Are things going out of Budget for Aaam Aadmi ????????

State elections have just got over, and it indicated that the wave length of government and Aaam aadmi is not matching. The reason for this may be issues like inflation, corruption, black money, malnutrition.

Some were thinking that with this budget government will try to lure the aam aadmi and enhance its image, and at the same time some had opinion that its right time to take some strict reform decision for the better health of economy  

In my views finance minister did it to some extent.

Here I tried to analysis the impact of budge on some key sectors and On the pocket of Aam Aadmi

 Automobile sector

 he excise duty  on small cars(<<4m) ,two wheelers have been increased to 12%.

Similarly the excise duty on patrol cars (>4m engine capacity below 1200c) ,diesel cars (>4m engine capacity below 1500cc),have been increased to 15%.,and this increase will be directly passed on consumers.

After this budget  fuel price  may increase because in budget very limited subsides have been announced on petrol and diesel

About 25360 crore allocated to ministry of road transport and highways with target of  8800 km worth of project.which is also a positive sign for automobile sector .

 Banking sector

The government will infuse 15888 crore in PSU banks .the additional capital will help banks banks regulatory compliance and fund business growth and it is positive for business growth.

Interest subvention  scheme continued in 2012- 13. Additional subvention of 3% available for prompt paying farmers. This will  improve the payment discipline in the agri segment, which has seen a sharp rise in the NPAs and is positive for PSU banks.

 Government borrowings marked at Rs4.79 lakh crore (net). Since market borrowings will be higher than the FY2012 borrowings it will add pressure to bond yields and is negative for banks.

Capital goods and engineering

In budget import duty 14%-19% have been imposed which will have effect on domestic manufactures like BHEL, L&T

Defence expenditure has been increased to 193007 crore that is increase of 17.4% it’s a positive sign for companies providing defense equipment EX- BEL BEML L&T

3355 crore (up to 56) has been allocated for the solar and wind power projects its positive move for renewable energy player like Suzlon,ShriramPC,Moser Bear.

Education Sector

21% increase have been made in the allocation towards “’serve shiksha abhiyaan “”          

 26 additional projects sanctioned with total funding of Rs547 crore and target of 6.2 crore skilled workforce in 10 years. National Skill Development Fund provided Rs1,000 crore and its positive for companies like NIIT and Everonn who have tied up with National Skill Development Corporation (NSDC).

Some Key Points of budget which have direct impact on Aam Aadmi’s pocket.

The tax limit has been raised to 200000 from 180000

Tax slabs raised: In  2-5 lakh bracket levy will be 10 percent, for income between  5-10 lakh levy would be 20 percent and above  10 lakh it is 30 percent

The Price of LCD LED television may come down due to excise duty cut

Life saving drugs will be cheaper
Electric vehicles may cost less
 price of  daily use items may increase because excise duty on manufactured goods has been increased
Air travel, hotel stay, hiring a lawyer may cost more
Luxury cars, gold, polished gems to become dearer
Liquor cigarettes, beedis, pan masala would be costlier

Rahul Raghuwanshi,

1 MBA B

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References

sherkhan.com , http://www.business-standard.com/india/news/do-you-really-gain-frombudget/468136/

http://answers.yahoo.com/question/index?qid=20070820202900AA69EHa

                    ....MONEY ....

             THROUGH AIR ROUTE  

There is   so much debate on the government's proposal of 49% FDI in aviation industry ,some are saying it's a positive move and some are criticizing it .           

Founder of Air Deccan G.R Gopinath says it's a good move ,it should have been done long  ago.He says it's good for aviation because more money will come in,may be new players can start airlines because now they will  have a strategic players with whom they can have partnership.

According to De Roni chif executive officer of Go-Air ,foreign investors might evaluate both opportunity to invest,in budget airlines and in international airlines .He says India is a huge market with 1.2 billion people living here with growing purchasing power, there is a huge potential.

Though at the same time this move is also being criticized ,Jantadal United's Shrad Yadav says that such decisions has not kept in view the overall situation of India.He mentions that this decision will create unemployment problem,and he further says that security system in aviation industry is also a big concern.

Yes,this move of government has pros and cons ,but ,I think ,in the current scenario this step looks as a ray of hope for aviation industry.This move may bring wonders as it has done in numerous other sectors of the economy like manufacturing,telecom,banking etc.FDI leads to efficiency and scale gains.It brings in competition

lowers price and accords choice to consumers.The liberalization in foreign investment rules provide platform to domestic companies so that they can diversify investment opportunities in other markets.  

Foreign participation in India's aviation sector could be helpful for the area where both the opportunity and need is greater,there is a need for building aviation equipment capabilities of Indian industry.

The FDI move will inject capital into cash-strapped domestic carriers.According to a report in Economic Times one Hong Kong based company is in talk with Kingfisher airlines to invest about $280 million. .

It can be said  if government accepts this proposal of 49% FDI in aviation ,many such deals may happen, and money may fly across  the seven seas  through air route ..

By 

Rahul Raghuwanshi

sources ..http://economictimes.indiatimes.com/opinion/editorial/let-it-fly-fdi-in-domestic-airlines-needs-to-be-welcomed/articleshow/11548241.cms

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/fdi-in-aviation-may-give-flight-to-domestic-airlines/articleshow/11587600.cms

http://www.moneycontrol.com/news/business/fdiaviation-win-win-for-govt-cosconsumers-experts_653064.html

http://www.firstpost.com/business/will-hong-kong-company-invest-280-mn-in-kingfisher-187864.html?utm_source=MC_TOP_WIDGE

http://www.thehindubusinessline.com/opinion/editorial/article2814600.ece

http://www.ndtv.com/article/india/5-faqs-about-foreign-investment-in-indian-airlines-168054

RUPEE’S RIDE -- ROUGH OR SMOOTH IN 2012

Rupee’s value against dollar will be one of the key factors which will decide the shape of Indian economy in the New Year.

Last   year’s trade features tells that why the rupee is not going to have it easy in 2012, the ride could get rough. Last year the trade gap has increased to $ 133.3 billion, though our export has increased at 25.8% but import has also grown 30.4%. We are consuming more  which we import and producing less  which we export and this trend is accelerating, this is also one of the reason of high demand of dollar, our foreign  exchange reserves has fallen to $ 2935 billion.

 Though it may be argued that why can’t we decrease our imports ,I think it can’t be decreased because it is very essential to our growth and if we do so it may give the rupee another chance to decline .

The rupee movement also depends on the European crisis that how it unfolds and capital flows into the country because the crisis in Europe led to a loss of confidence in the Euro,  resulting it depreciated against dollar, this has also led to the dollar’s appreciation against other currencies including rupees ,and as things stands now there are no signs of resolution in European debt crises ,so the demand for dollar will remain high and it will have negative impact on rupee’s value in the coming year.

Other things like government policies may also lead the rupee depreciation further because government has declined the proposal for FDI in multi brand retail, and in aviation, and these policies will have direct impact on capital inflow in the country. 

The government is also planning to borrow more ,earlier in budget 2011 government  forecasted 4.6% fiscal deficit but now analysts expect that it will go up to 6% of gross domestic product, and this would pressurize  the central bank to print more money  to fund government’s borrowing ,it eventually hurts the rupee because the supply will increase .

Though RBI is taking measures to strengthen rupee, it has hiked rates 13 times to check inflation. However, this has not helped rupee in any ways .RBI is constantly taking steps to curb speculative foreign exchange and allowed banks to set interest rate on NRI’s savings and fixed deposits but this step didn’t leave any impact on demand and supply of dollar.

So in near future the path for rupee does not look smooth, the rupee may have rough ride in 2012

                                                                                                   

SOURCES  , http://profit.ndtv.com/News/Article/rupee-in-2012-not-so-great-expectations-295046

http://www.yourmoneysite.com/news/2011/dec/rabobank-says-indias-rupee-may-see-an-upside-in-2012.html,

http://www.firstpost.com/blogs/why-the-rupees-ride-may-only-get-rougher-from-now-on-183850.html

Life @ Christ

“There were dreams in my eyes; my heart and mind were all occupied by the word CHRIST”
I was a bit scared but had faith in myself. With all these feelings I reached Bangalore. I was chosen for kengeri campus but I had never seen it before. When I saw the campus my eyes remained wide open as it was so beautiful as if nature has decorated it.
On the 1st day we had continuous 4 lectures. One thing which I did in every lecture was that I gave my introduction but the most difficult thing for me was to remember names. I was relating one’s name with others face.
The initial days went hectic but as the time passed I started enjoying.
The name Ice breaking was in air but nobody was sure what it is all about, some said it will be an interaction with seniors, some said it will be a formal ragging…
Finally it was ice breaking day and the very day I got a new name BRONCOS. The ice breaking session actually broke the ice between me and my seniors and that day I realized that there are many hands to support me.
After that regular classes started. Every week was full of assignments, assignments, assignments. And lot of co-curricular activities and events like theatre workshop, Back to school,OST and book review presentations.
With every passing day I was getting some confidence. During the fast running days when the mid-terms came and went, I did not even realized.
The buzz about OBT had already begun. In OBT I did those things which I have never thought of doing in my dreams. I have fear of darkness but I crossed the cave, I have fear of heights but I walked on the steep mountain.OBT showed me different colors of my teachers. The rich experience of OBT pushed me to a different level.
In spite of such hectic schedule our college devotes considerable time for the upliftment of weaker sections of society through CSR activities. Their doings motivated me to think and do something for the society. As a result I became the member of CSR club and I am proudly taking part in various CSR activities.
With al these events, assignments, projects, friends, faculties, my life is moving with a fast pace. My college has become part and parcel of my life and I am enjoying it to the fullest.

By.RAHUL RAGHUWANSHI