This Budget is a vision statement which lays down the road map for the Indian economy over the next four years.

The finance minister and the Prime Minister have given a huge boost to the infrastructure sector and the IIFCL kitty being raised to Rs 1 lakh crore is a major positive step. The budget highlighted the need and the desire to get to the 9% growth track and the private sector?s role in this.

The finance minister has to be congratulated for presenting the first Rs 10 lakh crore Budget in the country?s history-a sure sign that India is a power to be reckoned with globally. He highlighted the need to reinvent the delivery mechanisms and to improve confidence.

The nation welcomes the tax reforms announced, which include

* Withdrawal of FBT

* Withdrawal of commodities transaction tax

* Increase of tax exemption on personal Income Tax

* Introduction of a new direct tax code in 45 days

These are all measures which inspire confidence.

In terms of specific impact, if we look at the power sector, the IIFCL refinancing package will boost investments and bring down project cost. As far as the retail sector is concerned, we see that the stable environment in the sector has been retained. Sector costs may come down once service tax on transport is abolished. The investment linked tax exemptions to businesses of setting up and operating ?cold chain? and warehousing facilities for storing agricultural produce is welcome.

The finance minister has brought the aam admi at the core of the Budget. The flagship projects of the UPA like the urban renewal mission, National Rural Employment Guarantee Scheme and Bharat Nirman, which have been tested and found successful, have been provided enlarged expenditure and will change the very character of rural society. Undoubtedly, education and health are the invisible but crucial inputs of development and will, apart from improving the quality of life of people, increase productivity and growth. The finance minister would like the economy to go back to 9% growth. Growth in the last quarter of 2008-09 had dropped to 5.8% and the stimulus packages introduced earlier contributed to 3.5% of GDP. Sign of recovery are visible.

What is missing in strong revival of private sector investment for which effective incentives should have been provided.

The Budget does not make any changes in corporate taxation.

Fringe Benefit Tax has been abolished; and the 10% surcharge has been withdrawn only in respect of personal taxation.

The latter should have been extended to companies also.

For the first time, the total expenditure in the Budget exceeds Rs 10 lakh crore which would be nearly 19% of the GDP.

As such, the Budget will significantly influence the course of the economy. The increase in expenditure has however resulted in a 6.8% fiscal deficit. Although this is high, in the present conditions it should not cause concern.

Already there are signs of revival and with the Budget back up the second half of the year should see growth improve further.

The customs and excise duties on some select items have been changed to bring them in line with prevailing conditions. It was expected that the finance minister will announce reforms which had been pending for some time.

May be during the year the government would come out with fresh announcements.

Overall a Budget of thought

* Budget of balance

* Budget of continuity

* Budget that stimulates confidence

?The writer is vice-chairman, RPG Group