Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Union Budget

| More

Union Budget 2021 Review - Acuité Ratings & Research

Posted On: 2021-02-01 09:39:13 (Time Zone: Arizona, USA)


Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research

Fiscal Deficit

"Surely, the sharp rise in fiscal deficit estimates to 9.5% and 6.8% of GDP in FY21(E) and FY22(P) is a matter of concern to the bond markets since it is higher than consensus estimates. The Economic Survey had already highlighted the adoption of a fiscal expansionary policy over the medium term to reignite the growth engines and that has been reflected in the budget. In the context of higher government borrowings which is set to spike to Rs 15 Lakh Cr (gross) in FY21 from Rs 8 Lakh Cr in FY20, the market will keenly await the MPC's commentary on the direction of the interest rates but clearly, a hardening bias has crept up. However, the higher fiscal deficit estimates also highlights the possibility of greater spending push by the government in Q4FY21 which may boost GDP growth in the current quarter. The government capital expenditure as a proportion of GDP is set to pick up from 1.7% in FY20 to 2.3% in FY21(E) and further to 2.5% in FY22(P) which will be a 17 year high figure and will enhance medium term growth prospects."

Financial Sector:

"The budget has made a few important announcements in financial sector reforms. It has permitted 74% FDI in the insurance sector which is expected to lead to higher investments and consolidation in the sector. While another Rs 20,000 Cr has been allocated for capital in public sector banks, it has also announced its intent to divest its stake in 2 public sector banks and one general insurance company. This is surely a significant step ahead but government's ability to execute it in a timely manner needs to be seen. Lastly, an ARC and an AMC is proposed to be set up to buy out stressed assets of the banking sector. We, however, will need to wait for the details in this regard before we can comment on the efficacy of such a bad bank in providing capital relief to the banks with high GNPAs."

Infrastructure Sector:

"As expected by the market, the budget has given high priority to infrastructure investments in line with the National Infrastructure Plan (NIP). Significant step up in national highway projects is in the anvil; significantly higher allocation has been made for railways and urban infrastructure including public transport systems. The city gas distribution network will be expanded further to smaller cities. Importantly, the National Monetisation Pipeline for refinancing of operational projects has been contemplated which will start with the InviTs from PGCIL and NHAI. The decision to set up a separate DFI with an equity capital of Rs 20,000 Cr and with a loan target of Rs 3.0 Lakh Cr over the next 3 yrs is also another timely measure to facilitate adequate funding for the sector."

Healthcare Sector:

"We had expected higher allocation for the health sector given the vulnerabilities in the health infrastructure exposed by the pandemic. India's public spending on healthcare needs to be stepped up from the current 1% of GDP to around 3% of GDP. The plan to set up 17,000 rural and 11,000 urban health centres along with public health labs is a step in the right direction and will also generate significant employment in the health sector."


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Other Headlines:

Views of Dalmia Bharat Group on Union Budget 2020-2021

Union Budget 2021-22 Report - YES SECURITIES

Post Budget Reaction 2021 - Healthcare

Mr. Dinesh Agarwal, Founder & CEO , IndiaMART InterMESH Ltd on Union Budget 2021-22

Mr. Dinesh Kumar Khara, Chairman, SBI on the Union Budget announced today

K Paul Thomas, MD and CEO of ESAF Small Finance Bank on Union Budget 2021-21

Visionary and Growth-oriented budget - Shri Sanjiv Puri, Chairman & Managing Director, ITC Limited

Union Budget 2021 - Vidya Shah, Chairperson & CEO, EdelGive Foundation

Union Budget 2021-22 Views - Mr. Rajiv Sabharwal, MD and CEO, Tata Capital

Budget21: FM provides Shot In the Arm to Realty by extending additional tax sops on home loan interest

Union Budget 2021-22 Reaction - Ms. Bekxy Kuriakose, Head - Fixed Income, Principal Asset Management.

Shri CH S. S. Mallikarjuna Rao, MD & CEO, Punjab National Bank on Union Budget 2021-22

EY quote on Budget impact on the Life Sciences and Public Healthcare sector

Union Budget 2021-22 Reaction - Mr. Prem Kishan Dass Gupta, Chairman & Managing Director, Gateway Distriparks Ltd

Budget FY2021-2022 - Growth all the way - Shanti Ekambaram, Group President - Consumer Banking, Kotak Mahindra Bank Ltd

Union Budget 2021-22 - Reaction from Real Estate Developers

Union Budget 2021- 22 is the much needed 'shot in the arm' for the Indian economy

Views on Union Budget 2021 - Mr. Hemant Daga, CEO, Edelweiss Asset Management

Union Budget 2021 - 'Post-budget' reaction from Jaideep Hansraj, MD & CEO, Kotak Securities

Union Budget 2021 - Post Budget Reaction from Dr. Prathap C. Reddy, Chairman, Apollo Hospitals Group

Union Budget 2021 reactions from market experts

Post Budget Reaction - Mr. Amar Ambani from YES SECURITIES

A Pro-infrastructure and investment Budget - Dr. Samantak Das, Chief Economist and Head of Research, JLL India

Union Budget 2021 Review - MSMEs and Startups

Budget Reforms to Boost Investment in Equity Markets

Government committed to Faceless Tax Assessment to build trust between the tax administrator and tax payer: Shri PC Mody, Chairman, CBDT

Industries feels that Budget 2020 will have a positive impact on growth

Post Budget reaction - Mr. Kamal Singal, MD & CEO, Arvind Smartspaces

Post Budget reaction - Newgen Software

The Budget 2020 is Dynamic and Progressive for the Indian Economy

Mr. T. Chitty Babu Chairman & CEO, Akshaya Pvt. Ltd's reaction on Budget 2020

Reaction on Union Budget 2020 - Mr. Kamal Khetan, Chairman and Managing Director, Sunteck Realty Ltd

Union Budget 2020 - Reaction from P.Srinivasavaradhan, President, TVS Srichakra Ltd

Education - Reaction on Budget 2020 - Ishari K Ganesh, Chancellor Vels University

Budget 2020 Reaction from Mr. Rakshit Desai

Reaction to Union Budget 2020 - Professor Mahadeo Jaiswal, Director, IIM Sambalpur

Balanced Budgget - Mr. N. H. Bhansali, Emami

Overall a positive budget - Chandrahas Panigrahi, CMO and Consumer Business Head, Acer India

Welcome measures taken in Budget 2020 - Mr Amit Saraogi, MD, Anmol Feeds Pvt Ltd.

Post Budget reaction - Mr. Dinesh Agarwal, MD - IndiaMART InterMESH Ltd

Post Union Budget 2020 Reaction - Prakash Mallya, VP, and MD - Sales and Marketing Group, Intel India

Budget Detailed Analysis - Farm Sector, Taxation and NBFCs - Suman Chowdhury - Acuité Ratings & Research Limited

Union Budget 2020: Views of Mr. Subhash Sethi, Chairman, SPML Infra Limited

Union Budget 2020 reaction - Mr. Yogesh Patel, Chief Finance Officer, Mahindra Logistics Ltd

Higher Education - Budget 2020 impact - Dr Rupamanjari Ghosh, Co-chair, FICCI Higher Education Committee

Union budget 2020 well balanced, steps like Kisan Rail, NABARD refinance scheme will boost demand for cold storage infra and warehousing

Views by SMERA on MSME Sector

Fiscal Analysis - Karan Mehrishi, Lead Economist at Acuité Ratings & Research Limited

Start-ups to see positives from Budget - Mr. Anurag Janwar, Fintrust Advisors LLP

Reaction on Unoin Budget 2020 - Nippon Paint India


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020