Emerging Giants Newsletter – July, 2019

With budget around the corner, all eyes will be on the new Finance Minister to initiate steps/reforms to address the recent slowdown in the economy. We see budget to be a tough one as the government has limited scope of improvement in revenue collection in FY20 given the less-than-desirable tax collection in FY19. However, shortfall in revenue collection is expected to be fulfilled with higher disinvestment target and possibly from transfer of excess capital from RBI to government as based on recommendations from Jalan committee report.