Budget 2021 will be historical if government cuts taxes, IIFL Founder Nirmal Jain tells Anil Singhvi

Budget 2021 Markets Want More: In an exclusive chat with Zee Business Managing Editor Anil Singhvi, Nirmal Jain Founder and Chairman of IIFL Group said that this Budget 2021 will be historical if the government reduces tax as it had done 30 years ago.  

In terms of practicality, the focus is expected to be on growth, he said. The Fiscal Deficit for this year will increase to around 7.5 per cent of the GDP, Jain opined. The fiscal deficit for the next financial year could be between 6.5-7 per cent. This is neither bad nor surprising, he further added.

See Zee Business Live TV Streaming Below:

The target of Finance Minister will be to encourage private and public investments. The growth and job creation as a result of this will further boost the current V-shape recovery of economy, he said. This is not only good for the markets but also good for the economy. This is what the expectations are from this year’s budget, the IIFL Founder said. 

Watch Zee Business Tweet Video Below:

'मार्केट मांगे MORE'

टैक्स दरों में कटौती हुई तो ऐतिहासिक होगा यह बजट। बजट में ग्रोथ और रोजगार बढ़ाने पर रहेगा सरकार का फोकस: निर्मल जैन, फाउंडर & चेयरमैन, IIFL ग्रुप#BudgetOnZee @AnilSinghvi_ @JainNirmal @IIFL_Finance @IIFLCorporate @IIFLMarkets pic.twitter.com/uiZU2AZ8mM

— Zee Business (@ZeeBusiness) January 25, 2021

This year’s fiscal deficit is not just because of the Covid-19 impact, it is also because of the shortfall in Government’s disinvestment targets. The government has big opportunities in the form of disinvestments over the next year. Strategic Investment of BPCL is on the cards along with the IPO of LIC. The government will get big money from this which could be utilized for creating jobs and making investments. 

The Market Guru also asked if there could be some tax changes for the stock markets as Brokerage Houses have gained even during the pandemic period. 

To this Jain said that the numbers which are coming from the stock markets will follow the numbers that are coming from the companies. He said that IT companies have posted strong results. The AC sales have also improved. The tyre companies and cement companies have also done well. Stock markets are only following the current mood. 

He said that the current situation is very good and if not much tampering is done, there could be private investments too. The next decade could belong to India, if there is a stability in the policy. 

He said that the focus should be on increasing demand and consumption. That will lead to growth and job creation.  

He said that though corporate taxes have been cut, there needs to be rationalisation of taxes.