Budget 2017: Last stretch or a turning point?

Post demonetisation, expectations of measures to boost demand are high: Gautam Chhaochharia

Our discussions with investors and commentary in the local press suggest a near impossible mix of expectations building up from the Budget again. Post demonetisation, expectations of measures to boost demand are high – in the form of personal income tax cuts and higher social spending especially targeted at lower income population. Hopes of government further supporting a languishing capex cycle remain intact – our view remains public capex role in capex cycle is limited. Allowances component of Pay Commission (0.2% of GDP possibly) may also need to be provided. Of course, most global investors hope for macro stability and