Winners and Losers of Union Budget
The Budget Session of India for the year 2018 has started on 1st February. Arun Jaitley the finance minister of India presented the government fifth and last budget session in Lok Sabha. This budget which is presented by finance minister Arun Jaitley is the last budget of Modi government before 2019 elections. There are many benefits and loopholes in the 2018 budget. Let’s us know who has benefited from the budget and who has not. The Budget 2018 will have focused on strengthening the agricultural and rural economy.
Read the below article and get to know who got benefited by the budget 2018
Winners:
Agriculture:
Jaitley announced new projects as well as enhanced support to the tune of Rs 14.34 trillion for existing schemes in the Union Budget 2018.
Referring to India’s 86 percent farmers, who he described as small and marginal, Jaitley said efforts will be made to link them to markets so that they get adequate remuneration for their produce.
He announced setting the minimum support price at 1.5 times the cost of production of the Kharif (summer) crops.
Arun Jaitley has made an announcement for an increase in agricultural credit to Rs 11 trillion.
Health Care
The governments announce a new scheme known as National Health Protection Scheme, with an aim to ensure as much as 500 million people for up to Rs5 lakh a year of care. Due to this scheme, India’s largest hospital company Apollo Hospitals Enterprise Ltd and Fortis Healthcare Ltd will have a huge benefit.
Transport companies
Arun Jaitley during the union budget session that the government will spend a record infrastructure on roads and railways, construction and engineering firms, as well as train wagon-producers, could benefit. India top leading companies like Larsen & Toubro Ltd, Hindustan Construction Co Ltd, NCC Ltd, IRB Infrastructure Developers Ltd, Dilip Buildcon Ltd, Titagarh Wagons Ltd, and Cimmco Ltd will have a huge benefit.
Consumer companies
With government focusing on India rural areas, fast-moving consumer goods companies such as Hindustan Unilever Ltd, Britannia Industries Ltd and Marico Ltd will have a huge benefit as day labourer’s get jobs and disposable income.
Jewelers
The budget’s focused on boosting rural India and farm incomes where we get 60% of gold. It could benefit companies such as Titan Co Ltd, Tribhovandas Bhimji Zaveri Ltd, PC Jeweller Ltd.
Airports
With the government pledging to expand regional airport construction, firms such as GMR Infrastructure Ltd and GVK Power & Infrastructure Ltd could benefit.
Education
The government has allocated Rs 1 lakh crore for the revitalisation and upgradation of the education sector. Promoting learning-based outcomes and research.
The government will identify 1,000 BTech students each year and offer them the PM research fellowship to do PhDs at IITs and the IISc.
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The finance minister announced the setting up of two full-fledged schools of architecture and planning, and 24 new government medical colleges and hospitals.
Petrol and diesel
The central government has announced an excise duty cut on unbranded petrol-diesel by Rs 2. The additional customs duty of Rs 6 (on imported petrol and high-speed diesel) has been abolished.
The announcement seems to be intended towards easing the price rise in fuel in recent times.
Losers
Apple, Samsung
To increase the demand and popularity of domestic goods, finance minister Arun Jaitley’s in his budget lifts the customs duty on mobile phones to 20% from 15%. It will lower returns for Apple Inc. and Samsung Electronics as they seek profits in one of the world’s fastest-growing mobile phone markets force them to pay out to set up local factories.
Bond investors
Bond investors got some relief which is somewhat they expected. But the Budget made the relief to go in vein as India missed its fiscal deficit target of 3.2%, saying its targeting a 3.5% target for fiscal 2019. Big bond investors such as India’s state-owned banks will have a huge effect and it can go even higher than the 96 basis points they climbed in the past six months, the most in Asia. Shares of HDFC Bank Ltd, ICICI Bank Ltd, Axis Bank Ltd, State Bank of India, Bank of Baroda and Punjab National Bank might be affected.
Financial sector
The government’s made a decision to impose long-term capital gains tax on equity investments for the financial services companies, life insurers and providers of mutual fund products including IDFC Ltd, Reliance Capital Ltd, Aditya Birla Capital Ltd, ICICI Prudential Life Insurance Co. Ltd, HDFC Standard Life Insurance Co Ltd, General Insurance Corp of India
Defence sector
Jaitley during the budget session praised the armed forces and he made a promise that the government will have an industry-friendly policy to promote defence production. But there was no indication of a huge boost to defence spending. Companies such as Bharat Forge Ltd may not see a boost.
Income taxpayers
Much against expectations, Jaitley left the tax slabs unchanged. Jaitley during his budget session speech in the parliament said he didn’t want to change personal income tax rates applicable to individuals. He said that the government had already made many positive changes in the last three years.
In the latest union budget, the government has reintroduced standard deduction of Rs 40,000 on taxable income, but with a rider. The deduction allowed by the government will be in the hands of transport and medical reimbursements for salaried taxpayers.
Cigarette/sunglasses
Customs duty on sunglasses, cigarette lighters, toys, bus and truck tyres, select furniture has been hiked.
Cashews
Jaitley announced that customs duty on raw cashew will be reduced from 5 percent to 2.5 percent, which will lead to its price getting lower.
Bitcoin buyers
Arun Jaitley the finance minister in the Union Budget session said that their government will do everything to discontinue the use of bitcoins and other virtual currencies in the country. He said India will not recognize them as legal tender. He said the government will encourage block chain technology in payment systems.
