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‘Silent on capital market reforms’

MUMBAI: The budget has positives in spending schemes and targeting 9 per cent growth, says B. Prasanna, Managing Director and CEO, ICICI Securities Primary Dealership, in his reaction to the budget proposals.

He says: “The positives from the budget are its target on spending schemes designed to target inclusive growth and the continued emphasis on targeting growth at 9 per cent. The substantial increase in expenditure over the interim budget spells good news for domestic consumption and growth. However, the bond markets would have to grapple with a higher than expected gross borrowing programme of Rs. 4,50,000 crore. There is an expectation that all the extra borrowing will be front-ended and completed in the remaining three months of the first half when the liquidity is good. This increased borrowing may exert upward pressure in yields on a week-on-week basis. The budget also seems to be silent both on capital market reforms and on a roadmap for bigger divestments”.

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