This year is election year and the last budget this Government would be presenting. What this budget would present to a common man?

Before guess-estimating lets have look on various ruling factors:

1.    The Ruling Congress would be in minority in Rajya Sabha in April because of expiry of term of some members.
2.    Congress has lost most of the state and Bye elections.
3.    US recession and its likely impact on Indian markets.
4.    Rise in value of rupee hitting Indian exports
5.    Compulsions of populism politics

Secrecy of the budget has been hall mark of PC Chidrambaram. No body has been able to successfully anticipate the budget. However, all these factors combined lead to following likelihood of announcements:

-    Housing Loan incentives could be improved as the current real estate prices have gone through the roof;
-     Some minor tax incentives for salaried man and some for the small business man given the populism of politics;
-    Reduction of stamp duty on real estate transactions, reduction of capital gains tax;
-    Incentives for infrastructure sector. Housing industry may get industry status;
-    Relief for agriculture sector in some form as concessional interest or any thing else
-    Release of 6th pay commission report to appease salaried class
-    Toughening of penal provisions against tax evaders
-    More transparency in income tax return forms
-    Excise Sops for pharmaceutical, telecom sector
-    Lowering of taxes. Surcharge/ Education Cess may go
-    New investments arenas as tax free bonds with lower rate of interest. This would help cash strapped government fund its requirements.