India's Budget

The Indian FM presented a largely bureaucratic and long winded budget.
Like a good , kind elderly man, he tried to give something to everybody although he raised service tax a bit to keep funds coming.

• He spoke of renewed confidence in the Indian economy which had brought in substantial foreign inflows. 
• The Rupee had grown stronger by 6 % against a basket  of currencies.
• Financial  inclusion had covered 125 million families  in the Government's recent drive. There was greater transparency, in bidding, procedure.
• He took the deficit funding route for scaling up investment in infrastructure.  
• He promised to build 6  million new toilets for the very poor;provided incentives to FIIs; he said he would not reduce but enhance allocation to poverty elimination schemes, 
• He reduced corporate taxes, 
• He increased tax benefits to middle classes; 
• He did away with the wealth tax; 
• Fiscal deficit expected at 3.9 % instead of at 3.6 % with the difference reportedly going to infrastructure. 
• Monetary Policy Committee set up to ensure inflation targeting. 
• Set up a bank for the small entrepreneurs of the weaker sections.

The Mumbai Stock Exchange which was overbought on expectations, seems to have expected more. There was volatility and then it fell steeply.  

The Government must look to structural reforms rather than financial sops if it is to achieve 8.5 % growth. 

Without any risk or responsibility