Union Budget 2013-14 - Reaction from R Venkataraman, MD - India Infoline Ltd.

Given the fact that elections are just round the corner and the grim macro-economic scenario, the Finance Minister has done a fairly commendable job. He has resisted the temptation to announce a populist budget. The good part is that the government finances have not gone out of control and all the necessary steps have been taken in terms of fiscal responsibility. Tax reforms in form of DTC and GST, proposed passing of the insurance and pension bill are steps in the right direction. This shows that reforms are still on the FM's agenda. Acknowledging the role of FII, FDI and ECB inflows to bridge the current account deficit shows the FM's practical nature. Reduction of STT for equities and introduction of CTT was on expected lines. Realizing the importance of capex cycle to kick-start the economy, positive steps like approving 3,000 kms of roads, coal price pooling, investment allowance etc have been announced. Overall a practical budget.

Source : Equity Bulls

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