The budget is expected to balance between social orientation and growth; as well as fiscal prudence. Greater allocation to infra, healthcare and education spending is likely to continue. Considering the large capital requirements going forward, opening up of several sectors to attract FDI / FII investment can be expected. 2% hike in excise and service tax is expected post 4% cut in excise through Stimulus I and II. Some benefits in personal income tax, increase in exemption limit of home loan interest and schemes to divert investment into infrastructure, are also expected. A tax amnesty scheme could be considered in the budget to address fiscal deficit. We anticipate the Finance Minister to indicate a clear way ahead that will lead to sustainable economic growth. The fiscal deficit is cause for concern and should be reigned in. While the Union Budget 2009 might appear to have several disappointments, it is expected to be a healthy one for the long term
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