While the revenue enhancing measures were a positive, the lack of expenditure reforms especially on the subsidy front was a bit of a let down.
The government also seems to be relying on one time items like divestment and excess spectrum/ 4G auctions to reign in fiscal deficit. As expected there was adequate focus on supporting investment demand especially in the infrastructure space.
While the expectations from the budget were a bit muted after the state election results, expectations escalated in the run up to the budget with the railway budget acting as a positive precursor. The fact that the next budget in 2013 would be presented in the backdrop of the 2014 general elections also increased reformist expectations from this budget. Overall the budget turned out to be a careful balance between fiscal and political compulsions.
