Budget 2018 - 2019 - Key factors that influenced Arun Jaitleys announcements

Key factors that influenced Arun Jaitley’s Budget 2018 – 2019 announcements

The Finance Minister faced three key challenges before submitting the Union Budget 2018.

WinRural Rural Hertz – The results of the Gujarat elections have seriously affected the rural economy that has emerged from the government’s negligent sense. Budget child for rural serenity.

Fiscal Consolidation – Fear of financial slipping leaves a very limited head-room for the government to become free.

Accelerate Growth – “Ake Din” took longer than expected. The current run rate is not very good.

Current situation – “It’s like a cricket team that has scored less than the average pace for the first 35 overs, in the last 15 overs (ie, GDP growth, vote banks) and wicket losses (ie, there is no room for cash flow).

The current government has utilized data analytics that effectively utilized “Digital India” – full credit free of charge without the balance of budget allocation.

Rural and Farm Sector Allocation – Attempts to improve infrastructure problems, pricing concerns, and standard of living. Many times the cost of perfection production costs less; Hence the fair price realization is their biggest problem. 1.5-fold of the product is a welcome action of the MSP.

Blurred to assess road-resistance production for effective policy implementation. Higher MSP food inflation may be fuel; The government will have to hack the eye.

Monetary Deposit – The government estimate that the fiscal deficit last year fell by 3.25% to close to 3.5%. Fiscal year 18-19 The fiscal deficit is tense at 3.3 percent.

In addition to adding a standard deduction to the government and cheating personal income tax by securing transport and medical reimbursement, the 4% cess additionally “Neil is Comparable”.

The US and UK have reduced their corporate rates. Corporate tax rate to compete globally 18% (at least 25% pre-promised) Indian company Inc. The corporate tax rate has been cut for a company with a turnover of less than Rs 250 crore. It covered 95% of Indian companies but left large corporations high and dry. Most of the corporate tax collection comes from bigger ones. The Finance Minister has fulfilled this promise without causing any loss to the fiscal deficit – really smart action.

Long-Term Capital will add tax revenue to profits.

Some of the things that can reduce the financial rail line are MSP opacity – the actual revenue impact, Rs 10 crore for families 5 lakh health insurance, 50 crore people and an optimistic tax collection numbers.

Growth factors in 4 areas of GDP –

Consumption – Indian population hopes for some tax subsidies to increase living costs. Limited corporate earnings will see a limited wage hike. The only hope that increased MSP rural consumption. Long-term tax profits affect income that is negatively impacted.

Private Sector Investments – Companies with high efficiency have limited investment to increase efficiency. Growing interest rates are a dumb man, so keeping a hawk-eye on inflation and fiscal deficit is important.
Public Investments – 10% of all budget estimates for capital expenditure is a big positive.

Net export (export minus import) – rising oil prices affect the economic deficit, shoot inflation, and negatively affect interest rates. This only affects the revenue of net exports, but also affects domestic businesses.
In the coming years, state bats accelerate run-rate and see how to avoid wickets. The favourable pitch (low crude oil prices, low inflation and benign interest rates) vary slightly (high crude oil prices, no interest rate reduction and low inflationary growth).

What do you do with your investments?

Equity Investments – Long Term Capital Lains is not only required for equity market correction. The equity market traded to a high value level, a market that is looking forward to dealing with corporate earnings. The earnings growth rate is not very encouraging, but the bulls are hovering on the market, coming up with the hope and high liquidity (money). Increased crude oil prices, head rates, increased interest rates already and if not accidentally improved, the journey will be turbulent, so be sure to speed up your seat belt.

Keep SIP across all market conditions, put some money to invest in corrections.

Fixed income – A sudden and steady increase in last year bond yields took a lot of surprise. There may be a 25 basis point marginal relief rally, but it does not expect further reduction. At this time, they prefer short-term bond funds and credit funds, and now retirees can now afford about 7 lakhs and receive tax-free returns.