Companies and Markets

Companies & Markets

Tax on LTCG good for steady growth of equity market: Garg

Subhash Chandra Garg (in pic), secretary, department of economic affairs, spelled out the benefits that would accrue to economy from the proposals aimed at kick-starting growth. Excerpts:

 

With the imposition of long-term capital gains (LTCG) you think that the equity investors will continue stay interested in long-term investment?

AAI may cut charges for ‘red eye’ flights

The Airports Authority of India (AAI), the largest operator managing the country’s 125 airports, may offer concessions in landing and parking charges to airlines for “red eye” flights between mid-night and wee hours.

“The proposal is under consideration. It is being discussed,” said a senior AAI official.

As late night flight is cheaper, it is getting more popular among air travellers. SpiceJet, IndiGo and Jet Airways have seen demand for these flights steadily rising.

BOND MARKET AWAITS RBI POLICY CUES, CHOPPY WEEK AHEAD

The sentiment in the bond market is likely to remain weak in the run up to central bank’s monetary policy on February 6-7. With the government missing the FY18 fiscal deficit target, the yields on government bonds have continued their hardening trend seen over the recent weeks.

Jaitley’s tightrope walk

In a bid to preserve macro-stability ahead of a busy election calendar, the FY19 Budget mixes prudence with some populism, seeking to balance economic and political imperatives. The budget measures carry a strong focus on the rural/agricultural and social sector (primarily health and education), along with an increase in infrastructure spending. Fresh sources of revenue generation have been unveiled to balance the jump in spending plans.

The underlying fiscal math

Disinvestment target raised to Rs 80,000cr

Even though the government has exceeded the disinvestment target for the first time in seven years this fiscal, it has opted for a moderate 10 per cent hike in the selloff target for the next fiscal.

The Centre is expected to receive about Rs 1 lakh crore in disinvestments in the current fiscal, exceeding the target of Rs 72,500 crore.

Budget welcomes world to Digital India

Digital economy is increasingly becoming the economy itself, making it very difficult, if not impossible, to ring-fence the digital world from the rest of the economy, including for tax purposes.

Devil is in the detail

Unless the country has a universal healthcare system, it can’t make healthcare inclusive. Healthcare is the largest job creating sector in the country. It is commendable that the government has plans to upgrade hospitals and convert 24 medical colleges into hospitals.

The country requires living and working hospitals to protect the health of its citizens. The universal health care system that they are rolling out is very important. Half the population will benefit from it. Basically 100 million families will get health coverage, Rs five lakh per family. All this is welcome move.

India’s will to go digital evident in budget FY19

The Union budget presentation on Thursday, for the first time, featured deep-tech terms like machine learning, artificial intelligence, robotics, big data, internet of things, quantum communication etc. Industry observers say it indicates the government’s political push towards making India a digital economy.

Twin focus on farmers and MSME sector positive step

The Union budget does well to bring back the focus on what could be the two largest drivers of India’s economic transformation for the next couple of years -– the agriculture and food processing industry and the growth of the MSME sector, which includes large employment generators like textile, footwear and leather industry.

Hydro policy need of the hour

For any country its infrastructure plays a very important role in its development. A lot of foreign investment is also dependent on the quality of infrastructure that a country provides. In fact, infrastructure sector itself has a great potential to attract money if the asset quality looks good to the potential investor. Fiscal incentives do play a big role in enhancing the return on these assets, thus attracting more capital.

Budget for the power sector should focus on the following:

Pages