Budget 2023 Expectations Survey: What the market thinks about increase in capex

Finance Minister Nirmala Sitharaman will present the Union Budget 2023-24 in the Lok Sabha on February 1.

Moneycontrol conducted a survey of 30 market experts, including fund managers, analysts, heads of research, chief investment strategists and officers to get responses on some important questions relating to the upcoming Union Budget.

Increase in capex

Sectors like infrastructure, railways, defence, public sector undertakings and renewables are expected to witness an increase in spending by the government.

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The market will be satisfied if there is an increase in capital expenditure (capex) by 15 percent for FY24, said 53.3 percent of the surveyed participants. Whereas, 43.3 percent believe this is worse than they expected and that they will be disappointed.

On being asked about their reaction if capex is increased by 15-30 percent, 48.3 percent said this is what they expected and will be satisfied, while the other 48.3 percent feels they would be pleasantly surprised.

Meanwhile, 93 percent believe the scenario where capex for FY24 is above 30 percent will be great and will definitely surprise them pleasantly.