I can only compliment the Finance Minister for producing an excellent budget! The risk he took last year has proved well calibrated as fiscal deficit is restricted to 6.9% in FY10 and predicted at 5.5% in FY11. It is no mean achievement in the wake of the stimulus and huge certain concessionary schemes. I am specially enthused by his eye for detail. Items which may look trivial, actually are well researched for a long term positive impact. Though miniscule, allocation of Rs 200 crores for Climate Resilient Agricultural Programme or allowing 5 more Mega Food Parks are representative examples. The allocation of Rs 66100 crores to rural development and Rs 25000 crores for developing rural infrastructure are music to my ears. His proposal to increase subvention from 1% to 2% for timely repayment of crop loans is a very positive step towards creating a good credit culture as he is not rewarding the defaulters. Yet another perfectly timed proposal is to augment the assistance to Regional Rural Banks since efficient and transparent credit delivery is as important to the agricultural sector as any other tool and RRBs are one of the strongest channel. I am also impressed by his attention to the basic social infrastructure and allocation of Rs 3675 crores for primary education at rural level and a total social sector spending of Rs 1,37,000 crores are very focussed steps. Likewise higher allocation for Micro Finance Development and Equity Fund is introspective. Finally, the bold announcement of opening up of banking sector to NBFCs and private players and doubling the disinvestment target to Rs 50,000 crores, not to mention Rs 1,73,000 crores for infrastructure deserves accolades from all quarters. And I am not even talking here of individual tax payers being happier!Rajesh Srivastava, Chairman, Rabo Equity Advisors
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