Ratings agency Moody’s Investors Service has maintained a Baa3 foreign currency rating and Ba2 local currency sovereign rating, which is non-investment grade, on India.

“This is clearly a growth-oriented budget and contains a slightly larger than expected headline deficit number, but it is broadly consistent with near-term stability in the government’s debt trajectory,” Aninda Mitra, a senior analyst at Moody’s, said.

This is largely based on the estimated fiscal deficit, which is expected to balloon to 6.8 percent of GDP, its highest in 16 years.

For latecomers, Indian Union budget was tabled on July 6, 2009 on the floor of Indian Parliament by the finance minister Pranab Mukherjee.

When Pranab, who is one of the most seasoned politician in Indian Political arena, was handed over the reins of sensitive Finance portfolio everyone was full of optimism. The government made all the right noises and everyone expected this budget to be the BIG B, an occasion which could catapult India to new horizons. A place from where the Chinese Dragon would pale in comparison. But unfortunately the event turned to be a non-event. With passing hints of reforms here and there, all that the budget offered was governments inclinations towards Social Reforms favoring its presumed electorate.

The government says budget is just summary of government’s earnings and expenses and it is not conjugated with daily ups and downs of the BSE Sensex; Rightly said, period… but is it fine to give market forces forces a royal ignore? Its easier said than done. Government needs funds for its ambitious social reforms and it seems to have none. Its 6.8 % down in the girth of borrowing and sinking deeper with each passing day. Everyone knows the money comes from Markets and Markets reflect the FII sentiments. If you plan to sell sick PSU, who buys them … the hungry farmers? No, sir; you come to markets. Why ignore such strong forces and then spend 2 weeks mending broken fences. Markets don’t need government to do much. They don’t want Pranab to run aircraft companies, make breads, produce T.V. shows etc. People want government to govern and regulate. And you can always trust the government to do just opposite.

Again, I have maintained a 5/10 rating the budget. At-least, government didn’t do anything something stupid by trying to do too much and ending up shooting itself in foot. Pranab just didn’t do anything. He made budget a non-event which should be. But then why hide such a useless piece of paper with great zeal. If its just an expense sheet release it like economic survey document.  Pranab should have come to TV channels and dropped in what is going to be and not going to be on the budget.

People had such great expectations out of budget and by the look of how market has reacted, one would say curiosity killed the cat.