In an interview with CNBC-TV18, Jahangir Aziz of JPMorgan and Sonal Varma of Nomura shared their expectations from Union Budget 2018.
We are hoping that the government will not sacrifice macroeconomic stability to grow for near-term growth, said Aziz.
All the temporary factors like goods and services tax (GST) and demonetisation will fade away and we will go back to a stronger growth path based on all the reforms that we have done but we have near-term pain, he added.
He is looking for fiscal target slightly lower than 3.5 percent, he further mentioned.
Speaking of Budget 2018, he said that it is unlikely for the government to cut back expenditure in the pre-election year.
Sonal Varma said that she expects FY18 fiscal deficit to be at around 3.5 percent and 3.2 percent for FY19 assuming that market conditions remain stable and the government is able to do something close to what they did in FY18.
According to her, India is on the cusp of a cyclical recovery and therefore does not need any macro stimulus from the government and therefore consolidation is necessary.
For entire discussion, watch accompanying video...
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