Expectations of the budget that finance minister Pranab Mukherjee will present on Monday are running high. The Mint-CNBC-TV18 Budget Barometer—a survey of 505 senior executives (chief executive officers, chief operating officers, chief financial officers and chief marketing officers) and stock market analysts and brokers—shows that 71% of the respondents expect a growth- and investment-oriented budget. And while 47% of the respondents want the government to address the spiralling fiscal deficit immediately, 33% say that the government shouldn’t forget that it is more important at this point in time to stimulate growth. Mint’s verdict: It may be difficult for Mukherjee to make everyone happy.
If you were to pick one word to describe what Budget 2009 will look like, it would be?
The majority view is that Budget 2009 will either be growth-oriented or investment-oriented. (click here)
Do you expect any specific incentives or sops for your industry in the budget?
A majority of CXOs and stock experts expect the finance minister to provide a fillip to their respective industries. (click here)
Will your investment decisions this year be influenced by what’s in store in the budget?
Companies in the retail sector that feel their investment decisions will be affected only marginally or not at all : 75%. (click here)
Do you expect the budget to result in an increase in demand for your products or services?
While companies across sectors expect a significant increase in demand for their products or services, this feeling is strongest in auto and energy. (click here)
Do you see the government using the budget to announce another fiscal stimulus?
Companies in the sectors affected more by the meltdown are betting on a stimulus package in the budget. (click here)
Do you expect the government to announce any significant change in excise duty in the budget?
Expectations of excise duty changes are, similarly, high and universal. (click here)
Do you expect the government to make any significant change in FDI rules in the budget?
The stock analysts/brokers are highly optimistic that the government would make significant change in foreign direct investment rules in the budget. (click here)
Analysts have been concerned about the spiralling fiscal deficit. Do you think this is really an area of concern?
Many have said the growing fiscal deficit is a big concern. (click here)
Do you expect fringe benefit tax (FBT) to be done away with, as the FM has hinted?
Going by the finance minister’s hint, the respondents share his view that the FBT should be dissolved. (click here)
Do you think the budget will do away with the surcharge on corporate and individual tax?
The respondents are hopeful that both surcharges would be removed. (click here)
Do you expect the government to announce any significant change in customs duty in the budget?
People are also expecting a major change in customs duty in the budget. (click here)
Do you expect the budget to announce a significant disinvestment programme?
The stock analysts/brokers are expecting a big disinvestment plan. (click here)
Do you see the securities transaction tax (STT) being done away with?
The stock analysts/brokers are hopeful that the STT would cease to exist post-budget. (click here)
Do you expect the government to announce a road map for GST (goods and services tax—to come into effect from 2010) and will this benefit your business?
Both groups of respondents are positive that a GST roadmap will help their businesses. (click here)
Do you see the government cutting the small savings rate?
The stock analysts/brokers are enthusiastic that the government would cut the small savings rate. (click here)
Pick the sectors on which the budget will focus
Do you expect an increase in the income-tax (I-T) exemption by any amount?
Despite the big fiscal deficit both sections of respondents are extremely hopeful that I-T exemption would increase. (click here)
What would you be most happy to see in the budget, from the point of view of your own firm/sector and industry at large? (Multiple responses allowed)
Scrapping of FBT is clearly the most favourite wish that the respondents want fulfilled in the forthcoming budget. (click here)
Mint and CNBC-TV18 commissioned Synovate, a global market research agency, to poll CXOs and stock market experts to understand their expectations from the Union budget that will be presented on Monday. Using a mix of computer-aided telephonic interviewing and face-to-face interviews, Synovate polled 406 CXOs and 99 stock brokers and analysts across Mumbai, New Delhi, Bangalore and Chennai. The field work was conducted between 8 and 23 June. (click here)
Graphics by Ahmed Raza Khan/Mint