And for a Friday of a exciting week, FM presenting her Union Budget and the incredible saga with the Adani group, some thoughts….. some musings…..
Whilst the anxieties and nervousness with GOI budgets, once felt in the last decade, is no longer valid. Most reforms and policy decisions are already done thru the year. Yet there is some choreography and excitement with the Union Budget presented by the FM in parliament on Feb 1, which becomes applicable from 1 April 2023. This year, for senior citizens, the increase of the SCSS from 15 lakhs to 30 lakhs is a big boost. As a couple, now 60 lakhs can be invested for a 5 year term @ 8% interest, which is the highest return in any fixed income scheme. Also the Post office MIS scheme, the limits per couple have been raised from 9 lakhs to 15 lakhs @ 7.1% which is also a very safe and convenient monthly income for seniors. However, on the flip side, those Seniors sending money abroad for children or for any expenses will have to pay 20% TCS – (Tax Collected at Source ) which has to be reclaimed in the IT refund. Also, for high value property sale, no concessions and Capital Gains @ 20% for value over 10 crores. Many factors for professionals and business sectors, who will need to study the fine print.
The Adanis were touted as among the World’s richest, based on market capitalisation which, as most would know, is a very virtual hypothetical measure. Notwithstanding his reputation, the First Group FPO of 20,000 crores was challenged by an US based Short seller, Nathan Anderson of Hindenburg Research, though at the last hour Adani managed to get the 20,000 Cr funds, thus establishing his credentials to the challenge. But his shares were hammered down losing more than 36% of value. This chapter of the Saga ended with the Adanis withdrawing the FPO, claiming to protect his investors. Who won; who lost???
Whilst neighbouring Pakistan is on a verge of collapse, India with a Capex outlay of 10 lakh crores this year (same amount was the cumulative Capex spend from 1971 to 2005) is poised to be the only large economy bright spot as per IMF. Let’s all look forward the Optimistic way, the committed way, the SEEGOS way.