2018 Union budget of India

Submitted to	Parliament of India
Presented	1 February 2018
Passed	1 February 2018
Parliament	16th (Lok Sabha)
Party	Bharatiya Janata Party (BJP)
Finance minister	Arun Jaitley
Total revenue	₹2,399,147 crore (US$380 billion)[1]
Total expenditures	₹2,920,484 crore (US$460 billion) (grand total)[2]
Program Spending	₹2,442,213 crore (US$380 billion) (through budget)[3]
Debt payment	₹575,795 crore (US$90 billion)[3]
Deficit	₹624,276 crore (US$98 billion)[4] (3.3%)[4] (Fiscal deficit) ₹416,034 crore (US$65 billion)[4] (2.2%)[4] (Revenue deficit)

Significant announcements:

• A special scheme to tackle air pollution in Delhi.
• A healthcare programme called 'National Health Protection Scheme' to cover 50 crore poor people.
• Government to contribute 12% Employees' Provident Fund for new employees for 3 years.
• Medical allowance and transportation allowance to be replaced by standard deduction of ₹40,000 (US$630) for salaried employees.
• No reduction in personal income tax rates.
• Cess on income tax increased from 3% to 4%.
• 10% tax imposed on income from equity-based mutual funds.
• Corporate tax reduced from 30% to 25% for companies with turnover upto ₹250 crore (US$39 million).
• Salaries of Members of Parliament to be increased every 5 years.
• Customs duty on mobile phones increased from 15% to 20%.

BUDGET>>>  WINNERS & LOSERS

• 2018 Budget- WINNERS:

Farmers
Distressed farmers have been protesting across the country. This budget promises to raise the minimum price offered to farmers for crops, while investing heavily in agricultural markets across India. It also delivers more money for rural areas, including irrigation projects and aquaculture projects, and directs state governments to purchase extra solar power generated by farmers using solar-powered pumps. Agriculture-focused companies such as Shakti Pumps India Ltd., Jain Irrigation Systems Ltd., KSB Pumps Ltd., Kirloskar Brothers Ltd., Avanti Feeds Ltd., Waterbase Ltd., JK Agri Genetics Ltd., PI Industries LtdBSE -1.76 %. could benefit.

Health Care Providers
The government's new flagship National Health Protection Scheme, which aims to insure as much as 500 million people for up to 500,000 rupees a year of care, could benefit companies such as Apollo Hospitals Enterprise Ltd., India's largest hospital company, as well as Fortis Healthcare Ltd.

Transport Companies
With Jaitley promising record infrastructure spending on roads and railways, construction and engineering firms, as well as train wagon-producers, could benefit. That includes Larsen & Toubro Ltd., Hindustan Construction Co Ltd., NCC Ltd., IRB Infrastructure Developers Ltd., Dilip Buildcon Ltd., Titagarh Wagons Ltd., and Cimmco Ltd.

Consumer Companies
With boosted spending on India's vast hinterland, fast-moving consumer goods companies such as Hindustan Unilever Ltd., Britannia Industries Ltd. and Marico Ltd. could benefit as day laborers get jobs and disposable income. Other companies with rural exposure include: Hero MotoCorp Ltd., Mahindra & Mahindra Ltd., Larsen & Toubro Ltd.

Jewelers
With 60 percent of gold demand coming from rural India, the budget's focus on boosting rural and farm incomes could benefit companies such as Titan Co Ltd., Tribhovandas Bhimji Zaveri Ltd., PC Jeweller Ltd.

Airports
With the government pledging to expand regional airport construction, firms such as GMR Infrastructure Ltd. and GVK Power & Infrastructure Ltd. could benefit.

• 2018 Budget-LOSERS

Bond Investors
Bond investors drew some relief from a lower than expected borrowing program. Nevertheless, the relief could prove short-lived. India missed its fiscal deficit target of 3.2 percent, saying its targeting a 3.5 percent target for fiscal 2019. Big bond investors such as India's state-owned banks could be hit as yields go even higher than the the 96 basis points they climbed in the past six months, the most in Asia. Shares of HDFC Bank Ltd., ICICI Bank Ltd., Axis Bank Ltd., State Bank of India, Bank of Baroda and Punjab National Bank might be affected.

Financial Sector
The government's decision to impose long-term capital gains tax on equity investments may dent investor sentiment for financial services companies, life insurers and providers of mutual fund products including IDFC Ltd., Reliance Capital Ltd.BSE -9.60 %, Aditya Birla Capital Ltd., ICICI Prudential Life Insurance Co Ltd., HDFC Standard Life Insurance Co Ltd., General Insurance Corp of India

Defense Sector
Jaitley praised the armed forces and promised an industry-friendly policy to promote defense production as he addressed parliament. But there was no indication of a huge boost to defense spending. Companies such as Bharat Forge Ltd. may not see a boost.