The Finance Minister has done a good job in bringing out a Budget that goes the extra mile in spurring growth within the present constraints of the economy. All sectors get support and there is a clear emphasis on providing an impetus to infrastructure.

FDI limits for insurance and defence have finally been raised to 49 per cent. The proposal that allows real estate investment trusts for construction and housing clearly augurs well with the industry. The re-capitalisation of public sector banks in which retail investors can now participate is another move that will unlock capital. There are provisions that set out to widen and deepen the debt markets through the availability of infrastructure bonds.

The Finance Minister has spelt out specific measures to encourage entrepreneurs, small and medium enterprises to take on a frontline role in a developing economy, clearly signalling the move to unlock this latent potential.

Agriculture and Rural India, too, get their rightful focus with allocations targeting development in these areas. Higher budgetary funds for building infrastructure for medical education, engineering and management are welcome steps. The announcement to set up AIIMS in West Bengal, Andhra Pradesh, Purvanchal and Jharkhand, with the eventual intent to cover all States, will go some distance in bridging the supply demand gap for qualified medical personnel.

Wider tax base

On the revenue side, the taxation regime especially with regard to direct taxes has been kept stable with efforts to expand the tax base. There is a greater emphasis on indirect taxation. The arbitration and resolution mechanism to clear pending tax disputes is also being strengthened through the setting up of the settlement commission.

On a balance, the Finance Minister has made his intent clear to reach out to all sections of society, balanced growth, lower inflation and contain fiscal deficit. I would say it is a prudent Budget.

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