The party, which came to power in 2004 after disenchantment with the previous government's failure to spread prosperity, finds itself in a similar corner as voters complain they are not benefiting from record economic growth, analysts said.

The coalition has promised investments in education, health care and the farm sector in its annual budget.

But the results are not expected in time to boost its chances in the 2009 national polls. As a result, the ruling coalition is expected to resort to populist measures and put off tough economic decisions.

"I think this government is in serious trouble," said Mahesh Rangarajan, an independent political analyst. "This is a budget of a government on the retreat. It was brilliant political grandstanding with no content. They're very worried."

The Congress-led coalition, which depends on Communist allies for its survival, has made growth the centrepiece of its agenda, as Asia's fourth-largest economy expands at around 9 percent, its fastest rate in 18 years.

However, much of this growth has been concentrated in the industrial and service sectors, leaving out millions of rural poor.

The expansion has resulted in higher inflation as supplies failed to keep pace with demand and infrastructure such as ports and power has struggle to cope.

Prices of everything from wheat to vegetables have soared, triggering public discontent and panic among politicians who have to fight three more state elections this year, 10 in 2008 and national polls due in early 2009.