Given the current tax collection run rate, meeting the fiscal deficit target seems difficult. The market has already factored in slippage of 50-75 bps, Satish Kumar, Head of Equities at Equirus Securities tells Moneycontrol’s Kshitij Anand.
Q. What are your expectations from the upcoming Budget? Do you think it will turn out to a Budget that will count considering the fact that growth estimates are heading south?
A. Given that elections are behind, the Budget would focus on reforms and means to increase demand. The infrastructure sector would be one of the biggest beneficiaries.
With corporate tax cuts already been announced personal income tax tweaks could be on the cards to revive consumption.
Q. Do you think the government will be able to meet its fiscal deficit target? If not, what extent of slippage would the market be comfortable with?
A. Given the current tax collections run rate meeting the fiscal deficit target seems difficult. The market has already factored in slippage of 50-75 bps.
Q. Which sectors are likely to hog the limelight in Budget 2020 and why?
A. Infrastructure and Agriculture sector would be in the limelight to revive demand and boost the gross domestic product (GDP).
Various measures have already been taken to push the infrastructure sector, however, financing continues to be a big challenge and hence policies to attract long term financing would be one of the focus areas.
Railways sector could be the other sector that could be in the limelight to drive the capital goods demand. Also, healthcare could be in limelight.
A. Personal Income tax rate cut; more investor-friendly policies to attract long term funds; higher deduction for companies involved in research and development (R&D); policies on the agriculture sector especially on the procurement and storage front as a lot of inefficiencies still exist in the system.
A. Yes, various measures for the infrastructure sector have already been taken. Roads sector has seen an uptick in awarding and other sectors will gradually follow. The power sector, especially the renewable segment, could be back in the limelight.
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.
Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
- Healthy GST mop-up may not be enough to address fiscal deficit woes
- Another desperate attempt by the govt to rein in fiscal deficit
- Fiscal deficit crosses 96% of FY18 target at Oct-end
- Senate adds N264bn, passes N10.594trn Budget 2020
- UK Fiscal Deficit Widens in June Sparking Fears That Austerity is Failing
- Sri Lanka aims to narrow fiscal deficit from 7 pct to 4 pct of GDP
- Budget: Borno Government Proposed N134.5 Billion For 2020
- Sensex plunges 334 pts as fiscal deficit concerns spook investors
- Textile-Garment sector unlikely to obtain export target set for 2019
- World 'nowhere near' meeting Paris Agreement targets: Experts