Capital expenditure growth is not significant. Budget has significant populist tones which do not bode well for bond yields.
B Gopkumar, Executive Director & Chief Executive Officer, Reliance Securities gives his likes and dislikes about the interim Budget 2019.
What works:
Addressing the farmer distress and ensuring improvement in rural economy.
Tax benefits will reduce the much talked about tax burden on the middle class.
Real estate sector will benefit because of the new initiatives. The sector was under tremendous stress. The new norms will help improve volumes.
Overall the budget will help in improving the GDP growth rate led by consumption.
What does not work
Government’s tax collection targets are aggressive. The GST collection growth of 18.5% is an aggressive ask.
Direct tax collection targets are also aggressive considering the high base of FY19.
Managing the fiscal deficit target at 3.4% will be a challenge if GDP growth rate does not pick up pace
Capital expenditure growth is not significant. Budget has significant populist tones which do not bode well for bond yields.You can now invest in mutual funds with moneycontrol. Download moneycontrol transact app. A dedicated app to explore, research and buy mutual funds.Indian Union Budget 2019: What does the FM have up his sleeve in the run up to the General Elections? Click here for live Budget 2019 news, views, analyses and more.
