InternetServices

Overall, the Union Budget 2007-08 has not thrown out any surprises, except in some pockets. The budget has come very much on the expected lines to the extent that it was expected to be basically a growth-driving project.

More importance has been laid on agriculture which has regained a laggard all these years when the economy is growing at a clip of 9% the finance minister has done well by giving a lot of thrust on agriculture. The farm investment will go up by 2% of GDP-a substantial amount in that. The FM has also given a lot of focus on social sector spending by rising the spending on education across all levels and the health sector.

In a bid to further boost the infrastructure sector, he has raised the allocation for bharat nirman yojana which is a clear positive in more roads being other infrastructure areas like power have got a solid thrust from the FM.

The focus on technology upgradation and higher allocations for the hospitality industry and tourism are also positives for the ovreall infrastructure. In a bid to keep the rural indian in focus he has targeted to expand the rural telepohony to 20,000 more villages, he has also started a novel concept of issuing rural bonds.

In this efforts, he has reduced customs duties on many non-farm equipment. Measures like tightening control over the price raising mechanism of cement companies ,and reduction of excise on certain essential goods will also to a long way to contain inflation.

Although the FM was expected to leave more money in the hands of common salaried individuals by raising the exemptions on personal income front, the FM has raised the IT exemption threshold limit to Rs1.1 lakh for normal people, Rs1.45 lakh for women and Rs 1.90 lakh for senior citizens. Tax exemption under sec 80C has been increased to 1.1 lakh and exemption on medical insurance has been raised to Rs.15000 from Rs.10000.

Overall the budget has been growth driven and will ensure the sustained growth of the economy. Market has just reacted negatively but the story remains intact. Market corrected mainly because of the sentiments and not due to fundamentals.

we could surely expect our investments to grow by 20-25% at the same time next year. Those interested in buying shares can surely cherry pick some stocks at this market level since one can't expect to hit the bottom always while buying caps are available at discounted rate.

Market is surely not cheap but investors can look at some large funds at this time. Systematic investment has always been my most preferred investment strategy.

It's the best time to start planning for next year by staring sip in else schemes. one would get a good average cost since the market will always be volatile in coming days. Those who have already planned for it can go for other open ended schemes.