Industry Expectations - Budget 2010 - 2011
Growth will follow Fiscal Prudence - ICICI Direct Budget Preview 2010-11
With the fiscal deficit for 2009-10 pegged at 6.8% and inflationary expectations scaling back there seems to be a consensus that the government may pull back from the stimulus in a calibrated way. It seems the forthcoming Union Budget will mark the beginning of the exit. This being given the main question that needs to be answered is: Whether the government's focus on fiscal prudence via rolling back the stimulus will hurt the economic recovery?
We feel the government, in Budget 2010-11, will be able to manage both i.e. medium-term fiscal prudence and long-term growth agenda. Though we do not expect any big bang policy moves; some definite monitorables for the Budget 2010-11 would be the focus of the government on infrastructure and social sector spending to keep the engine of consumption rolling, government borrowings (taking into account private sector crowding does not take place and inflationary expectations), roadmap on reforms like GST rollout and oil sector deregulation.
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Budget Preview 2010-11 ICICI Direct
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Union Budget