“The FM has tried to strike a balance between the imperatives of reducing the fiscal deficit and the need to increase public investment for kick-starting the investment cycle. The budget proposed to increase public investment in road and railways. Tax free infrastructure bonds in rail, roads and irrigation has also been proposed as has a national investment infrastructure fund. Given the govt itself needs to take charge in investments, the FM delayed fiscal deficit target of 3% by one year. The investors and credit agencies may not take it negatively as the fruits of increased investments will be much higher in the long term.”