‘Infrastructure and social sector growth ranks high on the priority list ’

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: The Budget's over-arching priority has been on reviving growth and promoting inclusive development with a focus on stepping up investments in the infrastructure and social sectors. Thus, outlays on various social sector schemes, such as the National Rural Employment Guarantee Scheme, have been increased substantially.

Additionally, equal emphasis has been placed on infrastructure development, with increased allocation for roads, highways, urban infrastructure and power. The proposal for IIFCL to refinance up to 60% of loans extended by commercial banks for PPP projects, as well as evolving a mechanism for 'take-out' financing, is a positive sign for financing infrastructure projects.

The Budget has met expectations with respect to areas such as abolition of Fringe Benefit Tax, extension of tax holidays for the IT and ITES sector and tax holiday on production of natural gas from NELP blocks. A reaffirmation of the deadline for introduction of the proposed Goods & Services Tax (GST) on April 1, 2010, is another positive move. Also, the CENVAT rates that were cut as part of the three stimulus package earlier has not been rolled back, which is also a positive for the manufacturing sector.