The whole budget appears to be largely in generalities as everything seems to have been referred to different commissions. It is what can be called a pregnant budget, and we will have to wait and see what specie will eventually come out. But on the face of it, it is not a broad-brush stroke budget but one would have to say that Yashwant Sinha has done a very good job as a maintenance man.

The hike announced in diesel prices is one that was largely expected by the industry. I suppose the time for it is also right as internationally diesel prices are ruling at much lower levels.

As a part of the proceeds from the diesel price hike will be diverted to the road projects, the sector will get a much-required fillip. But not enough has been done for the infrastructure sector which required definitely immediate attention. The amount that will go into the road sector is clearly not enough. At best, it will manage to only start things.

The announcements on the capital markets frontare a very welcome step. It is boost to the mutual funds industry and US-64 has now been taken care of. The emphasis on empowering the rural sector is also an important step, and may be as critical as boosting the capital markets.

The steps taken towards restructuring of public sector enterprises, and mopping up of double last year's target, are very positive. But the success of schemes like the one to mobilise idle gold from the households will largely depend on the interest that these bonds will carry.

But the surcharge on corporate tax will definitely not be welcomed by the industry. The finance minister should have actually tried to cast a wider net rather than raise the rates on the existing slabs.

Making the process of clearances for investment from the non-resident Indians is one step that, I think, will be welcome by the entire Indian industry. However, setting up of terminals abroad to encourage NRIs to invest in the capital markets is unlikely to make any major difference. The NRIs are alreadyactive players in the capital markets.

Though Sinha has announced that there will be an endeavour to reduce the size of the government, we will have to wait and see whether that actually takes off.