Budget 2021: Benefit for Apollo Hospitals, SBI, Ultratech Cement, Ambuja Cement, JSPL? Credit Suisse highlights government spending
Strong growth and high deficit expectation provide room to spend in FY22. Continuing down the pro-cyclical path, where weak government spending hurt growth in Q2 FY21 and is adding to it in the recovery, the fiscal boost to growth can continue into FY22. 16-17% nominal GDP growth now appears likely, which, given the largely steady tax to GDP ratio over the past decade, may deliver similar growth in tax collections.
To address shortage of financial system capacity the government may also undertake financial reforms (e.g. bank investment company: positive for PSU Banks like SBI): Reuters