Daily Voice Budget Edition | Market experts share their wish list for FM Sitharaman

The size of capital expenditure and initiatives targeted for the MSME sector are to be monitored, says Shailendra Kumar, Narnolia Financial Services.

The 2023 Budget is coming at a very crucial time - consumers are feeling the pinch of inflation, rural demand still seems sluggish, credit growth and capex are on the rise, and markets are highly volatile.

Moneycontrol caught up with some market experts and fund managers to find out what exactly can uplift the mood of the markets. Check out their views and also read Part 1 here

Sahil Kapoor, DSP Mutual Fund

"There are two key areas for Budget 2023. First is the overall expenditure that the government will account for. We had a few steady years of government expenditure which was financed by fiscal deficit. Since a fiscal impulse is likely to be absent, it would be important to see how much growth would the government pencil in. The other is any changes to direct taxes which are one of the quickest way to impact the economy." Read More

Naveen Kulkarni of Axis Securities

Naveen Kulkarni, Axis Securities

"The important areas for the Budget will be the focus on capital expenditure in an election-heavy calendar. Apart from this, the Union Budget will be critical as we head into the 2024 Lok Sabha elections. Thus, welfare spending and government borrowing will be key focus areas. To put things in perspective, the government’s capex spending and borrowing calendar will be the critical areas to focus on." Read More

Shailendra Kumar of Narnolia Financial Advisors

Shailendra Kumar, Narnolia Financial Services

"Surely the Union Budget 2023 will have elements targeted towards the general election in 2024. But if we look at the recent past, the majority of policy reforms and initiatives have happened outside the budget process.

Tax collection, both direct and indirect, continues to be strong for the current fiscal and it will allow the Finance Minister to roll out tax concessions and social programmes without diluting the fiscal balance.

The size of capital expenditure and initiatives targeted for the MSME sector are to be monitored."

Niraj Kumar is the Chief Investment Officer at Future Generali Life Insurance India

Niraj Kumar, Future General Life Insurance India

"We believe fiscal prudence would be the chosen one over fiscal profligacy and that government will stick to its consolidation in a gradual manner amidst a credible medium-term framework.

It is likely to touch upon the key chords of growth drivers by way of incentivising private investments coupled with thrust on growth sustenance via capex and infrastructure spend while spurring domestic demand. While the focus on capex and infrastructure is here to stay, we expect higher allocations on the populist heads especially in agriculture and rural development schemes along with measures to alleviate the impact of inflation at the bottom of the pyramid, considering it’s a pre-election budget.

Besides we expect the government will concentrate on improving India’s manufacturing and logistics competitiveness along with bringing in some additional sectors under the ambit of the PLI (production-linked incentive) scheme. Further, incentives for industry oriented towards clean tech and clean energy may draw some attention in the budget." Read More

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​