<ul><li>Union <keyword id="19955368" type="General" weightage="100" keywordseo="budget-2024" source="keywords">Budget 2024</keyword> to be presented on July 23, 2024, at 11 am</li><li>Changes in the new <keyword id="19901478" type="General" weightage="20" keywordseo="income-tax" source="keywords">income tax</keyword> regime possible in the budget </li><li>Budget is a detailed estimate of the government's revenue and expenses</li></ul>Next week, Nirmala Tai will present the 2024 <keyword id="19908389" type="General" weightage="20" keywordseo="union-budget" source="keywords">union budget</keyword>. While the internet is already abuzz with the endless expectations of different industries and sectors, what the common man wishes for, and more, are we aware of how the budget comes to life in the first place? What do some of its terms like expenditure and revenue budgets even mean? And what exactly is the finance bill? If you have all these questions running through your mind, here's a ready reckoner for you, answering all your questions 1. Why should I care about the budget? Most of all, because it holds the answer to how your money will be taxed in the coming financial year, or years. Yes, you can (and perhaps will) choose to gloss over most of it, like when Tai talks about its capital expenditure or allocations made to various ministries. But you should know if there are any major changes introduced in the existing income tax slabs, because that would mean an automatic increase or decrease in your taxes. If there are some deductions or exemption that have just been introduced and can help you reduce your taxable income, you'd certainly want to use it to your benefit, wont you? (Unless you're a stickler for paying high taxes)! But for that, you should first know how your hard-earned money is being taxed, and that is why, you should tune into the <a href="https://www.businessinsider.in/budget/article/budget-2024-a-handy-guide-for-major-terms-around-the-upcoming-union-budget/articleshow/111688482.cms" data-type="tilCustomLink" target="_blank">upcoming union budget</a>. 2. What will happen to Income taxes in this budget? Will they be cut? We wouldn't know anything for sure until July 23rd, but there is news that the new tax regime might be made more attractive for the salaried class by way of increasing the <keyword id="20429578" type="General" weightage="20" keywordseo="standard-deduction" source="keywords">standard deduction</keyword> threshold (which is currently Rs 50,000 for both old and new regime), or by raising the total deduction limit under the old regime from the present Rs 2,00,000. Akhil Chandna, Partner at Grant Thornton Bharat also believes enhancing the standard deduction limit will do a world of good to salaried Indians. "With the introduction of the standard deduction in 2018 and the last increase in 2019 from ₹ 40,000 to ₹ 50,000, it is essential to raise the threshold to ₹75,000 now to align with current living costs and inflation. Raising the standard deduction can help improve people's purchasing power, especially those with fixed incomes like pensions", he said. Krishan Mishra, CEO, FPSB India also wishes for the tax exemption limit under new regime be raised from Rs 7 lakh to Rs 10 lakh, since "it will be a crucial step to encourage savings and investments among the mid-income group and will provide much-needed relief to taxpayers". The government may make the new tax regime more lucrative by enhancing its basic exemption limit (up to which no income tax is payable) from Rs 3,00,000. But that's a lot of MIGHTS, that will have to wait the final bell till 23rd! 3. How is the Budget is prepared? It is a lengthy, long-drawn process, which starts with the finance ministry asking all departments, states, ministries and union territories to give them an estimate of how much money they'd potentially need during the year. In addition to this, they also have to present details of all their revenues and expenditures in the past year. Then begins a super duper long process of consultations and discussions and deliberations and consultations and dialog (you get the gist!), after which the allocations are made. Weeks before the budget presentation, the <keyword id="19956758" type="General" weightage="20" keywordseo="finance-minister" source="keywords">finance minister</keyword> also meets representatives from various industries like agriculture, trade, manufacturing and more to know what they want. Based on that, the budget is fine tuned. 9-10 days before the budget is to be presented in the parliament, a halwa ceremony takes place, which commenced today, marks the start of budget printing. From this time on, the finance ministry staff goes super hush-hush and in lockdown, with no one allowed to leave the ministry premises till the budget is tabled in the parliament. 4. Why did India have 2 budgets this year? Because 2024 was an election year. That is why you saw an <keyword id="547606" type="General" weightage="20" keywordseo="Interim-budget" source="Orion">interim budget</keyword> in February, where the government presented a budget, the aim of which was just to fund its regular expenses and spending over the next 2-3 months, till elections. After the elections, it is the responsibility of the newly elected government to prepare a full-fledged budget. Think of this as borrowing from your friends just to fund your mid-month, small term, interim cash crunch. You pay them back as soon as you get your salary, and your budget is set again (at least for the time being!) 5. What are the various types of budget documents The union budget is a hefty set of documents! There's Annual Financial Statement, which lays out how much money it needs in revenue, and how much does it plan to spend that during the year. There's demands of grants, which tells us how these receipts and expenditures will be utilised by different ministries and departments, down to each scheme. There's the finance bill, which outlines any changes the government intends to make, in order to raise these proposed funds. This primarily includes change in tax structures. Then there is appropriation bill, which highlights how the government plans to withdraw money from the consolidated fund of India (where all of government's revenue from income tax, customs and excise and other sources flow in). Once approved, both finance and appropriation bill become acts. The extremely complex sounding "medium term fiscal policy cum fiscal policy strategy statement" has all your important macro- economic indicators like GDP, fiscal deficit, revenue deficit, primary deficit and more. But of course, you can skip through all this to just check out budget at a glance and highlights, which presents the key features and decisions made in the budget in a concise manner. <h4 style="color: rgb(0, 0, 0); font-family: Mulish, sans-serif; font-size: 16px; white-space-collapse: preserve; background-color: rgb(255, 255, 255); text-align: justify;"> </h4>6. What is a revenue and <keyword id="2745241" type="General" weightage="20" keywordseo="expenditure-budget" source="Orion">expenditure budget</keyword>? Think of this as a detailed breakdown of how the government plans to raise money for everything during the year by of tax or non-tax revenues, borrowings and more. The <keyword id="425836" type="General" weightage="20" keywordseo="revenue-budget" source="Orion">revenue budget</keyword> also outlines how much revenue the government had to forego to fund various tax incentives or subsidies. There's no chance you wont spend what you've earned! And so, how the government plans to spend its receipts are mentioned in the expenditure budget. It highlights what each ministry gets, how much money will be spent on a certain scheme and more. 7. What is a populist budget? No, its not another budget document, but just a fancy name for a budget that is prepared with the sole intention to appeal to the people by slashing down income taxes, increasing subsidies and spending more on social schemes. Such a budget might seem lucrative in the short run, but it do not contribute to the country's long-term economic development in any way. On the contrary, it only adds to the overall fiscal burden of the country. Its as if a character came in for a short cameo in your favorite series, won people's hearts, and then vanished into thin air, with no meaningful contribution to the story line. You'd feel short-changed, wont you? So, time to listen to Nirmala Tai and the budget's humdrums with some understanding and interest! Also read: <a href="https://www.businessinsider.in/budget/news/budget-2024-how-will-budget-affect-indias-position-in-the-global-space-race/articleshow/111855546.cms" data-type="tilCustomLink" target="_blank">Budget 2024: How will budget affect India’s position in the global space race?</a> <a href="https://www.businessinsider.in/budget/article/despite-pandemic-and-growing-health-scares-indias-budget-share-for-healthcare-continues-to-decline/articleshow/111807009.cms" data-type="tilCustomLink">Despite pandemic and growing health scares, India’s budget share for healthcare continues to decline</a>

Union Budget 2024: A handy FAQ guide to decode the upcoming budget

July is abuzz with news of the upcoming union budget, which Finance Minister <keyword id="19916618" type="General" weightage="20" keywordseo="nirmala-sitharaman" source="keywords">Nirmala Sitharaman</keyword> will present on July 23, 2024. But you couldn't care less, because you’ve already decided that you’ll tune it all out, as soon as our beloved Nirmala Tai starts her budget presentations in the parliament. We get it, having spent less than three decades on this planet, we GenZers have already had a tough time understanding the complexities of the modern world affecting our daily life. When it comes to our national finances, we just can’t seem to make any sense of the words spoken, and the general vibe of complicated terms like <keyword id="19942084" type="General" weightage="20" keywordseo="Fiscal-Deficit" source="keywords">fiscal deficit</keyword> and <keyword id="20018917" type="General" weightage="20" keywordseo="Capital-Expenditure" source="keywords">capital expenditure</keyword> is extremely off-putting! So, why bother? Don’t worry, we have got you covered. As we step into an unforgiving adult world, it's time to tune in, as the Union Budget often has direct implications on your personal finances. To help you start, here’s your very own budget glossary, which will let you decode all budget-related mumbo-jumbo, the <keyword id="20246469" type="General" weightage="20" keywordseo="GenZ" source="keywords">GenZ</keyword> way. A: Annual Financial Statement Think of this as a simple breakdown of how much money the government has received and spent over three time periods — the current year, the previous year, and the budget (upcoming) year. This is required under Article 112 of the Indian Constitution. It has three parts: <ul><li>The consolidated fund of India, consisting of revenue received by the government as direct and indirect taxes, and loans</li><li>Contingency fund of India for emergencies, or disaster management</li><li>Public Account of India — our money that the government receives under various schemes like PPF, small savings and more </li></ul>B: <keyword id="20313429" type="General" weightage="20" keywordseo="Budget-Estimates" source="keywords">Budget Estimates</keyword> Say you set aside Rs 25,000 this month from your salary, to buy an uber-cool smartwatch. But you find a sweet steal deal on Amazon and manage to grab it for just Rs 20,000. The Rs 25,000 you set aside from your monthly budget was an estimate. In the same way, the government sets aside a specific sum for every project or scheme based on its estimates, but in the end, the actual expenses may vary. C: Capital Expenditure See the government allocating funds left, right and centre for building highways, improving rail connectivity, or developing other infrastructures? That's capital expenditure, or capex. The idea of undertaking capex is to build something for the long term, something which keeps contributing to the economy’s growth, long after its creation. D: Divestments Divesting means to sell off and let go of one’s stakeholding or ownership in a company or enterprise. The government generally divests its shares in various public undertakings to raise funds. Remember the much-touted IPO of Life Insurance Corporation of India (LIC) LIC’s IPO in May 2022? That was the government divesting 3.5% of its share in the insurance behemoth. E: Economic Survey This is a snapshot (and a pretty long one) of all the major economic developments that have taken place in the country during a particular financial year. It is usually released a day before the full budget, highlighting the performance of various government schemes, trends seen in various sectors of the economy, the policy initiatives taken by the government, and where the economy is going in the near future. F: Fiscal Deficit As daunting as it sounds, what if I tell you that most of us are perennially in a state of fiscal deficit? Surprised? It's simply when your spending exceeds your earnings. So, it gives you an estimate of how much you need to borrow, to tide over. Turns out, the government isn't faring great either, given that its fiscal deficit, or the difference between its revenue and expenditure currently stands at a staggering Rs 16,85,494 crores, or about 5.1% of India’s <keyword id="19904293" type="General" weightage="20" keywordseo="GDP" source="keywords">GDP</keyword>. G: GDP Gross Domestic Product is the collective monetary value of all the goods produced and services rendered in the country, during a particular period. In other words, it is the combined total of the economic output that is generated by 141.72 crore Indians like us, expressed monetarily. As of 2024, India’s GDP stood at $3.9 trillion. GDP is a measure of how healthy and strong an economy is. Some of the world’s biggest economies, like China and the US, have a GDP of $18.5 trillion and $28.7 trillion, respectively. G: <keyword id="20411624" type="General" weightage="20" keywordseo="Gender-Budgeting" source="keywords">Gender budgeting</keyword> When achieving gender equality, and addressing challenges women face by way of allocating resources and formulating policies accordingly becomes key to preparing a budget, it's known as gender-based budgeting. Such a budget ensures that distribution of public resources between men and women is not heavily skewed towards the former. In 2023-24, India’s gender budget swelled 4.3% to Rs 2.23 trillion, which is about 4.9% of the overall budget. H: <keyword id="21458145" type="General" weightage="20" keywordseo="Household-Income" source="keywords">Household Income</keyword> The total money earned by everyone in your home makes for your household income. So, if you are a family of 4, where your younger sister is studying, and you, along with your parents earn a total of say Rs 25,00,000 per annum, that is your household income. As of 2022-23, India’s average household income stood at Rs 3.6 lakh/annum. O: Outcome of Budget This is a statement of the outcomes achieved by various government departments with the budget allocated to them last year. It answers questions like was the money spent on purposes it was sanctioned for? What was the output achieved? Think of this as a report card, detailing your progress, or money spent during the year, and is indicative of what more needs to be done to achieve the desired results. R: Revised estimates Say are saving up Rs 70,000 for your buying the latest iPhone. But a few months down, you realize that the price point has changed as the release date approaches, and it is likely to cost about Rs 85,000 now. You see, your initial estimate was Rs 70,000, but then, you revised your estimated requirement to Rs 85,000. The government works no differently. 6-months after the budget presentation, the government assesses if the money granted to scheme A is sufficient, or does it need more funds. Are there any other schemes that need more fund allocation? The new, revised estimates then become the benchmark of functioning, against which actual expenditures are compared. S: Subsidy This is a sum that the government gives to an industry or business, with the objective to keep its prices for the general public low. The government pitches in to pay a part of production costs, so that the public does not end up bearing the entire burden of the cost. Remember the recently discontinued FAME (Faster Adoption and Manufacturing of Electric Vehicles) subsidy on electric vehicles (EV) schemes, which boosted EV adoption amongst Indians. Imagine your elder brother or sister funds 40% of your much awaited Goa trip, without wanting anything in return, for the simple purpose of you having fun! That's them subsidizing your travel! V: Vote on Account Remember Nirmala Tai presented an interim budget this year in February, given that elections were due in May? In an election year, the incumbent government does not present a full fledged budget, because who knows if they’ll be voted back to power or not? So, to tide over the next few months before a new government is brought back to power, the government seeks vote on account, which is basically permission or grant needed to fund expenditures for the next few months. Z: Zero-based budgeting The term refers to a budgeting method in which all expenses must be justified for each new period, starting from a "zero base." Think of it like starting with a blank piece of paper every time you make a plan for how to spend your money. Instead of just changing what you spent last year, you think carefully about every rupee you need and why you need it. In 1986, the Indian government implemented ZBB as a system for determining the Expenditure Budget, making it compulsory for all ministries. However, implementation and application of this approach have remained inconsistent in the later years. So, it's time to listen to Tai with rapt attention, and flaunt your newfound budget dictionary to those still afraid of endless budget jargons!

Budget A-Z, for the GenZ: A fun and handy guide for major terms around upcoming Union Budget

<ul class="summary-list"><li>US oil production is expected to keep booming in 2024, possibly hitting a fresh high of 13.3 million barrels a day.</li><li>That comes as Exxon Mobil and Chevron are boosting their capital expenditure budgets for 2024.</li></ul>US oil production is having a blockbuster year, and 2024 could see fresh highs, putting more pressure on Saudi Arabia to regain control over crude prices.Analysts at Rapidan Energy estimate US output will average 13.3 million barrels a day next year, up from 2023's average of 13 million and above the current all-time record of 13.2 million reached in September. That comes as US oil giants Exxon Mobil and Chevron recently announced increases in their capital expenditure budgets for 2024 as they pour more money into the Permian Basin, the epicenter of the shale boom.The record supply of US oil has coincided with output cuts from OPEC+ nations like Saudi Arabia and Russia, which have been <a href="https://markets.businessinsider.com/news/commodities/oil-prices-today-outlook-crash-demand-supply-crude-energy-saudi-2023-12">struggling to lift oil prices</a>.That's got some experts warning that the Saudis may reverse course and instead <a href="https://markets.businessinsider.com/news/commodities/oil-market-opec-us-production-saudi-arabia-supply-flood-2023-12">flush the oil market with a flood of supply</a> like they did in 2014, when Riyadh sought to drive out US producers from the market by sinking prices and making output less profitable.Other analysts have echoed that view, as Doug King, chief investment officer of the Merchant Commodity Fund, <a href="https://www.bnnbloomberg.ca/how-opec-saw-its-hold-on-global-oil-markets-fray-despite-extra-production-cuts-1.2008930">told Bloomberg</a> that "OPEC's strategy looks fragile" and a more "logical plan" would include unleashing a flood of supply to depress prices again.For its part, Rapidan Energy doesn't see it that way."Currently we do not expect OPEC+ will flood the market to stifle US shale growth," Bob McNally, president of Rapidan Energy, wrote in an email to the Business Insider. "Ministers remain optimistic that supply-demand fundamentals will be together than many traders expect, helping to support prices."Even so, the roaring growth in US oil is undeniable. In addition to their increased spending, Exxon and Chevron have announced mega-mergers this year to buy top shale producers."The Permian is going to be the engine of growth not only this year, but in years going forward," Hunter Kornfeind, an oil analyst at Rapidan, said in an interview. <h3>Shifting tides</h3>While the amped budgets of the energy behemoths highlight the surge in US oil production, they are also a sign of the shifting landscape in the American energy industry.Growth is not as high compared to prior cycles, when oil companies would reinvest about 100% of the cash they generated into capital expenditures to drill more oil, Kornfeind said. Now, the amount they spend is about 40% to 50% of the money they make.That reflects a change in the priorities of US oil companies as they focus more on shareholders returns through buybacks and dividends.Meanwhile, US shale production — which Saudi Arabia targeted in 2014 — isn't the main risk facing OPEC over the longer term, McNally said."OPEC is more concerned about inadequate investment in supply than too much shale," he said. "It's important to note that OPEC does not share the IEA's peak demand view and therefore thinks shale oil growth is less of a threat."

US oil production will keep booming in 2024, setting up a possible showdown with Saudi Arabia

<ul class="summary-list"><li>The surge in US oil production helped big US oil companies post their second-biggest annual profits in a decade, <a href="https://www.ft.com/content/9a4f4609-1299-496b-8360-bb37b3480bc4" target="_blank" rel="noopener">the FT reported</a>.</li><li>ExxonMobil and Chevron notched fourth-quarter profits of $36 billion and $21.4 billion, respectively.</li></ul>America's oil giants are seeing big gains from the boom-time production that flooded the market with crude last year.ExxonMobil and Chevron both posted their second-biggest annual profits in a decade, the Financial Times <a href="https://www.ft.com/content/9a4f4609-1299-496b-8360-bb37b3480bc4">reported</a> on Friday.Exxon recorded a $36 billion profit for the fourth quarter, down from the $55.7 billion in the year before, but otherwise the highest since 2012. Chevron, notched a $21.4 billion profit, also down from $35.5 billion in the previous year, but outside of that its strongest since 2013.Both companies missed the mark on their revenues, with Exxon recording $84.3 billion versus the $85.2 billion expected, and Chevron posting a $47.18 billion as opposed to the expected $51.62 billion."If you take the market out of it, you take prices and margins out and just look at it on an apples to apples basis, we've more than doubled our earnings power from 2019 to 2023," Exxon CEO Darren Woods <a href="https://www.cnbc.com/video/2024/02/02/exxon-mobil-ceo-darren-woods-on-q4-earnings-another-step-in-improving-the-business-and-company.html" target="_blank" rel="noopener">told</a> CNBC on Friday.The fact that profit numbers are lower than 2022 — when turmoil in Ukraine gave oil companies a huge boost — is a byproduct of record US oil supply. The US pumped more oil than ever in 2023, hitting a <a href="https://markets.businessinsider.com/news/commodities/us-crude-oil-production-hits-record-high-13-million-barrels-2023-12">record 13.3 million barrels a day</a>, which dragged prices 11% lower for the year. But the surge of production helped keep profits near decade highs.The likes of Exxon and Chevron found themselves at the center of this blockbuster year. As a result, the companies have <a href="https://markets.businessinsider.com/news/commodities/us-oil-production-outlook-opec-cuts-saudi-arabia-flood-market-2023-12">ratcheted up their capital expenditure budgets</a> for 2024, pouring more money into the Permian Basin — the epicenter of the shale boom. Chevron's chief financial officer said their strong quarter was led by record production in the Permian Basin, per the Financial Times. And Exxon's output in the Permian and Guyana was up 18% in 2023.

The US oil boom helps ExxonMobil and Chevron notch their second-biggest profits in a decade

<ul><li>Moody’s upgraded India’s GDP growth estimates for 2023 to 5.5%.</li><li>Indian economy’s resilience and higher capex allocation in the Budget are key drivers for the GDP upgrade.</li><li>The agency upgraded its outlook for Mexico, Russia, Saudi Arabia and Turkiye as well.</li></ul>Global credit rating agency Moody’s upgraded India’s GDP growth estimates for 2023 by 70 basis points to 5.5% on Wednesday. It cited resilience of the economy to the global headwinds last year, and a <a href="https://www.businessinsider.in/budget/news/income-tax-bonanza-capex-push-emerge-as-the-stars-of-budget-2023-24/articleshow/97521646.cms">higher capital expenditure</a> allocation by the Indian government in Budget 2023 as reasons for the same. In November last year, Moody’s<a href="https://www.businessinsider.in/finance/news/no-end-to-downgrades-in-gdp-estimates-as-economists-remain-divided-on-severity-of-slowdown/articleshow/95847763.cms"> pegged</a> the Indian economy to grow at 4.8%, much lower than its peer Goldman Sachs which anticipated a growth rate of 5.9%. “Economic momentum in a number of large emerging market countries, including India, Brazil, Mexico and Turkiye, has proved more resilient to last year’s tightening in the global and domestic financial environment than we had anticipated,” Moody’s said. The agency upgraded its outlook for Mexico, Russia, Saudi Arabia and Turkiye as well. The rating agency anticipates that any let up in rate hikes by the US Fed will aid in stabilising capital flows to these emerging markets. That said, until inflation comes under control in advanced countries, the agency expects markets in the countries to remain volatile. Emerging market economies like India acting proactively on inflation and<a href="https://www.businessinsider.in/finance/news/indias-central-bank-hikes-interest-rates-by-50bps-to-4-9/articleshow/92073644.cms"> front-loading rate hikes</a> has “prevented second-round inflationary dynamics from taking hold”, <keyword id="6462970" type="General" weightage="20" keywordseo="Moodys" source="Orion">Moody's</keyword> said. <cmsannotation type="cmsannotation" annotationid="‘Strong H2 2022 led to large carry-over effects’" comment="subhead" text="‘Strong H2 2022 led to large carry-over effects’">‘Strong H2 2022 led to large carry-over effects’</cmsannotation> Moody’s was optimistic on not just the Indian economy’s prospects in 2023, but also several other large economies. The agency said the reason for its optimism was that a strong showing in the second half of 2022 has created “large carry-over effects for 2023”. “In the case of India, the upward revisions additionally incorporate the sharp increase in capital expenditure budget allocation to ₹10 lakh crore (3.3% of GDP) for fiscal year 2023-24, up from ₹7.5 lakh crore for the fiscal year ending in March 2023,” the Moody’s report added. The Indian government’s capex push was one of the highlights of Budget 2023, even as it <a href="https://www.businessinsider.in/budget/news/budget-for-the-amrit-kaal-powered-by-capex-rooted-in-fiscal-consolidation/articleshow/97551916.cms">continued to focus on fiscal consolidation</a>. Overall, the government’s capex outlay increased over three-fold from ₹3.1 lakh crore in FY19 to ₹10 lakh crore in FY24. <div type="image" title="Capex spending FY19-FY24." msid="98326569" hostid="261" caption="&amp;lt;p&amp;gt;India&amp;#39;s capex spending trends from FY19 to FY24&amp;lt;/p&amp;gt;"></div> <cmsannotation type="cmsannotation" annotationid="GDP upgrade despite moderation in Q3 FY23 growth" comment="subhead" text="GDP upgrade despite moderation in Q3 FY23 growth">GDP upgrade despite moderation in Q3 FY23 growth</cmsannotation> Moody’s upgrade comes a day after the Indian economy’s Q3 GDP growth came in at <a href="https://www.businessinsider.in/india/news/indias-gdp-grows-at-4-4-in-q3-economy-to-expand-at-7-in-fy23-govt-data/articleshow/98308098.cms">4.4% </a>lower than estimates. The slower pace of growth was due to a decline in consumption. “Sharp moderation in consumption dragged the economy, which along with slowing imports is indicating towards slowing domestic demand,” said a JM Financial Services report. Despite the decline in private consumption, analysts remain optimistic about the Indian economy’s growth in FY23. “Today’s growth number is broadly in line with RBI’s own projections, and is unlikely to shift RBI’s projections materially,” said Rahul Bajoria, MD &amp; Head, Emerging Market Asia (ex-China), Barclays. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/gap-between-tcs-infosys-and-other-smaller-indian-it-companies-to-increase-in-fy24/articleshow/98308333.cms">Gap between IT sector’s leaders and laggards to widen further in FY24, says Kotak Institutional Equities</a> <a href="https://www.businessinsider.in/business/telecom/news/airtels-growth-to-be-driven-by-postpaid-subscribers-and-5g-powered-premiumisation/articleshow/98296576.cms">Airtel’s ARPU improvements to be driven by postpaid subscribers and 5G-powered premiumisation</a> <a href="https://www.businessinsider.in/business/auto/news/passenger-vehicles-to-continue-driving-auto-sales-in-february-evs-gain-a-stronghold/articleshow/98272857.cms">Passenger vehicles to continue driving auto sales in February, EVs gain a stronghold</a>

Moody’s upgrades India’s 2023 GDP growth estimates to 5.5% on account of resilient economy, higher capex allocation

<ul><li>Analysts are bullish on <keyword id="42747" type="General" weightage="100" keywordseo="tata-motors" source="Orion">Tata Motors</keyword> thanks to robust performance by the car maker’s British subsidiary, Jaguar Land Rover.</li><li><keyword id="45218" type="General" weightage="80" keywordseo="jlr" source="Orion">JLR</keyword> expects its wholesale volumes to rise 25% in FY24, and its debt to reduce to £2 billion from the existing £3 billion.</li><li>Tata Motors’ domestic businesses also delivered margin expansion, with its net debt falling to ₹6,200 crore in FY23, the lowest in 15 years.</li><li>Robust performance across segments also helped the company declare its first dividend since FY16.</li></ul>Tata Motors is driving in top gear, thanks to a strong performance by its British subsidiary Jaguar Land Rover (JLR) alongside robust execution across segments in its domestic business. It topped street estimates with a <a href="https://www.businessinsider.in/business/auto/news/tata-motors-posts-net-profit-of-5408-crore-in-q4-beats-estimates/articleshow/100189259.cms">consolidated net profit of ₹5,408 crore in Q4</a> and analysts expect the momentum to continue in the new financial year aided by multiple tailwinds. Tata Motors’ robust numbers in the March quarter were aided by JLR’s performance – the UK-based luxury car maker posted free cash flow of £815 million during the quarter. JLR accounts for 80% of Tata Motors’ consolidated revenue, so its strong performance has a large impact on Tata Motors’ performance. In addition, Tata Motors’ domestic business also delivered an improvement in margins across segments, helping the company post its highest-ever consolidated revenue of ₹1.06 lakh crore in Q4, registering a growth of 35% on year. “Tata Motors executed a strong show across key verticals in Q4 FY23 with commercial vehicles earnings before interest, taxes, depreciation and amortisation (EBITDA) margins crossing the 10% mark after 4 years and JLR delivering a strong £815 million free cash flow,” said the analysts at Motilal Oswal. Tata Motors declared a dividend of ₹2 per ordinary share, its first since FY16. The Indian business’ net debt stood at ₹6,200 crore in FY23, which is the lowest in 15 years. The street also celebrated its earnings as its shares rose by 4% hitting a fresh 52-week high of ₹537 a piece before closing at ₹531. <cmsannotation type="cmsannotation" annotationid="The JLR boost" comment="subhead" text="The JLR boost">The JLR boost</cmsannotation> Analysts expect Tata Motors to gain more momentum going forward, thanks to JLR’s healthy order book, softening commodity prices and sustained free cash flow generation. JLR’s volumes surged to 1.07 lakh units in Q4, rising by 20%. In a post-earnings call, the luxury car maker said that its current order book stands at 2 lakh units, and that the overall demand outlook remains healthy. Of this, 1.5 lakh orders are for high-margin cars like the Range Rover, Range Rover Sport and Defender. The company has planned a ramp up of capacities during FY24, with capital expenditure budgeted at £3 billion, up from £2.35 billion in FY23. Overall, JLR is targeting volumes of 4 lakh units in FY24 which is a growth of 25% when compared to FY23’s volumes of 3.21 lakh units. Thanks to improving margins and volumes, JLR is aiming to reduce its debt to £2 billion from £3 billion during FY24, with a target of becoming net debt free in FY25. Not just this, JLR is also the dominant industry player in the electric passenger vehicle space in its home market, UK, with a market share of over 80%. “Demonstrated capability in newer technologies in the commercial vehicle space and pricing discipline across industry to aid aspiration of double-digit margins ahead,” said analysts at ICICI Direct. <cmsannotation type="cmsannotation" annotationid="Margins expand in domestic businesses too" comment="subhead" text="Margins expand in domestic businesses too">Margins expand in domestic businesses too</cmsannotation> Tata Motors’ commercial and passenger vehicle segments witnessed margin expansion in the March quarter – while the commercial vehicle segment delivered a 420 basis point margin expansion YoY to 10.1%, the passenger vehicle segment reported a 40 basis point increase to 7.3% in this period. Going forward, the company expects to touch double-digit margins and a sustained free cash flow generation. “Tata Motors should witness a healthy recovery as supply-side issues ease (for JLR) and commodity headwinds stabilise (for the India business),” said the analysts at Motilal Oswal. <cmsannotation type="cmsannotation" annotationid="Analysts bullish" comment="subhead" text="Analysts bullish">Analysts bullish</cmsannotation> Analysts are broadly bullish about Tata Motors’ growth prospects in FY24, thanks to lower input costs and JLR’s focus on capacity expansion as well as investments in the electric vehicle (EV) space. “Firmer commitment towards EV by JLR with an accelerated investment plan of £15 billion spend over the next five years will be one of the key triggers for future price performance,” ICICI Direct said. The brokerage added that it expects the company’s revenue to grow at a 20.1% compounded annual growth rate over FY23-25. “It will benefit from the commercial vehicle upcycle and stable growth in passenger vehicles, company-specific volume/margin drivers, and a sharp improvement in free cash flow as well as reduction in net debt in both JLR and the India businesses,” the Motilal Oswal report said, explaining its bullish outlook. Overall, brokerages affirmed their bullish outlook, raising their target prices to an average of ₹623, which is an upside of 17% from the current share price of ₹531. <div type="javascript" title="Custom" contenttype="Text"><cdata><![CDATA[<blockquote class="stocktwits-embedded-post" data-origin="https://stocktwits.com" data-id="527781037"> $TATAMOTORS.NSEBig Breakout Possible Above 600Getting Ready for 4 Digits 💯 &mdash; (@saditya10p) <a href="https://stocktwits.com/saditya10p/message/527781037"> May 15, 2023</a></blockquote><script async src="https://stocktwits.com/min/widgets.js" charset="utf-8"></script>]]></cdata></div> SEE ALSO: <a href="https://www.businessinsider.in/finance/news/fii-inflows-may-remain-consistent-in-may-with-turn-in-rate-cycle/articleshow/100234813.cms">FII inflows may remain consistent in May with turn in rate cycle</a> <a href="https://www.businessinsider.in/tech/news/heres-how-googles-new-ai-updates-will-transform-your-search-experience/articleshow/100242791.cms">Here’s how Google’s new AI updates will transform your search experience</a> <a href="https://www.businessinsider.in/tech/mobile/news/how-to-track-and-block-your-lost-smartphones-using-the-sanchar-saathi-portal/articleshow/100242116.cms">How to track and block your lost smartphones using the Sanchar Saathi portal</a>

Tata Motors in top gear, JLR to drive growth in FY24

New Delhi, Feb 1 () The Budget allocation for the steel ministry has registered a decline of 49 per cent to Rs 100 crore in 2020-21, from Rs 196.08 crore in 2019-20.
 This decline has been over the revised estimates of the 2019-20 Budget, according to Budget documents.
 While the Budget estimate was at Rs 241.29 crore for 2019-20, in case of 2018-19 (actual) it was Rs 154.54 crore, it added.
 The expenditure budget of Rs 100 crore in the 2020-21, includes Rs 38.58 crore on secretariat-economic services, Rs 44.24 crore on medical and public health and Rs 17.18 crore on industries. ABI ABI ANS
ANS

Budget allocation to steel ministry drops by 49 pc to Rs 100 cr in 2020-21

New Delhi, Feb 1 () The Budget allocation for the coal ministry has registered a decline of 5.4 per cent to Rs 882.61 crore in 2020-21, from Rs 933.60 crore in 2019-20.
 The decline has been over the revised estimates of the 2019-20 Budget, according to Budget documents.
 While the expenditure was at Rs 1,159.05 crore for 2019-20, in case of 2018-19 (actual) it was Rs 708.34 crore, it added.
 The bulk of increase in the Budget allocation for 2020-21, was towards central sector schemes -- the schemes that are entirely and directly funded and executed by the central government.
 The expenditure budget of Rs 882.61 crore in the 2020-21, includes Rs 819.98 crore on central sector schemes/projects and Rs 22.35 crore on Coal Mines Pension Scheme.
 The investment in public enterprises, including Coal India, has increased from Rs 18,467 crore in budget 2020-21, over the revised estimate of Rs 18,121 crore in 2019-20. SID DRR

Budget allocation to coal ministry dips 5 pc to Rs 882 cr in 2020-21

<ul><li>The Indian Space Research Organisation (<keyword id="6358064" type="UNKNOWN" weightage="20" keywordseo="isro">ISRO</keyword>) is turning into a facilitator as it looks for the private sector to play a bigger role in space technology in the ‘second space age’.</li><li>Despite the COVID-19 cash crunch, the <keyword id="10279586" type="UNKNOWN" weightage="20" keywordseo="Budget-2021-22">Budget 2021-22</keyword> has not deprioritised the space sector with a 3.48% increase in expenditure allocation.</li><li>Money earmarked for <keyword id="7832818" type="UNKNOWN" weightage="20" keywordseo="new-space-india-limited">New Space India Limited</keyword> — the Indian Space Research Organisation’s commercial arm — saw its budget increase 138 times.</li><li>According to space policy expert Chaitanya Giri, the government is looking to monetise ISRO's intellectual property and bring in fresh revenue.</li></ul>The Indian Space Research Organisation (ISRO) is on the road to transforming itself from an end-to-service provider for India’s space programme into a facilitator. The latest budget allocation is a signal that the Indian government is serious about giving private players a serious role In the ‘second space age’. Despite the cash crunch caused by the COVID-19 pandemic, India did not cut back on the money for the space programme. In fact, the outlay increased by 3.5%. More importantly, bulk of the funds will be routed to a new entity, New Space India Limited (<keyword id="7835598" type="UNKNOWN" weightage="20" keywordseo="nsil">NSIL</keyword>). <div type="image" title="Budget allocation for the DoS has increased by 3.5% for 2021-22" msid="80683124" hostid="261" caption="&amp;lt;p&amp;gt;Budget 2021-22 allocation for the Department of Space&amp;lt;/p&amp;gt;"></div> NSIL, the commercial arm ISRO saw a 138 times jump in allocation. The money that earlier went from the Department of Space (DoS) to ISRO, will now be routed to NSIL, which will then authorise the participation of private players. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Year </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">NSIL expenditure budget </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2019-20 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹10 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2021-22 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹700 crore </td></tr></tbody></table> “That means that the government is super serious about commercialising whatever IP (intellectual property) it has under its kitty and just monetising that. It’s a departure from the mindset of yesteryears where ISRO was only there to cater to the government’s requirements,” Chaitanya Giri, space policy expert and fellow with think tank Gateway House, told Business Insider. Doubling down on space sector reforms The push for private sector participation in the space sector is a strategic necessity, according to Giri. “For our commercial sector to get started on this front, it will need governmental space agency ISRO to get things done at its end first,” he points out. India’s edge in the global market was its ability to keep things cheap. An advantage that has now been diluted by the emergence of companies like Elon Musk’s SpaceX who have made launching satellites more competitive. Its Crew Dragon capsule is another indication that the second space age will be run by the commercial sector. “They will be building the rockets, launch services, building space capsules and providing logistics,” explained Giri. NSIL is set up, but what comes next? Last year, in May, Finance Minister Nirmala Sitharaman announced <a href="https://www.businessinsider.in/science/space/news/india-tells-isro-to-give-startups-and-private-players-access-to-geospatial-data-and-testing-facilities/articleshow/75776128.cms">major reforms</a> for the space sector as a part of the Atma Nirbhar package — including the setting up of the Indian National Space Promotion and Authorisation Centre (IN–SPACe). “In-SPACe was supposed to be formed by the end of last year — by December 2020 — so it’s getting slightly extended. But, I’m pretty sure that it will be completely established within the next two months,” Pawan Kumar Chandana, co-founder of Skyroot Aerospace told Business Insider in a <a href="https://www.facebook.com/BusinessInsiderIndia/videos/410805019999418">pre-budget interaction</a>. <div type="javascript" title="Custom" contenttype="Video"><cdata><![CDATA[<iframe width="560" height="315" src="https://www.youtube.com/embed/ibm0IqVue5w" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>]]></cdata></div> According to Giri, the Indian Space Research Organisation (ISRO) has always built its own rockets and satellites. But, that will no longer be the case. “They want to include all of these small startups that have emerged and start giving them contracts according to their niche,” said Giri. <keyword id="9455914" type="UNKNOWN" weightage="20" keywordseo="IN-SPACE">In-SPACe</keyword> opens up ISRO’s treasure trove of satellite data to private players and will allow start ups to use the apex space agency’s testing facilities to develop their own technologies. The challenge lies in setting the price points for this use. “Like always, when it comes to finance, every rupee counts when it comes to the government… And, the government's mandate is to encourage the private sector, so they cannot charge it as high as they may want to,” Chandana explained. DataLabs by <a href="https://inc42.com/datalab/to-infinity-and-beyond-indias-space-technology-startups-are-starting-to-blow-their-thrusters/">Inc42</a> shows that there are around 120 active startups working in the space sector right now. Most of them emerged in or after 2014. Moreover, the Economic Survey 2020-21 pointed out that only around 40 startups are already working with the government. "This number is likely to increase in coming years with technology to play a big role,” it added optimistically. SEE ALSO: <a href="https://www.businessinsider.in/politics/news/new-citizenship-law-pulls-india-down-in-the-democracy-rankings-and-2021-is-not-looking-better/articleshow/80671194.cms">New citizenship law pulls India down in the democracy rankings — and 2021 is not looking better</a> <a href="https://www.businessinsider.in/finance/banks/news/bank-unions-strongly-oppose-divestment-bad-bank-and-fdi-in-insurance-with-threats-to-go-on-strike/articleshow/80668430.cms">Bank unions strongly oppose divestment, a bad bank and threaten to strike</a> <a href="https://www.businessinsider.in/science/space/news/budget-2021-22-prioritises-gaganyaan-indias-human-spaceflight-mission-over-all-others-heres-why/articleshow/80663272.cms">Budget 2021-22 prioritises Gaganyaan, India’s human spaceflight mission, over all others — here’s why</a> <a href="https://www.businessinsider.in/business/news/mukesh-ambani-ratan-tata-and-anand-mahindra-might-come-together-for-indias-new-national-hydrogen-mission/articleshow/80645570.cms">Mukesh Ambani, Ratan Tata, and Anand Mahindra might come together for India’s new National Hydrogen Mission</a>

ISRO will transform in 2021 as India pumps big money to draw in startups for the 'second space age'

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/55bb72bc371d2215008bb821-3028-2271/rtr2pemq.jpg" alt="chevron gasoline station" data-mce-source="REUTERS/Mike Blake" data-mce-caption="The sign of a Chevron gas station is pictured in Encinitas, California July 28, 2011." />REUTERS/Mike Blake</div></div></div>Chevron plans to cut spending and still produce more oil.The oil-drilling giant announced Tuesday that it is reducing its capital expenditure budget for 2017-2018 to a range of $17 billion to $22 billion from $20 billion to $24 billion. Chevron maintained its forecast for production growth through 2020, as several projects that have been in the works for several years finally come online. In the <a href="http://finance.yahoo.com/news/chevron-affirms-production-growth-announces-130000916.html">statement</a>, CEO John Watson said, "Industry conditions are tough right now, with low oil and natural gas prices. We believe markets will improve, and we'll be well positioned when they do."The company is holding its analyst meeting on Tuesday. Its shares were little changed in pre-market trading on Tuesday. They have fallen 12% over the past year. Last week, <a href="http://www.businessinsider.com/exxonmobil-cuts-2016-capex-25-2016-3">ExxonMobil</a> also announced cuts to its capital spending plans, while still planning to launch new drilling projects over the next two years. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/map-major-us-oil-gas-energy-pipelines-2015-12">Animated map shows all the major oil and gas pipelines in the US </a></h3> <div> <div> <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="NnaWRleTrxSh1MYgEFvTy9yUpzJwBOMZ" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> <script> if (typeof RunFunctions === 'undefined') { var RunFunctions = []; } RunFunctions.push(function() { var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'NnaWRleTrxSh1MYgEFvTy9yUpzJwBOMZ',{ autoplay: 'false' }); }); </script> <noscript><div>Please enable Javascript to watch this video</div></noscript></div> </div> <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script> </div>

Chevron plans to cut capital spending and still produce more oil

<ul><li>In wake of the <keyword id="8763838" type="UNKNOWN" weightage="20" keywordseo="covid-19">Covid-19</keyword> outbreak and its impact of business, <keyword id="168456" type="CITY" weightage="20" keywordseo="WPP">WPP</keyword> has taken measure like freezing new hires, reviewing freelance expenditure, stopping discretionary costs, including travel and hotels and the costs of award shows and postponing planned salary increases for 2020.</li><li>Additionally, members of the WPP executive committee, as well as the Board, have committed to taking a 20% reduction in their salaries or fees for an initial period of three months.</li><li>Since the impact of COVID-19 on the business is expected to increase in the next quarters, WPP has to withdraw its guidance for the 2020 financial year. </li></ul> WPP in its recent update regarding the Covid-19's impact on business said that the first two months’ trading were in line with their expectations. The network has taken prudent actions to maintain its liquidity position and that it will continue to serve its clients effectively at a crucial time for strong communications. Some of the key highlights from the update were: <ul><li>2020 started well with strong business momentum: key account wins and good retention</li><li>Encouraging financial performance, pre COVID-19 impact: first two months Group LFL revenue less pass-through costs ex Greater China +0.4%1; Group -0.6%1; USA -0.9%1</li><li>All its businesses operating well under remote working conditions; producing effective campaigns for clients, governments and NGOs around the world</li><li>March performance is weaker, reflecting spread of virus and government containment actions</li><li>Significant uncertainty over immediate outlook: withdrawing guidance for 2020</li><li>Strong balance sheet supported by further immediate action to maintain liquidity: buyback and 2019 final dividend suspended given current uncertainty; final dividend will remain under review</li><li>Additional measures taken to manage cash flow and profitability include reduction in costs and capital expenditure, and tight controls on working capital</li><li>First quarter trading update on 29 April 2020</li></ul> Supporting its people and communities and maintaining service for clients Since the start of the <keyword id="1754604" type="PERSON" weightage="20" keywordseo="coronavirus">Coronavirus</keyword> crisis, WPP said its first priority has been the safety and welfare of its people, and doing what they can to limit the impact of the pandemic on the communities. "Our leadership has communicated continuously to our people around the world and we have followed or exceeded the guidance of governments and international health organisations in the measures we have taken to protect our employees’ health and to help slow the spread of the virus. We know this is a stressful and unsettling time for our people, and are encouraging all managers to stay in close contact with their teams to provide the support needed. We continue to give regular guidance on mental and physical well-being." "Our second priority has been to maintain service to our clients at a critical time and we have successfully moved to remote working across the vast majority of our business, and close to 95% of our 107,000 colleagues are now working away from the office. We are deeply engaged in helping our clients to manage and adjust their communications at this critical time. Our services have never been more important, with many clients already looking to address their longer term brand positioning and communications when the COVID-19 crisis passes." "We have seen outstanding examples of creativity from our people as they support clients, governments and NGOs in the fight against COVID-19. We are working with international health authorities to promote effective handwashing and we have offered our resources to the UK Government to assist the effort in Britain. Our global media network Wavemaker, for example, helped the Cabinet Office to launch its coronavirus information service on WhatsApp to reduce the pressure on the NHS. Our people are also displaying great ingenuity and resilience as they adapt to new conditions, maintain a positive working culture and ensure continuity of service for clients," read the report. Year-to-date business performance and outlook for 2020 For the first two months of 2020, excluding Greater China, Group LFL revenue less pass-through costs was up 0.4%. In Greater China (approximately 7% of WPP by revenue less pass-through costs) the impact from COVID-19 led to a 16.1%1 fall in LFL revenue less pass-through costs over the two-month period. For WPP as a whole, LFL revenue less pass-through costs was down 0.6%, in line with their expectations and the guidance set in their preliminary results announcement on 27 February 2020. In the USA, WPP saw an improvement in the rate of decline from 2019 with revenue less pass-through costs down 0.9% in the first two months, compared to a decline in the second half of 2019 of 4.4%. Its overall new business performance was strong, with a number of key wins including Intel, Hasbro and Discover, and retentions including BBVA. In China, despite the significant slowdown in economic activity and the closure of offices, WPP said its people have responded extraordinarily well to the unprecedented challenges and have successfully continued to work on client projects. "At the peak of the crisis in China, almost all of our colleagues were working remotely, but as health restrictions are now being lifted, 55% of our local workforce are back in our offices." In March, we have begun to see a range of different responses from clients globally, depending on the client sector, country and agency services. In the short term, media spend has largely remained committed, or diverted to alternative channels, although we have seen an increasing volume of cancellations. Project and retained work has continued in most sectors, but activity has begun to decline. New business pitches continue where the process was already underway, albeit we have less certainty over our future pipeline. In some markets, we are seeing additional demand in our PR and specialist communications businesses." As a result, WPP said it expects its performance in March in markets experiencing significant COVID-19 outbreaks to be weaker than in January and February, impacted by government restrictions on movement and the consequent reduction in economic activity. "As we enter the second quarter, it is clear that the impact of COVID-19 on the business will increase but it is not possible at this stage to quantify the depth or duration of the impact. As a result, we have decided to withdraw our guidance for the 2020 financial year. We will provide an update when appropriate," the agency said in its statement. Cost reduction measures WPP said that most of its costs are variable in nature. They have commenced a review of their costs to protect profitability, where possible, from a decline in revenue. At the same time, WPP said it wants to protect its people as much as possible, as well as its ability to serve clients and grow when markets recover. "The immediate actions we have taken include: freezing new hires; reviewing freelance expenditure; stopping discretionary costs, including travel and hotels and the costs of award shows; and postponing planned salary increases for 2020. In addition, members of the WPP executive committee, as well as the Board, have committed to taking a 20% reduction in their salaries or fees for an initial period of three months. We anticipate these measures will generate total in-year savings for 2020 of £700 - 800 million. In addition, we are making a detailed assessment of further actions to reduce cost subject to the impact of the virus on our business over the coming weeks and months." Cash conservation measures WPP also said it has reviewed its capital expenditure budgets for 2020 and looked at opportunities to improve working capital. It said it has identified savings in excess of £100 million in property and IT capital expenditure against an initial 2020 budget of around £400 million. "On working capital, we have a standing weekly management process to review cash outflows and receipts to monitor our position. We are continuing to work closely with our clients to ensure timely payment for the services we have provided in line with contractual commitments. On media, we are working with clients and vendors to maintain the settlement flow. Should we see any deterioration in payment from our media clients we will take appropriate action to manage our cash position," read the statement. Speaking about the current situation, <keyword id="570483" type="PERSON" weightage="20" keywordseo="Mark-Read">Mark Read</keyword>, Chief Executive Officer, WPP said, "The actions we have taken in the last 18 months to streamline and simplify WPP, together with raising £3.2 billion in asset disposals, have put WPP in a strong financial position. It is clear that the companies in the strongest financial position will be best placed to protect their people, serve their clients and benefit their shareholders during a period of great uncertainty, which is why we are taking the steps we are outlining today. “Across WPP we now have close to 95% of our people working effectively and productively away from their offices. I am very proud of the response from our people, who are looking out for each other and going the extra mile for clients while demonstrating the creativity, collaboration and resilience that will be key to the enduring success of WPP. At the same time, we are supporting many governments and international health organisations on communications programmes to limit the impact of COVID-19 on our communities. The important role we are playing in helping our clients navigate a difficult time gives us great confidence in the long-term future of the company.”

WPP executive committee and Board to take a 20% reduction in salaries for an initial period of 3 months in wake of Covid-19 outbreak

No one denies that IBM is in the middle of a major transformation, shifting away from shrinking hardware businesses and towards growth areas like cloud computing.
There are a lot of questions about what the company will look like when this transformation is done.
It's certainly possible that IBM CEO Ginni Rometty can pull it off. While IBM's revenue has consistently been shrinking for about two years, it remains a hugely profitable company. In 2014, it generated $12.4 billion in free cash flow. (Then again, it borrowed money to buy back shares, to keep its earnings per share up, spending $13.7 billion on that and earning criticism that <a href="http://www.businessinsider.com/mark-cuban-ibm-is-not-a-tech-company-2014-10">IBM depends too heavily on financial engineering.</a>)
The easiest way to way to see the shape IBM is in is from <a href="http://www.ibm.com/investor/att/pdf/4Q14-Charts.pdf">these two charts</a> showing that every major business unit shrunk in its fourth quarter.
<div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/54bed5f7ecad04f7105a6777-916-654/ibm-q4-business-unit.png" border="0" alt="IBM Q4 business unit">IBM</img></div></div></div>
Every geography was down, too.
<div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/54bed5f7eab8eaf76b02128c-920-656/ibm-q4-geography.png" border="0" alt="IBM q4 geography">IBM</img></div></div></div>
By the way, the fourth quarter is significant for <keyword id="6356323" type="UNKNOWN" weightage="100" keywordseo="Enterprise">enterprise</keyword> companies like IBM, as salespeople push to close deals to make their annual quotas, and customers make purchases to finalize capital expenditure budgets.
But there are bright spots. So we'll throw a third chart at you to show those.
There's reasonable growth in the hot areas where IBM is investing. These are: cloud computing (which includes selling hardware and software to companies building their own clouds), "analytics" also known by the trendy term "big data," and mobile, helped by IBM's big agreement with Apple.
Revenue from these areas combined was up a total of 16%.
<div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/54bed5f769bedd7e69d27821-918-650/ibm-4-quarter-chart3.png" border="0" alt="IBM 4 quarter chart3">IBM</img></div></div></div>

The Two Scariest Slides From IBM's Earnings Presentation

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/52682ff469bedde15d473ee6-1200-924/john-chambers-16.jpg" border="0" alt="John Chambers">Daniel Berehulak/Getty ImagesCisco CEO John Chambers</img></div></div></div>If internet companies can't make money on high speed internet, they aren't going to invest billions to build faster networks, Cisco CEO John Chambers warned when talking to Wall Street analysts on Wednesday.
He was telling analysts that President Obama's plan for the internet would be bad news.
<a href="http://www.businessinsider.com/obama-has-the-perfect-plan-for-the-internet-2014-11">To recap: </a>Obama wants to categorize the infrastructure that deliver internet services as a "Title II" utility, similar to how telephone utilities operate.
This would forbid internet companies from allowing some content (like their own) to travel faster over their wires, while slowing down other content (like their competitors'). That's a concept known as "net neutrality."
This counters a proposal put forth by FCC chairman Tom Wheeler, a former telecom lobbyist, which would allow internet providers to charge big internet companies (Google, Netflix, and so on) to guarantee high-speed service for their content.
Opponents of Wheeler's plan say that this means only the biggest, wealthiest internet companies could afford to have the best internet service, which would hinder innovative startups.
Chambers insists that its Obama's plan that will hurt innovation, because it doesn't motivate ISPs to invest. Service providers are already "struggling big time in certain geographies on how to make money," Chambers said.
For instance, <a href="http://www.thestreet.com/story/12947638/1/att-t-stock-higher-today-after-reduced-capital-expenditure-guidance.html">AT&amp;T said that its going to reduce its capital expenditure</a> budget, meaning it will spend less on equipment.
Chambers said he's talked to AT&amp;T leaders who warned them they will spend even less if Obama's plan gets approved.
AT&amp;T said it very publicly, and obviously, I'm very close to [AT&amp;T CEO] Randall Stephenson and [AT&amp;T CFO] John Stephens and [AT&amp;T Mobile CEO] Ralph [de la Vega]. We know that their capex is going to be down by a fair amount this next year regardless. However, it will be down dramatically more if we don't get our act together on this Title II issue. There's a way to accomplish the goals of both sides. I thought Chairman Wheeler's original approach to this was right on, a right compromise in terms of direction. I think it's very important we send a message. You are going to see these service providers slow if not pause completely on broadband build out because if they can't make money on broadband buildout, they aren't going to build it out. It's as simple as that.
It's not really that simple. Being a regulated utility doesn't stop a company for charging enough for its services to be profitable, even if restricts them in some ways.
<a href="http://www.businessinsider.com/obama-has-the-perfect-plan-for-the-internet-2014-11">As Obama put it</a>: 
For almost a century, our law has recognized that companies who connect you to the world have special obligations not to exploit the monopoly they enjoy over access in and out of your home or business.
Still, Chambers has a reason to be concerned.
Cisco makes billions of dollars selling equipment to internet service providers. If they don't want to upgrade or expand, Cisco loses. Even if they are just postponing or trimming their their plans, Cisco loses.
Some of that is already coming into play, Chambers warned. Cisco's revenues from service providers was down 10% in its last quarter and he blamed, in part, fears over net neutrality.
<div class="KonaFilter image-container click-to-enlarge"><div class="image on-image"><a title_source="Cisco" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/5463f3c66bb3f7514283d193-960/cisco-november-2014.png"><img src="https://static-ssl.businessinsider.com/image/5463f3c66bb3f7514283d193-997-488/cisco-november-2014.png" border="0" alt="Cisco revenue November 2014" width="800" /></a>Cisco</div></div>

Cisco CEO: Obama's Plan Will End High Speed Internet As We Know It

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/548610126da811931931922b-666-499/there-will-be-blood-oil-8.jpg" border="0" alt="There Will Be Blood oil"><a href="https://www.youtube.com/watch?v=4hNs8rZv0YY">screengrab from "There Will Be Blood"</a>There Will Be Blood</img></div></div></div>Stocks fell on Monday as the price of both Brent and WTI crude oil tumbled to five-year lows to start the week. 
First, the scoreboard:
<ul>
<li>Dow: 17,859, -100, (-0.5%)</li>
<li>S&amp;P 500: 2,060.1, -15.2, (-0.7%)</li>
<li>Nasdaq: 4,737.4, -43.4, (-0.9%)</li>
</ul>
And now, the top stories on Monday:
1. Crude oil hit <a href="http://www.businessinsider.com/oil-drops-to-five-year-low-2014-12">five-year lows</a> on Monday. The price of Brent crude oil fell to $66.22 while WTI futures fell to $63.05 as crude resumed the plunge that really began in earnest on Thanksgiving day after OPEC declined to curb production. Meanwhile, the average price of a gallon of gas i the US fell to $2.67 on Monday morning, according to AAA, down from $3.27 a year ago. 
2. Oil prices continue to make new lows, but the price of oil has been depressed now for months since peaking in June, and shale projects around the world are starting to feel the pinch. As <a href="http://www.businessinsider.com/low-oil-prices-slowing-global-energy-investment-2014-12">Business Insider's Shane Ferro reports</a>, international shale projects in Argentina, China, Mexico, and Russia haven't gotten off the ground as these projects are more capital intensive, and the current state of the oil market doesn't make pursuing these projects economically viable. 
3. And while fracking projects are facing financing pressure, oil giants ConocoPhillips and BP have also <a href="http://www.businessinsider.com/conocophillips-bp-cut-costs-2014-12">moved to cut expenses</a> amid the drop in oil prices. ConocoPhillips announced on Monday that its projected capital expenditures budget for 2015 is down 20% from 2014, while reports over the weekend said BP would move to cut staffing levels across all of the company's layers above operations. On Monday, shares of ConocoPhillips lost more than 4% while BP shares were down more than 2.5%. 
4. As the decline in oil put the major stock indexes under pressure, "safe haven" assets like gold and Treasury bonds <a href="http://www.businessinsider.com/gold-surges-december-8-2014-12">rallied on Monday</a>. The price of gold spike violently during afternoon trade, quickly gaining more than $10 an ounce to move back above $1200. Treasury yields, meanwhile, fell on Monday with the 10-year falling back below 2.25%, an almost 10 basis point decline from its highs following Friday's big jobs number. 
5. McDonald's reported global same-store sales that fell 2.2% in November, worse than expectations for a 1.7% decline. But the really bad news for the fast food giant <a href="http://www.businessinsider.com/mcdonalds-same-store-sales-decline-2014-12">came from the US</a>, where sales fell 4.6% in November, as it has been more than a year since same-store-sales in the US were positive for McDonald's. 
6. In an afternoon email, NYSE floor governor Rich Barry gave an overview of how traders in the floor were feeling about the action in the stock market and some of the commentary floor traders are looking at. Barry wrote: "For the record, we feel that both Brent and WTI are very close to a 'capitulation-move' to extreme lows ... Be that as it may; this morning we received an extremely Bullish note from one of the top technical analysts on the Street who loves the market in 2015. His words: 'We currently have a large number of stocks breaking above past tops to new all-time highs. All-time highs leave just two types of sellers, shorts and profit takers, meaning stocks can accelerate to the upside. These breakouts, and neutral bullish trends are not necessarily at buy junctures, however both patterns can drive the equity markets higher quickly. Add to this the number of bullish names versus bearish names, and the odds favor we trade to the upside.' We like the way this guy thinks, which is why we shared his views with you."
Don't Miss: <a href="http://www.businessinsider.com/secular-bull-market-chart--1987-crash-2014-12">The Most Bullish Chart You'll See Has A Big Stock Market Crash In The Middle Of It »</a>

OIL HITS FIVE-YEAR LOW: Here's What You Need To Know

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/56ce19a22e5265bb008b95b1-1254-940/rtx27trt.jpg" alt="ski jump rise leap" data-mce-source="Reuters/David W Cerny" data-mce-caption="A participant jumps on vintage skis during a traditional historical ski race in the northern Bohemian town of Smrzovka, Czech Republic, February 20, 2016" />Reuters/David W Cerny</div></div></div>Stocks made a u-turn in afternoon trading, rallying into positive territory after opening lower for a second straight day, as crude oil also reversed losses.First, the scoreboard:<ul><li>Dow: 16,484.99, +53.21, (0.32%)</li><li>S&amp;P 500: 1,929.80, +8.53, (0.44%)</li><li>Nasdaq: 4,542.61, +39.02, (0.87%)</li><li>WTI crude oil: $32.15, +$0.28 (0.9%)</li></ul>And now, the top stories on Wednesday:<h2>Something is wrong</h2>A gigantic sector of the economy flashed red today.Markit's <a href="http://www.businessinsider.com/markit-flash-services-pmi-february-2016-2">flash services </a><a href="http://www.businessinsider.com/markit-flash-services-pmi-february-2016-2">purchasing manager's index</a>, a preliminary reading on the sector for February, fell into contraction. At 49.8, it was the first time since the recession that service-sector activity contracted, except for during the government shutdown in October 2013. The services sector contributes to about two-thirds of economic growth, and so we're now looking at "a significant risk of the US economy falling into contraction in the first quarter," according to Chris Williamson, chief economist at Markit.Markit explained that bad weather (remember winter storm Jonas?) played a role. Also, business people got fewer orders for new work because their clients were growing less confident in the economic outlook. The recent consensus has been that economic growth is chugging along fine, helped by consumer spending and a strong labor market. This was happening even as financial markets were in turmoil. And so the data today interrupts that narrative.Now here come some caveats: This is a flash reading, and so we have to wait another week for the final reading, along with the ISM's non-manufacturing composite, that would give us a more robust picture of what's going on. Also, as RBC's Tom Porcelli highlighted in a note, the ISM non-manufacturing index is still in expansionary territory above 50. The reverse is true for the manufacturing series, but Markit's reading above 50 is not being used to counter ISM's index that's below 50. Porcelli wrote (emphasis ours),Folks, when it comes to digesting economic data we actually cannot have our cake and eat it too. That point aside, ask yourself what makes more sense given what we know from an unbiased perspective about the state of things in the US: that the service sector would slip below the critical 50 threshold before manufacturing, or vice versa? According to Markit, it's the former that makes most sense. We'll say it again, if we see signs that growth is going to slow sharply in the US, we will gladly change our call--but the Markit PMI is surely not going to be that trigger for us.<h2>More housing data</h2><a href="http://www.businessinsider.com/new-home-sales-january-2016-2016-2">New home sales</a> fell more than expected in January, by 9.2% at an annual rate of 494,000. That was worse than expected, and a slowdown from the 8.2% drop at an annual rate of 544,000 in December. Much of the sales decline was in the west (32%).Economists at Jefferies and Pantheon Macroeconomics noted that the regional data can be unreliable. "The series on new home sales is often choppy, but through some of the noise in the data, it appears that home sales are continuing to trend higher over time off of historically low levels," wrote JP Morgan's Daniel Silver in a client note. "We maintain our view that the housing market will continue to recover."And two earnings releases Tuesday - from <a href="http://www.businessinsider.com/us-housing-market-update-2016-2">Home Depot</a> and Toll Brothers - confirmed that the housing market is still healthy. Lowe's provided a third big anecdote with its quarterly results today. The home-improvement giant reported better-than-expected sales, with same-store-sales growth of 5.2%. However, its net earnings fell year-over-year to $11 million from $530 million, and that was because of a $530 million impairment charge it suffered with the exit of its joint venture in Australia. And for the current fiscal year, Lowe's expects that its sales will rise 6% to $62.62 billion, as it continues to ride the housing boom. <a href="http://www.businessinsider.com/existing-home-sales-january-2016-2">Existing home sales</a> for January unexpectedly climbed, according to data out yesterday. Home prices numbers are due Thursday.<h2>Chesapeake Energy is buckling</h2>As expected, <a href="http://www.businessinsider.com/chesapeake-earnings-and-outlook-q4-2016-2">Chesapeake Energy</a> has a smaller capital expenditure budget this year compared to last year, as it focuses on keeping a healthy balance sheet and maintaining liquidity.In the earnings announcement Wednesday, the company said it had sold or agreed to sell $700 million in assets, which was higher than the amount it told investors in December. Chesapeake is aiming to divest from up to $1 billion of its assets to raise cash. Earlier this month, <a href="http://www.businessinsider.com/chesapeake-share-price-february-8-2016-2">Chesapeake shares</a> plunged more than 50% following a Debtwire report that it had hired Kirkland &amp; Ellis to restructure $9.8 billion in debt. And on Wednesday, the stock was up by more than 21%, which must have been some relief for <a href="http://www.businessinsider.com/sp-may-cut-icahn-enterprises-to-junk-2016-2">Carl Icahn</a>, who holds 73 million shares. <h2>Forecasters are bad at forecasting </h2>We just got the latest Economic <a href="https://www.whitehouse.gov/sites/default/files/docs/ERP_2016_Book_Complete%20JA.pdf">Report</a> of the President, and found two of the charts quite interesting. As Andy Kiersz wrote on the first, <a href="http://www.businessinsider.com/unemployment-projections-have-been-wrong-2016-2">consensus forecasts on the unemployment rate</a> a few years out have tended to be much higher than the actual rate. For instance, the consensus thought the unemployment rate would be above 5% until at least 2020. However, it only just fell to 5% in October.<div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image"><a title_source="White House" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/56cdad126e97c625048b93e1-960/screen shot 2016-02-24 at 7.52.53 am.png"><img src="https://static-ssl.businessinsider.com/image/56cdad126e97c625048b93e1-875-684/screen shot 2016-02-24 at 7.52.53 am.png" alt="overly pessimistic unemployment projections" data-mce-source="White House" data-link="https://www.whitehouse.gov/sites/default/files/docs/ERP_2016_Book_Complete%20JA.pdf" /></a><a href="https://www.whitehouse.gov/sites/default/files/docs/ERP_2016_Book_Complete%20JA.pdf">White House</a></div></div></div>And here's Exhibit B, which Myles Udland called the <a href="http://www.businessinsider.com/imf-global-economic-revisions-2016-2">most depressing chart</a> in the world:<div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image"><a title_source="White House" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/56cd9ed22e5265bc008b924c-960/screen shot 2016-02-24 at 7.05.40 am.png"><img src="https://static-ssl.businessinsider.com/image/56cd9ed22e5265bc008b924c-800-500/screen shot 2016-02-24 at 7.05.40 am.png" alt="Screen Shot 2016 02 24 at 7.05.40 AM" data-mce-source="White House" /></a>White House</div></div></div>It shows that the International Monetary Fund has consistently cut its global growth forecast, only for that forecast to prove too aggressive.But what's sadder about this is how the IMF thought in 2011 that 2016 gross domestic product would grow by 5%. If only.<h2>Additionally:</h2><a href="http://www.businessinsider.com/annual-cost-of-juvenile-incarceration-versus-other-expenditures-2016-2">One year of juvenile jail costs three times more than four years of college</a>.<a href="http://www.businessinsider.com/eurasia-group-next-big-energy-story-2016-2">Forget OPEC - the next big energy story is the US election</a>.<a href="http://www.businessinsider.com/ubs-these-look-like-bubbles-right-now-2016-2">UBS thinks three major trades in the market right now look like bubbles</a>.<a href="http://www.businessinsider.com/older-americans-are-holding-more-debt-2016-2">Older Americans are holding more and more debt</a>.<a href="http://www.businessinsider.com/valeant-breaks-one-of-warren-buffets-rules-2016-2">Valeant broke one of Warren Buffett's most important investing rules</a>.<a href="http://www.businessinsider.com/mcdonalds-new-mcpick-2-is-now-5-dollars-2016-1">McDonald's McPick 2 no longer costs $2 and people are livid</a>.<a href="http://www.businessinsider.com/melania-trump-donald-morning-joe-interview-2016-2">Possible next first lady Melania Trump was on MSNBC's "Morning Joe". You have to see the Trumps' gold penthouse</a>.<a href="http://www.businessinsider.com/ivanka-trumps-shares-top-negotiating-rules-2016-2">Ivanka Trump shares six golden rules of negotiation</a>.<a href="http://www.businessinsider.com/letter-to-talia-jane-and-stefanie-williams-about-salaries-2016-2">Hardworking millennials are getting shafted by older people in the workplace</a>. Related: <a href="http://www.businessinsider.com/stefanie-williams-response-to-yelp-employee-talia-jane-2016-2">29-year-old millennial rips 25-year-old Yelp employee who got fired after complaining about her salary</a>. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/cam-newton-carolina-panthers-press-conference-nfl-denver-broncos-super-bowl-2016-2"> Here's the question that prompted Cam Newton to storm out of his postgame press conference</a></h3> <div> <div> <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="VoZG5yMDE6VHP_GWa6so3qlVcSAMa9_y" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> <script> if (typeof RunFunctions === 'undefined') { var RunFunctions = []; } RunFunctions.push(function() { var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'VoZG5yMDE6VHP_GWa6so3qlVcSAMa9_y',{ autoplay: 'false' }); }); </script> <noscript><div>Please enable Javascript to watch this video</div></noscript></div> </div> <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script> </div>

You Searched For "expenditure budget" and got 15 results

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