IMPRESSIONS from a Cross-section

Fiscal deficit

* Accepts fiscal deficit target of 4.1 % of GDP for 2014/15. Fiscal deficit seen at 3.6 % of GDP in 2015/16
* Finance Minister says: "We cannot spend beyond our means". Tax-to-GDP ratio must be raised
Growth
* Aims for sustained growth of 7-8% in the next 3-4 years .Finance minister says he is bound to usher in policies for higher growth, lower inflation

Taxation

* Aims to approve goods and services tax by end of this year. Will not change rules on retrospective taxation
* All pending cases of retrospective tax for indirect transfers to be examined by a high-level committee before action is taken
* Proposes changes in transfer pricing mechanism. Extends 5 % withholding tax on corporate bonds until June 30 2017

Investment

* Raises limit on foreign direct investment in defence sector from 26 per cent to 49 per cent; raises FDI limit in insurance sector to 49%
* Earmarks Rs 7000 Crore to create 100 "smart cities". Will provide the necessary tax changes to introduce real estate investment trusts and infrastructure investment trusts
* Proposes Rs 4000 crore for affordable housing through national housing bank and extends tax incentives for housing loans

Foreign direct investment

* Raises limit on foreign direct investment in defence sector from 26 % to 49 %. Raises FDI limit in insurance sector from 26% to 49 %
Spending
* Capital outlay for defence raised by 50 billion rupees over interim budget .Earmarks Rs 7000 crore to create 100 "smart cities"
* Proposes Rs 5000 crore for warehousing capacity; 100 billion rupees of private capital for start-up companies; and 378 billion rupees of investment in national and state highways
* Rs 4000 crore for affordable housing proposed through national housing bank and extends tax incentives for housing loans. Proposes Rs 8000 crore for rural housing scheme

Investment

* Raises limit on foreign direct investment in defence sector from 26 per cent to 49 per cent; raises FDI limit in insurance sector to 49 %
* Earmarks Rs 7000 crore to create 100 "smart cities". Will provide the necessary tax changes to introduce real estate investment trusts and infrastructure investment trusts
* Proposes Rs 4000 crore for affordable housing through national housing bank and extends tax incentives for housing loans

As per the above mentioned points, there is a clear focus on  curtailing the Fiscal deficit  and emphasis is on infrastructure development in next few years. It is therefore a  strong indicator of the fact that budget is good from long term perspective.