Union Budget 2020 has led to steep decline in Indian stock market as market participants were expecting relief from LTCG tax and some other sops. However, the finance minister hasn't offered much to cheer the markets. Reactions to the Union Budget by Ms. Jyoti Vaswani, Chief Investment Officer, Future Generali India Life Insurance follow....

The Union Budget 20-21 demonstrates the Finance Minister’s aim of maintaining a steady policy path with emphasis on welfare construct and has taken more imperative steps in the right direction. The budget has sought to entrench the primary engine of growth viz. consumption in the form of personal tax cuts. Counter cyclical fiscal measures to provide stimulus to the economy would have been desirable.

However, the FM has chosen to be prudent. Despite being placed with a restrained fiscal scenario, the government has kept the fiscal deficit target under control, even as the capital expenditure target has been raised, thus boding well for reviving the economy.