Mumbai: The government may not be in a position to provide meaningful fiscal stimulus to the economy through the upcoming Union Budget given India’s weak fiscal position, a report said on Wednesday. The Kotak Securities report said that the scope of lowering tax rates is also thin owing to the government’s challenged fiscal position arising from large tax slippages in 2018-19, which will be at the centre of investor focus.
The brokrage house said that the government will have to implement difficult reforms in the budget to increase India’s investment rate via improving its ease of doing business rankings and reducing its role in business. “In order to present a credible budget, the government will need to revisit tax revenue assumptions in the the FY2020 interim budget. We assume that the government will base the FY2020 tax revenue targets on actual FY2019 collections,” the Kotak Securities reports said. (IANS)
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