'I expect a policy for the capital markets'

Rashesh Shah, Managing Director and Chief Executive Officer, Edelweiss Capital Ltd, says the Budget is important not for the specifics, which change regularly, but because it is a policy statement of the government. "There is always a 'theme' in the Budget that is keenly watched by foreign and domestic investors."

"I expect the fiscal deficit to be kept under control. The Common Minimum Programme will put a pressure on curbing expenditure. If the fiscal deficit is not kept under control, interest rates and inflation will shoot up."

"I expect a definite policy for agriculture, the capital markets and the public sector. The Budget is actually an aspiration, but real world compromises have to be made."

"This year the Budget is important because the capital markets are in a wait-and-watch mode. The Budget does not affect long-term investments, it only affects the short-term investors."

"(Finance Minister) P Chidamabaram's track record is impeccable. He is frank and transparent. He always lets the market know what he is going to do. The P Chidamabaram-Manmohan Singh combination is as good as it can get."

"He will pour funds for infrastructure development, which will generate employment. The next step would be for health and education which are long-term investments to improve the productivity of the country."

- As told to A Ganesh Nadar

Photograph: A Ganesh Nadar

Budget 2004-05: Complete Coverage