Interim Budget 2024-25 Review - Continuity Of Policies: Prabhudas Lilladher

Prabhudas Lilladher Report

FY23-25 interim budget has carried forward Government focus on-

1. net zero by 2070 (Rooftop Solarisation, non fossil fuel, E vehicles),

2. 13.9% higher capex allocation (18% effective increase),

3. higher allocation for PM Awas, MNREGA and Aquaculture.

Fiscal situation seems to be in fine shape with current account deficit at ~1% of GDP and fiscal deficit at 5.8% of GDP with next year target at 5.1% of GDP.

FY25 assumptions of 11.5% growth in GST and 11.7% in corporate tax and 13% in income tax look reasonable. There has been no change in corporate and Income tax rates.

Total debt has been lower than earlier estimates and FY25 gross markets borrowings with increased private capex will continue to provide growth capital and momentum to the economy.

Thus interim budget just ensures strong fiscal discipline and continuity of policies.

We remain overweight on capital goods, infra, engineering, green energy, hospitals, pharma, housing, building material and select stocks in metals, financials and discretionary consumption.

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