Income Tax
This was a big disappointment to those expecting a bagful of goodies from the Indian government, that the Union Budget 2009-10 would cut dividend distribution tax, corporate tax rates will be cut and so on. There was no change in the corporate tax rate.
Economy+Policy
Individuals and the Budget: No major tax reliefs, no major pain
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Economy+Policy
India’s Union Budget 2009-10: First Impressions
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Overall Impact
The Union Budget 2009-10, as Pranab Mukherjee mentioned, is one of continuity. No major new schemes. No major tax changes. No change in the thinking of the government with respect to the fiscal deficit. No major reforms announced in the Budget, either. The initial impression one gets is that the government is hoping that the external environment will improve, domestic demand will pick up and lift the economy out the trough.
Economy+Policy
Steep gradient ahead: required, a steady hand
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The railway minister has made up her mind to lean on the centre in the next few years to support her growth plans. In 2009-10, the budgetary support has been increased by Rs 5,000 crore over the interim budget figure. But its reliance on the government for funds is expected to increase, putting pressure on the government’s already strained resource position.
Economy+Policy
Rail Budget: finances go off track
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Today, the Railway Budget 2009-10 was presented by the railway minister Mamata Banerjee. It was her maiden budget and she left no stone unturned to announce populist schemes, the hallmark of every rail minister. When the times were mostly good, as in the previous government’s tenure, it didn’t pinch but in a slowing economy, it is undoing the strong position the railways made for itself in the past five years.
Economy+Policy
Fuel inflation: Petrol and diesel prices hiked
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Companies
Tech Mahindra’s open offer to Satyam shareholders closes
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When Tech Mahindra emerged as the successful bidder for the scam-ridden software company Satyam Computer Services, it seemed like the subsequent open offer would be a success.
But Satyam’s share price rose significantly, in the interim, as investors began to regain some confidence in its future, especially after its provisional results for the third quarter were made public. The company’s profitability was much better than what was feared. While the open offer was at Rs 58 the share closed today, the last day of the offer, at Rs 74.
Companies
Wockhardt sells animal health business to Vetoquinol
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When Wockhardt decided to sell its animal health business, it expected to get about Rs 150 crore for it. When the business was actually sold, to a French company Vetoquinol, the consideration remained undisclosed. So, if it met its target or fell short of it since exceeding it seems unlikely. The pharmaceutical company is selling non-core businesses in a bid to raise cash and lower its bloated debt.
Vetoquinol and what it gets
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Agriculture
Revised monsoon forecast casts a shadow
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The South-West monsoon rainfall not only brings relief to people from the summer heat, but is eagerly awaited by farmers. Their crop output depends on it, in a country where irrigation infrastructure is still pitiful, well into the 21st century. For them, the revised monsoon forecast is a dampener. The weather bureau (www.imd.gov.in) has revised its South-West monsoon forecast.
Companies
Sun Pharma to revise guidance after FDA’s raid on Caraco
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Dilip Shanghvi, chairman and managing director, Sun Pharmaceutical Industries, and Sudhir Valia, director held a conference call held to discuss the FDA raid on its US subsidiary Caraco Pharmaceutical Laboratories. This event has come as big blow for Sun. It has withdrawn its current guidance and will issue a revised one, in due course. The issue is expected to have a significant short term impact on Caraco and some adverse impact on Sun’s short term performance too.