Macro Junction

Macro redemption post the budget
The NDA’s maiden budget did no harm and stuck to the 4.1% fiscal deficit and the FRBM guidelines. However, it failed to meet the market’s ‘sky-high’ expectations, resulting in a sharp sell-off in equities and consequent INR depreciation. Lack of pragmatism on taxes, no time-line on GST, and uncertainty on GAAR were key negatives in our view. We expect the Govt. to meet the 4.1% fisc. but with a more realistic spending and tax collection figures.

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