01-Feb-2023
2 mins read
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Let us have a look at the Live Updates of Budget 2023-
7 Priorities for the Budget2023 include:
Inclusive Development
Infra and investment
Reaching the Last Mile
Unleashing the potential
Green growth
Youth Power
Financial sector
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1. Announcement:
An agriculture accelerator fund is to be set up to encourage Agri to start up
2200 cr allocated for high-value horticulture
The impact expected: Encouragement for Agri related activities
Stocks to watch: UPL, Kaveri Seed, Apex frozen
2. Announcement: Tourism Sector
50 destinations to be selected on challenged mode and to be made digital on an Application to boost tourism
Infrastructure to be built
Impact: Positive
Stocks to watch: INDHOTEL, LEMONTREE
3. Announcement:
In the New Tax Regime, there is no deductions are available. The new tax regime will be the default tax regime
Impact expected: Negative for insurance and re-insurance stocks
Stocks to watch: LIC, SBILIFE, ICICPRU, GICRE, NIACL
4. Announcement:
6000 cr allotted to boost fisheries
Impact expected: Positive
Stocks to watch: Avanti Feeds, Godrej Agrovet
5. Announcement:
PM AVAS YOJNA Allocation 66% UP to 79000 cr
Impact expected: Positive
Stocks to watch: ACC, Ultratech Cement, Kajaria, Astral Pipes
6. Announcement:
Investments in Infra increased 33% to 10 lakh cr. 4.5% of GDP
2.4 lakh cr allocation for Railways. Highest ever outlay.
50 additional Airports, Heliports, Aerodomes
100 critical Project identified
Impact expected: Positive
Stocks to watch: Titagarh Wagons, IRCTC, GMR, L&T, Ultratech Cements, IRB Infra
7. Announcement: INFRASTRUCTURE
Capital expenditure increased by 33% to 10Lac cr.
Impact – Positive
Stocks to watch: LT, SIEMENS, IRB, ABB
8. Announcement:
Green Hydrogen Mission target to reach annual production to 5MMT
Budget for 45000 crores for this sector.
Impact: Positive
Stocks to watch: Reliance, NTPC
9. Announcement: Telecomm Sector
100 labs for 5G applications.
R&D by IIT
Impact expected: Positive
Stocks to watch: Bharti Airtel, Reliance
10. Announcement Railway Sector
Highest ever capital outlay at 2.4 lakh crores allocated to railways
Impact – Positive
Stocks: RVNL, IRCTC, IRCON, L&T, Siemens, BEML
11. Announcement: Auto sector
Replacement/scrapping of Old Government Vehicles and ambulances
Impact expected: Positive
Stocks to watch: Force Motors, Ashok Leyland, SML Isuzu
12. BIG FOR UNCLAIMED SHARES AND DIVIDEND HOLDERS:
To reclaim IEPF shares with ease a new integrated IT portal will be established.
13. Announcement: Financial Sector
Credit Guarantee Scheme: 9000 cr infused in the corpus for revamping the scheme
Impact expected: POSITIVE
Stocks to watch: SBI, KOTAK MAHINDRA, AXIS BANK
14. BIG BREAKING NEWS: FISCAL DEFICIT
FISCAL DEFICIT 6.4 GDP VS GOAL 6.4%
FISCAL DEFICIT TARGET NOW AT 5.9% OF GDP which is as expected by markets.
Fiscal deficit:
6.4% of GDP FY23
FY24 TARGET AT 5.9%
TARGET OF 4.5% by 2025
Important Fiscal Deficit Break Up:
Total receipts (minus borrowings) = Rs. 2 lakh crores
Total expenditure = Rs.45 lakh crores
Net tax receipts = Rs.23.3 lakh crores
Fiscal deposit = 5.9% of GDP
Centre aims to bring down the fiscal deficit to 4.5% by 2025-2026.
15. ITC Update:
Jefferies’s note indicated 35% jump in NCCD would mean a 3.5% tax hike.
This would imply a 1.5-2% price hike in cigarettes at best.
Lower increase than what the street expected which is a bit good.
16. Income Tax
Personal income tax:
1) Rebate: limit increased to 7 lakhs in the new tax regime
2) New tax regime is the default tax regime.
3) Number of Tax slabs 5 in the new tax regime and upto 3 lakhs tax is nil
The new tax rates are 0 to Rs 3 lakhs – nil, Rs 3 to 6 lakhs – 5%, Rs 6 to 9 Lakhs – 10%, Rs 9 to 12 Lakhs – 15%, Rs 12 to 15 Lakhs – 20% and above 15 Lakhs – 30%,
For example Individual income of 9 lakhs tax only 45000. Ie 5% tax avg
4) For Salary personal: Standard Deduction increased to 52500
5) Highest surcharge rate was reduced to 25% from 37%. Now max tax rate is 39%