Lovaii Navlakhi of International Money Matters tells us that Budget 2019 was a good balance of populism while maintaining fiscal prudence, though fiscal maths is questionable.
Lovaii Navlakhi, managing director and CEO, International Money Matters, gives his likes and dislikes about the interim Budget 2019.
Things that worked
- Tax sops to middle-class salaried employees by raising tax rebate and relief to farmers by providing minimum direct income to support consumption sector as people have more money at hand.
- Relief to farmers/cattle farmers also likely to be positive to rural/Agri focused companies.
- Real estate sector, which was under pressure lately, likely to benefit from series of reforms.
- Single window for approval of Indian film maker likely to support media/entertainment industry.
- Pro-growth long term vision laid out by the government positive for India economy over long term.
Things that did not work- Higher gross borrowing, could be negative for bond yields as higher government borrowing could eat into bond market demand.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.