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Last Budget before general elections: Here's what Vikas Khemani says

Last Budget before general elections: Here's what Vikas Khemani says

In an interaction with PMS Bazaar, Khemani further added that growth is an important aspect at present. “Fiscal deficit is not alarming and much lower than many economies. India has managed finances well through the crisis. If growth comes, it also improves tax collections and hence provides cushion to the deficit,” he said.

 This will be the last full budget of Modi 2.0 government ahead of the general elections next year. This will be the last full budget of Modi 2.0 government ahead of the general elections next year.

Finance Minister Nirmala Sitharaman will present the Union Budget 2023-24 on February 1, 2023. This will be the last full budget of Modi 2.0 government ahead of the general elections next year. While sharing his views on the Budget 2023, Vikas Khemani, Founder, Carnelian Asset Advisors said that pre-election budgets usually focus on rural and social welfare and infrastructure investments. On the taxation front, he thinks that most things are going well and hence there may not be any major changes.

“I don’t think there will be any major changes as far as tax band is concerned. Some talks are about removing many saving exemptions limits and increasing the slabs. It might happen but they are unlikely to be significant. There might be some changes in the capital gain tax regime as the government wants to make it simpler,” Khemani said.

In the previous Union Budget, the government focused on sectors like infrastructure, renewable energy, real estate and capital goods, among others. In the forthcoming Union Budget, Khemani thinks that the government's focus on building infrastructure and boosting manufacturing in the country is likely to find priority.

In an interaction with PMS Bazaar, Khemani further added that growth is an important aspect at present. “Fiscal deficit is not alarming and much lower than many economies. India has managed finances well through the crisis. If growth comes, it also improves tax collections and hence provides cushion to the deficit,” he said.

On the other hand, Soumya Kanti Ghosh, Group Chief Economic Adviser, State Bank of India in a report said that the fiscal deficit of the Indian government for FY23 will be about Rs 17.5 lakh crore.

On asking which factors which add stability to the market in the upcoming year, Khemani said that a balanced budget which provides momentum to the growth will be good. “No negative surprise on taxation will be good,” he said.

The benchmark equity index BSE Sensex has stood almost flat at 60,858, up 17 points on a year-to-date basis till January 19. On the other hand, the BSE Midcap and BSE Smallcap indices declined 143 points and 153 points, respectively, during the same period. Meanwhile, foreign institutional investors have sold shares worth over Rs 15,000 crore YTD.

To encourage inflows of global capital, Khemani said, “Stable tax regime is the best policy any government should follow. Some clarifications are sought for investments from Gift City could be of help. “
 

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Published on: Jan 19, 2023, 5:39 PM IST
Posted by: Tarab Zaidi, Jan 19, 2023, 5:34 PM IST
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