India Budget 2018
“The budget has done a reasonable job of balancing populist imperatives and growth orientation. With its stated shift in focus from “ease of doing business to ease of living for poorest”, increased outlays on social objectives, including education, affordable housing, healthcare it has ticked all the right boxes in the pre-election year. Hosts of measures to support higher income for farmers, including MSP support, credit availability, agri market and infra fund, favourable tax arrangement for farmer organisations etc, will help boost rural economy and alleviate growth and employment concerns.
However, there is a slight divergence from our expectations on fiscal deficit levels for both FY18 and FY 19, government’s commitment to fiscal glide path needs to come out more clearly as that is necessary to help ease the prevailing worries in the bond market. The introduction of LTCG without indexation could have been avoided – the revenue expectation of Rs. 20,000 crore could be a steep ask.”
Vishwavir Ahuja is the MD&CEO of RBL Bank