views of Mr. Dinesh Thakkar(Chairman & Managing Director, Angel Broking) on Union Budget 2011-12.

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

views of Mr. Dinesh Thakkar(Chairman & Managing Director, Angel Broking) on Union Budget 2011-12.

“In the Union Budget 2011-12, constraint is what was required on the expenditure side and by not having any major populist measures, the FM has managed to bring down the targeted Fiscal Deficit to 4.6%, which should be achievable provided fuel prices are hiked. Rightly focusing on pressing matters, measures to tackle high food inflation include viability gap funding will be provided for cold storage chains and increase in priority sector lending targets from Rs3.8 to 4.8lakh cr. Also, given the shortage of funds in the domestic banking sector, several measures are included to increase fund availability from other sources, pertinently FII investments in corporate bonds being increased to US$40bn, withholding tax reduced, Tax-free bond limits increased, etc. Together with new bank licenses and increased foreign bank participation over the course of next year, the gap between savings and investments should get narrowed, keeping interest rates also in check – a positive for banks, infrastructure and the overall economy. On governance, there seems to be a firm commitment to plug leakages (direct transfer of cash subsidy), reduce black money, tackle corruption, monitor performance of ministries as well as continue fiscal consolidation. Without over-stretching itself, this Budget includes a decent set of measures without compromising on its fiscal deficit position and considering this, I would assign the Budget a rating of 7 out of 10.”