BB Bhattacharya, director, Institute of Economic Growth

The common universal programme had four points of emphasis: sustaining higher growth, accelerating agricultural growth, generating employment and achieving social development through education, health care and nutrition.

The budget has tackled two of these issues. It has given recognition to agricultural growth and social development.

However, it does not give much tax benefit, instead it tries to reduce fiscal deficit. The only major tax measures are raising the exemption limit to Rs 100,000 and increasing the service tax from eight to 10 per cent.

However, the government expects a better tax compliance and also greater credit to rural sector.

Krishnamurthy, Vice-Chairman, JM Morgan Stanley

The finance minister has presented a pro-reform budget with increased focus on social sector, while giving positive signals for investment (in agriculture and infrastructure) led growth and investor sentiment.

The biggest positive for domestic investors is in the removal of long-term capital gains tax on securities and reduction in short-term capital gains tax to 10 per cent.

However, it is probable that at the same time, the volumes in the secondary market may be impacted by the transaction tax of 0.15 per cent. There is need for clarification on the applicability of this tax on the government securities market.

Foreign investors who were waiting to get a clearer picture of government policies should react positively to the increase in overseas investment limits in telecom, insurance and civil aviation.

The raising of FII limits in the debt market to $ 1.75 billion from the earlier limit of $ 1 billion, and the simplification of registration procedures are the other positives.

The government's willingness to sell down its stake in the public market (up to 49 per cent) is also a clear indication of being flexible in divestment.

The government's decision to leave small-savings rate unchanged was also on expected lines. However, given the large misalignment of the small-savings rate from the market rates, I would say that it would be prudent for the government to sooner or later come up with a solution.

Naina Lal Kidwai, Deputy CEO, HSBC India

The FM needs to be commended for limiting fiscal deficit to 4.4 per cent of GDP. The revenue arithmetic may appear slightly stretched but limited increase in expenditure and good growth will keep fiscal deficit in check.

The FM has been careful in providing sops without impacting the finances significantly as seen in the increase in income tax slabs and removal of excise duties on tractors.

Steps such as the rise in FDI in telecom, civil aviation, insurance and statements in favour of FII investments are positive.

A beginning has also been made in divestment by approving a 5 per cent government stake sale in NTPC and setting up of Board for Restructuring of Public sector enterprises.

The equity markets have been disappointed by the imposition of a transaction tax. Higher focus on agriculture, education and health are laudable.

However the devil lies in the detail of implementation and ensuring benefits accrue to those for which it is intended.

Shikha Sharma, CEO&MD, ICICI Prudential Life

The Budget's main thrust was broadly as expected, and in line with the Common Minimum Programme, the pleasant surprise came in the form of onlya marginally higher overall tax burden - both direct and indirect, which is largely contrary to expectations of industry and market.

While small savings rate has been maintained at the earlier level, we look forward to a rationalisation of the same, as mentioned by the finance minister, in the next Budget.

The liberalisation of the insurance sector has thus far been handled very well. The world over, pensions have been driven by tax exemptions.

It is only such measures that will encourage the majority of people, who have no secure savings for their retirement, to build a substantial retirement kitty.

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