However, it is not just the Budget- related news that is the focus of investors right now, says Adrian Mowat, chief- Asian & Emerging Equity Strategist, JP Morgan.
Adrian Mowat, chief- Asian & Emerging Equity Strategist, JP Morgan says he doesn't mind a fiscal deficit higher than the one seen in Budget 2013-14 till the money is being "spent well."
"I am not particularly worried if the fiscal deficit that comes out of this Budget is actually higher rather than the one that we have seen in the last fiscal year as long as that money is being spent well on long-term infrastructure projects and not being spent on subsidies," says Mowat in an interview to CNBC-TV18.
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However, given the fact that the Budget 2014-15 is constrained by current revenue and expenditure plans, investors are focusing on news other than Budget now, says Mowat.
"The market is more focused on executive decisions like the rapid approvals being given to project in the recent past," he explains.
Below is the edited transcript of the interview.
Q: First up since you are such a close watcher of India let me start with the big question. We have a Budget coming up in about three weeks, what according to you would constitute a good Budget?
A: What we want is a balance between medium-term reduction and subsidies but also an increase in spending on fixed investments. I am not particularly worried if the fiscal deficit that comes out of this Budget is actually higher rather than the one that we have seen in the last fiscal year as long as that money is being spent well on long-term infrastructure projects and not being spent on subsidies.
Q: Is Budget the one big thing that you will watch out for or are they a series of even non-Budget actions that you are looking out for now as an investor?
A: It is the non-Budget actions that investors are looking out for. There were some 440 projects awaiting approval from the cabinet; we understand that 130 of those have now been approved. We had environmental clearances, 15 going to the committee; I understand that 12 of those have been approved. It is these types of chief executive decisions being made rapidly that the market is really focused on rather than necessarily the Budget because the Budget is obviously constrained by the current revenue and expenditure plans that India has.
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