Too many promises and lots of ideas but how and when will budget ideas be implemented and more importantly how will it be funded is a big ?? because funding is depending on private partnership. Secondly this budget is filled with contradictory goals
The govt wants 90000 crores from RBI , is going to borrow more and substantially enough that it wants to borrow sovereign debt in foreign funds .
Too much populism and mismanagement can make India another Pakistan and Argentina is a big big risk when governments depend on external debt to finance deficits in the distant future.
Budget is very Inflationary ! u will pay more excise and government earns more cess of at least 40000 crores vide oil tax on petrol and diesel. Expect everything to face inflation or mehengai tax even if there is no or little change in normal taxes.
Huge push on reviving a property market with more deduction of 150000 but middle class is over saturated with having empty second and third flats that they are unable to sell . Model tenancy law will be revolutionary if it can meander through the complex and archaic legal system and free up locked empty houses for use thus increasing supply of rentable property, making postponing a property purchase more lucrative.
There is a big push for govt to recapitalize psu banks 70000 crores is huge but will the npa ko evergreen karo, ji mantri ji, chalta hai and corruption culture of babus in banks change ? will politicians meddling in banks and creating massive NPAs stop ? Essar RCom Kingfisher and Jet Air , N Modi are salient examples of crony capitalism.
INDIRA Gandhi had nationalized banks . The PSU banks have become bankrupt thrice received bailouts to keep them afloat since then, showing the desperation of Rulers /mantris to control the strings of the economy.
Farmers and psu banks are good candidates for permanent bailouts. How do i become a farmer or a psu staffer ??
The markets are crashing as Modi govt policy reminds it of the Indira Era.
Govt has a disinvestment target of 105000 crores and wants to increase public shareholding to 35% but govt holdings will include PSU and LIC holdings (what hypocrisy).
The govt spells out vide policy to small investors – dont invest in PSU cos as it will keep dis-investing while keeping control .. an unmitigated disastrous way of destroying taxpayer and investor wealth. Wonder who will invest when even UPA era disinvestment is in losses . Atal era disinvestment candidates like ONGC etc will be in losses very soon the way the govts want to milk them.
Govt wants to lay the red carpet for foreign funds but fails to understand that the local small investor is suffering and bleeding .
Govt it seems, want to incentivize the rich to QUIT India and follow Gandhi bapus advise , as it increases taxes on the rich with added cess .
Gold purchases will fall as u pay 2.5 % more, Excise / Cess on oil will make more problems for Automakers which are already a all time lows .
Tax of 20% on buyback is ridiculous especially when govt reintroduced LTCG .
This will make a huge impact on investor psyche especially because the policy is shifting towards Indira era policy.
Excise / Cess on oil will make more problems for Automakers which are already a all time lows .
Tech and Trek 