Actual vs Expected

The Best :
* Income tax exemption limit increased by Rs10,000 for general taxpayers, and by 15,000 for senior citizens.
* Removal of surcharge on income above Rs10 lakh for personal income tax payers
* Reintroduction of Saral (-II) to ease out the filing process
* Removal of Fringe benefit tax
* Introduction of goods and service tax

The Good :
* Soon to introduce a Bill to enact a food security law that will provide 25 kg of rice and/or wheat at Rs3 to each family below the poverty line
* Cheaper Big Cars - Additional excise duty which was introduced in the 2008 budget on Big cars has been cut – making them cheaper
* Cheaper Flat Screen TVs – Lower Basic customs duty on LCD panels

Banks:
* Commercial banks to issue zero-coupon bonds to raise long term debt

Defense:
* Spending increased by 25% - Border management activities +modernizing the police force
* $10 billion purchase of 126 fighter jets
* $100 million aid package for the rehabilitation of Tamil war displaced in Sri Lanka

Infra :
* Easier financing for infrastructure firms and allocated more funds to the country’s highways, urban and irrigation projects.

Print media :
* Extension of the stimulus package until december 2009 due to lower ad revenue

Revenue for Govt:
* $7.2 billion from the sale of 3G Radio spectrum

The Sad:
* Retail -The sector was completely left out of the Budget
* Textile – Govt extended current priveleges without meeting any new demands

SENSEX dropped 870 pts .

Growth or fiscal deficit ?

What does the common man want ? simplified tax laws , a rationalized tax system - additional income tax exemption benefits, lower short term capital gains tax, withdrawal of some import duty exemptions, stress on alternative sources of energy, more jobs, lower fuel prices, lower rates on education loans (yeah that one was mine totally!)
The realtors want - the govt to provide more incentives for affordable housing and increase exemption limit on interest paid on home loans
The banks want - the govt to support an improvement in infrastructure spending
The business man wants - a revised value added tax - hence increase demand, sales figures and improve production numbers.
The economists say - lower fiscal deficit which is now at 13% , lower current unemployment rates , increase investment

Is the budget going to take the inclusive growth route ? try to be all things to all people ? Is there any statistically significant relationship between the fiscal deficit and inflation ? Does it even matter ? Where do we want the Sensex to land ?