Mr. Mayuresh Joshi (Portfolio Manager, Angel Broking)
The Union Budget was presented by our honorable exchequer Ms. Nirmala Sitharaman outlining the vision on ten strong pillars. The underlying policy initiatives surrounding Investments in Infrastructure encompassing roads, air, inland waterways and Railways, creating gas/water/power grids along with a push in investments including interest subventions for MSME's, promotion for startups and alleviating issues on the tax on origin for investments made in start-ups' and the push for electric mobility with allocation in the FAME II Policy are very positive initiatives. The Government has remained steadfast in terms of fiscal consolidation and inflation management and the initiatives taken for growth/liquidity by measures announced in terms of recapitalization of PSU banks, measures taken for the NBFC universe are excellent moves from the Government side. The markets got jittery on three counts one.about the increase in effective tax rates for HNI investors played down on market sentiment, two the announcement related to increase in public shareholding from 25 to 35% if implemented will roughly add Rs 360000 lac crore of paper hitting the market and three buy back attracts 20% tax to close the loophole on DDT. To a certain extent the markets have been impacted for these factors but the Government intent of staying on the fiscal glide path, brilliant measure to address the NBFC issues/PSU recap adds to liquidity stability and fair assumptions of growth in tax revenues i.e. only 7.5% growth envisaged for Personal income taxes and a marginal growth in GST collections puts on record a very feasible achievement in terms of revenue accretion. So, positive in terms of intent made by the Government and the focus on rural economy and parallel spending on Infrastructure development and structural dimensions of the Banking/NBFC being held strongly makes it a very pragmatic and practical Budget."