Some of the provisions in terms of fiscal stimuli were good such as urban renewal, government spending, rural development, social sectors. It is also a positive that the excise duties and service tax have not been touched. The removal of surcharge on personal income tax was highly stimulating.
The increase in MAT is not good for Corporate India. The negatives include MAT, which has been increased by 5 per cent. Last year, MAT was increased from 7.5 per cent to 10 per cent and now from 10 per cent to 15 per cent. Companies who have invested in backward areas expecting tax benefit will lose faith in government as the increase in MAT will neutralise these benefits.
Another disappointment was no incentives for affordable housing. It would have been a win-win situation to encourage affordable housing. There would be increased revenues from steel sector, cement sector and related sectors.
Overall, it is a good Budget where consumption and demand will be up, benefitting the FMCG sector.