HDFC Bank Quote on Budget from Abheek Barua



Mr. Abheek Barua said,”Under normal circumstances a modest slippage in the fiscal deficit this year and the deviation from earlier outlined target of 3.0% would seem fair and sensible. But given the current nervousness in the bond market perhaps a more aggressive fiscal consolidation was required. 

The target of offering 1.5 times the cost of production as the MSP might appear to both cost the government a significant amount and breed inflation pressures. However, this is very much in line with the past trend and in keeping with the recommendations of the Swaminathan committee. Thus, these fears may be unjustified.

Innovations like operation green and a possible move towards price deficiency compensation (the difference between MSP and mandi prices) are welcome.

While more extensive and higher insurance coverage for poorer families is welcome, its funding remains an open question. One has to see whether the targets set for receipts are credible. Prima facie at least the GST collection target seems reasonable.”

Author: Namma Madras News

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