Abolish STT, sops for rural India: What markets expect from interim budget

Interim budget proposals are likely to have a hint of populism given the upcoming general elections, believe analysts, but unlikely to derail the government from its path of fiscal prudence.

The interim budget proposals that will be presented on February 01 in the backdrop of the general elections scheduled in April / May 2024 are likely to have a hint of populism, believe analysts, but are unlikely to derail the government from its path of fiscal prudence.

“We estimate FY25 fiscal deficit target at 5.2 per cent of GDP. Assuming the tax revenue growth at around 12.5 per cent (similar to FY24E, driven by 11 per cent nominal GDP and 15 per cent corporate earnings growth); the total expenditure growth would have to be limited to nearly 7-8 per cent