The Indian Liberal Group was a think tank founded in 1964 by Minoo Masani, to promote the liberal point of view and educate the public on the concept of libertarianism and defend the fundamental values. This text is titled “The Liberal Budget 2006-2007” and covers the third Liberal Budget which was released three months ahead of the Union Budget for the year 2006-07. The text has a total of five chapters. Chapter first titled “Assessment of Economic Reforms” covers the political and economic background of India’s Economic Policy Reforms and the principal message of the Reforms. Further the chapter discusses the Domestic Sector, the External Sector and its principal achievements, Qualitative dimensions, and the role of the Left-Parties. Chapter titled “Retrospect on the Central Budget 2005-06” talks about the pressures of fiscal constraints, how liberal perspective supports substantive reforms and distortions in key budgetary Data. Chapter titled “The Strategic Framework of the Liberal Budget 2006-07” discusses growth, poverty reduction and employment generation and a seven point strategic framework. The chapter also talks about disinvestments and privatization of PSEs and ends with concluding observations.Chapter titled “Structure of Central Government Expenditure” covers the important components of expenditure, composition, and efficiency of government expenditure. The last chapter explains the reforms in Tax policy and Tax administration.