FM in the Interim Budget announced that total planned expenditure would be cut and the cut would come in this quarter.
According to Shikha Sharma, MD & CEO, Axis Bank to the extent that the planned expenditure is going to be lower is already factored into the numbers since it is already February 17 today. “So the expenditure number for next six weeks is not going to have that much of an impact in terms of growth or orders,” said Sharma
According to her despite this being a Vote-on-Account, there has been a positive trigger for the auto sector.
Also read: Interim Budget: Achieving 4.1% fiscal deficit a tall task, says Rangarajan
Commenting on the borrowing number being revised lower to Rs 5.79 lakh crores, Sharma said: “If the borrowing number is as what has been put out in the plan then that would be positive for the bond markets but there is still scepticism around on where the revenue numbers are going to happen and therefore if the borrowing number can be contained.”
So, I don’t think the bond markets are going to react at this point of time until all numbers are clear, she said
For the entire interview watch video
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