Pointers to the budget

Rural focus

Major focus on farmer indebtedness. Price Risk Mitigation Fund for farmers on anvil. A cess is not ruled out

Learning curve

Announcement of Rashtriya Madhyamik Shiksha Abhiyan, aimed at universalisation of access to and improvement of education at secondary stage.

FRBM woes

Sufficient hints that zero revenue deficit by 2008-09 may not be achieved. FM could announce a pause in FRBM target for revenue deficit


Inflation worries

Narrowing gap between real interest rates in India and US. Therefore, softening rates unlikely to be a budget priority. Bias in favour of inflation control pronounced

Core sops

Investments in infrastructure may get tax breaks

Debt move

Measures to deepen debt market


Futures bright

Strengthening of commodities futures market after recent law to give FMC more teeth. No mention of relenting on ban for commodity futures trade

Labour gains

Further encouragement of foreign exchange
outflows likely, given greater inflows and low real absorption of foreign investment.

Power play

Permitting private companies to invest in nuclear power, subject to regulation by AEC and AERB