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Editor's take: Latha Venkatesh highlights the three big questions and key numbers to watch out for in Budget 2019

Updated : July 05, 2019 10:12 AM IST

All eyes will be on finance minister Nirmala Sitharaman today who will present her maiden Union Budget in the Parliament. India's first full-time woman finance minister will present the Budget in the Parliament at 11 AM.

CNBC-TV18’s Latha Venkatesh highlights the three big questions and the key numbers to watch out for:

The Key Numbers

Fiscal deficit

The Interim Budget pegged it at 3.4 percent, however, with tax collections below the mark, the number can go up to 3.6-3.7 percent.

Borrowings

The second number is the Budget number which will determine how much the government will borrow from the market.

Tax growth

The tax revenues should have grown to Rs 14.5 lakh crore but grew to only Rs 13 lakh crore in FY19. The Interim Budget set the current year tax receipts at Rs 17 lakh crore but, the expectation is at best they will make it to Rs 16 lakh crore.

The Three Key Questions:

  • What will the Budget do for bank recapitalisation? The interim Budget was silent on it. Analysts say if it is Rs 30000 crore, the market will be delighted.

  • Will they divest PSU banks? Will that include bringing down the government stake to below 51 percent? If that happens then it would be historic. It rewrites the 50-year original sin of the Indian government of having nationalised banks. Even if one bank’s stake is bought below 51 percent, the stock market will rocket.

  • Will they break tradition and borrow abroad? India has traditionally never borrowed in the global bond market because that is extremely disturbing for the financial sector. If they do it then it would be worrisome.

 

Follow CNBC-TV18's live coverage on Budget 2019 here

For our exclusive coverage and all budget-related stories, click here
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