Pre Budget Expectations : Even though expenditure for FY23 will likely surpass the budgeted numbers, the math will be under control due to the buoyancy in tax collections By Amar Ambani, Yes Securities
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Below is Pre budget views By Mr. Amar Ambani, Group President and Head, Institutional Equities, YES SECURITIES
After the pandemic-induced spurt in spending, FY24 Budget expansion is likely to be a moderate one, with the economy having stabilized. From looking at the budget data of the last two decades, it is amply evident that the NDA tends to be less expansionary on the fiscal.
The government will continue to focus on Capex and also persist with its intent to swell the share of Indirect Taxes, as is evident from the widening net of formalisation. We see subsidy bills moving back to pre-Covid levels in terms of GDP size. Notwithstanding the fact that government’s Debt servicing is a cause for concern - given interest payments significantly eating into revenue receipts - a decisive tilt towards small saving schemes should reduce the dependence on market borrowings and ease the pressure on sovereign yields.
This time round, the government is likely to be modest in its asset monetization targets, unlike the lofty projections of the prior budgets. In all probability, India’s GDP growth target would be a low double-digit affair amid a challenging global backdrop, and the government would not stray from its fiscal prudence roadmap.”
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