Investors Would Hope For Progressive Non-populist, Fiscally Prudent Budget

Being the pre-election year budget some populist measures are par for the course. That said, the government aims to adhere to its deficit targets. The focus of the past few budgets has been on capital expenditure and one could reasonably expect the same to continue. Enhanced allocation towards rural employment schemes and focus on developing rural infrastructure could see greater attention given the fact that the rural piece has yet to emerge out of the scars of Covid on the economic front. Higher deduction for interest on home loans would be welcome given the rising cost of borrowings and increasing cost of new homes. Market investors would hope for a progressive non-populist, capex-focused and fiscally prudent budget, which would be well accepted by market participants especially foreign investors. Hence, expectations are for a well thought out middle of the road approach towards balancing the books in FY'24.

(About the author: Sameer Kaul - MD & CEO has been associated with TrustPlutus since 2019. Prior to this, Sameer has spent 25 years working with Citibank in various roles across the consumer and institutional bank. Sameer has a Bachelors Degree in Economics from the University of Delhi and has done his MBA with concentration in Marketing and Finance from the University of Illinois at Urbana Champaign, USA).