Budget: The math looks dodgy
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Image: Rupee notes in silver.
Photographs: Reuters.
Budget: The math looks dodgy
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Image: Reduction in oil subsidies.
Budget: The math looks dodgy
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Thus, the entire fiscal arithmetic seems flawed, we will end with a fiscal deficit probably closer to five per cent, than 4.6 per cent.
Commensurately, the net market borrowing target is going to be closer to Rs 400,000 crore as opposed to the Rs 350,000 crore given in the Budget. With this amount of market borrowings, interest rates and bond yields will remain under pressure.Click NEXT to read on . . .
Image: Nothing for Right to Food Bill.
Budget: The math looks dodgy
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Image: Reserve Bank of India.
Budget: The math looks dodgy
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Thus, on the fiscal side, I would say, while things are not as good as he projected, the desire to control spending and the implicit intention to move on fuel and fertiliser subsidy is a plus.
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Image: Fertiliser subsidy.
Budget: The math looks dodgy
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Image: An Indian trader wears a mask during a protest against the Value Added Tax (VAT),
Photographs: B Mathur/Reuters.
Budget: The math looks dodgy
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Image: Tax burden.
Budget: The math looks dodgy
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The decision to raise the limit on corporate infrastructure bonds by $20 billion and making them tradeable among foreign institutional investors (FIIs), despite a five-year lock-in, is a positive, though one will have to see how FIIs use this. Allowing foreigners to invest in mutual funds is an incremental positive.
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Image: Dollar notes,
Photographs: Reuters.
Budget: The math looks dodgy
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Image: Regulatory framework around the agricultural supply chain.
Budget: The math looks dodgy
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On the whole, a reasonable effort, better than expectations for sure, but I don't think enough has been done to break the market out of its trading range.
We will remain hostage in the short term to macro and governance headwinds, till we see action on some of the structural reform hinted at in the Budget.Image: Setting up of another GoM on corruption will not help.
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