Market Expectations for Interim Budget 2024: Outlook and Predictions

ICRA: Outlook and Predictions

Major policy changes and announcements unlikely Government's capex expansion and fiscal consolidation extent to be pivotal Expected fiscal deficit target for FY25 at 5.3% of GDP Budgeted capex of Rs. 10.2 trillion anticipated for FY25 Projected GDP growth at 6.2% in FY25 Anticipation for government's capital spending target for FY25 Foreseen allocations towards infrastructure sectors like roads, highways, railways, etc. Enhanced capital outlay for defense anticipated

Nomura: Insights and Forecasts

Anticipated balance between politics and economics, with a lower fiscal deficit target of 5.3% of GDP Government on course to achieve fiscal deficit target of 5.9% of GDP in FY24 Expected focus on key demographics: Gareeb (poor), Yuva (youth), Annadata (farmers), and Nari (women), aligned with the BJP's GYAN strategy

Motilal Oswal: Expectations and Analysis

Potential inclusion of populist schemes due to upcoming general elections Attention on populist measures aimed at the agricultural sector Likely enhancements to the new tax regime for attractiveness, such as increasing exemption income limits or reducing surcharge rates Possible incentives to stimulate the residential or commercial property market