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Below the budget quote by Abhishek Bisen, head – Fixed Income, Kotak Mahindra AMC

Given this is an election year, the government prioritizing fiscal responsibility in its interim budget is commendable. The biggest win for the debt market:- Fiscal deficit of 5.1 % of GDP for FY24-25  was much lower than everyone expectation on street. This effectively translated in Gross Market Borrowing of Rs14.13 lakh crores and net borrowing of Rs 11.75 lakh crores. FY25 Market Borrowing looks manageable, thanks to reduced gross borrowing numbers and added comfort from potential foreign flows with inclusion in J P Morgan Emerging Market Bond Index. Importantly, the government maintained its focus on long-term growth by allocating a record high of more than Rs 11 lakh crore towards capital expenditure. This can be seen as disinflationary budget.

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