This being the last Budget before general election looks very interesting. People are expecting it to be a populist Budget. But looking at the history of Chidambaram it appears that this should be a populous Budget with sops to restart infrastructure cycle and reforms to control fiscal deficit.
Although, it would be a difficult task for this government to please its allies, regain confidence of public and win heart of foreign investors fraternity at the same time. But they have no choice as it's a do or die situation for them. I expect an increase in surcharge for income above 50 lacs, increase in excise duty for diesel passengers cars, reduction of excise duty on three wheelers automobile.
Import duty on petrol and diesel to be brought down to zero, interest payment exemption for home loan to be raised to three lacs, short term capital gain tax for stocks to be abolished. Rajiv Gandhi savings scheme to be made more lucrative. Extension of benefits and fresh sops for Power and Infra projects.