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5 takeaways from the Interim Budget 2024 for investors
Overall, the Interim Budget was positive for markets. It should attract foreign investors, when global liquidity flows back into to EMs including India. Finance Minister Niramala Sitharaman on February 1 presented the government's last Budget ahead of the General Elections in May this year. Since it is an election year, this was a vote on account budget, hence, no major announcements were made. However, investors anticipated reforms to boost market confidence, such as measures to increase foreign direct investment (FDI), steps to simplify the process for Initial Public Offerings (IPOs), and clarity on the Securities Transaction Tax (STT) and the Long-Term Capital Gains (LTCG) tax. On this FM said, "I do not propose to make any changes to taxation – direct, indirect, or customs duties." Five takeaways for investors from Budget 2024 1) Fiscal deficit at 5.1 percent and net borrowing of Rs 11.75 lakh crore for FY25 came in better than street expectations which is likely to be positive for bond markets 2) Capital spending growth pegged at 12 percent, largely came in line with expectations. This should support growth till private capex comes on stream full force. 3) The Budget's main focus was on key infrastructure segments including railways, metros, power, capital goods. They will stay supported by government spends 4) No change was announced in long-term/short-term capital gains tax, direct or indirect taxes, meaning post-tax return economics stands unchanged across asset classes for local investors. 5) Overall, the Interim Budget was positive for markets. It should attract foreign investors, when global liquidity flows back into to EMs including India. Source - Money Control
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