The Budget is pragmatic and mature, given the formidable constraints faced. While it is lacking in major policy announcements, it lays out a road map for reforms and policy priorities.
The focus on financial savings and infra investment is a positive for public investment. It is investor-friendly, considering it has also signalled an improvement in tax administration and credible banking sector recapitalisation. Disappointments are optimistic revenue estimates; no timeline for the roll-out of GST; no clear road map for subsidy reduction, and a vague view on retrospective taxation Nick Paulson-Ellis Head - Emerging Markets, Espirito Santo Securities