MUMBAI, 1st FEBRUARY, 2021 (GPN): It’s certainly a growth-oriented budget which we were anticipating in the current economic environment. The government has largely focused on strengthening economic growth by increasing spending on social sectors like infrastructure, healthcare and agriculture. The 30% increase in capital expenditure over the last year further reinstates the fact.

They’ve made their intention clear by announcing bold measures like privatization of select PSU banks, monetisation of assets and a set up of asset reconstruction and management company to manage stressed assets, which we believe is structurally positive for the economy and markets. While the fiscal deficit estimates may have gone overboard than market expectations, markets would take it in its stride citing the overall economic situation and growth prospects ahead. Amid all, the markets heaved a sigh of relief as there was no announcement on any kind of additional cess for COVID-19 and no Increase in LTCG/STT/STCG taxes.

We feel these steps are in the right direction but their timely implementation would be critical to fulfilling the growth ambitions. ENDS