Prateek Pant, Chief Business Officer of WhiteOak Capital Asset Management, does not expect major announcements in this budget. The government will likely maintain a path of policy, continuity focusing on higher capex growth, he said in an interview with MintGenie. Infra, housing, real estate, and home improvement sectors are likely to be in focus in this upcoming budget.
Edited Excerpts: Since this will be a vote on account, we do not expect major announcements in this budget. The government will likely maintain a path of policy continuity focusing on higher capex growth, especially given the recent electoral outcome. Even if it announces higher welfare spending, it is unlikely that the government will deviate significantly from the path of fiscal consolidation.
Buoyant tax revenues and higher-than-expected dividends should help the government achieve its fiscal deficit target. The focus on Make in India should provide a fillip to manufacturing and infrastructure. We do not expect any sharp deviations regarding the government’s focus on infra-creation.
Similarly, the government’s housing interest subvention scheme would continue to benefit the housing, real estate, and home improvement sectors. State budgets will also be equally important, especially concerning likely higher allocation towards irrigation and food security, as such measures would help alleviate stress in some pockets of rural India. 2023 has been a challenging year with market risk originating from global inflation shocks, geopolitical tensions in the Middle East, and uncertainty due to the elections in India.
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