Budget & the Stock Market: The ‘policy risk’ number in the budget that the market tends to ignore – but should not

This is the number in the Union Budget that the market does not often focus on, but one which influences fiscal outcomes, inflation outcomes, and, therefore, market discount rates. For investors, it is important to remember that this number reveals “policy risk” much before it shows up later through the Revised Estimates, supplementary demands, or re-prioritisation within the revenue account.