Slamming the government for pursuing "directionless" economic policies, opposition BJP said the budget has no big ticket measures despite the UPA having no road blocks for reforms.

Finance Minister Pranab Mukherjee on Tuesday said the government has taken the calculated risk of high fiscal deficit to help stimulate growth, but would strive hard to bring it down to 4 percent in the next two fiscals.

The USA-India Chamber of Commerce has said the annual budget presented by the Finance Minister Pranab Mukherjee is a massive piece of fiscal stimulus which would spur growth and employment in the country.

India Inc on Monday cautiously welcomed the Union Budget as a "job well-done" in trying conditions, but investors reacted sharply to the high fiscal deficit.

The IT industry on Monday hailed the government's decision to extend the tax holiday to the software export units by another year, and abolition of FBT, giving much-needed relief to the slowdown-hit sector facing contracted orders and sharp earnings fall.

State-owned Oil India Ltd and NHPC Ltd will hit the capital market with their initial public offerings in August and September, Finance Secretary Ashok Chawla said on Monday.

The Indian auto industry, which has been struggling hard to emerge from the sluggish market conditions, on Monday said that continuation of CENVAT cuts in the General Budget 2009-10 is a good step, but added that there could have been some incentives for exports.

Budget Speech of Finance Minister Pranab Mukherjee.

With an aim of fast-tracking procurement of defence equipment, the government on Monday steeply hiked the budgetary allocation for defence to Rs 1,41,703 crore, a 34 percent increase over the previous fiscal.

Prime Minister Manmohan Singh on Monday said the Union Budget 2009-10 is aimed at minimising the "impact of the global recession" and achieving 8 to 9 percent growth in the medium term.

Following are the highlights of Budget 2009-10.

In a pro-poor, pro-rural budget, Finance Minister Pranab Mukherjee on Monday raised personal income tax exemption by at least Rs 10,000, abolished IT surcharge and Fringe Benefit Tax, while focusing on jobs, cheap food for poor and loans for farmers.

The government on Monday announced loans at a subsidised interest rate of six percent for farmers who pay their dues in time, which is one percent less than what others would get.

Union Finance Minister Pranab Mukherjee presented the Budget for 2009-10 in the parliament on Monday and said 'Aam admi' would be the prime focus of government's programmes and schemes.

Tax payers may get more sops in the Union Budget for investment in housing and infrastructure schemes and Finance Minister Pranab Mukherjee may make popular proposals to hearten the investors and industry on Monday.

Plan expenditure may see a quantum jump of about Rs one lakh crore due to likely increased allocation for the UPA's flagship programmes such as NREGA, Bharat Nirman as well as concessional foodgrains to the poor.