Budget 2021: Here's what Deutsche Bank's Kaushik Das and ICICI Bank's B Prasanna have to say

The bond market sulked on Tuesday. There was almost a Re 1 fall across the board in several bond prices and bond yields rose from between 15 and 25 basis points (bps). Kaushik Das, Chief Economist, Deutsche Bank, and B Prasanna, Head-Global Markets Group, ICICI Bank discussed the economy and the fixed income part in an interview with CNBC-TV18.

ICICI Bank’s Prasanna said the headline fiscal is hiding a few positives in the budget.

“First is on the transparency and credibility because the government has brought in a lot of off-balance sheet borrowing through the fiscal deficit route. If you look at the fiscal deficit, it is coming down from 9.5 percent of gross domestic product (GDP) 6.8 percent next year is primarily done because of two things because that kept the overall expenditure constant because nominal GDP is growing by 14.4 percent as well as disinvestment is being higher than what is has been in the previous year. The third is that while overall expenditure is contained, they are spending more on capital expenditure which is a good part of it.”