Budget 2012 implicates ground realities: Anup Bagchi, MD & CEO, ICICI Securities

NEW DELHI: With the Finance Minister Pranab Mukherjee annoucing a 5.1% fiscal deficit target for the next financial year, in his Budget 2012 speech, Mr Anup Bagchi, MD & CEO, ICICI Securities feels that the target looks achieveable.

Commenting on the Budget he said, "Budget 2012-13 has been an honest budget implicating ground realities with continued focus on fiscal consolidation. The expected fiscal deficit of 5.1% and full rollback of impetus provided during global crisis of 2008 by hiking the rate of excise and service tax rate will help in achieving it."

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Bagchi is of the opinion that the reduction in customs duty for import of coal, LNG and capital equipments along with hiking allocation to road sector has to a certain extent taken care of some of the concerns faced by infra sector.

"The budget also had a modest increase in the allocation to social welfare schemes and provided relief to individuals hiking tax exemption limit (Income till Rs 2,00000 exempted from Tax)," he adds.

Expressing his views on the Rajiv Gandhi equity savings scheme, lower STT on delivery, and higher tax free infra bonds he said that such schemes will lead to increased participation from retail investors.