Reacting to the budget proposals, the Prime Minister Dr. Manmohan Singh said it will pave the way for faster and inclusive growth of the economy. He said, cutting subsidies to 2 per cent of GDP was important and government will have to adjust the prices of petroleum and other relevant products. When asked whether the cutting subsidy proposals have the backing of UPA allies, Dr. Singh said, the government take them on board for sustainable economic growth.

Several Union Ministers have hailed the budget proposals. The Congress said the budget proposal of continuing with interest subsidy for short-term crop loans will go a long way to boost rural economy. Party Spokesman Manish Tiwary said the government has endeavoured to emphasise on those areas which can return the country's economy towards high growth path.

The main opposition BJP termed the budget as disappointing. Party leader Shah Nawaz Hussain said that the common people have been burdened by indirect taxes.

Sitaram Yechury of the CPIM described the budget as pro-rich and anti-poor. He said common man already reeling under high rate of inflation will face more problems. Yechury said it is not the right approach to control fiscal deficit.

CPI leader Gurudas Dasgupta termed the budget as directionless and will not help in turning around the economy.

BSP leader Vijay Pratap Bahadur described the budget as urban oriented. It will lead to hike in the prices.

The BJD leader Kalikesh Singhdeo said that Finance Minister has missed an opportunity to come up with bold reforms as well as have an inclusive growth in rural India.