Srinagar: Addressing concerns around slowing demand from the middle class, the budget rationalised personal income tax slabs across the board along with revision in the limits of the tax deducted at source. This is likely to spur consumer demand and savings by the middle class that has faced challenges from elevated inflation and lower income growth, said Principal Economist HDFC Bank Mrs Sakshi Gupta.
"Beyond the sops for the common man, the budget focusses on improving the ease of doing business through a “light touch” regulatory approach. The next five-year fiscal strategy has been geared towards promoting agriculture, MSMEs, exports and promoting greater participation from the private sector in India’s capacity building going forward."
Mrs Sakshi Gupta said that the FM’s fiscal strategy has tilted towards boosting consumption while the capex target has been kept broadly unchanged from the 2024-25 budgeted plans.
"The counter-cyclical push provided by the budget is within its broader strategy of fiscal consolidation, targeting a fiscal deficit of 4.4% in 2025-26. Despite the revenue foregone due to the income tax changes, fiscal consolidation is achieved through compression on the expenditure side in 2025-26."
"Today’s budget announcement solidifies our expectation of 6.6% of GDP growth in 2025-26. No major surprises for the bond market with the market borrowings broadly in line with expectations. This along with the upcoming rates cuts and Open market purchases by RBI, bond yields are expected to trend lower." (KNT)
Comment List