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Union Budget 2008-09 Presented by P.Chidambram : Highlights..

March 01, 08 by FinanceTurf

Here presents the Union Budgets 2008-09 highlights:

  • Debt Waiver: Total estimate Rs 60,000cr; Overdue loans to be waived will be Rs 50,000 crore. One-time settlement estimated at Rs 10,000 crore; all agriculture loans by RRBs (Railway Retirement Board), co-operatives, SCBs (State Controlling Body) overdue taken before March 2007 and outstanding on December 2007 are covered. Loans waived for marginal farmers holding up to 1 hectare and small farmers up to 2 hectare..

Union Budget 2008-09
Union Budget 2008-09
  • Excise on two-wheelers reduced from 16% to 12%
  • Hikes tax-free income from Rs 1,10,000 to Rs 1,50,000
  • 10% tax on income from Rs 1,50,000 to Rs 3,00,000
  • 20% tax on income from Rs 3,00,000 to Rs 5,00,000
  • 30% tax on income over Rs 5,00,000
  • Women exemption increases from Rs 1,45,000 to Rs 1,80,000
  • Senior citizen exemption increases from Rs 1,95,000 to Rs 2,25,000
  • Banking cash transaction tax to be removed
  • Tax on short term capital gains increased to 15% from 10%
  • Service tax limited hiked to Rs 10 lakh.
  • Reduced general CENVAT (Central Value Added Tax) from 16% to 14%
  • Duties on iron ore exports increased to Rs 3,000 per tonne.

Mr.P.Chidambaram
Mr.P.Chidambaram
  • Project import customs duty reduced from 7.5% to 5%; Steel melting scrap and aluminum scrap made nil; Life saving drugs customs duty from 10% to 5%;
  • No change in peak rate of customs duty;
  • Revenue deficit at 1.4% against budget estimate of 1.5%; To eliminate revenue deficit in Fiscal Year 2010; Fiscal deficit at 3.1% against budget estimate of 3.3%; Plan expenditure Rs 2,43,386 crore;
  • Defence allocation increased from Rs 96,000cr to Rs 1,05,600 crore; Food subsidies at Rs 32,667 crore;
  • Exchange-traded currencies; interest rate derivatives to be introduced;
  • TUF (Technology Up gradation Fund) to increase to Rs 1,090 crore; Rural Infrastructure Development Fund increased to Rs 14,000 crore;
  • Saving rate at 35.6%, investment rate at 36.3 %;
  • Rs 1,000cr to be placed with LIC for covering an additional 1 cr landless households; PAN to be extended for all transactions in financial markets
  • Coal regulator to be set up; GQ (Golden Quadrilateral) completed 96.48%
  • Government to interconnect all national institutions on a knowledge network; Government to establish 16 central universities; 3 IITs in Bihar, Andhra Pradesh and Rajasthan;
  • To continue with fertilizer subsidies, may move to nutrient-based subsidies; Rs 20,000 crore allocated for irrigation; Agricultural credit at Rs 2,80,000 crore; To mobilse Rs 10,000cr for plan capital expenditure;
  • ·Rs 16,202cr scheme that will cover at least 33% women.

Budget 2008-09
Budget 2008-09

  • Chennai desalination plant to get Rs 300 cr in 08-09;
  • JNURM (Jawaharlal Nehru Urban Renewal Mission) to get Rs 6,866cr in 2008-09 from Rs 5,482cr in 07-08;
  • Anganwadi workers remuneration to be increased to Rs 1,500 per month.
  • Rs 30,000 cover for unorganized sector; Center to share Rs 200 cr premium; Health allocation increased by 15%
  • Mid-day meal scheme extended in government and government aided schools in upper primary classes. Total coverage of 13.9 crore children; Education allocation increased by 20%
  • 2008-09 should be a year of consolidation; We can; The government will manage capital inflows along with RBI (Reserve Bank of India);
  • Total agricultural output 219.32 million tone. Agriculture growth rate at 2.6% in 2007
  • The next Union Budget will be a vote-on-account because of general elections.

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More about Dividends..

February 17, 08 by FinanceTurf

Dividends are payments made by a company to its shareholders.

Dividends
Dividends

When a company earns a profit, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be paid to the shareholders of the company as a dividend.

Paying dividends is not an expense; rather, it is the division of an asset among shareholders.

Dividends Policy
Dividends Policy

There are various forms in which the dividends can be paid, some of which are :-

• Cash

Cash dividends (most common) are those paid out in form of cheques. This is the most common method of sharing corporate profits with the shareholders of the company.

• Stock

Stock dividends are those paid out in form of additional stock shares of the issuing corporation, or other corporation. They are usually issued in proportion to shares owned.

• Property

Property dividends or dividends in ‘in kind’ are those paid out in form of assets from the issuing corporation or another corporation. They are relatively rare and most frequently are securities of other companies owned by the issuer.

• Other

Dividends can be used in structured finance. Financial assets with a known market value can be distributed as dividends.

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What are Shares??

February 16, 08 by FinanceTurf

Shares represent ownership of a company. When an individual buys shares of a company, they become one of the owners of the company.

Shareholders choose who runs a company and are involved in making decisions, such as whether a business should be sold.

Shares
Shares

There are two types of shares which are normally issued:-

a. Equity shares and,

b. Preference shares

Equity shares are the most important source of raising long term capital by a company.

Equity shares represent the ownership of a company and capital raised by it is known as owner’s fund.

Equity shareholders do not get a fixed dividend but are paid on the basis of earnings by the company.

The preference shareholders enjoy a preferential position over equity shareholders.

As compared to the equity shareholders, the preferential shareholders have a preferential claim over dividend and repayment of capital.

Sensex
Sensex

Preference shares are broadly classified as:-

a) Cumulative Preference Shares

b) Non-cumulative Preference shares

c) Participating Preference Shares

d) Non-participating Preference Shares

e) Convertible Preference Shares

f) Non-convertible Preference Shares

g) Redeemable Preference Shares

h) Irredeemable Preference Shares

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Capital Market

February 13, 08 by FinanceTurf

The capital market is the market for medium and long term funds. It refers to all the organizations, institutions and instruments that provide long term funds.

The organizations and institutions which constitute the capital market include the new issue market, the stock exchange, the mutual funds, insurance companies, investment banks.

The capital market mainly focuses on meeting long term financial needs of the business sector.

Global Market In Hand
Global Market In Hand

The business enterprise utilizes this market to procure finances for long term investments, such as buying plant ,machinery ,buildings, etc. funds in the capital market are raised by issuing a wide variety of securities which includes :-

• Equity shares or ownership securities
• Debentures or creditor ship securities
• Preference shares or securities having preferential claims
• Other innovative securities which are variant s securities, with new features added to provide a wider choice to investors.

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