Budget 2021 Expectations: This budget should focus on boosting manufacturing and creating jobs, says Deepak Jasani

Budget 2021 Expectations: Sharing his expectations from the upcoming Budget 2021, Deepak Jasani, Head of Retail Research, HDFC Securities, while speaking on Zee Business Channel said that the main focus of this year Budget should be on boosting manufacturing through schemes like Production Linked Incentive Scheme (PLI) and to create jobs.  

Speaking on the expectations from the forthcoming budget, Deepak Jasani said: "While direct and indirect taxes may not offer much scope to innovate or bring path breaking reforms except those related to capital markets, the main focus could be on boosting manufacturing through schemes like PLI and to create job."

"We expect increase in allocation for social sector MNREGA, Education and Health Ministries. Special spending by consumer and capex spending both could be given a boost to kick start the recovery," he further added.

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Jasani also said that, in budget, for COVID-19 vaccine related cost, the Centre Government could impose or introduce Corona cess.

"Disinvestment target for next year is likely to be ambitious as certain plans of disinvestments FY21 will spill over to the next fiscal. We expect fiscal deficit to rise to 7.6 percent of the GDP in FY21.The combine fiscal deficit of FY21 Centre plus State is likely to be 12.3 of the GDP. For FY22, we expect Centre's fiscal deficit to target to be 5.2 per cent and state's fiscal deficit target to be about 4 percent with the combined deficit of 9.2 per cent.," he said.

Speaking on Zee Business, Deepak Jasani also said that PSU sector could be in focus for pushing them to perform in a market like manner.

"This could be done by giving managers more freedom, linking their pay to performance and on stock price movement making targets based on ROU or ROC etc. This will help improve their performance. If the markets do not correct sufficiently before the budget, it will do that post the budget irrespective of what comes in the budget," Jasani noted.