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An improvement on the interim Budget with a number of reasonably good proposals on disinvestment, bank recapitalisation, and quite a substantial discount on affordable housing in taxes.
Focus on affordable housing and infrastructure is noticeably higher compared to earlier budgets. Commitment to restrict fiscal deficit at 3.30 per cent compared to 3.40 per cent is a good intent but we need to look at the revenue assumptions more closely to draw more comfort.
A partial dependence on external markets for government borrowings may help the government meet the borrowing targets but the dynamics of currency management and its impact on yield movements should not be ignored.
(The writer is Head, Research - Emkay Wealth Management. The views expressed are personal)