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Suman K Bery Director General, NCAER

Even though I think the fiscal deficit target is likely to be met this should have been the time to encourage banks to look more aggressively at corporate lending. As for the farm credit waiver, I don’t know who is going to pay for it but it will be unfair to those who are trying to honour their debt.

K C Chakrabarty CMD, Punjab National Bank

The fiscal performance is quite reasonable. The government has been able to meet the FRBM target because of the buoyancy in tax revenues. As far as the farm credit waiver is concerned, if the government wants to do it, we are with it. It is positive for the banks as it will reduce our NPAs.

Rajiv Kumar Director and chief executive, ICRIER

The fiscal and revenue deficits are the government’s achievements. It’s a hugely growth stimulating budget and provisions like central excise duty cut will increase demand and consumption. Revision in the structure of direct taxes will increase the disposable income at the hands of salaried, which will further boost consumption.

Abheek Barua Chief economist, HDFC Bank

The fiscal and revenue deficits are pretty much in line with expectation. Fiscally, I don’t think it’s a great situation as there can be overrun in these ratios because of the implementation of the pay commission recommendations and a rise in the off-balance sheet item because of the compensation of loan waiver to banks through bonds.

Nilesh Shah Deputy Managing Director, ICICI Prudential

Budget 2008 can be termed as a budget focused on consumption growth couple with inclusive growth. It has tried to create a balance between urban and rural population covering various stratas of society. Increased tax to GDP ratio from 9.2 per cent to 12.5 per cent indicates increased mop up and success of a variety of initiatives undertaken in this direction.

Sudip Bandyopadhyay Director and CEO, Reliance Money

Stability in tax rates is very critical as it impacts market participants. Increase in short-term capital gains tax will not have much of an impact. It will only result in an immediate market reaction. The introduction of commodity transaction tax is also a negative.

Ajay Bagga CEO, Lotus India AMC

The excise cuts are positive for auto and two wheeler segments and the price reductions to consumers should have some demand impact. Pharma companies will welcome the halving of excise. The oil and gas sector will benefit from the removal of advalorem duty and its replacement by a specific tax. This is a positive move for the future.

B Muthuraman Managing Director, Tata Steel

The Budget is marginally positive for steel sector. Reduction in the peak excise duty and reduction of duties on project import will have positive impact on steel and other capital oriented industries. Reduction of customs duty on steel-melting scrap will not have any impact on Tata Steel.

Sanjay Sinha CIO, SBI Funds Management

One of the most prominent initiatives is the attempt to revitalise the bond markets by proposing the launch of interest rate and currency futures. The key negative is increase in short term capital gain tax which could impact volumes. Another negative is no change in corporation tax and surcharge.

Sunil mittal CMD, Bharti Enterprises

We are optimistic about the budget, but with caution. We are pleased customs duties have been kept the same, excise duties have been reduced and there is added concentration on manufacturing. The FM has been bold on personal tax. However, corporate India, which was hoping for reduction on corporate tax, is disappointed. One did not hear anything on the PPP front.

Malvinder singh CEO & MD, Ranbaxy

Reduction of custom duties on life saving and bulk drugs and lowering of excise duties on goods produced in the pharmaceuticals sector will benefit patients. The FM has kept in mind global competitiveness and acceptance of Indian Pharma industry by incentivising sponsored and outsourced research efforts through the 125 per cent weighted deduction.

SP Hinduja Chairman, Hinduja Group

This is a progressive budget and is expected to bring in “all-inclusive” growth. The challenge will be monitoring and implementation of the schemes, where large sums of money are being pumped in. Although there has been no incentives provided for the NRIs in this budget, we are happy to see that the recommendations of IndusInd International Federation have been accepted in one form or the other.

Masahiro Takedagawa President and CEO, Honda Siel Cars India

We wholeheartedly welcome the 10% excise duty reduction on hybrid cars. It would encourage manufacturers to bring in environment friendly cars with advanced technology. However, we would request the government to re-look the definition of small car because we feel that it is the size of the car and not engine displacement which should decide the small car criteria.

Sumit Banerjee Managing Director, ACC

On core manufacturing sector there does not seem to be any significant thrust in the budgetory provisions or taxation proposals. Cement, which is already among the most highly taxed, has received some more indirect tax loading by way of hike in Cenvat rates for clinker and bulk cement.

Shikha Sharma Managing Director, ICICI Prudential Life

We wanted a separate section to encourage long-term savings, but it did not happen. However the government has shown interest in long term savings by increasing the short term capitals gains tax which is a welcome relief. But overall it is a good budget.

Vikas Vasal Executive Director, KPMG

Short term capitals gains tax will hardly hit the investor since most investors stay invested for over 12 months. However the budget is positive as the tax liability has been brought down which will bring in a relief of Rs 4000 and upwards.

Bert Paterson MD, Aviva Life Insurance

The budget, this year, is yet another lost opportunity for the insurance sector. We hoped for a distinction between short-term and long-term savings instruments under Section 80C. Instead, asset management services for ULIPs have been brought under the service tax net, which could have an adverse impact on long-term savings.

Ameet Patel Partner, Sudit K. Parekh and Co

So far we have not heard of any reverse mortgage scheme being sold primarily because the tax treatment was not clear. With clarity coming through we should have more of these products hitting the market

Amar Pandit Mumbai-based financial planner

The finance minister has done a good balancing act. Even though there has not been a drastic change, the relief is prominent through alterations in exemption limit and tax slabs. The only prominent hit is the increase in short term capital gains tax to 15 per cent.