This is the end of our coverage on the Interim Budget. Thank you for staying tuned, your continued readership motivates us to provide you with news of the highest factual consistency.
Finance Minister Piyush Goyal’s Union Budget 2019-20 may be an Interim Budget but expectations are high since it is the last one for the Modi government before the country heads for Lok Sabha elections in April-May. Expect measures to boost agriculture and bring cheer to distressed farmers but no big overhaul in income tax rates and slabs. Fiscal deficit target miss is possible. Job creation will remain in focus and so will the new e-commerce FDI policy. Railways Budget 2019 may see new measures to improve convenience.
This is the end of our coverage on the Interim Budget. Thank you for staying tuned, your continued readership motivates us to provide you with news of the highest factual consistency.
“It’s good to see the focus of the interim budget on rural sector, middle class. More money in the hands of rural and middle class is good for driving consumption in the country And hence good for economic growth.More and more local MSME manufacturers andsellers can cater to this increased demand from rural, tier 2/3 towns and we at Flipkart marketplace will be happy to support thousands of such sellers to access the consumers cost effectively andefficiently.“
Union Minister Arun Jaitley said that the middle class has been strengthened, and will make up close to 44 percent of the populations by 2024.
Union Minister Arun Jaitley said that fiscal deficit is higher due to a higher allocation of funds to agriculture schemes. He also said that the agricultural sector going through a crisis is overstating it.
Finance Minister Piyush Goyal has said$2 billion investment In LED will save $7 billion per year, in an interview to CNBC TV-18.Goyal also mentioned that the final fiscal deficit figure is around 3.36%, that lower tax rates will help the formalization of the economy, and that it may finally end up with 3.2% fiscal deficit. He also said that Rs 75,000 crore is transferred to the farmers.
Tilting towards populism, while avoiding a big bend”, the government announced the interim budget for FY20. The FM has made an effort to contain FY19 fiscal deficit @ 3.4% of GDP, while maintaining the FY20 Fiscal deficit target straight line @ 3.4% of GDP (at probably cost of capex expenditure). With potential of stoking inflationary pressures, the budget also pushes the Fiscal consolidation away for some time, especially when there is an increased doubt on revenue generation. The FM has tried to address agrarian issues through a farm package (PM kisaan Samman Yojna), though the allocation pegged t INR 750bn does not disturb the fiscal maths in big way. The revenue targets, especially on GST collections and Disinvestment for FY20 looks quiet stretched and optimistic.As far as RBI is concerned, we believe the budget pushes back possibility of rate cut in near future and expect RBI to highlight potential upside risk to inflation on account of slip in fiscal. We believe that there would be pressure on bond yields and expect new 10 yr g-sec to trade in range of 7.20% - 7.60% in medium term and take further directional cues from incoming macro data”.
