Budget For Bharat

Yes I call it budget for BHARAT or one word which media uses frequently is "POPULIST" budget. Mr. FM started his speech by saying "A single budget speech cannot solve all the problems" in which he concentrated more towards rural areas, indicating that he would like to have domestic consumption intact which is supporting the country's economy presently.

But market reacted very sharply to this budget by declining nearly 870 points on the Sensex and 260 points on the Nifty. There various reasons for this kind of sharp decline: First is, market was expecting some policy reforms like Divestment/Disinvestment in PSUs, Decontrol in fuel prices, FDI allowances, Financial & education sector reforms & etc. Second is, due to hope, market boosted itself so much in last 2-3 months that there was some correction supposed to happen to stabilise. Third Fiscal Deficit of 6.8% which is again an hurdle to steps towards the FRBM.

At one point of time Sensex breached 14000 levels also. Sectors like Banking(-8%), reality(-7%), Consumer durables (-7%), metals (-6%) & education sector stocks like NIIT Ltd (-17%), Educomp Soln (-13%) hit very badly due to massive selling.

And one more thing I didn't like about this budget is he talked about increasing the spending various sectors' projects, but what is efficiency? As Rajiv Gandhi said only 15 paise reaches for every 1 rupee spent. This may be then but now also conditions not improved so much that we can at least 90 paise reaches for every 1 rupee spent. So what about that, reforms in distribution, reforms governments & etc.

But there are some relieving factors like increase infrastructure spending like NHAI, Indian Railway, giving more flexibility to IIFCL (India Infrastructure Finance Company Limited), more allocation of funds for Accelerated Power Development and Reform Programme (APDRP), extension of loan payment by 6 month for formers who come under loan waiver program, increasing the tax slabs by 15000 & 10000 for senior citezen & men & women respectively, Abolishing Fringe Benefit Tax (FBT) & Commodity Transaction Tax (CTT) & etc.

As Finance Minister said in his speech he has given importance to inclusive growth.
But only thing he would have given some road map for future course of action...