The Budget is a transparent and honest attempt to providing a fiscal stimulus through greater public spending in infrastructure and social sectors in these challenging times. Though the fiscal deficit is high at 6.8%, efforts towards fiscal sustainability will hopefully be facilitated through a simplified direct tax code, implementation of the GST by April 2010 and rationalization of petroleum and fertiliser subsidies.

Private consumption and consumer sentiment should also get a fillip with individuals obtaining tax relief through removal of the surcharge, higher exemption limits and the abolishing of the CTT and FBT. An important incentive to small entrepreneurs is permitting an exemption from maintaining books and advance tax and this should simplify the life of millions of small businesspersons.

The start of focus on the environment is also encouraging. And, it is most heartening to see that the needs of Mumbai are now being addressed with greater urgency, through greater allocations of the Rajeev Avas Yojana for slum free cities and storm water drains - a first step in improving the infrastructure of our city.