Budget 2020: Ambitious infrastructure agenda to boost construction

The domestic financial sector, including banks, will have a crucial role in financing the envisaged capex

Macroeconomic  stability and fiscal prudence were the basic principles in the FY21 Budget design. The Budget proposed measures are natural extensions of the progressive liberalisation and reform measures announced in late 2019. The notable aspects of the proposals are as follows:

First, the macroeconomic projections, including nominal GDP growth assumed at 10 per cent, are realistic and the consequent revenue growth projections seem to be based on a modest recovery in FY21 and hence achievable. Revenue projections rely on privatisation and asset monetisation, together with use of bond ETFs for mobilising retail savings.

Second, the most visible reason behind the