Overall, the Union Budget 2023-24 was a good one, with the middle class getting more money, a strong capex push, and a lower fiscal deficit target, Saurabh Mukherjea, Founder, Marcellus Investment Managers told Moneycontrol. The only missing piece, as per Mukherjea, was the lack of enough blue-collar job initiatives.
"It is clear from looking at corporate results over the last couple of years that COVID has hammered income potential for the lower strata of the society where people are making less than Rs 2 lakh per year. The Finance Minister did mention that over 40 lakh youth will be positively impacted by the initiatives in the budget but it remains unclear to me how that will happen and hence it is to be seen if the country can create more blue-collar jobs," Mukherjea said.
On the consumption front, a relaxation in taxes will give a post-tax income boost of around 20-25 percent to low and middle-class households which will spur higher savings.
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Consequently, Mukherjea believes that small-town low-income household spending will witness a jump post changes in the new tax regime that were announced in the Union Budget on February 1.
Further, factoring in the initiatives taken in the Budget, banks, automobiles and consumer durables remain the top picks, says Mukherjea.
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