The broad economic themes in this Budget are very good. The Government has committed to reduce the deficit to 3.6 per cent by the next year, and to 3 per cent the following year, which in my view is the single biggest highlight. This will go a long way towards controlling inflation, which is the top priority today. Fiscal prudence will also help put the economy on a path to 7-8 per cent annual growth. The second key message is the Government’s commitment to introducing the Goods and Services Tax to replace all the hodgepodge of State taxes. This is a crucial step to promote interstate commerce, and increase the mobility of goods, services and people across state borders. I am impressed with the Government’s commitment to do away with retrospective taxation, and the increase in foreign direct investment limits in various sectors. These steps will greatly improve investor confidence, stabilise the rupee and bring foreign investment into India, and create millions of jobs. My feeling is that this Budget is long on goals and short on specifics, but that is only to be expected from a Government that has only been in office for two months. I didn’t expect a ‘big bang’ of reforms just yet, but am confident that we will see fundamental changes in tax and governance under this Government.

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