Union Budget 2020 was full of hopes for some blockbuster surprises from the kitty of honourable finance minister.
The market seemed to have a lot of expectations from this budget. However, the government has limited fiscal bandwidth.
It can promote corporates to incur Capex and create a fertile business environment but can’t fill the gap of low Capex.
We are of opinion that steps taken by the government like corporate tax cuts along with GST roll-out, Ayushman Bharat, Aawas Yojana, MSP increase, DBT transfer, etc are major reforms that are yet to show results at its fullest and will see its ripple effects in company’s earnings.
When the implementation of these plans reaches all beneficiaries, it will be lead to better outcomes overall taking the economy to its normal growth pace.
Key highlights from the union budget 2020 & our view:
The government has managed to acknowledge the on-going crisis in different sectors of the economy. It needs to be seen how fruitful the measures prove to be in the coming months.
Overall, we believe that Union Budget 2020-21 was not a blockbuster budget however, after considering the initiatives, it was an attempt from the government to bring back stability in the current stressed economic environment.
Special measures focused on most stressed pockets like the rural economy, financial markets, manufacturing, and infra might create an impact coming forward.
Given the current slowdown situation, the budget was an attempt to put the economy at its normal pace. However, the expectations were quite high.
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