Pranab's Budget for Aam Admi

Pranab Da's second full Budget in 25 years, true to his party's tag line -- Congress Ka Haath Aam Admi Ke Saath -- the Budget had a clear focus: Put money into the hands of those who voted them to power.

"It's a recognition that the UPA has come back to power because of their flagship programmes like the NREGA; there is also the pressure to pursue neo-liberal reforms," said Sitaram Yechury, CPM leader.

Clearly, for the Congress, the Aam Admi makes for good politics as well as good economics. The Congress got the numbers after programmes like NREGA became a hit.

Pranab's Budget for Aam Admi

And so a whopping 144 per sent increase in the allocation for NREGA -- from Rs 16,000 to 39,000 crores -- and also a hike in the daily wages under the scheme to 100 rupees.

The farmer loan waiver has been extended for six months and a taskforce will be set up to study private moneylenders.

The Budget also saw the announcement of Sonia Gandhi's another pet project, the ambitious Food Security Bill -- under this every BPL family will get 25 kgs of wheat or Rice for 3 Rs a kilo every month.

But many ask where is money coming from, to this the finance minister laid out his earning plans.

Divestment of PSUs to public

• Rs 35,000 crore from 3G spectrum auction
• Minimum Alternative Tax up 5%
• Higher tax collection

But despite being free of the Left, the government chose to strike a cautious line on reforms. So, no big bang announcements on disinvestment on the financial sectors, no relief to corporates in taxes. In fact, MAT was increased.

It's a fine balancing act, increased social sector spending is an acknowledgment of the role of the Aam Admi in brining UPA back to power, but at the same time by talking about fiscal discipline and disinvestment it has also signalled that UPA has not abandoned the path to economic reforms.