Indian Economy booming - Direct tax collection up 15 percent

(posted under Direct tax collection, Indian economy updates) - collection of direct taxes during the first quarter of the current fiscal increased by over a full 15 per cent, driven mainly by higher realisation from the corporate sector.

The higher realisation of direct taxes, which mainly include corporate tax and income tax, went up to Rs 68,675 crore, as against Rs 59,465 crore during the corresponding period last fiscal.

According to the figures released by the Finance Ministry here today, corporate tax collection, which is a reflection on the performance of India Inc, soared 21.65 per cent to Rs 43,439 crore during the reporting period. The government expects to mop up Rs 4.3 lakh crore by way of direct taxes during the current fiscal, an increase of over 13 per cent over the year-ago period.

Is budget 2010 provisions on track??

It has been 4 months since Pranab Mukherjee presented the Union budget 2010 in Parliament. Now the big question is that Are budget provisions on track.

The list of announcements made during budget speech is as following ans I will soon update the present growth of these provisions in reality.

1. Pranab cuts surcharge for corporate, ups MAT
2. First challenge is to get to the high GDP growth path
3. Oil & gas: Budget 2010 low on reforms, high on tax
4. Actual net market borrowing for 2010/11 seen at Rs3.45 trillion
5.15% increase in plan expenditure in 2010/11
6. Defence allocation raised to 1.47 lakh cr
7. Customs duty on silver at Rs1500/kg
8. Pranab Mukherjee allots Rs 173 crore for infra development
9. Service tax remains unchanged at 10%
10. India received FDI worth $20.9 bn in April to Dec 2009 period
11. New Corporate Tax rate at 33.21%
12. FM says economy now is in far better position
13. Rs50/tonne cess on Indian coal
14. Cut in Personal Tax Rate Savings of Rs50,000-8lac
15. Excise duty on CFL halved
16. FM’s Budget makes tobacco cos cough
17. Waive excise duty on solar panels
18. Govt will implement direct tax code by April 1, 2011
19. Agricultural seeds exempted from service tax
20. RBI to release additional licenses to pvt sector banks and non-banking financial institutions
21. Raise excise duty on non-petro products to 10%
22. Implementation of GST and DTC by April 2011
23. Opposition walks out of the Budget session
24. Sets aside Rs 16500 cr for PSU banks to get minimum 8% tier 1 capital by March 2011
25. Restore 5% basic customs duty on crude petroleum
26. Partial roll back of excise duties of large cars
27. Explicit reduction in domestic public debt equity ratio: FM
28. Excise duty raised on all non-smoking tobacco
29. Centeral Excise Tax on petroleum products raised by Re1
30. Raises excise duty from 8% to 10%
31. R&D deduction increased
32. Surcharge for companies cut to 7.5% from 10%
33. MAT increased form 15% to 18%
34. 30% tax on income above 8 lac
35. 20% tax on salary between 5-8lac
36. Govt to set up apex level Financial Stability and Development Council
37. 10% tax for income between 1.6-5 lac
38. No income tax on salary up to of Rs1.6 lac
39. Fiscal deficit seen at 4.8% in FY12
40. FY11 fiscal deficit pegged at 5.5% of GDP
41. Increase in non-planned expenditure is only 6%
42. Planning Commission to plan development of Maoist affected areas
43. Rs 1,900 cr to authorities working to implement UID number
44. UID number to come into effect the coming year
45. Fuel prices to go up from tonight
46. 15% priority lending to minority sector to be maintained
47. Gradual phasing out of stimulus: FM
48. Plan outlay for welfare of women and children doubled
49. Smart card extended to NREGA scheme
50. Raises allocation for health ministry to Rs22,300 crore
51. Bharat Nirman plan for FY11 has outlay of Rs48,000cr
52. Indira Awaas Yojana allocation at Rs1,000 cr
53. More power to aam aadmi; FM cuts tax rates
54. Raises allocation for urban development by 75% to 5400cr
55. NREGA allocation at Rs40,100 cr
56. Social sector spending at Rs1.38 trillion for FY11
57. Stocks/sectors you should bet on post Budget
58. Increase allocation for school education from to 31,036 cr from 26,800 cr
59. Hike allotment to renewable energy by 61%
60. Doubled allocation for power sector
61. Hope to breach 10% mark in GDP in near future: FM
62. Road development allocation raised to 19,894
63. FM doubles allocation, solar power gets boost
64. Proposes to extend interest subvention for export for 1 yr
65. Will reduce fertilizer subsidies
66. Aims to implement GST and Direct Tax Code in April 2011

India's trade deficit to widen to 154 billion in 2011/12

India's trade deficit is forecast to widen in the 2010/11 fiscal year as its rebounding economy raises demand for manufacturing and oil imports, while the euro zone debt crisis hits exports, mainly in software.

A wider deficit would pressure the partially convertible rupee, which has lost more than 5 per cent from its 2010 peak of 44.18 to the US dollar.

India's trade deficit was $117.3 billion in 2009/10, down from $118.7 billion in 2008/09. But a Reuters survey in April forecast the gap would widen to $132.70 billion in 2010/11 and $154.50 billion in 2011/12.

Worst Economies of World

Well I have already posted about the best economies of world, If you have not read that post here is the link Best economies of world, Now I thought why not post about the worst economies of world, So here I start....

Country Name	Rank
Zimbabwe	1
Democratic Republic of Congo	2
Guinea	3
Sierra Leone	4
Nicaragua	5
Burundi	6
Eritrea	7
Liberia	8
Ghana	9
Madagascar	10

the list is based on forbes.com work

Indian Cos investments in USA everincreasing

Indian investment in 2008 was USD 4.5 billion but the investments in 2009 grew 60 per cent higher than investments in the previous year. He was quoting from a yet to be published report by India US World Affairs Institute and the University of Maryland.

This feat has been achieved by acquiring 372 businesses by Indian companies in the US between 2004 and 2009 worth USD 21 billion. which has created an estimated 40,000 employments in the US.

FDI's are down as recession re-emerges from Europe

Foreign direct investment in India dipped for the second month in a row in April to $2.21 billion, down 5.1 per cent over the year-ago period.

In March, the inflows had contracted by about 38 per cent to $1.2 billion. The inflows in the first three months of 2010 were $4.96 billion, down 20 per cent from $6.17 billion in the corresponding period last year.

Fiscal deficit 2009-10 marginal better then Govt Expectations

India's fiscal deficit for the 2009/10 fiscal year that ended on March 31 was Rs 4.12 trillion ($88.9 billion), the government said in a statement on Monday.

The deficit is equivalent to 6.6 per cent of India's gross domestic product (GDP), according to a Reuters calculation, and was slightly lower than the government's revised target of 6.7 per cent.

In February, the government had revised its fiscal deficit estimate for the year to Rs 4.14 trillion. Tax receipts were Rs 4.59 trillion and total expenditure was Rs 10.19 trillion for the 2009/10 fiscal year.

Govt speeds up PSUs stake sale

India's cabinet approved a plan to speed up the sale of stakes in state-owned companies as the government aims to make nationalised companies more responsive to markets as well as cutting the fiscal deficit.

The cabinet will allow state-run companies to appoint investment bankers and other intermediaries at the same time as they seek cabinet approval for stake sales, allowing IPOs to proceed more quickly when market conditions allow.

Previously companies had to wait for cabinet approval before moving ahead with preparations, causing delays that have already sparked problems with valuations as market dip.

BRIC economies growth predictions 2010 - 11

China, India, Brazil and Russia are powering ahead, the Organisation for Economic Cooperation and Development said on Wednesday, revising upwards its growth outlook for all four largest emerging economies.

With the expected rebound of agricultural output in India, growth should be strong in the near term while inflationary pressures would also remain high amid strong outlook for demand.

Russia should use windfall oil revenues to eliminate fiscal deficits more quickly but if oil prices and capital inflows continue to increase rapidly the country would face another boom-and-bust cycle.

In Brazil, infrastructure investment will help lift growth again despite tighter monetary policies and the beginning of spending cuts

World's top 10 reputed companies 2010

Following are the top 10 most reputed companies of the world as according to survey by the reputation institute.

RANK	COMPANY NAME
1	GOOGLE Inc
2	SONY CORPORATION
3	WALT DISNEY COMPANY
4	Bavarian Motor Works(BMW)
5	Mercedes-Benz
6	Apple Inc
7	Nokia
8	IKEA
9	Volkswagen
10	Intel

Investment proposals worth 1400 crore passed

The government cleared 24 foreign investment proposals, including those of media company Asianet and broadcasting firm Tata Sky, worth Rs.1,412 crore.

Asianet's proposal worth Rs.425 crore is on induction of foreign equity to undertake the business of broadcasting non-news and current affairs television channels.

Indian black money and IPL

Well Indian Premier league is just over so i wanted to write on it . As this time i thought the IPL was indirectly related to Indian economy or atleast with the black money which is as large as the legal value of indian economy.

So why was the whole episode of suspending lalit Modi created.?

The obvious reason for that was he brought name of Shashi Tharoor and her so called friend sunanda(oops i forgot to keep the 's' capital) in the eyes of the common men. people now obviously think that the black money which our politicians make from corruption, smuggling, trafficking etc have been properly invested by them in bringing the IPL teams. Prafull (he is full of money) Patel himself might be related (although these alligations have been ruled out by the puppets for NCP)......i mean people of BCCI.

The reason of indian government beginning to go after Lalit Modi is very obvious! that is - you have made one of our most public politician to resign so you have no right to come in front of public too.....(being the IPL chairman). Lalit Modi himself is tremendous businessman and turned this business venture of IPL into profit in the very first year.

The other reason is that the ruling politicians have not got their share of the black money and they are crying...sob sob. There are no proper papers of the deals and after some masala news, News channels have got their share for keeping their mouth shut from now on....!!

It's sad to say that we live in a country being run by ignorant goons!! It's only the hardwork of the people which is keeping our economy on growth path.

Another funny thing from this whole IPL episode was that the minister's use public money for their own pleasures... (example being the Poorna Patel episode). and a false clarification from AI on the whole episode.

God Bless India

Economy of India to grow at 8.3 percent

Assuming a normal monsoon, we expect GDP growth to surge 8.3 per cent during the financial year 2010-11, driven by robust industrial growth and resilient performance of the service sector," D&B said in a report.

Besides, it said that rise in consumption demand is likely to contribute majorly to the economic growth and help augment investments.

Healthy income levels on account of faster pace of job creation as well as broadening of tax slabs -- as proposed in this year's Union Budget -- will create higher disposable income with consumers, driving up demand.

Banks move to Mutual funds as loan applications dip

(posted under - Indian Economy, Mutual funds investing) - According to the latest RBI figures, the first week of April has seen a dip in outstanding loans. Total bank loans as on April 9 stood at Rs 32,41,255 crore, up Rs 1,167 crore over the previous fortnight’s levels. However, outstanding loans were marginally lower than the Rs 32,43,175-crore loans outstanding on end March 2010. The second half of March saw bank loans growing by over Rs 1,00,000 crore — a feat which banking sources say was achieved only by banks window dressing their books.

Banks have invested an additional Rs 50,016 crore during the fortnight ended April 9, taking their total MF exposure to Rs 1,05,519 crore. This is despite the central bank asking lenders to cut down exposure to mutual funds. Foreign exchange reserves were flat at $280 billion during the week-ended April 16, largely on account of revaluation of non-dollar assets.

Govt to infuse 15000 cr into public sector banks - nice move

(posted under PSU banks, banking sector news)- just headrd that the government on Friday approved a plan to infuse Rs 15,000 crore capital into state-run banks in the current fiscal to boost their lending capacity. looks like a nice move if whole amount is infused without anything taken by politicians from it.

The proposed infusion will increase the lending capacity of the banks by Rs 1,85,000 crore. This additional availability of credit is likely to benefit employment oriented sectors, especially agriculture, micro and small enterprises and entrepreneurs that in turn would contribute substantially to the growth of the economy.