New Delhi, Jan. 12 -- The key hope from the Union Budget is that the government does not pursue aggressive fiscal tightening, according to the head of equity investments at Canara Robeco Asset Management Co.

With demand weak, private capex subdued, and household incomes seeing limited growth, the government spending remains crucial, said Shridatta Bhandwaldar, chief investment officer-equities at the company. The previous budget marked a pivot towards consumption and revenue expenditure, and this one should avoid further tightening, he said, adding that defence capex is also expected to rise amid current geopolitical realities.

Other than that, "expectations from the budget are limited," as it often excites markets but rarely delivers m...