The budget 2022 has tried to plug the incentives for bonus and dividend stripping, which can change the behaviour of a certain class of investors, stated Anand Rathi Share and Stock Brokers in a report.
Union Budget 2022 figures pose ambiguities and asymmetric financial market reactions, Anand Rathi said.
The report said measures such as re-casting of off- and on-budget items and changes in the mechanism for resource transfer to states created ambiguities by making strict comparison of budget data for FY23 difficult with past years.
These tend to overstate government spending and, coupled with conservative receipt figures on tax, non-tax and non-debt capital ballooned fiscal deficit and market borrowings.
For capital outlay, while the budget outlay has been increased impressively, there has been a significant reduction in extra budgetary allocations. Consequently, the overall allocation for capital spending is far less impressive, the report said.
The report said that the policies of the government since late 2019 have favoured investment over consumption.
