Union Budget 2024 | 'Change in income tax slabs, direct benefit transfer to first-time workers likely to spur consumption,' says Chief Economist and Executive VP, HDFC Bank

'The budget’s policy mix – including continued capex, job creation, support for manufacturing, agriculture, and rural development – is likely to be positive for India’s potential growth,' Barua also said

"The change in income tax slabs along with the direct benefit transfer to first time workers, is likely to spur consumption, particularly for small ticket items, by increasing disposable incomes. The budget’s policy mix – including continued capex, job creation, support for manufacturing, agriculture, and rural development – is likely to be positive for India’s potential growth. The government made no compromise on its capex plans despite the increased allocation to some of its allies. The commitment towards fiscal consolidation with a reduction in the fiscal deficit to 4.9% of GDP in FY25 is a positive for medium-term debt sustainability. Although markets have been disappointed with the increase in the capital gains tax, this is line with the communication by different branches of the government and regulators to be cautious and prevent any excess build-up of risk in the system," he further added.