Union Budget Analysis-2020

1 February 2018
POST BUDGET ANALYSIS 2018-19
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Vision Board
• Job Creation
• Infrastructure Push
• Drive Private Capex
• Support Rural Economy Bounce Back
• Improve Agricultural Productivity with a Vision to Double Farmers Income by 2022
• Export Push
1 February 2018 Way2wealth Research is also available on Bloomberg WTWL <GO> 2
Key Macro Highlights
Manufacturing
Direct Tax Revenue sector see
Services growth revival.
has grown by 18.7%
Sector to grow
between Apr17-
by 8%.
Jan18
Disinvestment target of `72,500

Cr has been exceeded and
The GST compensation expected receipts of `1,00,000
cess has been Cr. Disinvestment target of
budgeted at `90,000 cr `80,000 Cr for 2018-19.
for FY19, while revised Fiscal Deficit pegged at 3.5
estimates for FY18 are % for 2017-18, projected
at `61,000 cr at 3.3 % for 2018-19
Gross market borrowing

for FY18 estimated at
`5.99 lakh crs. FY19
estimates are `6.06 lakh
crs.
Source: W2W Research
Budget Profile
Financial Statement
Absolute number (` crore) Growth over last year (per cent)

2014-15 2015-16 2016-17 2017-18 BE 2017-18 RE 2018-19 BE 2015-16 2016-17 2017-18 BE 2017-18 RE 2018-19 BE
Revenue receipts 693773 1195025 1374203 1515771 1505428 1725738 15.90% 14.99% 10.30% 9.55% 14.63%
Tax (net to centre) 545714 943765 1101372 1227014 1269454 1480649 14% 16.70% 11.41% 15.26% 16.64%
Non-tax revenue 148059 251260 272831 288757 235974 245089 22.60% 8.59% 5.84% -13.51% 3.86%
Capital receipts 542615 595748 600991 630964 712322 716475 -6% 0.88% 4.99% 18.52% 0.58%
Recovery of loans 8282 20835 17630 11932 17473 12199 10.30% -15.38% -32.32% -0.89% -30.18%
Other receipts 1952 42132 47743 72500 100000 80000 559.10% 13.32% 51.85% 109.45% -20.00%
Total receipts 1236388 1790783 1975194 2146735 2217750 2442213 6.30% 10.30% 8.68% 12.28% 10.12%
Total expenditure 1236388 1790783 1975194 2146735 2217750 2442213 6.30% 10.30% 8.68% 12.28% 10.12%
a) Revenue expenditure 1095548 1537761 1690584 1836934 1944305 2141772 2.80% 9.94% 8.66% 15.01% 10.16%
b) Capital expenditure 140840 253022 284610 309801 273445 300441 33.50% 12.48% 8.85% -3.92% 9.87%
Revenue deficit 401775 342736 316381 321163 438877 416034 -19.80% -7.69% 1.51% 38.72% -5.20%
Effective revenue deficit 303912 210982 150648 125813 249632 220689 -24.50% -28.60% -16.49% 65.71% -11.59%
Fiscal deficit 532381 532791 535618 546532 594849 624276 -8.30% 0.53% 2.04% 11.06% 4.95%
Primary deficit 257161 91132 54904 23454 64006 48481 -27.70% -39.75% -57.28% 16.58% -24.26%
Farm Sector – Key Focus Area
 After years of falling commodity prices and a couple of bad monsoons, India’s farm sector is in distress, leading to suicides and sporadic farmer
agitations in different parts of the country.
 The government has an ambitious goal of doubling farmer incomes by 2022. Achieving this goal would have to come from adding value to farm
produce and helping the farmer capture a good part of the value addition. Some of the key areas that need addressing are : Creating market
linkages where these do not exist, Allowing modern crop science, realise the potential for diversification, Integration of modern technology and
the role it plays in improving plants, minimising usage of water, fertiliser and plant protection chemicals
 Key to growth in this sector is that its not crutched on the back of farm subsidies rather growth driven by farm investment.
 First Advance estimates are out for GDP growth for 2017-18, pegging growth at 6.5% which is the lowest in the 4 years of Modi Government.
Agriculture, on which 50-60% are dependent on livelihood, has witnessed the lowest growth at 2.1% vs. 4.9% preceding fiscal.
 According to CSO data this tenure of Modi Government reflects the lowest growth for the agricultural sector since reforms in 1991-92.
10 8.9
7.9 7.2
Growth Rate %
8 6
6 5.2
3.8 3.7
4 2.4 2.9
1.9
2
0
Narsimha Rao (1991-92 to Vajpayee (1998-99 to 2003- Manmohan Singh 1st 4 yrs Manmohan Singh 10 yrs (2004- Narendra Modi 1st 4 yrs
1995-96) 04) (2004-05 to 2007-09) 05 to 2013-14) (2014-15 to 2017-18)
Agriculture Growth Overall GDP Growth
 According to NSSO data between 2002-03 to 2012-13 farmer incomes have grown at a CAGR of 3.6% , which dipped to 2.5% between
2012-13 to 2016-17. For the government to reach its goal of doubling farmers income by 2022 it will have to grow at a CAGR of 10.4%.
 Budget Announcement : MSP for all unannounced kharif crops will be one and half times of their production cost like majority of rabi
crops: Institutional Farm Credit raised to 11 lakh crore in 2018-19 from 8.5 lakh crore in 2014-15. Rural Road plan allocation increased to
`19,000 crs. To improve market linkages.
Addressing Job Creation
 Privy to the economic scenario post GST implementation, the government has re-iterated its focus on creating job’s for the rural economy. The informal
sector has been temporarily hit on account of GST implementation hence labour demand has slackened of the peak.
 The Annual Employment-Unemployment Survey, conducted by the Labour Bureau, pegged the unemployment rate at 5 per cent in 2015-16 from 4.9
per cent in 2013-14 and 4.7 per cent in 2012-13.
 India needs to generate jobs that are formal and productive, and have the potential for broader social transformation and generate exports and
growth.
 Governments aim is to provide good quality formal employment noting that the apparel, leather, organised retail, exports, tourism and
footwear industries hold scope for large employment opportunities.
 The government is working on a National Employment Policy (NEP) and a universal social security scheme. The NEP is expected to have a sector-wise
focus, especially on labour-intensive sectors such as textiles and handloom, and other small and medium enterprises.
 NELP, Skill India & Make in India initiatives are key to addressing the job market. Some other announcements pro job creation in the unorganized sector are :
o Govt. will contribute 12% of the wages of the new employees in the EPF for all the sectors for next 3 years. Facility of fixed term employment will
be extended to all sectors.
o To incentivise employment of more women in the formal sector and to enable higher take home wages, Govt. has reduced women employees
contribution for first 3 years of their employment against existing rate of 12%/10% with no change in employers contribution.
o Currently deduction of 30% is allowed in addition to normal deduction of 100% in respect to emoluments paid to eligible new employees who
have been employed for a minimum period of 240 days during the year under section 80-JJAA of I.T.Act. Minimum period is relaxed to 150 days
and in order to encourage creation of new employment, this relaxation has been extended to footwear and leather industry.
Budget Year Funds for MGNREGA (` Cr)
2013-14 32994
2014-15 32463
2015-16 37341
2016-17 (RE) 47499
2017-18 (BE) 48000
Source: W2W Research 2018-19 (BE) 55000
Major Budget Outlay
(` Cr.)
2016-2017 2017-2018 2017-2018 2018-2019
Actuals Budget Estimates Revised Estimates Budget Estimates
Core of the Core Schemes
National Social Assistance Program 8854 9500 8745 9975
Mahatma Gandhi National Rural Employment Guarantee Program 48215 48000 55000 55000
Umbrella Scheme for Development of Schedule Castes 4863 5114 5114 5183
Core Schemes
Green Revolution 10105 13741 11185 13909
Pradhan Mantri Krishi Sinchai Yojna 5134 7377 7392 9429
Pradhan Mantri Gram Sadak Yojna 17923 19000 16900 19000
Pradhan Mantri Awas Yojna(PMAY) 20952 29043 29043 27505
Swachh Bharat Mission 12619 16248 19248 17843
National Health Mission 22870 27131 31292 30634
National Education Mission 27616 29556 29556 32613
Umbrella ICDS 15893 20755 19963 23088
Jobs and Skill Development 1817 4089 2905 5071
Environment, Forestry and Wildlife 795 962 975 1019
Major Central Sector Schemes
Crop Insurance Scheme 11052 9000 10698 13000
Interest Subsidy for Short Term Credit to Farmers 13397 15000 14750 15000
Compensation to Service Providers of telecom infrastructure-
7226 11636 7000 10000
Bharatnet
Optical Fibre Cable based network for Defence Services 3210 3000 3755 4500
Border Infrastructure and Management 1614 2600 2040 1750
Metro Projects & MRTS 15327 18000 18000 15000
Source:
National Ministry Authority of India including Road Works
Highways 51963 64483 60671 70544
Major Budget Outlay
(` Cr.)
Allocation To Schemes
Affordable Housing 27500
Rural Road Plan 19000
National Education Mission 32600
Swachh Bharat Mission 17800
Nutritional support to all tuberculosis patients 600
National livelihood mission 5750
Fisheries & aquaculture, animal husbandry funds 10000
National bamboo mission 1290
Source: Ministry
Key Deliverables – Tax Proposals
Tax Reforms
Current Proposed
Standard deduction of `40000 in lieu of the present exemption
NA in respect of transport allowance and reimbursement of misc.
medical expenses.
Personal LTCG at 10% for gains exceeding `1 lakh. However, gains upto
NA
31st January, 2018 will be grandfathered.
Two percent education cess and one percent higher education cess Four percent Health and Education Cess on the tax payable.
Exemption of interest income on deposit with banks was `10,000/- Exemption of interest income on deposit with banks to `50,000/-
Senior Limit of deduction for health insurance premium/medical expenditure Limit of deduction for health insurance premium/medical
Citizen was `30,000/- expenditure now `50,000/-
Deduction for medical expenditure in respect of certain critical illness Deduction for medical expenditure in respect of certain critical
of `60,000 for senior citizens and `80,000 for very senior citizens. illness raised to `1 lakh.
Tax Rate of 25% for companies whose turnover was less than `50Cr Tax Rate of 25% for companies whose turnover was less than
in FY16. `250Cr in FY17.
Corporate LTCG at 10% for gains exceeding `1 lakh. However, gains upto
NA
31st January, 2018 will be grandfathered
Two percent education cess and one percent higher education cess Four percent Health and Education Cess on the tax payable.
Custom http://www.indiabudget.gov.in/ub2018-19/bs/bs.pdf
Duty Please see Page 52-59
Sector Impact
Announcement Impact Companies

Keep MSP for the all unannounced crops of kharif at least at one and half times Zuari Agro Chem, PI Industries, RCF, Deepak Fertilizer,
Positive
of their production cost Coromandel , Bayer Crop, KSCL.
Allocation of Ministry of Food Processing is being doubled from `715 Cr in RE
LT Foods, KRBL, Pratap Snacks, Future Consumer,
2017-18 to `1,400 Cr in BE 2018-19. Set up state-of-the-art testing facilities in Positive
Heritage Foods, DFM Foods.
all the forty two Mega Food Parks
Dedicated affordable housing fund in National Housing Bank Positive DHFL, LIC Housing, PNB Housing, Canfin Home.
Fisheries and Aquaculture Infrastructure Development Fund (FAIDF) for fisheries

sector and an Animal Husbandry Infrastructure Development Fund (AHIDF) for Avanti Feeds, Godrej Agrovet, Apex Frozen Foods,
Positive
financing infrastructure requirement of animal husbandry sector. Total Corpus of Waterbase.
these two new Funds would be `10,000 crore.
Government sets target to construct around 2 crore toilets. Positive HSIL, CERA, Somany Ceremics
Improving the quality of education through and move gradually from ‘‘black
Positive S Chand, Navneet, MT Educare, NIIT Ltd.
board’’ to ‘‘digital board’’.
Launch a flagship National Health Protection Scheme to cover over 10 crore
poor and vulnerable families .This will be the world’s largest government funded Positive Apollo Hospital, Fortis Healthcare.
health care programme.
Allocate additional `600 crore to provide nutritional support to all TB patients at
Positive Cipla, Ajanta Pharma
the rate of `500 per month for the duration of their treatment
Outlay of `7148 crore for the textile sector increase of 19 percent comparing
Positive Arvind, Trident, Century textile, Raymond, VTL
with last year
Sector Impact
Announcement Impact Companies

Strengthening the railway network and enhancing Railways’ carrying
Positive Texrail, Cummins India, ABB, TWL.
capacity.Large part of the Capex is devoted to capacity creation
Railway stations and trains will be progressively provided with wi-fi. CCTVs will
Positive ZICOM
be provided at all stations and on trains to enhance security of passengers
Expand airport capacity more than five times to handle a billion trips a year GMR Infra, GVKPIL, L&T, Spice Jet, Jet Airways,
Positive
under a new initiative - NABH Nirman Indigo
Highway Construction to Exceed 9000 Km in FY19 Positive HCC, Gammon, IL&FS Eng.
Proposes to setup five lakh wi-fi hotspots which will provide broadband access
to five crore rural citizens. Provided `10000 crore in 2018-19 for creation and Positive Aksh Optifibre, Vindya Tele Link, D Link.
augmentation of Telecom infrastructure.
Custom Duty on Truck & Bus Radial tyres increased from 10% to 15% Positive JK Tyre, Apollo Tyre, MRF, Ceat
Custom Duty on Footwear increased from 10% to 20% Positive Bata, Relaxo, Liberty, Khadim
Impact On Equity Markets
 Overall the budget commentary was tilted in favour of the rural economy with an aim to increase income in the hands
of the farmers and addressing job creation through measures in various employment generating industries.
 The government did its best to keep accounts healthy with deficit shoot-up being balanced with higher than estimated
disinvestment targets. The government stated that the impact of demonetisation & the implementation of GST has been
challenging but green shoots of revival in the economy flowed in from Q2 with GDP recording 6.3% growth. The trickle
down impact of the same in FY19 is expected to be limited.
 The major announcement was introduction of LTCG tax on equity shares & equity oriented MF’s at 10% on gains above
`1 lakh without allowing the benefit of any indexation. However, all gains up to 31stJanuary, 2018 will be
grandfathered. For example, if an equity share is purchased six months before 31stJanuary, 2018 at `100/- and the
highest price quoted on 31stJanuary, 2018 in respect of this share is `120/-, there will be no tax on the gain of
`20/- if this share is sold after one year from the date of purchase. However, any gain in excess of `20 earned after
31st January, 2018 will be taxed at 10% if this share is sold after 31st July, 2018.
 Introduced tax on distributed income by equity oriented mutual fund at the rate of 10%.
 We expect the FII’s to re-enter over the next few months with an improvement in the investment cycle and demand
revival.
 We advise investors to be patient with the government initiatives and at the same time be mindful of the global
challenges. We expect markets to remain strong in the wake of earnings growth coming back. Long – term investors
should enter the markets in a staggered manner to make the most o f the market correction and invest in value stocks.
Statement Of Receipts Of Central Government
(` Cr.)
2015-2016 2016-2017 2017-18 2017-18 2018-19
Receipts Actuals Actuals Budget Estimates Revised Estimates Budget Estimates
REVENUE RECEIPTS
1. Tax Revenue
Gross Tax Revenue 1455648 1715822 1911579 1946119 2271242
Corporation Tax 453228 484924 538745 563745 621000
Taxes on Income 287637 364604 441255 441255 529000
Wealth Tax 1080
Customs 210338 225370 245000 135242 112500
Union Excise Duties 288073 381756 406900 276995 259600
Service Tax 211414 254499 275000 79507
GST 444631 743900
Taxes on Union Territories 3878 4146 4679 4744 5242
Less - NCCD transferred to the NCCF/NDRF 5690 6450 10000 3660 2500
Less - State’s share 506193 608000 674565 673005 768413

1a Centre’s Net Tax Revenue 943765 1101372 1227014 1269454 1480649
Source: Ministry
Statement Of Receipts Of Central Government
(` Cr.)
2015-2016 2016-2017 2016-2017 2017-18 2018-19
Receipts Actuals Actuals Budget Estimates Revised Estimates Budget Estimates
2. Non-Tax Revenue 251260 272831 288757 235974 245089
Interest receipts 25378 16229 19021 13551 15162
Dividend and Profits 112127 123017 142430 106433 107312
External Grants 1881 1300 3060 3681 2667
Other Non Tax Revenue 110336 130481 122728 110433 117886
Receipts of Union Territories 1538 1804 1518 1876 2062
Total Revenue Receipts(1a + 2) 1195025 1374203 1515771 1505428 1725738

3. Capital Receipts
A. Non-debt Receipts
(i) Recoveries of loans and advances@ 20835 17630 11933 17473 12199
(ii) Miscellaneous Capital Receipts 42132 47743 72500 100000 80000
B. Debt Receipts* 532791 535619 546531 594849 624276
Total Capital Receipts (A+B) 595758 600991 630965 712323 716476
Total Receipts (1a+2+3) 1790783 1975194 2146735 2217751 2442214
4. DRAW-DOWN OF CASH BALANCE 13170 -8895 12844 -39379 43066
Receipts under MSS (Net)
Source: Ministry
Statement Of Expenditure Of Central Government
(` Cr.)
2015-2016 2016-2017 2017-18 2017-18 2018-19
Expenditure Actuals Actuals Budget Estimates Revised Estimates Budget Estimates
Pension 96,771.0 131,401.0 131,201.0 147,387.0 168,466.0
Defence 225,895.0 251,781.0 262,390.0 267,108.0 282,733.0
Subsidy
Fertiliser 72,415.0 66,313.0 70,000.0 64,974.0 70,080.0
Food 139,419.0 110,173.0 145,339.0 140,282.0 169,323.0
Petroleum 29,999.0 27,539.0 25,000.0 24,460.0 24,933.0
Agriculture and Allied Activities 23,694.0 50,184.0 56,992.0 56,589.0 63,836.0
Commerce and Industry 16,247.0 21,364.0 24,660.0 26,310.0 27,956.0
Development of North East 1,987.0 2,496.0 2,682.0 2,682.0 3,000.0
Education 67,239.0 72,016.0 79,686.0 81,869.0 85,010.0
Energy 21,123.0 30,964.0 36,718.0 41,682.0 41,104.0
External Affairs 14,518.0 12,753.0 14,799.0 13,690.0 15,012.0
Finance 71,213.0 41,549.0 29,532.0 29,449.0 20,342.0
Health 34,131.0 39,005.0 48,878.0 53,198.0 54,667.0
Home Affairs 67,821.0 78,360.0 83,830.0 88,143.0 93,450.0
Interest 441,659.0 480,714.0 523,078.0 530843 575,795.0
IT and Telecom 15,079.0 17,985.0 20,787.0 17,802.0 22,380.0
Source: Ministry
Statement Of Expenditure Of Central Government
(` Cr.)
2015-2016 2016-2017 2017-18 2017-18 2018-19
Expenditure Actuals Actuals Budget Estimates Revised Estimates Budget Estimates
Others 46,008.0 63,667.0 67,724.0 69,515.0 72,845.0
Planning and Statistics 5,959.0 4,494.0 5,049.0 5,063.0 5,199.0
Rural Development 90,235.0 113,877.0 128,560.0 135,604.0 138,097.0
Scientific Departments 17,432.0 19,493.0 22,299.0 22,370.0 24,906.0
Social Welfare 31,691.0 31,812.0 39,382.0 38,624.0 44,220.0
Tax Administration 26,011.0 22,146.0 12,699.0 77,747.0 105,541.0
Transfer to States 114,802.0 132,704.0 137,101.0 120,265.0 142,858.0
Transport 87,413.0 102,200.0 124,375.0 107,092.0 134,572.0
Union Territories 11,843.0 13,258.0 13,357.0 14,248.0 14,123.0
Urban Development 20,180.0 36,946.0 40,618.0 40,754.0 41,765.0
Grand Total 1,790,783.0 19,75,194.0 2,146,735.0 22,17,750.0 24,42,213.0
Source: Ministry
Tax Receipts
Contribution of Different Taxes in GTR in Contribution of Different Taxes in GTR in
2017-18 RE 2018-19 BE
Corporation Tax Corporation Tax

23% 27%
29% Income Tax 33% Income Tax
Customs Dury Customs Dury
4%
Excise Duty Excise Duty
7%
Service Tax Service Tax
23% 12% 23%
14% GST GST
5%
Gross Tax Revenue Growth
GST Collection (in Crore)
18%
16% 100000
14% 13.4% 16.7% 94063
95000
12% 10.8% 90669 92150
9.6% 9.9% 10.2% 90000
10% 11.8% 86703
8% 10.2% 10.2% 10.6% 83346
85000
6% 80808
4% 80000
2% 75000
0%
70000
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18RE
FY19BE
Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17
Source: Budget 2018-19
Expenditure Profile
120% Composition of Expenditure
Governments capital Expenditure (as a
100%
27%
% of total expenditure & transfers)
80% 29% 29% 30% 28%
40%
35%
60% 27% 26% 26% 28% 26% 34% 33.8%
27% 34%
40% 23%
24% 24% 23% 25% 33%
20% 17% 33%
19% 21% 24% 20% 22% 32.4%
16% 32% 31.9%
0%
32% 31.5%
Establishment Central Sector Other Central Centrally Finance Other 31%
Expenditure of Schemes Sector Sponsored Commission Grants/Laons 31%
Centre Expenditure Scheme Grants 30%
FY17 FY18BE FY18RE FY19BE
2015-16 2016-17 RE 2017-18 BE 2018-19
Trends of Major Items of Expenditure
138097
135604
134572
113877
107092
102200
160000
85010
81869
72016
63836
56589
120000
54667
53198
50184
44220
41765
40754
39005
38624
36946
31812
27956
26310
21364
80000
40000
0
Agriculture and Commerce and Education Health Rural Social Welfare Transport Urban
Allied Activities Industry Development Development
2016-17 RE 17-18 BE 18-19
Source: Budget 2018-19
Deficit & Subsidies
Fiscal Deficit (% GDP) Revenue Deficit % (% GDP)
6.5%
7.0% 6.0% 5.7%
6.0% 4.8% 4.8% 4.6%
5.0% 4.3% 3.9% 4.0% 4.1% 3.9%
3.3% 3.5% 3.2% 3.5% 3.3%
4.0% 2.5% 4.5% 5.2% 4.4%
3.0%
2.0% 3.5% 3.2% 3.6% 3.3%
2.9% 2.5% 2.6% 2.2%
1.0% 2.4% 2.5% 2.1% 1.9%
1.9% 1.1%
0.0%
FY08
FY04
FY05
FY06
FY07
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY17A
FY18(BE)
FY18(RE)
FY19(BE)
FY16
Total Subsidies
2013-14 2014-15 P 2015-16 RE 2016-17 BE 2016-17 RE 2017-18 BE
(` Cr)
Food 92000 117671 139419 134835 135173 145339
Fertilizer 67339 72968 72415 70000 70000 70000
Petroleum 85378 60270 29999 29000 27523 25000
Source: Ministry
Gross Domestic Product
(` Crs.)
18000000 0.16
16627585
13.0%
16000000 15183709 0.14
13.8% 13682035
14000000
12445128 0.12
12000000 11233522
10.8% 11.0% 0.1
9944013
10000000 9.9%
8736039 9.5%
0.08
8000000
0.06
6000000
0.04
4000000
2000000 0.02
0 0
FY12 FY13 FY14 FY15 FY16 FY17PE FY18FAE
GDP at Current Prices Growth Rate
Source: Ministry
GDP Growth : Consumption-wise
Growth
25%
20%
10.0%
15%
8.7%
7.8%
7.3%
6.8%
6.5%
6.3%
6.2%
6.1%
6.0%
10%
5.5%
4.9%
4.5%
4.5%
4.5%
3.4%
2.4%
2.3%
1.8%
1.6%
0.9%
5%
0%
2012-13 2013-14 2014-15 2015-16 2016-17 (PE) 2017-18 (FAE)
-5%
-5.3%
-5.9%
-10%
-8.1%
PFCE GFCE GFCF Export of goods and services Import of goods and services
Source: Ministry
Team
Analyst Designation Sector Email Telephone

Alok Ranjan Head – Research alokranjan@way2wealth.com +9122-6663 8950
Shivani V. Vishwanathan AVP FMCG, Consumer Durables shivani.mehra@way2wealth.com +9122-6663 8956
Chintan Gupta Research Associate Auto & Auto Ancillary chintangupta@way2wealth.com +9122-6663 8972
Ashwini Sonawane Research Associate FMCG, Consumer Durables ashwinisonawane@way2wealth.com +9122-4019 2956
Tausif Shaikh Research Associate Pharma tausifshaikh@way2wealth.com +9122-6146 2974
Institutions Designation Email Telephone

Kaushal Jaini Vice President kaushaljaini@way2wealth.com +9122-40278919
Mitul Doshi Institutional Sales mitul.doshi@way2wealth.com +9122-25758932
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Union Budget Analysis-2020

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Union Budget Analysis-2020

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1 February 2018

POST BUDGET ANALYSIS 2018-19

• Drive Private Capex

• Support Rural Economy Bounce Back

• Improve Agricultural Productivity with a Vision to Double Farmers Income by 2022

Disinvestment target of `72,500

Gross market borrowing

Source: W2W Research

Absolute number (` crore) Growth over last year (per cent)

Source: W2W Research

Announcement Impact Companies

Fisheries and Aquaculture Infrastructure Development Fund (FAIDF) for fisheries

Announcement Impact Companies

Source: W2W Research

Source: W2W Research

Less - State’s share 506193 608000 674565 673005 768413

Total Revenue Receipts(1a + 2) 1195025 1374203 1515771 1505428 1725738

Corporation Tax Corporation Tax

Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17

Source: Budget 2018-19

Trends of Major Items of Expenditure

Fiscal Deficit (% GDP) Revenue Deficit % (% GDP)

Food 92000 117671 139419 134835 135173 145339

Fertilizer 67339 72968 72415 70000 70000 70000

Petroleum 85378 60270 29999 29000 27523 25000

GDP at Current Prices Growth Rate

Analyst Designation Sector Email Telephone

Institutions Designation Email Telephone

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