Special
ON BUDGET 2018-19
Antony Jacob
CEO, Apollo
Munich Insurance
Dhiraj Relli
MD and CEO,
HDFC Securities
Kalpen Parekh
President, DSP Black-
Rock Mutual Fund
The increase in deduction limit for health
insurance premium for senior citizens was
a much-needed move. Healthcare inflation
has moved up and so have senior citizens’
requirements. The earlier deduction was
inadequate. It will go a long way in providing
them with a financial cushion in medical
adversity. We would like to participate in the
National Health Protection Scheme.
LTCG exemption was an attraction for new
investors into equity/equity mutual funds.
Rising interest rates domestically and tax
on LTCG could result in minor reversal of this
trend. Reaction of foreign portfolio investors
(FPI) and the bond markets locally to the 3.3
per cent fiscal deficit proposed in FY19 will be
keenly watched in the background of rising
rates abroad.
The most impactful Budget provision was
the re-introduction of LTCG at 10 per cent
after 13 years. However, even today, for
investors looking to grow their capital over
long periods of time, equities remain the
most efficient asset class as it offers higher
growth and at lower tax rates compared to
other asset classes like gold, fixed deposits
or real estate.
Bhargav
Dasgupta
MD and CEO,
ICICI Lombard
General Insurance
Arijit Basu
MD and CEO,
SBI Life
Chanda
Kochhar
MD and CEO,
ICICI Bank
The National Health Protection Scheme
announced by the finance minister is
a welcome move, given the healthcare
requirements of a vast section of the
country’s population. We would like to
participate in the scheme, but irrespective of
whether the private sector will be roped in
or not, it will create awareness about health
insurance, which is a huge positive.
A standout measure that has been proposed
is to provide a cover of `5 lakh to about
50 crore people, almost half the country’s
population. If both these schemes are
properly implemented and monitored, this
could be a big boost to the services sector
and to people’s well-being. Overall it is a
positive Budget, aimed at growth, equity and
social well-being.
The wide-ranging measures announced
for various segments of the rural economy
will boost income levels and create gainful
and sustainable employment. This in turn
will help increase consumption levels in the
economy. The far-reaching National Health
Protection Scheme, along with measures
taken to enhance education, skilling and
research & development, are welcome steps.
www.outlookmoney.com February 2018 Outlook Money
47