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Union Budget 2018 Update, Fed Holds Interest Rates et al

Professor of Financial Economics and Part-time Value Investor, Transfin.
Feb 1, 2018 12:40 PM 1 min read
Editorial

Budget 2018 out – Agriculture, Education and Healthcare in focus; No change in personal income tax; Corporate tax down to 25% for companies with less than INR250 cr sales; 10% LTCG tax for equities; Govt to actively regulate cryptocurrencies as per Budget Speech; Introduction of a National Health Scheme to cover health expenses of 10 cr households, world’s largest state insurance program; Agriculture gets a boost with Minimum Support Price (MSP) to go up by 1.5 times; Federal Reserve holds short-term interest rates steady, highlights increased inflationary pressures.

End of Day Wrap-up (Thursday / February 1, 2018) #UnionBudget2018 #Agriculture #LongTermCapitalGainsTax #HealthCare #Cryptocurrency #InterestRates #Inflation #Transfin

 

Editor's comment: The Finance Minister today announced the last full Budget before the General Elections of 2019; Positive steps in Healthcare, Education, & Agriculture; Underwhelmed by light touch on manufacturing and infrastructure; Personal income tax neutrality in line with expectations; Corporate tax relief is welcome; However, 10% tax on long term capital gains on equities came as the surprise; India continues to be bearish on cryptocurrency, says that it is not "legal" tender.

 

On international front, US Federal Reserve leaves rates unchanged but gives more aggressive inflation expectations.