Budget 2019 Expectations & Market

4.7.2019

"If I buy a farm, I don't know whether there's going to be drought next year, but I know that there are not going to be 20 straight years of drought, and I know there's not going to be 20 straight years of great rainfall."- Warren Buffett

Tomorrow Finance Minister Mrs. Sithraman will present her maiden budget in the parliament. And we all are ready with our wish-list, as an investor, a consumer, a businessman or as a taxpayer. Though we expect her to fulfill all our wishes like Santa Claus or King Bali or Karna, it’s just matter of few hours we would know how much of them are actually fulfilled.

At InvestmentMitra, this year we have not prepared any such wish-list or are going to make any guess what this budget may have in store for you. We feel these are very challenging times with economy throwing mixed signals of sluggish growth numbers and also showing signs of recovery as can be gauged by very high growth in advance tax collections last month but GST collections are notch below than previous month.

Going by the economic survey presented in the parliament today, Union Budget is most likely going to be a tone setting budget for making India a 5 trillion economy by 2025. The FM has to tread on a very delicate path of maintaining growth as well as staying within limits as far as deficit is concerned. Has to push consumption for increasing growth and at the same time push savings to meet capital requirements.

We expect the union budget to be consumption oriented budget with a push on reforms and ease of doing business. Focus should be on agriculture & rural economy, infrastructure, employment generating industries. From personal taxation point of view, we don’t see much deviation than what was announced in interim budget. We may see introduction of some new tax and/or measures to widen the base of taxpayers to garner more revenue to meet its expenditure. And you never know it may turn out to be a Dream Budget for each class.

So let’s wait and watch the mystery surrounding Budget 2019 unfolding tomorrow and decide your course of investment accordingly.

Happy investing!

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