In my last blog I wrote some of the reasons why the Indian stock market has been falling for last few weeks and why on 25th and 27th of January 2023 the market crashed. One of the key take away was analyst expect our GDP growth falling below expectations.
So what is our FM’s plan for this budget. Let’s discuss.
Centre’s pro-growth approach likely to build on infra development. Capital expenditure maybe flat in the upcoming budget primarily because of growing debt of the National Highways Authority of India (NHAI).
Though its believed that Finance Minister Nirmala Sitharaman is expected to reaffirm the government’s commitment to boosting growth by focusing on infrastructure creation and manufacturing in the upcoming budget which she will be presenting in February 1.
Some of the analyst believe the commentary dropping CAPEX (capital expenditure – money spent on projects) in budget 2024 is a red flag.
But one should not forget next year we have the elections and hence no material changes can be made this year as per the election embargo rules. Remember this the last budget for Modi government, in the current tenure.
So the most crucial for this budget is road monetisation scheme and any announcement on that front would be crucial. This will decide whether our GDP grows or falls down. I believe there will be slight dip in our GDP and this is already getting factored in our market.
Have a great Sunday and good time to not stop your SIP.