Pre-Budget news

Hundreds of people could lose their jobs, if the Finance Ministry has its way in scrapping 120 central sector schemes in the coming 11th Five Year Plan.

In order to prevent spillover of these schemes into the 11th Plan, the Finance Ministry has proposed a budgetary allocation of Rs 50 crore for the Department of Expenditure, which would be used in relocation of manpower and meeting the establishment expenditure, till the schemes are wound up, sources said.

The move is aimed at ensuring that no funds are made available for schemes scheduled to close down at the end of the 10th Plan.

How will this news effect the market? is it good or bad?

Wait for a few days. A simple rule of thumb. If communist comrades start protesting against it, presume that most probably it is a move aimed at saving some precious funds of the government and these schemes are some populist (read as most useless) schemes.

In order to curb film piracy through digitalization of film exhibition and distribution, the film industry has asked for tax incentives and sops for the digital cinema companies in the coming Budget.

Interest income earned from saving bank deposits may be exempted from the purview of income tax.

The finance ministry is considering the demand raised by the Indian Banks' Association. If accepted, an announcement in this regard may be made in the coming Budget, banking industry sources said.

The move would provide a big boost to banks, as saving bank deposits are a major source of low-cost funds. For customers, savings bank deposits are also an easy way of ensuring maximum liquidity. Around 25 per cent of the aggregate Rs 24 lakh crore deposits of scheduled commercial banks are from saving bank deposits.

The Reserve Bank of India (RBI) today hiked the cash reserve ratio by 50 bps to 6% in two stages from February 17 and March 3.

The move is expected to drain liquidity of around Rs 14,000 crore from the system.

Hai,
50 crore or 50 thousand crore?