Last year’s budget provided healing touch to pandemic-hit economy. This year’s budget should capitalise on the same for accelerated growth and equitable distribution.
Today the government spending, investments, agriculture and trade are firmly above pre-pandemic levels. Consumption, especially, in certain segments require a healing touch.
Urban-focused employment scheme: Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) has done a wonderful job not only in providing jobs but also creating rural infrastructure. An urban-focussed employment guarantee scheme will go a long way in supporting consumption.
Tax concession for housing: The tax concessions for housing have remained the same for last many years. Any increase in the same will be a big boost to growth.
ESG implementation: The budget should speak about encouragement given by the government for ESG implementation in India.
We have broken away from the BRIC peers leaving Brazil Russia and China behind on equity valuations.
Reiterating our commitment towards ESG will go a long way in enhancing our brand and maintaining our premium equity valuation.
Improving ESG scores of PSUs: Appointment of independent directors in PSUs will help in reducing PSUs valuation gap with market and better realisation in divestment.
Boost realisation from asset monetisation: This budget should look to raise non-tax revenue by monetisation of assets.
Mutual fund industries would support national asset monetisation.
Make financial investment easier: Our outflow towards gold imports is more than FDI or FPIs received in last two decades.
Today buying Gold is much easier than investing in a financial instrument. I request the government increase the ease of investment by making KYC simpler and through appropriate education.
Nilesh Shah is MD of Kotak AMC and part-time member of EAC-PM