Experts say no timeline for GST, DTC implementation in Budget
Markets will look to consolidate in the week ahead after most event risks like monetary policy and budget now over.
Experts have said the Budget for 2012-13 has failed to set any timeline for implementation of vital economic reform measures and not unveiled any concrete measures to address the problem of ballooning subsidy.
Dun & Bradstreet (India) President & CEO Kaushal Sampat said the Budget proved to be a "high-on-intent but low-on-action' affair and this was magnified on account of the huge expectations that India Inc had built from it.
"It is a workman-like Budget which has maintained its focus on inclusive growth but has remained silent on a number of critical issues, including a specific roadmap for implementing GST and DTC", Sampat said.
The Budget, presented in Parliament by Finance Minister Pranab Mukherjee on Friday, "has brought a few positives for the capital debt market but overall it has not brought any surprises to the market", Daiwa AMC Head (Fixed Income) Killol Pandya told PTI over the phone from Mumbai.
"Although the numbers regarding GDP and fiscal deficit are in line with expectations, it (Budget) has failed to give any clarity on the timeline for implementation of GST and DTC," he said.
The 10-year government security declined to 8.79 per cent to close at Rs 102.38 on the Budget day from Rs 102.79 on the previous trading session, while its yield hardened to 8.42 per cent from 8.36 per cent.
Enhanced spending on infrastructure and addressing certain supply bottlenecks in agriculture, coal and power are some of the positive developments in the Budget, Sampat said. He said the focus on mobilisation of funds for the infrastructure as well as thrust on the coal and power segments is also a welcome move.
"There were no definitive steps to control the ballooning subsidy bill, though the Finance Minister has targeted to keep central subsidies under 2 per cent of GDP in 2012-13, which if achieved, would be commendable," said Sanjay Chamria, Vice-Chairman & Managing Director, Magma Fincorp Ltd.
"While overall the budget has moved in the direction of reducing fiscal deficit, more credible steps on reduction in subsidies to tame inflation, lower interest rates and accelerating growth in the economy, would be our expectations from the government, going forward, he added.