Each and every sector is trying to grab the attention of Mr. Arun Jaitley and Mr. Piyush Goyal in order to get some space in the policy document of Union Budget 2019. Sectors such as real estate, infrastructure at large are likely to be the sectors that can get special attention in the 2019’s budget. The above is stated considering a trend which is observed by experts for last few years of the present Modi government, said Mustafa Nadeem, CEO of Epic Research.
While sharing the pre- budget expectation, he said “This budget is no different than previous but the fact remains it is coming in an Election year.”
In the upcoming budget, water and sanitation along with a focus on rural projects will be seen.
Fertilizer, as an industry, may see some good news since a lot of focus will be seen on improving the present circumstances in the agricultural sector. These sectors are driven mainly based on government policies and rely on the subsidized and favorable environment.
A recent wave of farm loan waiver has increased the expectation in the economy and is now seen as a game changer for any political party during elections. So yes, we expect there may be some populist measures that can be seen in this budget.
“Definitely, we believe the coming budget will be about giving benefits that make an impact at large. Since there are many things to do so as the current environment is favorable”, he pointed.
He asserted that the low inflation environment, growing GDP with a rate above 7%, Higher FDI’s and on the top of it all a contained fiscal deficit. This certainly gives extra space for the budget to be populist.
It may be a budget that is expected to attract the masses and when we put that in perspective we simply mean common man, the largest tax base.So to put it in numbers we have seen a growth of 40% in total taxpayers in the last 5 years.
That is huge when we talk about tax to GDP ratio and which actually keeps our budget deficit lower. So that ratio has jumped by 56% in the last few years. And when we talk about individual taxpayers, it has been up almost 41%. So these numbers are big for us and definitely gives a huge liquidity that drives the overall consumption based economy.
So the much talk about tax rates – slab change if comes into effect can flourish the market with the liquidity and certainly consumption based stocks, automobiles, and to an extent, the real estate will see its direct effect.