ON a first reading, it may appear that the Union government's Budget for 2008-09 is very different from the neoliberal Budgets of the last decade and a half or more. The Budget speech contained an announcement of loan waiver for small and marginal farmers and 25 per cent write-off for all other farmers on loans owed to banks and cooperative credit institutions, the quantum of waiver being estimated at Rs.60,000 crore. This step was estimated by the Finance Minister to benefit approximately four crore farmers. The Budget proposals on income taxes increased the minimum income level at which the income tax kicks in to Rs.1,50,000 from its current level of Rs.1,10,000, and lowered rates of income tax for the income brackets from Rs.1,50,000 to Rs.5,00,000. These tax concessions would result in a reduction of tax liability for persons earning Rs.5,00,000 and above to the tune of nearly Rs.50,000. There was also a lowering of Cenvat from 16 per cent to 14 per cent and reduction in excise duties for a number of commodities. These measures were promptly read by most commentators and the print and electronic media as signifying an early general election. The usual characterisation of any pro-poor measure as