Sticking to fiscal deficit

The fiscal deficit number would be eagerly watched by economists and analysts alike. The government in the past has stuck to this number and we are unlikely to see the trend change. In all probability, we will see the number at 3.4 per cent for FY 2019-20.

Stock market enthusiasts would also eagerly watch whether there would be a scrapping of the Long Term Capital Gains in the Union Budget. If we do not see the same, there is a possibility that the stock market might fall. On the other hand, if there is a Long Term Capital Gains limit increased to Rs 2 lakhs, we might see the markets recovering.

What may come through from the government's end, is some increase in the 80C limit, which could in turn boost savings and investment.

Thrust on growth

At the moment, there is also a need to push economic growth, through increased allocation to key sectors, including the infrastructure sector. This would also generate new jobs, which has been crucial for the country.

There are also reports that the government would provide some sops for the housing sector. That too looks unlikely as in the past it has already increased exemption on interest income.

Strong mandate means a chance for bold steps

The government has got a very strong mandate and hence there is a possibility, that we could see some bold reforms come through. It is also hoped that Nirmala Sitharaman addresses the liquidity concerns of the NBFC and the housing finance sector.

It is also important to remember that there may not have been adequate time for the government to keep in mind requirement of all stakeholders. Hence, at least in this Budget it would be good to tone down expectations.

Strong mandate means a chance for bold steps

The government has got a very strong mandate and hence there is a possibility, that we could see some bold reforms come through. It is also hoped that Nirmala Sitharaman addresses the liquidity concerns of the NBFC and the housing finance sector.

It is also important to remember that there may not have been adequate time for the government to keep in mind requirement of all stakeholders. Hence, at least in this Budget it would be good to tone down expectations.