In her 90-minute speech, finance minister, Nirmala Sitharaman announced various measures through the Union Budget 2022.
Here is what the MFD/RIA-fraternity thinks about the announcements made.
“This is a budget laying the foundation for decades” - Amit Bhagat, CEO & MD, ASK Property Investment Advisors.
This is a budget laying the foundation for decades. The overall focus on infrastructure development is a boost for the entire economy including real estate. If 50% of the country's population has to be in urban centres by 2030 then planned, sustainable and connected urban centres will provide a more holistic growth with better quality of life leading to unhindered growth of real estate for decades.
“If I have to rate it, it will be 8.5 out of 10” - Amit Bivalkar, MD and CEO, Sapient Wealth Advisors & Brokers.
This is clearly a forward looking budget. What we are looking at is under promise and over delivery. We have seen that in the case of Air India and LIC IPO is also on track for this financial year. While the budget indicates growth is of paramount importance for government, it has also kept in mind inflation that is lurking around the corner. It has also given a lot of impetus on technology side of business. Overall it is looking at new age companies. If I have to rate it, it will be 8.5 out of 10.
“How will the fiscal deficit be met?” - Ashish Chadha of Chadha Investment Consultant
One thing that you continuously heard through the budget is digitalisation, which is a good mechanism to keep a check on tax-evasion. Health budgets have been kept at par and due consideration has been given to employment generation. However, there is a concern on how the fiscal deficit will be met. Distributors should be very careful on the fixed income side.
“It is a simple vanilla budget.” - Bhavesh Shah, Immediate Past President, Ask Circle MFRT
It is a simple vanilla budget. Keeping in view the long term effects, there are no significant changes except the introduction of digital currency and taxation of cryptocurrency. From the layman view point, the changes are minimal and hence there are no complexities attached.
“There was no big break/relief for taxpayers in this budget” - Mukesh Kalra, Founder and CEO, ETMONEY
With this budget, India's tax regime on virtual assets like cryptocurrency is finally here with the government introducing taxation on crypto at 30% along with 1% TDS. This higher taxation rate puts cryptocurrencies at a disadvantage against equity investments like stocks and mutual funds that attract an LTCG of 10%. However, there was no big break/relief for taxpayers in this budget, which is a bit disappointing considering the high expectations of the middle classes.
“There should be more focus on infrastructure and technology funds” - PN Prasad, President, Pondicherry MFD Association
It is a development-focused budget and I think that the MF industry will experience good growth. There should be more focus on infrastructure and technology funds. Overall, the budget announcements are positive.
“Long standing demands left unaddressed” - Pritam Patnaik, Head - Commodity, HNI and NRI Acquisition, Axis Securities
The FM announced a few positive initiatives, which are future-looking and in line with the government's agenda of being Atmanirbhar. However, the Union Budget 2022 has been a non-event from the commodity futures markets perspective. With some of the long-standing demands of removal or reduction of CTT (commodities transaction tax), the tax treatment and reducing imports on gold were left unaddressed.
“Overall, the budget is progressive” - Sanjiv Bajaj, Joint Chairman & MD, Bajaj Capital
Budget 2022 appears to be a well-crafted growth-oriented budget to promote overall economic activity in the country. The introduction of CBDC (Central Bank Digital Currency) has been announced and will be a reality soon. Taxation of virtual assets has also been put in place for those dealing in digital assets. Overall, the budget is progressive and on the back of buoyant tax collections, the country seems to be all set to move to a higher growth trajectory in the years ahead.
“We saw an uptick in the market sentiments” - Shifali Satsangee of Funds Ve’daa
Although we did not see any tax rebates to consumers, we clearly saw a tech push, thrust on capex, impetus to forward looking themes like green energy, increased infra spend, focus on the health ecosystem along with inclusive development serves as an affirmation that the budget prima facie is pro-growth and on expansionary mode. This is why we saw an uptick in the market sentiments as well.
“From a lay man’s view point, there is not much that you can directly take away from the budget.” - Suresh Sadagopan of Ladder7 Advisories
In this budget, the personal finance aspect except from the digital currencies is virtually untouched. The budget recognises crypto as an asset and treats it as a speculative asset. Apart from a few other minor amendments, other changes are at a macro level. Broadly speaking it is a positive budget but from a lay man’s view point, there is not much that you can directly take away from the budget.
