure sector.

"Most of the responding banks have suggested reduction in corporate tax rate from 30 per cent to 25 per cent, lowering of MAT rate to 15 per cent and enhancing tax deductions and exemptions for individuals. This should boost credit demand at both corporate and retail level," said Ficci on the report.

Budget 2018 goals to range from deficit reduction to lifting capex

BUDGET 2018 - India’s Finance Minister Arun Jaitley is likely to deliver mostly good news on fiscal consolidation when he unveils next year’s budget on Feb. 1. The government is set to overshoot its deficit target in the current year through March, largely due to lower dividend payments from the central bank. The proposed budget for fiscal 2019 though, will look better -- for deficit reduction and investment plans.

The consensus view is that Jaitley has to choose between two competing goals: either purse its aim to cut the deficit to 3% of GDP, or boost investment needed to spur growth and reduce bottlenecks in the economy -- not both. Bloomberg Economics’ view is that the trade-off isn’t so stark. Sales of government-owned assets and increased revenue from goods and services tax reform mean Jaitley should be able to net sufficient revenue to meet both objectives.

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