Makarand Padalkar, CFO, iflex  Solutions      

Mumbai: iflex CFO Makarand Padalkar says that the overall budget is ''neutral to positive'', and the finance minister has done a fine job of balancing a long-term growth perspective with political and social needs.

Padalkar says the budget recognises the importance of a knowledge society, and the necessity of moving India from the analogue to the digital world. It also promises a more 'inclusive' digital future, and a reduction in the digital divide.

The allocation of substantial funds for various education schemes, and the opening of three new IITs will help the IT industry to get qualified manpower from Tier 2 and 3 towns and cities.

The use of smart cards for disbursement of funds makes for good e-governance, and should help minimise leakages in disbursements. The buoyancy in tax collection has encouraged the finance minister not to impose any substantial new taxes.

However, Padalkar said, the application of service tax on custom software is a major issue, as it will potentially lead to a lot of domestic income coming under this taxation regime. He believes this can substantially raise costs for customers, and has a pressing need for clarity as it can potentially lead to multiple instances of taxation by state and central authorities.