Budget 2019 expectations from brokerage houses
Updated : January 29, 2019 06:47 AM IST
Nirmal Bang: The brokerage house said that it expects the fiscal deficit for FY19 to come in at 3.5 percent of GDP, higher than the budgeted 3.3 percent. It expects the fiscal deficit for FY20 at 3.5 percent of GDP, primarily on account of the fact that some farm income support scheme is inevitable ahead of the elections.
On corporate tax rate, Motilal Oswal expects that the government will not deduct the effective tax rate from 26.5 percent to 25 percent. Further, it is highly unlikely that the centre will provide any significant relief in the personal tax rate class.
The revenue shortfall is likely due to a sluggish Goods and Services Tax (GST) collection at 0.6 percent of GDP or at Rs 1,10,000 crore, the financial firm said in a report by Standard Chartered.