Budget & Markets: Moneycontrol's quick guide to big numbers, significant spends, macro picture

Budget & Markets: The government has given out three key signals. It will continue to focus on capex spending as a growth multiplier for the future rather than take short-cuts. Second, by reining in the fiscal deficit, funding costs for business may remain in check, facilitating conditions for increasing private investment. Third, the emphasis on macro-economic stability was essential to attract foreign capital at a time when interest rates in the US are likely to settle at elevated levels.

Big Numbers:
- Nominal GDP - 10.5% vs 8.9% in FY24 and Street estimate of 10.7%
- Capex Growth - Rs 11.11 lakh crore vs Rs 9.5 lakh crore in FY24 and Street estimate of Rs 11.5 lakh crore
- Disinvestment - Rs 50,000 crore vs Rs 30,000 crore and Street estimate of Rs 40,000 crore
- Fiscal Deficit - 5.1% vs 5.8% in FY24 and Street estimate of 5.3%
- Net Borrowing - Rs 11.75 lakh crore vs Rs 11.80 l akh crore in FY24

Significant Spends: (FY25 BE Vs FY24 RE)
- Defence capex - Rs 1.72 lakh crore (Up 9.4%)
- PMAY - Rs 80,671 crore (Up 49%)
- MGNREGA - Rs 86,000 crore
- Smart Cities - Rs 10,400 crore (Down 21%)
- FAME EV subsidy - Rs 2,671 crore (Down 44%)
- Suryodaya Yojana - 1 crore householdsto obtain up to 300 units of free electricity every month

Finance Minister Nirmala Sitharama in her interim budget, presented on February 1, offered a promising macroeconomic picture. The spotlight on key indicators, including the fiscal deficit returning to a positive trajectory, an emphasis on capital expenditure, and a significant uptick in corporate profits, shone light on the nation's financial outlook.

The budget solidified the strong foundations of India's economy and tells global investors that India means business. However, there are factors such as the Fed action, the Red Sea crisis, election buzz, valuations, etc that can still sway the markets either way.

According to ace investor Shankar Sharma, it is a stock market-driven government and the interim budget was a continuation of the prevalent policies. MK Ventures' co-founder Madhusudan Kela said the government’s intent to curtail fiscal deficit and also give two-year guidance that it will be 4.5 percent is very heartening from not just the market but the country's perspective.