Budget 2019: Modi Makes Big Promises In Election Budget, Leaves Out Details 
Finance Minister Piyush Goyal with the iconic Budget brief case. (Source: PTI)

Budget 2019: Modi Makes Big Promises In Election Budget, Leaves Out Details 

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PM Modi Says Budget Takes Care Of Everyone

Prime Minister Narendra Modi addressed the nation after his government presented the interim budget. He started by highlighting that poverty is falling at record rates because of the government’s efforts.

The government's policy has improved everyone's lives in the country, said Modi, adding that everyone has been taken care of in Budget 2019.

To support the growing aspirations of the middle class, the government has taken steps to reduce the tax burden for them. This is only possible because of the better off sections of the society and when they pay taxes, he added.

No Negative Is A Positive, Market Experts Say

Tax breaks for the middle-class income group and sop for India's small and marginal farmers keeps the status quo on the fiscal front, said Chakri Lokpriya, managing director and chief investment officer at TCG Advisory Services. "From that perspective no negatives is a positive in the current budget," he said.

Jinesh Gopani, Head of Equities at Axis Mutual Fund agreed that Union Budget 2019 was a balanced one for markets. "Not much negative on the fiscal deficit front, particularly good for the consumption story," he said.

"The marginal slip in the fiscal deficit for FY 2018-19 is par for the course, given that the rural direct benefit transfer scheme starts from Dec 2018 itself. The estimates for FY20 are also not very aggressive with an assumption of a 11.5 percent nominal GDP growth and tax buoyancy of about 1.25," said UR Bhat of Dalton Capital Advisors. Bhat said that the government has displayed "maturity and a sense of responsibility" by not going overboard while also addressing the pressing concerns of the vulnerable sections of voters.

"This strongly suggests that the NDA expects to be re-elected in the forthcoming federal elections," Bhat said.

Dr Reddy’s Near Two-Year High After Q3 Profit Beats Estimates

Shares of Dr. Reddy’s Laboratories Ltd. rose as much as 2.5 percent to Rs 2,789, its highest level since March 2017, after its third quarter net profit rose 45 percent, beating analyst estimates

Key earnings highlights (Q3, YoY)

  • Net profit up 45 percent at Rs 485 crore vs estimate at Rs 380 crore
  • Revenue up 1 percent at Rs 3,850 crore vs estimate at Rs 3,878 crore
  • Ebitda up 6 percent at Rs 815 crore vs estimate at Rs 754 crore
  • Margin at 21.1 percent versus 20.2 percent vs estimate at 19.4 percent
Budget 2019: Modi Makes Big Promises In Election Budget, Leaves Out Details 

Vote On Account Or Account For Votes?

Shashi Tharoor said that the entire exercise has turned out to be a 'damp squib'.

"We've seen one good thing that is tax exemption for the middle class. Rs 6,000 in income support for farmers boils down to Rs 500 per month. Is that supposed to enable them to live with the honour and dignity?" he questioned.

Swaraj India President Yogendra Yadavdav also expressed his disappointment with the farm relief scheme.

BJP Chief Amit Shah said that the budget has met the expectations of all groups such as farmers, labourers and the middle class.

Speaking about the Kisan Samman Nidhi scheme, Union Minister for Farmer Welfare Radha Mohan Singh said that the scheme has been put into motion since Dec. 1, 2018. "In 2018-19 financial year, for months before March, Rs 2,000 will be transferred to farmers' accounts, and in the financial year 2019-20 farmers will get Rs 6,000," he said.

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