Industry and markets, which wanted more, didn't realise that the fiscal deficit at 6.8 per cent is a very major constraint and it has tied the hands of the finance minister. With a total expenditure plan of more than Rs 10 lakh crore primarily allotted to highways and social sectors, a lot of support for industry will come.
Inefficiency and corruption at the Centre and the state government levels is a constraint, but that does not mean that we should not have social programmes. Some of the expenditure will help in creating assets, while some others will give purchasing power that will help the industry indirectly.
The fiscal deficit will not come down with a cut in expenditure, but it will be brought down with growth. If the current policies are followed, the fiscal deficit will come down. In totality, I like the Budget, but I do not approve of the increase in minimum alternate tax (MAT) to 15 per cent from 10 per cent earlier.
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