essay questions on capital budgeting

Capital Budgeting Practice Essay

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Preferred capital budgeting

Cost of capital estimation techniques, list of references.

NPV and IRR are the most recurrently used capital budgeting practice, judging by the retorts of the interviewees (Graham & Harvey, 2001). The outcomes depended on the nature of the firm and its supervisory distinctiveness. Large firms are comprehensively more prone to use NVP as contrasted to miniature firms.

Vastly levered firms are greatly probable to use NPV and IRR and SSA than are groups with diminutive debt ratios. There is also a noteworthy divergence between high- and low-average small firms and high- and low-average large firms. The credentials of the CEO, for example, those with MBA, ally them to choose the NPV methodology. Public corporations that pay dividends are fundamentally more apt to use NPV and IRR than private groups or those who do no recompense dividends.

Apart from the NPV and IRR, the payback routine is another fashionable procedure of capital budgeting despite its conspicuous inadequacies. The process neglects the time value of money clear of the subjective stop date. Diminutive firms thus use the structure almost as recurrently as they use NPV and IRR. CEOs without MBAs are more plausible to execute this principle.

While exploring great and diminutive firms, long-standing and older CEOs desire payback scheme compared to younger CEOs. The discounted payback, a routine that eradicates one of the payback measure’s insufficiencies by evidencing for the implication of time and money, is not fashionable with some firms. Some viewpoints relate the payback methodology to capital constrained firms (Graham & Harvey, 2001).

Several institutions use the EM approach to appraise projects. The findings specify that a highly levered organization is extensively more plausible to use earning multiples (EM). The extent of the business also influences the relevance of this tactic.

The CAPM, multibeta CAPM, DD method, and the AHR are among the traditions of manipulating the cost of equity capital. The answers indicate that CAPM is the most favored method of approximating the cost of equity capital, followed by the ASR. Very few firms prefer the dividend discount method.

The appliance of CAPM is, however, not seen to be apt (Graham & Harvey, 2001), judging by the findings, irrespective of its current reputation. It is not measured as an apposite method even when applied fittingly. Huge firms have an elevated likelihood of using the CAPM compared to lesser firms.

Diminutive organizations base their choices on the partiality of their investors. CEOs with MBAs are more plausible to employ the single-factor CAPM as compared to CEOs devoid of MBAs.

Communal, small running and high foreign sales groups favor the use of CAPM. The result on public and personal organizations also depends on the magnitude of the institute. Based on management ownership, the distinctions in the use of the CAPM pertain only on diminutive firms. CAPM is inversely interconnected to managerial ownership among diminutive organizations.

The investigation has numerous dissimilarities from the prior works. The previous work utterly focuses on the principal firms. The illustration study in the present essay is more wide-ranging than the earlier inspection (Graham & Harvey, 2001), thus the capacity to make inferences from the diverse group characteristics. More assessment procedures are also studied, dissimilar to the earlier methods which only evaluated NPV against IRR scrutiny.

The conclusions of this study differ from preceding surveys chiefly because of the diversification of the sample. It is necessary, however, to note that the conclusions drawn symbolize personal viewpoints without any substantiation of their appliance.

Present studies specify that the CAPM is the most ideal system to approximate the cost of capital while preceding studies designate it as the least used method. While the DD method lies last in latest studies, it was beforehand more favored than CAPM. NPV is noticeably more crucial currently as a project valuation procedure than as recorded in earlier-period assessments (Graham & Harvey, 2001).

There are some portions of the assembly which are shared, for example, public conglomerates are habitually large firms and thus would be seen to prefer the same slant for capital budgeting and cost of capital inference. Diminutive firms are less refined in the appraisal of perilous schemes. Universally, NPV and CAPM are the most broadly used suppositions in the consideration of projects and inference of the cost of equity.

There has been a modification from before years where large companies favored DCF (Arnold & Hatzopoulos, 2000), compared presently where huge firms use NPV and IRR. A superior number of minor organizations are also employing these routines. For larger organizations, NPV has surpassed IRR as a favorite routine, unlike preceding assessments indicating that IRR was subject.

DCF has gained status, owing to procedural advancements, which have enhanced simplicity of computations, and at a cost-effective price. Routines which do not employ discounting are still being practiced, in amalgamation with NVP and IRR systems.

Beforehand, firms employed a restricted number of techniques, compared to now where a permutation of more than three procedures is employed. The use of all the four systems has gained domination, followed by the amalgamation of payback, NPV and IRR. There is no exceptional, exact technique hence the need for combinations.

This is due to the proportions of the effect of information asymmetry, real options and budgeting realization impediments (Arnold & Hatzopoulos, 2000). ¼ of the responses in the survey evidenced an alteration in approach, while faintly equal prominence placed on cash flow based routines, IRR and NVP. Some, however, still favored the long-established methods.

There are hypothetical, realistic and experimental reservations for the CAPM methodology. The findings further state that it is convoluted to use the CAPM to resolve the cost of capital, citing the weight of accessibility of reliable data as compared to the exactitude of a system.

The substantiation of the examination signifies that the theory-practice gap has been lessened. DCF was beforehand used by half of the huge associations while at present, all the huge firms are applying NPV and IRR methodologies. A superior proportion of small firms are also applying these systems.

The prevalent awareness of the DCF signifies that time-honored “theoretically inferior” practices maintain an excellently relentless hold on practice (Arnold & Hatzopoulos, 2000). There is a prospect that the theory-practice gap is moderately closing in, due to the progression from propositions to practice.

The NPV slant has been emphasized by textbooks, which declare that the practice is superior to other methodologies. The findings of the exploration prove that viewpoints presented by manuals are increasingly being acknowledged.

Arnold & Hatzopoulos’ paper notes that the augmentation in the embracing of DCF techniques has not surpassed the payback method. The payback system shows an insignificant lessening in its use, but it still remains at a high level. It also does not support the assertion that the trend towards the use of long-term capital budgets was arrested in the 80s.

In both studies, NPV is the preferred selection by large firms compared to diminutive firms (Graham & Harvey, 2001). The familiarity of the CEO and whether they have an MBA pressure decision making in both cases. CEOs with MBAs prefer the CAPM slant. The payback technique is an admired observance which is still practiced and combined with other procedures. Textbook practices are recurrently followed for financial analysis by some societies. Diminutive firms are extensively less urbane in the assessment of uncertain projects.

There is a lessened use of CAPM methodologies as explained by Arnold & Hatzopoulos’, while the other study signifies a predilection for the design (Arnold & Hatzopoulos, 2000). Their paper also elucidates the development of the presented techniques, as compared to Graham and Harvey who deduct how corporations are mingling the techniques.

Arnold, G & Hatzopoulos, P 2000, The theory-practice gap in capital budgeting: evidence from the United Kingdom, Journal of business finance & accounting, 27 (5) & (6), June/July 2000, 0306-686X

Graham, J & Harvey, C 2001, The theory of practice of corporate finance: evidence from the field, Journal of Financial Economics 60 (2001) 187}243

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Capital Budgeting Analysis Essays

Capital budgeting analysis of an ice cream store acquisition for mr. specter-a grocery store owner, popular essay topics.

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Capital Budgeting: Definition, Methods, and Examples

What Is Capital Budgeting?

Capital budgeting is a process that businesses use to evaluate potential major projects or investments. Building a new plant or taking a large stake in an outside venture are examples of initiatives that typically require capital budgeting before they are approved or rejected by management.

As part of capital budgeting, a company might assess a prospective project's lifetime cash inflows and outflows to determine whether the potential returns it would generate meet a sufficient target benchmark. The capital budgeting process is also known as investment appraisal.

Key Takeaways

• Capital budgeting is used by companies to evaluate major projects and investments, such as new plants or equipment. 
• The process involves analyzing a project's cash inflows and outflows to determine whether the expected return meets a set benchmark.  
• The major methods of capital budgeting include discounted cash flow, payback analysis, and throughput analysis.

Investopedia / Lara Antal

How Capital Budgeting Works

Ideally, businesses could pursue any and all projects and opportunities that might enhance shareholder value and profit. However, because the amount of capital any business has available for new projects is limited, management often uses capital budgeting techniques to determine which projects will yield the best return over an applicable period.

Although there are a number of capital budgeting methods , three of the most common ones are discounted cash flow, payback analysis, and throughput analysis.

Discounted cash flow (DCF) analysis looks at the initial cash outflow needed to fund a project, the mix of cash inflows in the form of revenue, and other future outflows in the form of maintenance and other costs.

These cash flows, except for the initial outflow, are discounted back to the present date. The resulting number from the DCF analysis is the net present value (NPV) . The cash flows are discounted since present value assumes that a particular amount of money today is worth more than the same amount in the future, due to inflation.

In any project decision, there is an opportunity cost, meaning the return that the company would have received had it pursued a different project instead. In other words, the cash inflows or revenue from the project need to be enough to account for the costs, both initial and ongoing, but also to exceed any opportunity costs.

With present value , the future cash flows are discounted by the risk-free rate because the project needs to earn that amount at least; otherwise, it wouldn't be worth pursuing.

U.S. Treasury bonds have risk-free rates as they are guaranteed by the U.S. government, making it as safe as it gets.

In addition, a company might borrow money to finance a project and, as a result, must earn at least enough revenue to cover the financing costs, known as the cost of capital . Publicly traded companies might use a combination of debt—such as bonds or a bank credit facility—and equity, by issuing more shares of stock.

The cost of capital is usually a weighted average of both equity and debt. The goal is to calculate the hurdle rate or the minimum amount that the project needs to earn from its cash inflows to cover the costs. To proceed with a project, the company will want to have a reasonable expectation that its rate of return will exceed the hurdle rate.

Project managers can use the DCF model to decide which of several competing projects is likely to be more profitable and worth pursuing. Projects with the highest NPV should generally rank over others. However, project managers must also consider any risks involved in pursuing one project versus another.

Payback analysis is the simplest form of capital budgeting analysis, but it's also the least accurate. It is still widely used because it's quick and can give managers a " back of the envelope " understanding of the real value of a proposed project.

Payback analysis calculates how long it will take to recoup the costs of an investment. The payback period is identified by dividing the initial investment in the project by the average yearly cash inflow that the project will generate.

For example, if it costs $400,000 for the initial cash outlay, and the project generates $100,000 per year in revenue, it will take four years to recoup the investment.

Payback analysis is usually used when companies have only a limited amount of funds (or liquidity) to invest in a project, and therefore need to know how quickly they can get back their investment.

The project with the shortest payback period would likely be chosen. However, the payback method has some limitations, one of them being that it ignores the opportunity cost.

Also, payback analysis doesn't typically include any cash flows near the end of the project's life. For example, if a project that's being considered involves buying factory equipment, the cash flows or revenue generated from that equipment would be considered but not the equipment's salvage value at the conclusion of the project.

As a result, payback analysis is not considered a true measure of how profitable a project is but instead provides a rough estimate of how quickly an initial investment can be recouped.

Throughput Analysis 

Throughput analysis is the most complicated method of capital budgeting analysis, but it's also the most accurate in helping managers decide which projects to pursue. Under this method, the entire company is considered as a single profit-generating system. Throughput is measured as the amount of material passing through that system.

The analysis assumes that nearly all costs are operating expenses, that a company needs to maximize the throughput of the entire system to pay for expenses, and that the way to maximize profits is to maximize the throughput passing through a bottleneck operation.

A bottleneck is the resource in the system that requires the longest time in operations. This means that managers should always place a higher priority on capital budgeting projects that will increase throughput or flow passing through the bottleneck.

What Is the Primary Purpose of Capital Budgeting?

Capital budgeting's main goal is to identify projects that produce cash flows that exceed the cost of the project for a company.

What Is an Example of a Capital Budgeting Decision?

Capital budgeting decisions are often associated with choosing to undertake a new project that will expand a company's current operations. Opening a new store location, for example, would be one such decision for a fast-food chain or clothing retailer.

What Is the Difference Between Capital Budgeting and Working Capital Management?

Working capital management is a company-wide process that evaluates current projects to determine whether they are adding value to the business, while capital budgeting focuses on expanding the current operations or assets of the business.

Capital budgeting is a useful tool that companies can use to decide whether to devote capital to a particular new project or investment. There are several capital budgeting methods that managers can use, ranging from the crude but quick to the more complex and sophisticated.

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Love it or hate it, pickleball is good for our democracy

There’s more to this fitness fad than meets the eye..

By Dallas Morning News Editorial

2:00 AM on Jul 27, 2024 CDT

There seems to be no middle ground on pickleball. People either love it or they hate it. We’ll leave it to others to debate pickleball’s merits as a sport, but it is good for us as a society. That’s because you can’t play pickleball alone.

Over the years, social scientists have criticized and bemoaned younger generations’ substitution of technology and social media for in-person social interactions. However, the decline in social interaction is older than millennials and Generation Z. People have been talking about the lack of civic engagement in every sphere of life at least as far back as the 1990s, when political scientist Robert Putnam published his essay “Bowling Alone: America’s Declining Social Capital.”

“For a variety of reasons, life is easier in a community blessed with a substantial stock of social capital,” Putnam wrote in his essay.

In layman’s terms, social capital is the process of building the bonds of community and trust through social involvement. And we need more trust if our institutions are going to work.

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Yet nowadays, fewer people know their neighbors . The pandemic made many of us feel lonelier than ever, with more Americans turning to social media to meet friends and find spouses .

While technology and the pandemic accelerated the decline in social capital, not all is lost. Gen Z and millennial Dallasites have shown that they do, in fact, want community and in-person interactions like older generations do. As our colleague Elizabeth Myong recently reported, many of them are making friends or maintaining friendships by playing pickleball.

The game is a mix of tennis, badminton and pingpong. Originally popular among senior residents, pickleball has become a fun outlet for all generations. In Dallas, many people find their friends just by waiting in line for a game.

Playing pickleball can help improve mental and physical health. Outdoor courts expose players to sunshine and Vitamin D. It’s also an activity that gives players a good sweat. And researchers have established that physical activity, especially outside, can reduce anxiety and depression .

Is pickleball a sport or a hobby? To that we say, who cares — so long as you are meeting new people and developing friendships.

In an age of increased loneliness and political polarization, activities like pickleball are essential to a functioning society and democracy. Political affiliation doesn’t matter during a pickleball match. Whether you consider it a hobby or a sport, playing helps people find shared ground and work together as a team. We need these virtues now more than ever.

We welcome your thoughts in a letter to the editor. See the guidelines and submit your letter here . If you have problems with the form, you can submit via email at [email protected]

Dallas Morning News Editorial . Dallas Morning News editorials are written by the paper's Editorial Board and serve as the voice and view of the paper. The board considers a broad range of topics and is overseen by the Editorial Page Editor.

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Budget 2024 Live Updates: ‘Want to simplify approach to taxation’, says Nirmala Sitharaman on Lower capital gains

Budget 2024 live updates: fm nirmala sitharaman presented the modi 3.0 govt's budget today, introducing increased standard deduction and revised tax rates for salaried individuals under the new tax regime..

Budget 2024 Live Updates: Finance Minister Nirmala Sitharaman presented first budget under Modi 3.0 government on Tuesday, July 23.

Sitharaman introduced increased standard deduction and revised tax rates for salaried individuals under the new tax regime. Besides this, cut on customs duty on gold, silver, mobile phones and other goods were announced.

The Centre's FY25 Capex spend seen at ₹ 11.1 lakh crore — unchanged from Interim Budget, and infrastructure spend at 3.4% of GDP.

Revised tax rate under New Tax Regime as follows:

• ₹ 0-3 lakh - nil tax
• ₹ 3-7 lakh - 5%
• ₹ 7-10 lakh - 10%
• ₹ 10-12 lakh - 15%
• ₹ 12-15 lakh - 20%
• Above ₹ 15 lakh - 30%

Highlights from Budget so far

• Employment and Skilling:

Five schemes to focus on 4.1 crore youth over 5 years with a central outlay of ₹ 2 lakh crore

Comprehensive internship scheme for one crore youth in top companies over five years

Employment-linked incentives, including one month's wage support for first-time employees

Women-specific skilling programs and increased workforce participation

• MSME and Manufacturing Support:

Special attention to MSMEs and manufacturing sector

Credit guarantee scheme and term loans for machinery purchase

Technology support package for MSMEs

SIDBI to open 24 new branches to serve MSME clusters

• Financial Initiatives:

Mudra loan limit increased from ₹ 10 lakh to ₹ 20 lakh for previous borrowers

Financial support for higher education loans up to ₹ 10 lakhs in domestic institutions

Integrated technology system for Insolvency and Bankruptcy Code (IBC)

• Agriculture and Rural Development:

₹ 2.66 lakh crore provision for rural development

Transformation of agricultural research to focus on productivity and climate-resilient crop varieties

Initiative to introduce 1 crore farmers to natural farming over 2 years

• Infrastructure and Regional Development:

Rental housing in PPP mode for industrial workers

Special financial support of ₹ 15,000 crore for Andhra Pradesh

New airports, medical facilities, and sports infrastructure for Bihar

• Economic Outlook:

Inflation moving towards 4% target

India's economic growth described as a "shining exception"

Focus on job creation and boosting consumption, potentially benefiting consumer goods, real estate, and auto sectors

• Nine Priority Areas: Agriculture, Employment, Inclusive Development, Manufacturing and Services, Urban Development, Energy, Infrastructure, Innovation and R&D, and Next Generation Reforms. 
• Women-Led Development: Over ₹ 3 lakh crore allocated for schemes benefiting women and girls. 
• Social Welfare: Extension of PMGKAY (Pradhan Mantri Garib Kalyan Anna Yojana) for five years, benefiting over 80 crore people 
• Digital and Technological Advancements: Development of Digital Public Infrastructure (DPI) applications for credit, e-commerce, law and justice, and corporate governance

Read the latest news on Budget 2024 with our live coverage on the Income Tax Slab , Impact on Share Market, Budget Key Highlights, Corporate Reactions.

Budget 2024 Live: Sanjeev Krishan, Chairperson, PwC in India.

Budget 2024 Live: “The budget highlights India's next leap forward – empowering the very nucleus of the nation – Indian citizens. Right from driving the participation of women in the workforce to enhancing the employability of the youth across the nation, the focus on building a future-ready workforce is evident. With the right incentives and fiscal support, the Government has paved a clear path towards a Viksit Bharat – bringing together the power of the private and public sector, and reinforcing this with our distinctive demographic advantage."

Budget 2024 Live: Srini Chinamilli Co-founder and CEO Tessolve, said,

Budget 2024 Live: "This year's budget is forward-looking and aimed at making India self-reliant while equipping our youth with the skills necessary for employment. The government has announced various plans to tailor courses in collaboration with industry, fostering strong industry-academia partnerships to enhance skill development. Its plan for freshers and internships will also help the new and potential employees. Tessolve is proud to have contributed to upskilling individuals over the past few years. With the government support, this effort will further boost emerging sectors like semiconductors, addressing the skill gap effectively.

Additionally, investments in research, including funding for the Anusandhan National Research Foundation, will significantly boost advancements in cutting-edge technologies. Through these steady and strategic investments, we are paving the way for India to emerge as a global superpower."

Budget 2024 Live: Divyesh Dalal, Managing Director & Head – Global Transaction Services, SME & Institutional Liability Business, DBS Bank India, said

Budget 2024 Live: “The measures announced in the Union Budget underscore the government's commitment to empowering MSMEs, the backbone of our economy. The introduction of the credit guarantee scheme is an encouraging step towards making capital more accessible. Additionally, the provision of collateral-free term loans for purchasing machinery and equipment will tangibly enhance the operational capabilities of MSMEs by enabling technology upgrades.

Further, lowering the turnover thresholds mandatory for onboarding on the TReDS platform will allow more MSMEs to access the benefits of this system. The establishment of e-commerce export hubs is poised to further equip enterprises with the tools and support needed to expand into international markets. By making their products more accessible globally through e-commerce platforms, Indian businesses can tap into new opportunities with offshore customers across markets. DBS Bank India is well-positioned to support MSMEs given the focus on supporting the sector."

Budget 2024 Live: Here's what CEA V Anantha Nageswaran said on Union Budget 2024 

Budget 2024 Live: “The three schemes that the budget announced with respect to the job creation cover many angles and it will have a huge impact on both the employment market and also on household income growth and consumption, spending powers etc."

Budget 2024 Live: Sanjay Tolia, Partner - Price Waterhouse & Co LLP, said

Budget 2024 Live: “The FM’s budget today is a clear mandate for speed and continuity in achieving the goal of Viksit Bharat by 2047. The fiscal deficit target of 4.5% by FY26 while balancing large capex such as INR 11 lakh crore on infra – which has a multiplier effect on economic growth and employment creation – is a step in the right direction. With a clear focus on manufacturing and services, the government has committed to tapping India’s youthful workforce with an allocation of INR 2 lakh crore over the five years which will be leveraged by the growing number of GCCs in India and the new manufacturing units being added under the Make in India drive. This, coupled with special attention to MSMEs and setting up of plug-and-play industrial parks in over 100 cities, sets a clear path for sustainable growth."

Budget 2024 Live: Fin Min dismisses opposition's claims of bias in Budget 2024

Budget 2024 Live: Finance Minister Nirmala Sitharaman dismissed the Opposition's claims of bias in the budget towards states run by supporting parties. She asserted that those whose alliance garnered less than 230 seats have no grounds for criticism, emphasizing that the Centre has allocated funds to all states. Addressing the ₹ 60,000 crore projects for Bihar and the pledge for multilateral assistance for Bihar and Andhra Pradesh, she highlighted that the budget includes ₹ 1.5 lakh crore in assistance for all states.

Budget 2024 Live: The decision to remove angel tax will help startups to secure funding easily: The Detailing Mafia CEO

Budget 2024 Live: “The budget aims to revitalize the startup ecosystem and manufacturing sector altogether. The decision to remove angel tax is a major relaxation, which will boost the confidence of the startups. Also, the initiatives to boost manufacturing jobs, employments, skilling the youth and women will create a pool of skilled workers with disposable income & potentially drive growth in the industry. This two-pronged approach could propel India's startup ecosystem and manufacturing base forward," said Mr. Kunal Sethi, CEO of The Detailing Mafia.

Budget 2024 Live: Govt allocates ₹3 lakh crore to women and girls

Budget 2024 Live: To promote women-led development, Finance Minister Nirmala Sitharaman announced on Tuesday that the budget includes an allocation of over ₹ 3 lakh crore for programs benefiting women and girls. While presenting the Union Budget for 2024-25 in the Lok Sabha, Sitharaman emphasized that this allocation reflects the government's commitment to enhancing the role of women in economic development.

Budget 2024 Live: Custom duty cut on gold and silver to help in coping smuggling, says Piyush Goyal

Budget 2024 Live: The Budget's announcement to cut import duty on gold will enhance domestic manufacturing and promote jewelry exports, Commerce and Industry Minister Piyush Goyal said on Tuesday. He also mentioned that removing the angel tax will further bolster the startup ecosystem in the country. Additionally, he noted that with high gold prices and the upcoming marriage season, this measure will benefit the people.

Budget 2024 Live: Reactions - Rikant Pittie, Co-Founder EaseMyTrip on tourism initiatives

Budget 2024 Live: "The government’s attempt in positioning India as the global tourist destination is evident in the Union Budget 2024-25. Demonstrating efforts to promote religious tourism and domestic tourism infrastructure. With special focus on Bihar, Nalanda, and Odisha, the government plans to develop the iconic religious sites to support its infrastructure and transform them into world class pilgrim and tourist destinations. We are optimistic that this will enhance the overall experience of the tourists visiting these religious sites and will uplift the state tourism."

Budget 2024 Live: Tapan Ray, MD and Group CEO, GIFT City, on the Union Budget 2024, said 

Budget 2024 Live: "The Union Budget 2024 brings significant developments for GIFT IFSC. The announcement of a tax-efficient regime for retail funds and ETFs will create new business opportunities for asset management companies in GIFT City. This move is expected to attract investments from NRIs and foreign retail investors into India. We thank the Union government for its continued support in helping GIFT City become a truly vibrant global financial centre."

Budget 2024 Live: Rajesh Sinha Sr. Research Analyst at Bonanza Portfolio, said 

Budget 2024 Live: "Finance Minister Nirmala Sitharaman has presented the Budget today. The FM has hiked STCG tax to 20% and LTCG raised from 10% to 12.5%. STT on Future and Option hiked to 0.02% and 0.1% as well as income from buyback to be taxes. The budget has also emphasized on Infrastructure. FM has announced new airports, medical facilities and sports infra for Bihar and Rs. 26,000Cr to be allocated to highways in Bihar. Budget also announce scheme to promote water supply, sewage treatment and solid waste management projects and services for 100 large cities. Rs. 2.66 Lakh Crore has been allocated towards Rural development and rural infrastructure whereas allocated of Rs. 10Lakh Crore for 1 crore houses for urban poor.

FM also announced 3 schemes for Employment Linked Incentive to boost employment and skill development, which includes 1 month wage to new entrants in all formal sectors in 3 instalments up to Rs.15,000, incentive to both employee and employer for EPFO contributions in the specified scales for the first 4 years.

FM also emphasized on non-renewable and renewable energy development.

FM announced a 2400MW power plant setup in Bihar at cost of Rs. 21400Cr. She also announced a joint venture between NTPC and BHEL will set up a full scale 800 MW commercial plant."

Budget 2024 Live: Ashishkumar Chauhan, MD and CEO at National Stock Exchange (NSE) said on the Union Budget 2024 under the Modi 3.0 government

Budget 2024 Live: “The budget for the financial year 2024-25 presented by Hon’ble Finance Minister Smt. Nirmala Sitharaman has given a huge fillip to job creation in India by ensuring that the private sector also participates in job creation in addition to the government sector while ensuring that India becomes the number 1 start up nation and a nation of entrepreneurs by providing relief on the angel tax as well as increasing Mudra loan scheme limit from ₹ 10 lakhs to ₹ 20 lakhs per person. She has also focused on increasing women participation in India’s labour force which will help India reap demographic dividend even further by increasing young women’s participation in the workforce. Skill development as a part of job creation has been also an out of the box idea from her while keeping infrastructure outlay intact and reducing fiscal deficit at 4.9% from the expectation of 5.1%. All these things are being achieved without much tinkering with the direct or indirect tax structure ensuring that India’s long term credit rating improves by giving a glide path to 4.5% fiscal deficit in 2025-26. Overall, 10/10."

Budget 2024 Live: Union Budget 2024 allocates ₹1.28 lakh crore to telecom ministry

Budget 2024 Live: The government has proposed an allocation of ₹ 1.28 lakh crore for telecom projects and public sector companies under the telecom ministry, with the majority of the funds designated for state-owned BSNL. Over ₹ 1 lakh crore of the total proposed allocation is intended for BSNL and MTNL-related expenses, including ₹ 82,916 crore for technology upgrades and restructuring at BSNL.

Budget 2024 Live: Naidu thanks FM Sitharaman for Andhra share in Budget

Budget 2024 Live: “On behalf of the people of Andhra Pradesh, I thank the Hon'ble Prime Minister, @narendramodi Ji and Hon'ble Union Finance Minister, @nsitharaman Ji, for recognising the needs of our State and focusing on a Capital, Polavaram, industrial nodes and development of backward areas in AP in the union budget of FY 24-25. This support from the Centre will go a long way towards rebuilding Andhra Pradesh. I congratulate you on the presentation of this progressive and confidence-boosting budget," N Chandrababu Naidu, said in a post on social media platform X.

Budget 2024 Live: Sitharaman on long-term capital gains

Budget 2024 Live: "We wanted to simplify the approach to taxation - also for the capital gains. Second, if anything, the average taxation has actually come down when we say it is 12.5%. We have worked out for each of the different asset classes...The point that we brought it down from below the average to 12.5% encourages investment in the markets..."

Budget 2024 Live: Reactions - Mr. DS Negi, CEO, Rajiv Gandhi Cancer Institute & Research Centre (RGCIRC) on customs waiver for 3 cancer medicines, x-ray machine parts

Budget 2024 Live: "We applaud the government's decision in the Budget 2024-25 to completely waive customs duties on three more cancer medicines. This move is a crucial step in ensuring that medications for cancer become more affordable for patients across the country. The high cost of cancer medications has been a major barrier for many patients, and this exemption will undoubtedly provide much-needed financial relief to those battling the disease.

Moreover, the proposed reduction in the basic custom duty (BCD) on x-ray tubes and flat panel detectors for use in medical x-ray machines are commendable. By aligning these changes with domestic capacity addition, the government is not only supporting the growth of local manufacturing but also ensuring that advanced medical technology is available to improve diagnostic accuracy and treatment outcomes for cancer patients. We applaud the government for these decisive measures and are confident that they will bring us closer to a future where every cancer patient has access to the best possible care."

Budget 2024 Live: FM talks about investment issues from China

Budget 2024 Live: Sitharaman addressed the issue of investments from China, noting that the Economic Survey offered its perspective on the matter. She explained that, similar to investments from other neighboring countries, these investments are subject to a review process. Although the survey indicated it might be time to open up, she emphasized that this suggestion is still being considered cautiously and clarified that she is not dismissing it.

Budget 2024 Live: FM on old tax regime

Budget 2024 Live: The Finance Minister stated that she cannot decide whether the old tax regime will be eliminated but emphasized that the goal is to simplify the tax system.

Budget 2024 Live: Angel tax introduced in UPA-II, says FM

Budget 2024 Live: The Finance Ministry commented on the abolition of the Angel Tax, acknowledging that although it was effective in preventing money laundering, it also inadvertently hindered investment in India.

Budget 2024 Live: FM on Angel Tax abolition

Budget 2024 live: fm on lower capital gains tax.

Budget 2024 Live: Lower capital gains tax to encourage investment, says Nirmala Sitharaman

Budget 2024 Live: Nirmala Sitharaman briefs media post budget announcement

Budget 2024 Live: Finance Minister Nirmala Sitharaman briefs media after the announcement of Union Budget 2024.

Budget 2024 Live: Reactions - Shyam Manohar Nayak, Chairman, Sunlit Power on energy sector

Budget 2024 Live: "As someone deeply involved in the energy sector, I'm genuinely excited about the budget's focus on power and renewables. The plan for a new 2400 MW power plant is a game-changer for our energy landscape. But what really warms my heart is the overwhelming response to the PM Surya Ghar Muft Bijli Yojana - it's not just a scheme, it's a solar revolution in the making! The upcoming pumped storage policy is like music to our ears at Arenq. It's not just about generating power, but storing it smartly too. And let's not forget the roadmap for hard-to-abate industries - it's a bold step towards a greener future. This budget isn't just numbers on paper. It's about lighting up homes, powering industries, and paving the way for a sustainable India. At Arenq, we're thrilled to be part of this electrifying journey!"

Budget 2024 Live: PM Modi on new opportunities for startups and space economy

Budget 2024 Live: Prime Minister Narendra Modi says "For MSMEs, a new scheme to increase ease of credit has been announced in the budget. Announcements have been made to take export and manufacturing ecosystem to every district in this budget...This budget will bring new opportunities for startups and the space economy..."

Budget 2024 Live: 'Provisions to make Defence self-reliant, tourism in focus, tax & TDS simplified... we are speeding development,' says PM Modi

Budget 2024 Live: "Today, Defence exports are at a record high. Many provisions have been made in this Budget to make the defence sector self-reliant. Focus also laid on the tourism sector in this Budget...A decision has also been taken on the reduction of tax and TDS rules are also simplified...We are speeding development in the eastern region by the way of construction of highways and water and power projects..."

Budget 2024 Live: 'Will make India a global manufacturing hub,' says PM Modi

Budget 2024 Live: Prime Minister Narendra Modi says "We will together make India a global manufacturing hub. The MSME sector of the country is connected to the middle class. The ownership of the MSME sector is with the middle class. This sector provides maximum employment to the poor..."

Budget 2024 Live: 'This budget will empower new middle class, women, MSMEs...' says PM Modi

Budget 2024 Live: "In the last 10 years, 25 crore people have come out of poverty. This budget is for the empowerment of the new middle class. The youth will get unlimited opportunities from this budget. Education and skill will get a new scale from this budget. This budget will give power to the new middle class...This budget will help women, small businessmen, MSMEs..."

Budget 2024 Live: 'This budget empowers every section of society,' says PM Modi

Budget 2024 Live: Prime Minister Narendra Modi says this budget empowers every section of society, PTI reported. This budget puts emphasis on manufacturing as well as infrastructure; will speed up growth: PM Modi. Cites budget's stress on youth, says its measures will open many new opportunities for youngsters.

Budget 2024 Live: Budget focuses on infrastructure, manufacturing sectors: PM Modi

Budget 2024 Live: The Union Budget 2024 focuses on infrastructure and manufacturing sectors, will speed up the growth, said PM Modi.

Budget 2024 Live: Budget empowers new middle class, says PM Modi

Budget 2024 Live: "In the last 10 years, 25 crore people have come out of poverty. This budget is for the empowerment of the new middle class. The youth will get unlimited opportunities from this budget. Education and skill will get a new scale from this budget. This budget will give power to the new middle class...This budget will help women, small businessmen, MSMEs..." PM Modi said.

Budget 2024 Live: PM Modi addresses the nation post budget announcement

Budget 2024 Live: PM Narendra Modi starts addressing the nation post Union Budget announcement by FM Nirmala Sitharaman.

Budget 2024 Live: Reactions - Abhishek Gupta, Founder and Managing Partner at Pierag Consulting LLP 

Budget 2024 Live: "As a consulting firm, we recognize the transformative potential of this scheme. Our experience shows that access to finance is a critical barrier for many MSMEs looking to scale their operations and modernize their production processes. This initiative not only alleviates financial constraints but also encourages technological advancements and productivity improvements within the sector.

We advise MSMEs to leverage this opportunity to invest in state-of-the-art machinery and equipment, which can lead to enhanced operational efficiency and better market positioning.

Overall, this credit guarantee scheme is a promising development for the MSME sector, and we look forward to witnessing its positive impact on the growth and sustainability of businesses across the country."

Budget 2024 Live: Reaction - Anand Ramanathan, Partner and Consumer, Products & Retail Leader, Deloitte India

Budget 2024 Live: "The budget focuses on important areas such as Crop resistant seed variety distribution, scaling digital public infrastructure and natural farming which will improve farm level productivity. Mission for self sufficiency in pulses, encouraging shrimp production and focus on vegetable production clusters will help in aligning production to emerging changes in consumption of fresh produce and proteins."

Budget 2024 Live: ICRA Budget Views

Budget 2024 Live: Here are ICRA views on the Union Budget 2024-25 -

• Focus on digitisation in the Financial as well as Agricultural sector is a positive for data consumption of telecom service providers
• Support for MSMEs via credit guarantee schemes to support the auto ancillary industry.
• Increase in MUDRA loan limit for borrowers with the repayment track record to improve fund flow to the MSME sector.
• Reduction in turnover threshold from Rs. 500 crores to Rs. 250 crores of buyers under Treds platform to enhance financing availability and reduce the overall cost of funds for auto ancillaries.
• The development of industrial parks is a positive for the road logistics sector as a whole.
• Shipping industry to be provided several incentives on ownership leasing and flagging reforms positive for the sector.
• Critical mineral mission for domestic production, recycling and overseas acquisition of critical mineral assets could support EV battery localisation

Budget 2024 Live: Reaction - Aarti Harbhajanka, Managing Director, Primus Partners on real estate

Budget 2024 Live: ‘Cities are Engine of growth, contributing to more than 60% of GDP. It's encouraging to see that urban development has been recognized as one of the key pillars of Viksit Bharat. The government's initiative to establish working women hostels in partnership with industry across the country is commendable. This could potentially provide a significant boost to the Institutional Rental Players in co-living and co-housing space. Government should also consider establishing a Strong Rental Regulatory Framework in the country."

Budget 2024 Live: Reaction - Moin Ladha, Partner at Khaitan & Co

Budget 2024 Live:"Start up if incentivised well will be able to improve the distribution/funding and profitability for agricultural produce. This being one of the key focus areas in this budget.

Special incentives for manufacturing sector which is anyways labour intensive will make the sector more attractive for foreign direct investment and will fosters growth of this sector. However this being limited to first time employees will create a challenge regarding the ability of such employees to be involved in skilled jobs as there would be limited practical experience.

This could therefore limit the impact of these incentives."

Budget 2024 Live: Reactions to allocations announced by FM Sitharaman

• Bhaskar Majumdar, Managing Partner, Unicorn India Ventures: “This is recognition of the growing need for a deeptech economy. However, alongside the R&D Fund, the government should look at the Intellectual Property regime. The much overdue Patent Policy needs to come out soonest to enable maximisation of R&D Fund." 
• Anil Joshi, Managing Partner, Unicorn India Ventures: “The 1,000 crore fund of funds for space tech is testimonial to India’s capability in coming up with breakthrough solutions at low cost. This will certainly help space tech companies to look for much needed early stage capital to get started. This will certainly help mobilise over ₹ 4,000 crore."

Budget 2024 Live: Defense outlay at ₹4.56 lakh crore

Budget 2024 Live: The defense budget has been set at ₹ 4.56 lakh crore, slightly up from the previous allocation of ₹ 4.55 lakh crore.

Budget 2024 Live: Krishnendu Chatterjee, VP and Business Head at TeamLease Services

Budget 2024 Live: "The government's commitment to employment and employability is clear with a ₹ 1.48 lakh crore provision. This initiative, based on EPFO enrollment, focuses on recognizing first-time employees and includes direct benefit transfers of the first month's salary in three installments for salaries up to ₹ 1 lakh. Special emphasis is placed on the industrial and manufacturing sectors. Additionally, employers will receive incentives for job creation, with the government reimbursing up to ₹ 3,000 per month for two years towards EPFO contributions for each new employee."

Budget 2024 Live: Reactions - Ankit Aggarwal, Founder & CEO, Unstop

Budget 2024 Live: “I am glad to see Budget 2024's focus on youth employment and skilling. The ₹ 2 lakh crore allocation for employment schemes is the beginning to a brighter future. The incentives for job creation and the plan to skill 20 lakh youth over five years is what we needed. The support for higher education loans and the push for women in the workforce is also a big plus. It feels good to see the government recognising the need to focus on key areas that can make our journey towards a skill based economy smoother."

Budget 2024 Live: Standard deduction increased to ₹75,000 in new tax regime

Budget 2024 Live: Standard deduction is increased to ₹ 75,000 from ₹ 50,000 in new tax regime.

Budget 2024 Live: Revised tax rate under New Tax Regime

 Budget 2024 Live:Revised tax rate under New Tax Regime as follows:

Budget 2024 Live: FM on customs duty 

• Union Finance Minister Nirmala Sitharaman says "A comprehensive review of the customs duty structure over the next 6 months. TDS rate on e-commerce to be reduced to 0.1%. I propose that two tax exemption regimes for charities merge into one. I propose to decriminalize TDS delay up to the filing of tax date..."
• "25 critical minerals to be exempted from customs duties & BCD on two of them to be reduced, says FM Sitharaman.

Budget 2024 Live: Custom duty cut on silver and gold

Budget 2024 Live: Finance Minister announced a cut in custom duty on gold and silver from 10% to 6%. On precious metals, FM Sitharaman says, "I propose to reduce customs duties on gold and silver to 6% and 6.5% on platinum."

Budget 2024 Live: Angel tax abolished for all taxpayers

Budget 2024 Live: Finance Minister Nirmala Sitharaman has announced the cancellation of Angel tax across all categories of taxpayers

Budget 2024 Live: Fiscal deficit estimated at 4.9% of GDP

Budget 2024 Live: The fiscal deficit estimate for FY25 is 4.9% of the gross domestic product (GDP), as compared to 4.5% in FY24.

Budget 2024 Live: FM Sitharaman on customs duty

Budget 2024 Live: On mobile phone industry, FM Sitharaman says, "I propose to reduce the BCD on mobile phones and mobile PCBS and mobile chargers to 15%."

Budget 2024 Live: Space economy also in focus

Budget 2024 Live: Fin Min also added that there will be continued focus on the expansion of space economy by five times over the span of 10 years. She further went on saying that a venture capital fund of ₹ 1,000 crore will be established to support the goal.

Budget 2024 Live: To provide financial support for flood management

Budget 2024 Live: The Finance Minister acknowledged that Bihar has often been affected by floods and noted the lack of progress on plans to build flood control structures in Nepal. The government will allocate financial support estimated at ₹ 11,500 crore. Assam, which faces annual floods, will receive aid for flood management and related projects. Himachal Pradesh, having experienced extensive flood damage, will get support for reconstruction through multilateral assistance. Additionally, Uttarakhand, which has suffered significant damage from landslides and cloudbursts, will be provided with necessary aid.

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