Budget 2024 Shows Government Confidence Ahead Of Election: Julius Baer's Mark Matthews

The interim budget is not only a bond-friendly one, but it also did not account for the extra expenditure ahead of the general election, reflecting the Union government's confidence, according to Julius Baer's Mark Matthews.

"It's also an equity-friendly budget in a strange way because the government has shown confidence (that) they will be here for a few more years to come," the head of Asia research told NDTV Profit on Friday.

Matthews described the lower-than-expected fiscal deficit target of 5.1% as a positive development. It would result in positive commentary from the credit rating agencies, subsequently bearing well for India's debt market ahead of its inclusion to JPMorgan's Government Bond Index-Emerging Markets, he said.

Increase in tax collection and robust growth will attract a positive outlook about its debt market from the credit rating agencies. It will result in decline yields on both the government bonds and corporate bonds, according to Matthews.

"The cost of borrowing is lower. That, in turn, is a positive thing for the economy. I can't find much to complain (about)," he said.