Budget 2015 – Best Entries

Budget 2015 – Best Plays

9th February 2015

Introduction

Budget is an event which all capital market participants look forward to. However, over the years, the significance

has reduced due to the concurrent (and on-going) nature of the reforms, both administrative and legislative.

Nevertheless it is still a pertinent event, where specific sectoral outlays are quantified, giving the broad direction.

The budget highlights the key thrust areas, especially, the quality of government spending apart from the tinkering

with the taxation.

However budget for FY16 is likely to be different. This is the first full-fledged budget of the new government where

no populism is anticipated and also lot of novel ideas are expected. We expect a lot of initiatives to kick start

the new era in manufacturing – If MAKE IN INDIA initiative (Defence, Textile, Electronics, Railways) has to

become a reality. The budget is also likely to focus on the Structural reforms and lay down the vision and roadmap

for next 3-5 years. Recent slump in the crude prices has helped the subsidy burden to come off creating headroom

for the centre to focus its spending on Capex.

If we look at the past budgets, the trend more or less has been of weakness while going into the budget (6 out of

last 7 budgets). So there is tentativeness (mostly apprehensive of populism) before the budget which is

then followed by positivity mostly.

Key Expectations

Some of the key proposals expected in the budget include:

• Social initiatives - Thrust to low cost housing, Education and Health

• Proposals to support “Make in India” initiatives -Deductions for incremental Capex, SEZ tax benefits

• Higher allocation towards the Railways, novel ways to finance new Capex and participation of the private sector

• Certain tax increases to fund specific Infra Investments

• Large allocation towards Swachh Bharat Abhiyaan

• Digitalisation initiatives

• Likely increase in tax exemption limit for individuals

Top Event Picks

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