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With the annual budget set to make landfall on 1 February, expectations are on the rise.
From Long Term Capital Gains to Mutual funds, BloombergQuint's Markets Editor Niraj Shah tells us what to watch out for in Finance Minister Arun Jaitley's Budget speech on 1 February.
Shah opines that Jaitley will stick to the script for the last Budget of this government, without any attempts at experimentation.
Talking about the projected fiscal deficit, which is expected to be 3.2 percent, Shah says that a slippage is predicted in the deficit.
The second-most important element is the long term capital gains tax, says Shah.
Rallying against its introduction in the Budget, Shah says that it could run the risk of being an over-populist move.
He adds that while the Budget could focus on the rural-agrarian sector, unnecessary spending may not "sit well with the market."
As far as mutual fund investments are concerned, Shah is positive with regard to the possible Budget outlook in the sector.
Stating that a relaxation in mutual funds taxation could propel the already growing sector, Shah says that the it could boost confidence and benefit the markets.
Adding that small investors need not worry about the Budget, Shah says that mutual funds are the best investment option for those with little knowledge of the markets.
Video Editor: Purnendu Pritam
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