The stock market has many expectations about the budget. Anand Rathi's report on the budget said that it will have a positive effect on the market. According to the report, the budget for FMCG, Consumer Durable, Two Wheeler, Real Assets and Infrastructure, Road and Railway related companies will be good.
Anand Rathi's special report on the budget says that the budget of the financial year 2020 will be to increase the consumption and investment. However, the report estimates that fiscal deficit could be 3.8 percent of GDP (Rs 8 lakh crore). It is more than Rs. 1 lakh crore more than the target of the interim budget.
According to him, for this 50 thousand crore rupees will be borrowed from the market, 35 thousand crore rupees T-bill and Rs. 15 thousand crore will come through disinvestment. According to the report, falling growth in front of the Finance Minister, crisis of rural sector, fiscal and structural reforms are bad.
The report on the budget of Kotak Institutional Equity says that this budget will provide cleanliness on economic and social agenda and fiscal management. The report says that fiscal deficit can be 3.6 percent.
Kotak's report says that there is no scope for reduction in tax rates. At the same time it is hoped that the government can give the benefit of corporate tax cut to some other companies.
According to the report, the rate of income tax may increase for those earning between Rs 50 lakh and Rs 1 crore. On the other hand, surcharge can be levied on more than 10 million people. On the other hand, the government can increase the income tax slab from 2.5 lakh to 3 lakh rupees. This can benefit millions of taxpayers.
According to Amar Singh, Head of Advisory in Agent Broking, dealing with recession in front of Modi Government is a challenge. According to him, Make in India could be an answer for unemployment. According to them, the NPA, NBFC crisis will be resolved in the banking sector. Also the problem of cash in the system must be removed.
According to Dhiraj Relli, MD and CEO of HDFC Securities, the government will fulfill the election promises in the fiscal year 2020. Also, continuation of policy will continue. According to him, certain negativity will not come from the budget.
According to Motilal Oswal, CMD of Motilal Oswal Financial Services, the finance minister has to bring the economy back on track. There is pressure on the government to increase spending. According to him, roadmap for spending 100 lakh crores on infrastructure can be seen in the budget. According to him, any reduction in corporate tax will increase the investment.