Budget 2020: It lacks the punch to kick-start economic growth

The fiscal deficit number is manageable, but given the deviation from the original target, I would have liked to see some extra spending where it would have made a difference.

The budget positives are lower income tax which help domestic consumption, abolition of dividend distribution tax and increased infra spending with Sovereign wealth funds enjoying tax incentives. On the latter the markets will be disappointed that there was no real push on rural spending and lack of help for NBFC and real estate.

The doing away of dividend distribution tax (DDT) is a good measure from the company’s viewpoint, but the Budget has been silent on the long-term capital gains tax (LTCG). This is one thing that the markets always wanted and were hoping for this time around.

The fiscal deficit number