From Nilesh Shah to Jyotivardhan Jaipuria, here're experts' views on Budget

Nilesh Shah

MD & CEO, Kotak Mahindra Mutual Fund
 

“The Union Budget 2020-21 was always going to be a tightrope walk for the finance minister given the weak economic growth, slower tax collection and subdued business sentiments. The task was cut out to revive growth and maintain macroeconomic stability within limited space for spending for financial year 2020-21 (FY21). The FM’s honest attempt to deliver this has a few positives but one is left with a feeling of ‘dil maange more’. Capital markets, in particular, would have loved to see more stimulus measures for specific sectors"

S Naren

ED & CIO, ICICI Prudential Mutual Fund

“The Union Budget 2020-21 is a continuation to the corporation tax cuts announced in September 2019. Through this Budget, the government has focussed on rationalising the tax burden of the middle class taxpayers. 

As a result, discretionary demand is likely to see some uptick. Infrastructure as a theme has become attractive for a patient long-term investors as quality money from Sovereign Wealth Funds is likely to make way into infrastructure projects”

Nirmal Jain

Chairman, IIFL

“On the whole, the Budget is a mixed bag. Expectations were too many. A few of them have been addressed, while a few are not. Market has reacted sharply as some foreign investors would not have been there to trade. There are a lot of incentives to overseas investors. Dividend Distribution Tax has been abolished and therefore foreign investors will benefit, but then it becomes fully taxable in the hands of (other) shareholders. So, this might change the dividend culture of many companies. I am not so pessimistic. Given the circumstances, this is a balanced Budget"

Jyotivardhan Jaipuria

Founder & MD, Valentis Advisors

“The good news is that the finance minister has not imposed any new taxes while keeping the fiscal deficit at a reasonable 3.5 per cent for 2020-21. Second, by increasing capital expenditure by 17 per cent, the government is hoping to stimulate the economy by its own spending. The disappointment is on the lack of bold, out of the box measures to tackle the current economic slowdown. In that sense, it is a reasonable but not a path-breaking Budget"