 "Gautam Chhaochharia")
The FY15 Budget, as expected, reveals the government's priorities, both near-term and medium-term. The inflation moderation imperative overshadows near-term headline growth desires. The projected fiscal deficits of 4.1% of GDP in FY15 and 3.6% of GDP in FY16 vs. the 4.5% recorded in FY14, is in line with our expectations.
The fiscal arithmetic remains challenging nevertheless, given the legacy of rolled-over expenses . Our Nifty target for 2014-end is 8,000. There could be an upside to the target based on how policy-making evolves
Gautam Chhaochharia
Head of India Research, UBS
