Budget 2023 Review - Well Intended But Lacking Near-Term Impetus: Systematix

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Systematix Research Report.Amid concerns of growth slowdown fiscal strategy of the Union Budget remains conservative. It hopes for a revival in consumption demand, and an eventual pickup in private investments aided by a continued step-up in government capex thereby translating into a sustained growth cycle. We think this hypothesis may be optimistic. Realistically speaking, given the persistent fragility in the household sector there is a significant probability of governments having to step-up fiscal support later in FY24; the intended fiscal consolidation may remain elusive. On the face of it, the budget appears to be addressing our thoughts pertaining to employment generation, as it focuses on sectors like health, education, tourism, and formalisation in the agri sector services. In addition, is the simplification of the income tax structure, with enhanced income tax slabs for the lower income bracket. Firstly, the assumption on nominal GDP of 10.5% YoY is optimistic, given- the high base effect of 15.4% growth in FY23 and pre-Covid average of 10.9% (FY15-19), sharp deceleration in commodity price inflation, and the deceleration in corporate sales growth, estimated at 8.5% in Q4 FY23E. Secondly, the projected gross tax collections growth of 11.5% in FY24BE implies an optimistic tax elasticity of 1.1 times (growth in tax collection/growth in nominal gross domestic product). Our estimates show that the medium-term tax elasticity is 0.9 times, structurally lower than the 2007-08 peak of 1.6 times. The peak level of GST and indirect tax incidence and weak demand conditions in the lower income brackets will likely make it difficult to gain further buoyancy from indirect taxes. .Click on the attachment to read the full report:.More Research Reports On Budget 2023 Reviews, Highlights, Impacts.Budget 2023 Review - Keep The Engine Chugging Along: Dolat CapitalBudget 2023 Review - Accelerating Capex To Retool Economy: ICICI DirectBudget 2023 Impact On Personal Tax, Automobiles, Railway And More: IDBI Capital AnalysisBudget 2023 - A Budget For All: CareEdge Analysis.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Budget 2023 Review - Well Intended But Lacking Near-Term Impetus: Systematix

On the face of it, the budget appears to be addressing our thoughts pertaining to employment generation.

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Budget 2023 Review - Well Intended But Lacking Near-Term Impetus: Systematix

On the face of it, the budget appears to be addressing our thoughts pertaining to employment generation.

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