The debates on whether or not the Budget presented by finance minister Pranab Mukherjee can be termed as a missed opportunity or the one devoid of any big-bang divestment announcements notwithstanding, analysts view it as one that is balanced, especially against the backdrop of extremely challenging times.

Most of the analysts are of the view that in spite of the rising fiscal deficit, Pranab has made an attempt to provide steady monetary assistance to the social sector, thus by broadening its agenda for inclusive development. Most importantly, the proposals for big-ticket divestments were deferred signalling that it could be well done at a better time later. The finance minister had said in his speech, “Members would appreciate that a single Budget speech cannot solve all our problems, nor is the Budget the only instrument to do so”. He was all for the tinkering first, which may lead to creating elbow-space for greater flexibility; when he finally settles down for that big move.

Though there was a clear disappointment over the point that the government could have opted for raising funds through disinvestment route, especially considering the appetite for Indian paper, there were still some positives to take away home, said Angel Broking in its review of the Budget. Market expectations were of a disinvestment target of about Rs 20,000 crore, which would have helped in alleviating the pressure on government finances.

Crisil Research, in its Budget analysis, said that though the speech had very little sense of occasion, the nitty-gritties were clearly the focus of this year’s budget exercise and the fiscal numbers clearly indicate that the finance minister simply did not want to take any chances. For example, the estimated increase in tax revenues is a mere 1.8% over the revised estimates for 2008-09, a far cry from the high buoyancy of just a couple of years ago.

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