A growing economy gives greater leeway for Government spend, says Raamdeo Agrawal

Veteran investor Raamdeo Agrawal is confident of a robust and sustained bull run over the next 4-5 years and foresees a sizeable government spend that'll support growth. The Chairman and co-founder of Motilal Oswal Financial Services (MOFSL) told CNBC-TV18, "when tax collections rise, the government has a leeway to spend." He added, "when tax collections grow, there is a lot in the hands of the government to spend."

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"What matters is how well an economy does and how the government collects," Raamdeo Agrawal said. The GST tax collection for the month of November has come in at Rs 1.68 lakh crore, at a very strong growth rate of 15% YoY. "When you're a trillion dollar economy you can collect $150 billion as tax, when you're $4 trillion (economy) you can collect $600 billion and when you're $8 trillion (economy) in the next six-seven years, you'll be able to collect $1.5 trillion taxes," Raamdeo said in an interaction with the TV network on December 7. "This is an amazing time for Indian equities," he added.