Union Budget 2015: Arun Jaitley hasn't let us down, this is a budget worth remembering

Has Jaitley’s second budget lived up to expectations? The answer should be a cautious yes.

While the big ticket investments needed to revive growth have been limited by the need to keep the fiscal deficit roadmap on course, there are major changes in taxation and other areas that are truly reformist.

The FM has focused on showering small benefits to the aam aadmi and the rural poor - which will be seen as populist. The income-tax exemption limit remains as before at Rs 2.5 lakh, but deductions for medical spends, pension savings and travel have been increased to provide relief.

The big changes are for business: not only has Jaitley promised a reduction in the top tax rate to 25 percent in four years, but he has simultaneously promised to reduce the major tax breaks. This means, next year’s budget will also be watched with anxiety, and the reduction in the Minimum Alternate Tax will have to wait till then.

The abolition of wealth tax makes a lot of sense, but an inheritance tax - to ensure inter-generational equity - has not been contemplated. The tax on the super-rich, those earning more than Rs 1 crore of taxable income, is good for optics, since it soaks some of the rich.

The law changes to penalise holders of domestic and foreign black money are a political necessity. How it works depends on what kind of stick Jaitley ultimately tries to wield.

The shift in the fiscal deficit roadmap over the next three years gives Jaitley space to invest in infrastructure.

Net-net: Jaitley has not let us down. This is a budget worth remembering.