Budget '10 should focus on fiscal deficit: Madhu Kela

Madhu Kela Head of Equities at India’s largest mutual fund house, Reliance Mutual Fund, said, Budget 2010 should focus on the fiscal deficit numbers and what is the roadmap which is being given in the budget over the next one or two years—how the government is going to tackle that fiscal deficit number.

Here is a verbatim transcript of Madhu Kela's exclusive interview on CNBC-TV18.

Q: What is the pace at which the gulf is being bridged by domestic creation of capital through insurance, mutual funds channels like that?

A: It all comes in that form. You have to look at the overall saving. Only pace out over a period of time is to reduce deficits and which is why in the coming Union Budget that is one number which I would like to focus on as to what is that fiscal deficit number and what is the roadmap which is being given in the budget over the next one or two years—how the government is going to tackle that fiscal deficit number.

Q: Is the market at risk if we do not have a good roadmap on the fiscal deficit front?

A: From a macro sense, people are not going to be getting excited and if at all the woes of recent Spain or Portugal or Greece this will all add up. If your fiscal deficit number is not very good, if the roadmap is not very clear it will not be taken seriously, or positively by the international investors.