Investors have little to complain

The government shows its intent to continue with reforms

As I write this article, markets in India are euphoric, up more than 4.5 per cent. The biggest positive surprise for the markets has been no attempt to raise taxes by the government. Markets were expecting at the minimum some type of surcharge on the more affluent. While a big positive, the flip side of no tax has been no increase in total expenditure (less than 1 per cent) by the government, despite budgeting nominal gross domestic product (GDP) growth of 14.4 per cent for FY22. The government will not keep spending to support the economy.

The Finance Minister