Lower fiscal deficit is the key aspect of the Budget

Comment: H M Nerurkar, MD, Tata Steel

A significant aspect of this Budget is that most of the surprises have been on the positive side. Lower fiscal deficit is perhaps the most important aspect of the Budget. FM has succeeded in his attempts to keep the deficit within the acceptable limit, while maintaining growth focus. The FM has provided visibility of the fiscal deficit targets for the next three years, which gives one confidence that fiscal prudence will continue to get attention.

FM has also undertaken an ambitious target for disinvestment. This will require him to maintain the ‘business confidence’ at a high level, something that I believe he would be able to do without difficulty. His assurance to rollout GST and Direct Taxes Code by April 2011 will enhance the faith in government’s future plans. By bringing more services under the ambit of service tax, without rolling back the rates to 12 per cent, FM has paved the way for GST. The increased allocation towards building rural and urban infrastructure will help sustain domestic growth rates. Significant support for social sectors is in line with the government’s on-going efforts of making growth inclusive.