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1 Feb, 19 tweets, 8 min read

@ProfSimple

Starting a thread to summarize all the important #Budget announcements with Tata Mutual Fund (@ProfSimple).
Follow along 😀

1. Budget aims to build on Aatmanirbhar Bharat mission amidst changing global dynamics, Six pillars include Health Infra, Physical Infra, Human Capital, Inclusive growth, innovation and Minimum Government - Maximum Governance.

2. Big boost on capital expenditure for FY22. For funding, significant institutional setup planned to execute and monitor monetization of assets owned by PSUs or government undertaking.

@rahsin102

3. Three key reforms for Financial Markets: Single securities market code, improve liquidity in Bond markets and increase in FDI limit to 74%, explains @rahsin102 of @TataMutualFund.

#Budget2021

4. Big push on privatisation - 2 PSU banks and 1 general insurance company also likely to be privatised. More PSUs to be added to the list of privatisation and land monetisation also on the cards.

#Budget2021

5. Budget thrust so far indicates a follow through from the Economic Survey suggestions of having a counter-cyclical fiscal policy for next 1 year till growth regains the 7% trajectory after FY22.

#Budget2021

6. Fiscal deficit of 6.8% in FY22 BE is higher than expected but in sync with the strategy of counter-cyclical fiscal policy. Five year target to reduce it to 4.5%

#Budget2021

7. No new cess on personal income tax. Simplification of tax filing and dispute resolution is a positive.

#Budget2021

Overall, budget has provided for higher government spend without increase in personal and corporate taxes or cess. No changes in capital gains structure is also a sentiment positive. Positive for cyclical recovery in earnings at the expense of higher fiscal deficit.

#Budget2021