InvestorQ : Sir, what are your views on the Budget21?
Tisha Malhotra made post

Sir, what are your views on the Budget21?

Aastha Awasthi answered.
1 year ago
Capex has been increased from 4.12 lakh crore to 5.54 lakh crore, which is a hike of 34.46%. This will definitely have a positive impact on the top line companies, especially those involved in the development of infrastructure - rails, roadways, bridges, etc.

The government has announced some major highway projects. In Tamil Nadu, that would be- 3500 km with an expenditure of about 1.03 lakh crore, for Assam – 1300 km for an allocated expenditure of 34000 crores, in Kerala- 1100 km with an allocated expenditure of 65000 crores, and West Bengal- 675 Kms for an expenditure of 25000 crores.

The scrapping policy announced by the government will positively impact the automobile sector as there will be fuel efficiency, pollution will be under control and people would be willing to buy new vehicles. All these factors will contribute to the overall growth of the automobile industry.

Senior citizens above 75 years will not require to file Income-tax returns if they have only pension and interest income. This will reduce the tax compliance burden on senior citizens, making things easier for them.
The idea of Bad Bank is positive news for the banking sector as it will ease the functioning of the banks and they could focus on the main business and servicing their client better.

Increase in the time limit for availing the benefit of deduction under the Affordable Housing scheme, by one year, which will be a huge relief for taxpayers.

Custom duty on cotton and silk has been increased.
Many subsidies given on spare parts of mobile phones, chargers, and accessories have been withdrawn which will increase the overall cost for the customers.

Custom duty on few auto parts has been increased to 15%, which will increase the cost for the customers.
Agri infra development CESS on certain products like petrol, diesel, gold, and other imported agricultural product to be levied. Since the burden of this CESS would not be shifted to customers, it will be an un-wanted increase for the businesses. The proposed CESS on petrol is Rs 2.5 per litre and Rs 4 per litre on diesel.

For the bond market, this budget will be negative rather than bringing some positive news.