Pre budget expectation: Mr. Prasun Gajri, CIO, HDFC Life
The budget announcement on July 10, 2014 is keenly
awaited and the expectation is that the budget addresses the key challenges the
economy has been facing over the last few years. One of the key issues
has been the lack of fresh investment and a key expectation would be for the
budget to address this issue. Ease of project approval, easier
availability of capital, opening up of FDI limits in restricted sectors and a
stable tax regime would all contribute towards this.
However, for the investment cycle to pick up, it
is imperative that financial savings pick up. The expectation would
therefore be that the budget takes steps to incentivize financial savings
especially long term financial savings which can then be deployed towards
longer term infrastructure projects. The third area would be a clear
road-map on GST.
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| Prasun Gajri, CIO, HDFC Life |
We believe that GST is a reform that can be a game
changer for the economy. While we do not expect an immediate roll out of
the same, it would be good to get a well defined and time-bound road map for
implementing GST across the country. The final expectation would be
towards fiscal consolidation.
Expectation would be that the budget lays down a road
map for subsidy reduction as well as increasing revenues. If the Finance
Minister is able to deliver on these expectations, the capital markets will
surely cheer the budget.
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