<p><em><strong>By Jyoti Roy,</strong></em></p>.<p>The Union Budget 2021-22 surprised all market participants as there was significant boost provided to government spending despite the shortfall in tax collections.</p>.<p>Overall government spending for FY2021 has been revised to 34.5 lakh crore as against Budget estimates of Rs. 30.4 lakh crore despite a significant shortfall in tax collections for the year.</p>.<p>Revenue receipts for the year have been revised to Rs 15.5 lakh crore against Budget estimates of Rs. 20.2 lakh crore.</p>.<p><a href="https://www.deccanherald.com/business/union-budget/budget-2021-live-fm-nirmala-sitharaman-modi-parliament-budget-speech-income-tax-slabs-budget-2021-announcements-coronavirus-privatisation-divestment-945745.html" target="_blank"><strong>Budget 2021 Live on DH</strong></a></p>.<p>Disinvestment proceeds too have been revised sharply down to Rs 32,000 crore from Rs. 2.1 lakh crore. As a result, the fiscal deficit has been pegged at 9.5% for FY21.</p>.<p>The fiscal deficit for FY21 is well above consensus estimates of ~7% as the government is actually looking to spend more than budgeted despite a shortfall in tax collections.</p>.<p>Personal and corporate tax rates have largely been left untouched and the Agriculture cess too has been implemented in a very non-disruptive way.</p>.<p>Gross borrowing figure at 12.7 lakh crore is also not significantly higher than the revised figure of Rs 12 lakh crore which will ensure that G Sec yield does not move significantly higher.</p>.<p>Overall the Budget is slightly negative for the bond market though it is positive for equities.</p>.<p><em>(The author is DVP, Equity Strategist at Angel Broking Ltd)</em></p>
<p><em><strong>By Jyoti Roy,</strong></em></p>.<p>The Union Budget 2021-22 surprised all market participants as there was significant boost provided to government spending despite the shortfall in tax collections.</p>.<p>Overall government spending for FY2021 has been revised to 34.5 lakh crore as against Budget estimates of Rs. 30.4 lakh crore despite a significant shortfall in tax collections for the year.</p>.<p>Revenue receipts for the year have been revised to Rs 15.5 lakh crore against Budget estimates of Rs. 20.2 lakh crore.</p>.<p><a href="https://www.deccanherald.com/business/union-budget/budget-2021-live-fm-nirmala-sitharaman-modi-parliament-budget-speech-income-tax-slabs-budget-2021-announcements-coronavirus-privatisation-divestment-945745.html" target="_blank"><strong>Budget 2021 Live on DH</strong></a></p>.<p>Disinvestment proceeds too have been revised sharply down to Rs 32,000 crore from Rs. 2.1 lakh crore. As a result, the fiscal deficit has been pegged at 9.5% for FY21.</p>.<p>The fiscal deficit for FY21 is well above consensus estimates of ~7% as the government is actually looking to spend more than budgeted despite a shortfall in tax collections.</p>.<p>Personal and corporate tax rates have largely been left untouched and the Agriculture cess too has been implemented in a very non-disruptive way.</p>.<p>Gross borrowing figure at 12.7 lakh crore is also not significantly higher than the revised figure of Rs 12 lakh crore which will ensure that G Sec yield does not move significantly higher.</p>.<p>Overall the Budget is slightly negative for the bond market though it is positive for equities.</p>.<p><em>(The author is DVP, Equity Strategist at Angel Broking Ltd)</em></p>