At a glance: Finance Minister Nirmala Sitharaman’s Budget Team
Union Budget 2022 LIVE | Top 10 things to know before the market opens today
The stock market on the day when Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget in Parliament is expected to open in the green as trends on the SGX Nifty indicate a gap-up opening for the broader index with a gain of around 169 points.
The BSE Sensex rallied 813.94 points to 58,014.17, while the Nifty50 jumped 237.80 points to 17,339.80 and formed a bullish candle on the daily charts.
According to pivot charts, the key support levels for the Nifty are placed at 17,266, followed by 17,192.2. If the index moves up, the key resistance levels to watch out for are 17,411.8 and 17,483.8.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets. Check out the full list here.
Union Budget 2022 LIVE | Affordable housing: What are the announcements expected from Budget 2022?
The Union Budget announcements in the recent past have mentioned several measures to promote the growth of Affordable Housing sector in India. However, the absorption of affordable units has been marginally impacted due to the onset of the Covid-19 pandemic which resulted in a bleak economic scenario coupled with liquidity crunch and unstable income of EWS/LIG homebuyers.
Here are a few of the expectations from Budget 2022 which may stimulate the next stage of growth in the Affordable Housing sector with a high multiplier impact: (See full story)
— Widening the definition of affordable housing to include the units priced above Rs 45 lakh, for extending the benefit to a large number of home buyers and encouraging more players.
— Moderate increase in the Rs 2 lakh limit on interest deduction under section 24(B) for tax rebate for home buyers.
— Extension of benefit under section 80EEA up to March 31, 2023, to avail additional Rs 1.5 lakh interest deduction on home loans for first-time homebuyers. Any relief on a second home would be icing on the cake and would stimulate the sector.
— Extension of Income tax benefit under Section 80IBA till March 31, 2023, with a uniform criterion on the residential unit size for projects located in metropolitan cities or any other place.
— Extension of benefits under Credit linked subsidy scheme (CLSS) scheme under PMAY-U for Middle Income Groups (MIG) until March 31, 2023.
— Increase in government’s contribution to ‘Special Window for Funding Stalled Affordable and Middle-Income Housing Projects’ (SWAMIH) funds along with relaxation in the rules and qualifications for availing the benefits from the government-backed last-mile financing platform.
Above measures coupled with other curative measures like lower long-term capital gains tax, new provisioning for rental housing schemes, GST reforms to provide input tax GST credit for developers thereby reducing overall unit cost for homebuyers, increase in the total deduction available under 80C for homebuyers, etc may further catalyse investment into affordable housing segment.
Election Update: Election Commission extends ban on rallies till February 11
The Election Commission of India on January 31 announced that the ban on political rallies will be extended till February 11. A statement issued by the Election Commission read: “The ECI extends ban on road shows, padyatras (on-foot), cycle/bike/vehicle rallies, and processions till February 11, 2022.”
The Commission has, however, introduced some relaxations in the numbers permitted for physical public rallies from February 1, by allowing a maximum of 1,000 persons, or 50 percent capacity of the ground, whichever is lesser. Additionally, political parties can now hold indoor meetings with a maximum capacity of 500 people or 50 percent capacity of the hall (whichever is lesser), while 20 people (excluding security personnel) will be allowed at door-to-door campaigns. Read more here.
Economic Survey 2022 | Here Are The Key Highlights From The Survey
Finance minister Nirmala Sitharaman tabled the Economic Survey 2022 on January 31, soon after President’s address to both Houses of Parliament. The survey, presented a day before the Union Budget,…
Economic Survey 2022: Reactions – Nomura, Crisil
— Economic Survey Fineprint From Sonal Varma, Nomura: “Overall, the survey suggests that growth is the answer, which will enable both a capex push and medium-term fiscal consolidation. In our view, the growth path ahead will be a lot trickier. While global growth and exports are strong currently, a shift in the composition of US consumer demand from goods to services, and the lagged effects of a slowing China suggest that global goods demand and exports could face headwinds in FY23. If so, India may need to significantly increase its export market share, to rely on exports as a sustained growth engine.”
— Economic Survey Fineprint – DK Joshi, Chief Economist, Crisil: “Like last fiscal, the latest Economic Survey also sees a continued role of fiscal policy in shaping medium-term growth and supporting vulnerable parts of the economy. It specifically bats for supplyside reforms as the key driver of long-term growth — rightly so.”
Union Budget 2022 LIVE | Market may witness high volatility this week amid Budget, PMI data, auto sales numbers (Slideshow)
Experts and investors will be watching out for many macro and micro indicators this week like Union Budget, PMI data, Q3 earnings, auto sales numbers. For Nifty, 17,400 may be the crucial resistance,…
Govt Not To Bring Any Legislative Business In Rajya Sabha During 1st Part Of Budget Session
The sources said Union minister and Leader of the House Piyush Goyal informed the meeting that since the duration of the first part is small, no legislative business will be brought by the government.
Economic Survey 2022 | FY23 growth expectations based on resilience of economy: Sanjeev Sanyal
A quick revival in India’s economic growth nearly two years into the Covid pandemic has boosted growth expectations even in an uncertain climate, Principal Economic Advisor Sanjeev Sanyal said on January 31. He added that most sectors were reaching pre-pandemic levels. Addressing the press after the latest Economic Survey was tabled in Parliament earlier today, Sanyal said growth expectations in the coming year is based on higher government spending, focus on fiscal stability, and a high forex reserve.
While the newly appointed Chief Economic Advisor (CEA) V Anantha Nageswaran began his tenure on January 28, the latest survey has been created by Sanyal and team. Nageswaran said the overall theme of the economic survey has been on providing short-term support to vulnerable sections, during these uncertain times while keeping a firm focus on the medium-term fiscal stability and never letting go of the opportunity that a crisis provides to initiate structural supply-side reforms.
The survey announced that India’s GDP growth in 2022-23 is projected to grow between 8-8.5 percent. However, this is based on the assumption that ‘there will be no more debilitating pandemic related economic disruption, a normal monsoon, significant withdrawal of global liquidity, average global oil prices in the range of $ 70-75, and global supply chain disruptions easing over time’.
Heading towards stable growth
Quoting a wide array of macro figures, Sanyal sought to calm the public’s nerves over apprehensions regarding next year’s growth. “The Indian economy is expected to grow by 9.2 percent in 2021-22 after contracting 7.3 percent in 2020-21. The Industrial sector is now 4.1 percent above pandemic levels. India’s overall GVA grew by 8.6 percent year-on-year in 2021-22, after contracting 6.2 percent in 2020-21. Agriculture sector GVA is now 7.7 percent above pre-pandemic levels,” Sanyal said.
However, he conceded that the services sector GVA still remained 8.5 percent below pre-pandemic levels.
Sanyal stressed that India’s GDP is now 1.3 percent above pre-pandemic levels while Gross Fixed Capital Formation is 2.6 percent above pre-pandemic levels. The (Apr-Nov) period of 2021-22 had fiscal deficit at Rs 7 lakh crore, as against Rs 10.8 lakh crore in 2020-21 and Rs 8.1 lakh crore in 2019-20. Sanyal also said the sharp increase in both tax and non-tax revenue, which are now higher than pre-pandemic levels, has allowed the government to ramp up expenditure.
In fact, Nageswaran said that even capital expenditure by state governments has grown by 67 percent in 2021-22.
Sanyal also laid stress on the fact that India remains the only country for which IMF growth forecast has been increased, even as forecast for other countries were substantially reduced.
Economic Survey 2022: Is The FY23 GDP Growth Forecast Rosy Or Realistic?
If the government is keen on helping GDP grow by 8 percent and above, it would have to keep up its fiscal support through both revenue and capital spending. That could make fiscal consolidation…
