What can we expect after drama happened after railway budget ? I have never seen so defensive budget in last 10 years. Nothing for common man. Tax benefit which is given by increasing tax slab is nullified by increase in service tax & excise duty. This will help inflation to move upward.
There is no word on banking, insurance reforms. Decision on FDI in retail, aviation sector, DTC, GST implementation will be done after consultation with allies, so there will be delay. No decision on reducing oil & gas subsidy.
There are some positives like reduction in STT on cash delivery transaction. New ELSS tax deduction in the name of Rajiv Gandhi, but details are not yet clear. Duty on energy savings lamp & bicycle is reduced.
I think this was the last chance for Congress to deliver something on economic front before 2014 elections which they have lost. It will be difficult to take tough decisions in 2013 budget.
Market need to wait for next move from RBI's decision on interest rate which is depend upon inflation data. This budget has not anything to worry but it has disappointed by not taking big decisions.
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