Union Budget for 1995-96 was the fifth consecutive budget presented by Dr. Manmohan Singh, the main architect of India's recent economy policy reforms. Formulation of this budget was, however, a more difficult task than the earlier ones for various reasons. An attempt has been made in this paper to present a broad macroeconomic analysis of the main proposals and provisions of the Union Budget 1995-96 in the context of the stated objectives of the budget and examine the likely impact of the budget proposals on the economy especially in the short run.