Read more about Banking on Budget: The five areas of focus for FM Nirmala Sitharaman on Business Standard. Given the series of policy announcements made by Finance Minister Nirmala Sitharaman in the last 9 months it is reasonable not to expect more this time
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Central PSUs transfer a sizeable dividend to the government Centre has nudged PSUs to pay higher dividends to assuage revenue pain. Their contribution to exchequer is not negligible. In fact, it is close to the entire urban development Budget of the Centre. Low oil prices coupled with higher margins have increased chances of higher dividend from oil PSUs, the top dividend payers.
A stock market boom year saw a depletion of PSU value on market indices Though the stock market touched new highs in 2020, the PSU index was late to the party, and has barely recovered to January 2020 levels. A sharp decline in their equity valuations, many of whom are sector behemoths, has already skewed their debt-equity ratios. This may weigh on dividend payout this financial year.
Read more about Budget Byte: Export needs budgetary support for overall economic growth on Business Standard. Strategic incentives through the Budget may help boost exports.
The Budget is going paperless. The move was expected, as printing documents during Covid pandemic is problematic. So, how should people access the documents? In the sixth episode of ‘Beyond Budget Headlines with AKB’, Business Standard’s special video series in the run-up to Budget 2021, we also discuss the speculation and consequences of raising the tax exemption limit and the possibilities of implementing a Covid cess or surcharge. The move of raising exemption limit could see income tax rates increasing for those earning above Rs 5 lakh, says our in-house policy expert A K Bhattacharya, as he terms it a dangerous proposal.
Read more about Budget Byte: Borrowing to boost spending but debt will bother govt on Business Standard. Even before Covid-19 struck the economy, government was borrowing at a rate that was very close to the nominal GDP growth