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Budget 2024: Here's What The Budget Masters Have To Say

The real measure on tax will come in the main budget, says Pranav Sayta of EY India.

<div class="paragraphs"><p>Finance Minister Nirmala Sitharaman presents the interim Union Budget 2024 (Source: Sansad TV/X) </p></div>
Finance Minister Nirmala Sitharaman presents the interim Union Budget 2024 (Source: Sansad TV/X)

Finance Minister Nirmala Sitharaman tabled the interim Union budget 2024 in Parliament on Thursday.

The government's focus on infrastructure continued in the budget while paving the way for an increased financial consolidation, with positive surprise on the borrowings front. The housing sector stayed in the spotlight, and the government plans to set up a Rs 1 lakh crore corpus to back innovation.

While the full budget for the next financial year will be presented after the general election, Sitharaman made some key announcements with respect to taxes and provisions for states.

Here's what the Budget Masters from NDTV Profit's special budget shows have to say about the economic and financial roadmap announced in the budget:

'Disinflation Budget'

<div class="paragraphs"><p>Maneesh Dangi, founder, Macro Mosaic Investing and Research (Source: Company)</p></div>

Maneesh Dangi, founder, Macro Mosaic Investing and Research (Source: Company)

The fiscal deficit of 5.1% is sort of paving the way for the pivot for the ease in monetary policy, according to Maneesh Dangi, founder, Macro Mosaic Investing and Research. "This is not a growth budget, this is a disinflation budget, and essentially, very good in the long and medium term."

I think increasingly the pivot will be back to a 2016–18 regime, where we will have a 4.5% fiscal deficit in one or two years and then, mostly the local household and private sector will help the economy grow.
Maneesh Dangi, Founder, Macro Mosaic Investing & Research

'Corporate India To Push Pedal On Private Capex'

<div class="paragraphs"><p>Rajiv Anand, Deputy MD, Axis Bank. (Source: NDTV Profit)</p></div>

Rajiv Anand, Deputy MD, Axis Bank. (Source: NDTV Profit)

The budget clearly shows that the fiscal deficit is going to be managed in the next five years. With the market expecting a fiscal deficit of 5.4%, the announced target is a "pleasant surprise".
Rajiv Anand, Deputy Managing Director of Axis Bank Ltd.

Fiscal arithmetic looks credible as capital expenditure increase is higher than the overall increase in expenses, which is positive. "We are certainly seeing private capex kicking in the last 8–12 quarters."

Since corporate accruals have been strong, much of this private capex has been funded by accruals. "After we get the uncertainty of the elections out of the way, we can expect that corporate India will push the pedal on private capex as we go forward."

States, Private Capex 'Must Do Bulk Of Heavy Lifting'

<div class="paragraphs"><p>Ravi Dharamshi, Founder &amp; CIO, ValueQuest Investment Advisors&nbsp;(Source: NDTV Profit)</p></div>

Ravi Dharamshi, Founder & CIO, ValueQuest Investment Advisors (Source: NDTV Profit)

There is a small disappointment on the capex number. From an equity markets perspective we were looking at it from a credibility and continuity aspect and I think on both the things, the budget has delivered.
Ravi Dharamshi, Founder Of ValueQuest Investment Advisors.

There is credibility in the revenue numbers and tax buoyancy with a positive surprise in deficit numbers. The mantle is now passed to the RBI, and the upcoming elections in India and the U.S. are going to determine how equity markets are going to move.

Going forward, the Union government cannot be doing most of the heavy lifting, and the mix has to change, he said. "It will be the state government and private capex that will have to do the bulk of the heavy lifting."

'Tax Sops Likely In July Budget'

<div class="paragraphs"><p>Pranav Sayta,&nbsp;India  National Leader International Tax and Transaction Services, EY.&nbsp; (Source: EY Website)</p></div>

Pranav Sayta, India National Leader International Tax and Transaction Services, EY.  (Source: EY Website)

It is not a surprise that tax policy changes will be announced only in July. The Finance Minister has not proposed any changes in tax policy, citing precedence. Expect some good news for taxpayers in the July budget.
Pranav Sayta, International Tax & Transaction Services Leader at EY India

The government wants to build some trust with taxpayers, therefore, taxpayer-friendly measures from a compliance standpoint are what she is hinting at, he said. "But the real measure on tax will come in the main budget."

This government has been very prudent on the macros, he said. We are already at a deficit-conservative path when the whole world seems to be still with a lot of deficit, Sayta said.

'Key Issue Of Private Capex Growth Addressed'

<div class="paragraphs"><p>Shankar Aaiyar, Political Economy analyst and author.</p><p>(Source: NDTV Profit)&nbsp;</p></div>

Shankar Aaiyar, Political Economy analyst and author.

(Source: NDTV Profit) 

Bet is on private capex as the government reduces borrowing footprint, according to Shankar Aaiyar, political economy analyst and author.

The key issue of private capex growth has been addressed. So, reducing the government footprint in the borrowing market has created a little room for the private sector, he said.

Private capex is also haunted by the sectoral definition of budget document and the level of capex is a credible figure because there is only so much that can be executed. There is a latent desire in the private sector to invest
Shankar Aaiyar, Political Economy Analyst And Author
Opinion
Budget 2024 Highlights: Here Are The 5 Key Takeaways From Sitharaman's Speech

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