Budget 2008 is undoubtedly based more on political considerations than on economic rationale. Reduction in excise duty on two-wheelers by 4 per cent coupled with reduction in central sales tax by 1 per cent will give a boost to the two-wheeler industry, which is recording negative growth during fiscal 2007-08. But the benefit may not reach the buyers.

Waiver of farmer loans will not only erode the bottom line of lending institutions but also send wrong signal that the country encourages defaulters.

D.S. Manjunatha, Deputy General Manager (Materials), Bill Forge Pvt Ltd, Bangalore