While one needs to wait for the fine print yet one can say that broadly the markets will be happy with the budget given the overall direction of the budget indicated by the government's decision to:
1. Decision to privatize two PSU banks and one Insurance company.
2. Create an ARC and AMC to manage stressed assets - this can be built upon in the years to come into a bigger entity.
3. No increase in direct and indirect taxes.
4. Allowing FDI up to 74% in Insurance Companies.
Perhaps the high fiscal deficit of FY 21 due to Covid-19 prevented the government from reducing the personal income tax for individual taxpayers.
(The author is the Chief Executive Officer of Taurus Mutual Fund)
(Published 01 February 2021, 12:00 IST)
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