Financial sector experts, in their initial reactions to the Budget, have described it as a "positive and pragmatic" one.

The Sensex zoomed over 350 points backed by strong technicals and a friendly budget which focused on maintaining growth and reducing fiscal deficit.

"The budget is a big positive in terms of controlling fiscal deficit--from 5.5 per cent to 4.8 per cent to 4.1 per cent. Besides, the market also found positive the Government's net borrowing target of Rs 3,45,000-crore (gross Rs 4,50,000-crore)," banker and financial sector expert Uday Kotak said.

The Goverment's borrowing programme is in line with market expectations, he said, adding that the budget has also been "very, very benign on taxes."

The Government's borrowing programme is in line with market expectations, he added.

Enam Group's Chairman, Vallabh Bhansali, said that the Government's announcement that banking licences would be considered for NBFCs and the private sector, is "a big announcement and very welcome."

"It is a very balanced budget with a spirit of pragmatism and boldness," he said.

IDBI Fortis Life Insurance's Managing Director & CEO, G V Nageswara Rao, said that for most people, the budget should be net positive.

"The Finance Minister has reduced the income-tax burden on the middle-class significantly by increasing the slab limits for lower tax brackets. Additional tax deduction has been introduced for investment in infrastructure bonds," Rao said.

However, there would be a general increase in prices of all manufactured goods because of increase in excise duty on goods as well as petrol and diesel. "So one hand gives, while the other takes it away, but for most people it should be net positive," Rao said.

The Government's focus on expenditure management was very welcome, he said.

"Control over fiscal deficit comes more from containing expenditure. Even more commendable is making the deficit more transparent by not issuing oil or fertiliser bonds," Rao said.