The budget continues along the path that the previous budgets of the UPA government have set out on. It was the banking sector which led the pre-budget recovery. Once the source(s) of funds for the loan write-offs becomes clear, the impact on banking sector might not be so severe. The other proposals which may seem negative for the market at first glance - like the hike in short term capital gains - will be accepted without much ado by market players. A great positive is that the government is focusing more on tax compliance than increasing tax rates. Using PAN is an effective tool in this regard.

Rating : Not Rated