After the two national parties – Bharatiya Janata Party (BJP) and Congress – announced their manifestos, analysts have begun dissecting them. Even though the election documents of both political parties share a flavour of populism, Rahul Gandhi’s Congress is more focused towards consumption spending while the saffron party concentrates on asset spending, Motilal Oswal said.
BJP, to a large extent, has managed to resist the temptation to respond to Congress’ Nyuntam Aay Yojna (NYAY), the brokerage also said. “The theme of continuity in key focus areas of socio-economic issues (Housing, Health and Infrastructure) and continued policy of lowering tax rates and ensuring better tax compliance should augur well for overall consumption in the economy going forward should the NDA return to power”, it added.
Also read: Revenue respite for Modi ahead of polls; govt meets 3.4% fiscal deficit target
BJP’s focus on creation of infrastructure in all sectors, with healthy performance in roads construction over 2014-19, should be positive for the Roads EPC companies and Cement players, it added.
“There is also a healthy dose of competitive populism with promise of PM-KISAN coverage to all farmers along with pension for small and marginal farmers and small shopkeepers,” the brokerage noted.
Other than extending PM-KISAN for which funds need to be worked out, BJP’s manifesto doesn’t carry any populist promises; thereby not exerting pressure on the fiscal health of the economy, it added.
On reducing poverty, BJP focuses on empowering poor sections, while Congress “has gone for bottoms-up handouts to poorest 20% of households.”
BJP in its manifesto released yesterday had stated that if it is elected, the Modi government would continue to focus on Urban Development, Swacch Bharat Mission, Jal Sakti, Road Connectivity, the establishment of new airports, coastal development, and 24*7 electricity.