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The Union Budget has laid the grounds for the next General elections, subject to a good monsoon this year.

With education allocation up 15 per cent at Rs 34,000 crore and health spends up 20 per cent at Rs 16,000 crore, and Rs 31,000 crore allocated to the Bharat Nirman Programme, there is a visible effort to increase the welfare footprint.Rural housing, B PL workers insurance, employment expansion are all positives.

These are positive for auto and two-wheeler segment and the price reductions to consumers should have some demand impact. Pharma companies will welcome the halving of excise . The oil and gas sector will benefit from the removal of advalorem duty and its replacement by a specific tax.This will be positive in the future for the sector.

The reduction in the personal income tax rates will mean a saving of Rs 4,000 for someone earning Rs 1,50,000 per annum and Rs 50,000 for someone earning Rs 5,00,000 per annum at present. The Sec 80D benefit for health insurance bought for parents is a welcome move indeed.

Ajay Bagga, CEO,

Lotus India Asset Management Company

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