On coming Monday, Finance Minister Pranab Mukherjee will present the Union budget of more than Rs 12 lakh crore or over $270 billion. It has been foreseen that Mukherjee will present a much improved budget this time.

The most anticipated factor of this budget is the tax liability. The finance minister is expected to lighten the tax burden for those with an annual income of Rs 5 lakh by Rs 7,660 a year in this budget. It will compensate the increase in cost of living due to a huge spike in inflation in last few months. Now the higher income group may save more. The income tax slabs were changed in the financial year 2010-11 for the last time. Now it will amplify even more.

Meanwhile, at present the crude oil prices are floating at $120 per barrel and chances of further increase in this commodity prices is quite possible. The great chaos in Libya and Egypt is spreading to the rest of West Asia and North Africa as well.