'Partial dependence on external markets may help Govt'

Image for Representation

By Dr. Joseph Thomas

"An improvement on the interim budget with a number of reasonably good proposals on disinvestment,  bank recapitalization, and quite a substantial discount on affordable housing in taxes. Focus on affordable housing and infrastructure is noticeably higher compared to earlier budgets. Commitment to restrict fiscal deficit at 3.30 per cent compared to 3.40 per cent is a good intent but we need to look at the revenue assumptions more closely to draw more comfort. A partial dependence on external markets for government borrowings may help the govt meet the borrowing targets but the dynamics of currency management and its impact on yield movements should not be ignored."

The author is Head of Research at Emkay Wealth Management.

Comments (+)