FM has maintained balance between fiscal consolidation and driving growth: The intention to push through the Parliament a number of pending bills (GST, DTC, Insurance, PFRDA etc.) and move towards direct transfer of cash subsidy in fuel and fertilizer for people below poverty line is a positive step. I would like to commend FM on reducing the fiscal deficit to 4.5%. It appears to be based on a very modest rise in government spending for the next year. He has maintained a balance between fiscal consolidation and driving growth, in spite of all the constraint. The intention to push through the Parliament a number of pending bills (GST, DTC, Insurance, PFRDA etc.) and move towards direct transfer of cash subsidy in fuel and fertilizer for people below poverty line is a positive step. Allowing FIIs to invest in MFs directly is innovative. I think the devil or angels are in the details so they need to be studied. The Budget however, lacks clarity on any specific measures to curtail black money. There was neither any significant movement on reforms nor any big ticket idea, to catalyze growth. There seems to be a continued tendency to tinker at both indirect and direct taxes and increase in excise duties that will have a negative impact on prices of goods. Overall, a practical budget though a bit timid on giving any direction on further reforms, but given the constraints did not expect anything better anyway. From a life insurance perspective The budget did not outline anything on a separate tax exemption limit for life insurance. We expected a separate limit of Rs. 50,000/- for the life insurance premium, apart from the deduction u/s 80C of Rs. 1 lakh and Rs. 20,000/- for Infrastructure bonds. Availability of separate tax exemption for life Insurance premium would have encouraged penetration of a long-term product such as life insurance. Currently, the total tax savings such as PPF, Life insurance premiums, PF contributions, National Savings Certificates etc are covered under Rs. 1 lakh limit u/s 80C of the Income tax Act. The time limit of 8 years is available for carry forward of tax losses, the same should have been relaxed for life insurance companies, since this Industry has a very long gestation period of 8 to 10 years. However, that did not happen. There are changes proposed in the levy of service tax payable by insurance companies. On both conventional plans as well as ULIPs, increased service tax becomes effectively borne by the policyholder.