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    Budget 2022: Rakesh Jhunjhunwala expects tax revenue to go through the roof; welcomes private sector capex boost

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    Budget 2022: Rakesh Jhunjhunwala expects tax revenue to go through the roof; welcomes private sector capex boost

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    Budget 2022: Rakesh Jhunjhunwala feels that the improvements made by the government in tax laws and administration has not yielded fruit completely and FM Sitaraman's budget will boost the private capex cycle which in turn will drive India's growth engine.

    Ace market investor Rakesh Jhunjhunwala has given a thumbs up to Budget 2022 presented by Finance Minister Nirmala Sitharaman saying he remains bullish on the India growth story as there are no populist measures announced.
    Jhunjhunwala feels that the improvements made by the government in tax laws and administration has not yielded fruit completely and he expects tax collections to beat estimates and 'go through the roof'.
    “I would like to point out that its ultraconservative estimates of tax collections because the net tax revenue to the centre, up to December, is about Rs 14,73,000 crore and the estimate for the full year is Rs 17,65,000 and the net tax revenue to the centre in December was Rs 375,000 crore and the addition that they have taken for the next 3 months is only Rs 290,000. I can bet that the net tax revenue of the government in the current fiscal will be Rs 3-4 lakh crore higher than the budgeted estimate,” he said
    On the macro front, Jhunjhunwala expects that the fiscal deficit will also be lower than projected.
    “The fiscal deficit will be 1-1.5 percent lower than what has been projected in the budget estimate and similarly for next year, if this year the collection is higher by Rs 3.5 lakh crore then next year the collection will be higher by Rs 4 lakh crore,” he said.
    The market had been seeking measures to boost consumption demand to spur the growth engines on full potential and Jhunjunwal believes that FM Sitharaman has delivered on that accord.
    “What is most important in India is a fair and well-regulated tax regime and ease of doing business. Once that is there India is going to boom and we have the credit cycle which has passed us. In no country does the credit cycle generally happen without an 8-10 percent year gap, and we have a capex cycle ahead of us and the private sector is ready to invest and invest heavily. So I think we are very well placed and I am lucky to be invested at this time and I am bullish,” said Jhunjhunwala.
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