'Fiscal consolidation and stability in tax regime': Prashant Jain on expectations from Budget 2025

In the budget, Jain also said that he is hopeful for a stable tax regime. "I hope there is stability in taxation. Maybe there will be a few tweaks because stability in taxation is very good for both investors and businesses," he said.

Union finance minister Nirmala Sitharaman is all set to announce Budget for 2025-2026 on February 1. Talking about his expectations for the Budget, 3P Investment Managers' Prashant Jain says that he is hopeful that the government will continue its focus on fiscal consolidation.  "I wish the government continues on the path of fiscal consolidation," Jain said adding that it is critical to macro stability in India.

"We should accept this temporary slowdown in growth. I think it is happening because, in the past, consumers have borrowed excessively and spent," Jain noted adding that this is why the RBI is also being concerned about rapid growth in that space and why loan growth in that segment has slowed down.

"I think that is a healthy correction because, ultimately, you cannot borrow and grow indefinitely. It will lead to pain. So, I would look upon this correction as a welcome phase," Jain said.

He added that when the over-leveraged consumers fix their leverage and India's economy grows, this could be the right steps toward financial stability. "When those set of consumers who are over-leveraged, they will fix their leverage. And India is a growing economy. Incomes are growing. So, here you step down slightly on your expenditure, your balance sheet should get fixed quickly," he said.

Jain added, "we should stay focused on delivering better fiscal stability and continue to support the manufacturing opportunity. So, I think government has been very clearly supporting through PLI and other initiatives the manufacturing opportunity, but it will take much longer. I think this is a time where we should not get unduly worried by a half percent or three-fourths of a percent slowdown in growth for a few quarters. Rather, we should stay focused on delivering better fiscal stability and continue to support the manufacturing opportunity."

In the budget, Jain also said that he is hopeful for a  stable tax regime. "I hope there is stability in taxation. Maybe there will be a few tweaks because stability in taxation is very good for both investors and businesses," he said.

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