Equity markets on steroids but temper the euphoria: Vibha Padalkar

It is a well rounded Budget and much required as we are coming out of a pandemic, says Vibha Padalkar, MD & CEO, HDFC Life Insurance .

The big picture is that this is an expansionary budget. The budget is centred around health, hope and growth?
It is a well rounded Budget and much required as we are coming out of a pandemic. No increase in taxes is really providing a lot of stability and the message that we are here to support. They will come employers who do not remit employee dues in terms of social security but not otherwise. Similarly, there is relaxation for senior citizens from filing returns, healthcare and a lot of focus is on the much awaited 74% FDI.

Looking at the spending and the kind of government push which will come, should we also think about the dreaded word inflation?
I think so. Equity markets are right now on steroids and perhaps there is a big sigh of relief that is being given and that is panning out as well. Let us see how the debt markets react and the longer-term infrastructure bill, the funding requirements for some of the plans, the government borrowing plans, fiscal deficit and so on. While all the indications are growth centric, we should temper some of the euphoria. It is very supportive, but we should refrain from the jubilation.