Budget 2024: Focus on rural schemes, infra investment likely, says veteran fund manager Mihir Vora

livemint.com:

Mihir Vora, veteran fund manager and the Chief Investment Officer (CIO) of TRUST Mutual Fund believes the Interim Budget 2024 will unlikely have big-bang announcements but the government may announce the continuation of the current initiatives and schemes. He expects capital expenditure for infrastructure like roads, railways, water, power and defence to increase and there may be some tweaking of the slabs for income tax to boost consumption. In an interview with Mint, Vora also shared his views on the markets and sectors to watch.

Edited excerpts: The Vote on Account or Interim Budget is unlikely to have big-bang announcements or new initiatives since there are norms for such Budgets before elections. However, we may see the continuation of the current initiatives and schemes. Schemes for the rural poor and farmers, food subsidies may see higher allocation as the recovery of the rural economy is still tentative.

Also Read: Some popular schemes could be expanded in Budget 2024; CY24 will be a volatile year for the market: Kedar Kadam Capital expenditure for infrastructure like roads, railways, water, power and defence will continue to increase – these are the sectors to watch. There may be some tweaking of the slabs for income tax – as a relief to the middle class and to boost consumption. The government is likely to stick to the path of fiscal consolidation with a target of 4.5 per cent in the next couple of years.

Also Read: Budget may cite ‘Vision 2047’ to seek long-term allocations The elections are already being discounted by the markets which are expecting continuity of regime. The recent pace of the rise in the markets, taking it to new highs is steep and calls for some caution. Retail investor frenzy is visible