Overall economy lead comments
- Good budget focusing on propelling investments, increasing liquidity and catalysing growth
- Clarity has been provided for the direction of the next 2 to 3 years in terms of fiscal deficit and growth
- Focus of ease of doing business. Rationalising the AIF norms and the permanent establishment norms is proof of the same
- Reduction in corporate tax from next year onwards for 4 years and concomitant reduction in exemptions is a very positive and transparent move 5. More could have been done on the personal taxation front
For housing
- Positives are clarity on rationalsing capital gains on REITS
- Clarity on increasing housing stock to 2 crore houses in urban and 4 crore houses in rural areas
- However some of tax sops on housing loans which would spurred demand in short to medium term are absent
Overall a good budget for the economy but lukewarm for the housing sector in the immediate terms. But given that housing growth has a high correlation with economic growth, housing sector will definitely benefit in the medium to long term.
