57: How is FM likely to tackle fiscal deficit in budget ?

01/21/21 • 16 min

The fiscal trend during FY21 turned a corner in the October-December quarter with sequential improvement in revenues, particularly in GST and income tax collection, alongside already-elevated excise duty collections helped by higher petroleum taxes. With pandemic risks largely capped for now, India has experienced a faster-than-expected pace of economic normalization. However, at the end of November the government’s fiscal deficit soared to 135.1% of FY21 Budget Estimates (BE). So, the crucial question is how will the FM tackle the pesky issue of fiscal deficit in the budget. Will the budget lean towards fiscal prudence? To discuss that Mint's Nasrin Sultana is joined by Aditi Nayar, Principal Economist, Icra.

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56: Will 2021 see more earnings upgrades?

India Inc. is expected to stay on the earnings growth path supported by the festive season and a revival in economic activity from the sluggishness when the country faced tighter pandemic-related curbs. The profit bounce in most companies is also likely to be driven by aggressive cost cuts and the lag effect of lower input prices.
So, are corporate earnings which have been depressed for many years showing reasonably strong growth? Or, are we entering into an earnings upgrade cycle which will drive markets going forward. To discuss that I am joined by Mahesh Patil, Co-Chief Investment Officer, Aditya Birla Sun Life AMC.

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58: What will markets watch out for in Budget 2021?

With the Indian economy set to contract in FY21 and fiscal deficit to rise due to covid induced pain what are the big announcements markets are expecting from the FM this year. Analysts say that the key focus of government in this budget would remain on growth with a clear focus on capex revival and manufacturing, boosting healthcare and sanitisation. Would this set the tone for bigger directional change for inclusive growth? How will the markets react if there are negative surprise in the budget?
To discuss that Mint’s Nasrin Sultana is joined by Pankaj Pandey, Retail Research Head, ICICI Direct.