There are no major negatives with the budget. It is broadly on expected lines, and there are major surprises either way. The numbers for the fiscal deficit are more realistic than they were for the last year, and with the rise in excise duty and service tax rates, should not be too difficult to get to.

The government has to focus on keepings its expenditure close to the budgeted number, with about 9-per cent increase built in the non- plan expenditure figure. The breaks given to the infrastructure sector and companies are welcome. 

The opportunity for FIIs to invest in domestic corporate debt is a positive, and may lead to a deepening of the bond market.