I rate Union Budget FY 10 as a balanced budget, which is high on the vision and provides the roadmap of Government priority in the second term. FM's commitment to restore the growth rate to 9%, in my view, is the highlight of the budget. The FM has clearly acknowledged the need for more private sector participation and has talked about the Government's focus in removing bottlenecks for investments and projects. The Government's performance in the past gives us confidence that various ministries and departments will work towards achieving this growth target. Government's commitment to introduce GST (Goods and Services Tax) by 1st April 2010 is indicative of its desire to reform the indirect tax system. Similarly, introduction of new direct tax code and making it open for debate makes Government's commitment to reform the direct tax system apparent.

As mentioned by FM in his speech, the budget has to be seen in the context of the measures already announced and I am sure there will be several other measures that Government will announce progressively, to ensure that the economy returns to the 9% GDP level at the earliest.

Personally, I would have been happier to see a more elaborate disclosure of Government's medium termplan including dis-investments, subsidies and controlling Government's administrative expenditure. These initiatives are critical in managing the fiscal deficit and restoring fiscal discipline in Governmentfinances.

Industry was expecting a drop in corporate tax rate or atleast abolition of surcharge. No change incorporate tax has disappointed the industry. However, the fact that Government has almost left indirect taxes untouched is not disruptive and should be seen as positive.

The budget has increased significant allocation towards infrastructure including the JN National UrbanRenewal Mission (JNNURM) and on highway spending. This is a move in the right direction and I believe we need to continue to allocate significant material resources in this area for the next decade. FM has tried to boost the rural economy by announcing several measures including broad basing National Rural Employment Guarantee Scheme (NREGS). Hopefully, with monsoon reviving, the rural economy will again be the key driver for the overall growth.

I was also expecting introduction of incentives in the form of Investment Allowance for large and mega projects. India needs significant capital formation in the manufacturing and infrastructure sector and under the current economic conditions, the Government should encourage capital spending in large projects which can be globally competitive. Therefore I hope that FM will expand the investment linked incentives across sectors where large capital outlays are required and not restrict it to only few industries. There is nothing in the budget, which helps the steel industry directly although other growth measures may have indirect effect on the steel demand.

On specifics, abolition of FBT, abolition of surcharge on personal income tax and increase in exemption limits of personal income, though marginally, are welcome moves. Similarly, extension of tax holiday to export oriented units by one year would be helpful although I believe extension could have been granted for longer period.

B Muthuraman