Apparently the 20 percent increase in the education outlay might seem impressive but the city based economists are apprehensive regarding the actual impact.

"The outlay of Rs 6000 crore (Rs 60 billion) is mostly designated for the development of the higher educational infrastructure like universities and specialised research institutes which is welcome, but there is hardly any emphasis on the primary and secondary levels which is by no means less important, as unless we bridge the gap between the primary and tertiary levels, the shortage of skilled manpower will remain," said Partha Pratim Pal, professor of Economics, Indian Institute of Management Calcutta.

According to the professor, the main problem before the service sector, which is seen as the main employment generating sector is the "employability" not simple employees.

"The dearth of skilled manpower is the biggest challenge. The labour absorption in the service sector depends on the possession of skills so there must be enough thrust at the grass root levels," Pal added.

However, Amitava Chatterjee, head of the department, Economics, Presidency College said the proposed six new central universities and other specialised institution would be of great utility only if the research is facilitated along the active collaboration of the corporate community.

"The increase in the universities across the country would help increase the research facilities as there is a lack of quality research in the country. This would be all the more useful if a partnership could be forged with the corporate sector which could be the main source of fund," he explained.

Chatterjee also called for the interconnection between the various knowledge-based institutions.

Regarding the debt waiver both the economists were of the opinion that since most of the poor farmers are out of the institutional finance sources like banks, the actual beneficiary is doubtful.

If the waiver fails to reach the poorest of the poor but lands up at the money lenders lap, then the utility from the scheme is nil, said Chatterjee.

According to Pal the scheme aims for a short term correction of existing fundamental disequilibrium in the rural economy.

"More public investment in the agriculture is required as a long term solution to this   fundamental disequilibrium," he said.

Meanwhile both the economists criticised the budget as it overlooked the reform measures.

The finance minister was silent about the economic reform, said Chatterjee during a seminar organised by the Institute of Chartered Accountants of India, Eastern India Regional Council.

"Be it a course correction or a populist shift but in order to meet the fiscal deficit the cut in capital expenditure is not ideal as it may enhance the existing infrastructural bottlenecks even further," Pal said.