Budget 2009 best in current situation: Religare Ent

Mr Sunil Godhwani, Managing Director and Group Chief Executive Officer, Religare Enterprises Ltd.
 
"While the immediate market reaction has been negative to the Budget as far too many expectations were built up, over the medium term the market would rate it as pragmatic and best in the current situation, with just eight months left in the financial year. 

Not being reformist, the Budget is a good, stable one in the right direction of reducing complexities and taking incremental steps towards taking the country's GDP back to 8%+ levels. 

The reduction of FBT, abolishing commodity transaction tax, increasing disposable income in the hand of the common man are all attempts to boost domestic demand. Thus, given the global economic slowdown, the Budget has rightly focused on generating domestic growth which would make our economy stronger.

Since the market had huge expectations from the Budget, post the 17% rise in one day following the election results, the markets are now correcting in line with the operating fundamentals.

The Budget targets a long term GDP growth of 9% while committing to the current level of fiscal stimulus. Presenting an inclusive budget, the Finance Minister promotes job creation in rural India, targets reduction of poverty level to half by 2014, attempts to improve education and healthcare system, and increase rural housing and urban and rural infrastructure spend to 9% of the GDP apart from providing energy security. 

Naturally, the budgetary target for fiscal deficit has increased to 6.8% of GDP but the Minister highlights the need towards fiscal discipline."