The Indian budget proposal to increase capital expenditure is concerning.

Saurabh Mukherjea of Marcellus Investment Managers expressed concern over the proposed increase in capital expenditure in the Indian budget at a time when tax revenue is falling short of expectations. The co-founder and Chief Investment Officer stated in an email, "Funding higher capital expenditure by increasing debt could push up bond yields and the cost of capital for the economy, thereby posing a risk of tightening financial conditions." However, he noted that the proposed increase in securities transaction tax on futures is a necessary corrective measure. He added that speculative derivative trading activities have destroyed a significant amount of household capital in recent years, and this measure should help redirect savings towards consumption and productive investments.