BUDGET PROS AND CONS

PROS:
Women now have access to a one-time new small savings program called Mahila Samman
Saving Patra. The interest rate for this is fixed at 7.5%.
The government's proposal to raise the income tax rebate limit from ₹5 lakh to ₹7 lakh in the
new tax system will be a huge relief for the middle class and all tax payers in the nation.
Many initiatives have been proposed in the areas of technology, digital services, artificial
intelligence centres, physical and digital libraries for kids in rural areas, and intellectual
infrastructure for modern India.
With this new budget, the government also plans to spend around ₹10,000 Crores annually
for urban infrastructure development. Further, funds will also be allocated for digital public
infrastructure for the agricultural sector which is likely to promote the agriculture industry
and further support agri-startups by young entrepreneurs. 
Fifty tourist spots will be chosen, and complete packages for both local and international
tourism will be prepared, which will further boost the tourism industry.
For the skill development of the youth, the government has introduced Pradhan Mantri
Kaushal Vikas Yojana 4.0, and also proposed a plan to establish thirty Skill India
International Centres in various states.
Green development has been given a special focus. It indicates that sustainable real estate
development has now been recognised as the wave of the future in real estate. The
introduction of an institutional mechanism in this field is a step in the right direction.

The increase of rural infrastructure funding will help alleviate the burden on urban areas by
boosting development in rural areas and therefore reducing migration to the urban cities, and
the burden on urban infrastructure.

The raising of allocation for the Bharat Nirman Yojana to Rs 31,280 crore is a step forward.
We can anticipate increased supply of land across all sectors of real estate as a result of this
investment in infrastructure, which will open up large parcels of land for development in the
mid-to-long term.

Commercial space will benefit from the fact that there is a focus on national knowledge
centres.

The special focus on education and healthcare is encouraging. It will have a positive impact
on the inherent value of townships developing in many parts of the country.

Value for the real estate sector in the fact that a 5-year tax holiday has been granted to Tier
II/III city-based hospitals and 2/3/4 star hotels in UNESCO-specified heritage districts.

The Budget is good news for Tier-II and Tier-III cities, where infrastructural development
will ensure that they continue to boom.

CONS
The financial expert said, "One negative is the 16% tax increase on cigarettes, which might
have been increased to 33% to deter consumers from using the products as they are one of the
main cancer-causing factors."
Though there are six tax slabs, it may not be beneficial for all taxpayers if the income-tax
authorities decide to do away with the old regime completely.
The industry expected that service tax on rent would be scrapped.

No specific direct benefits available for the retail industry in this budget. However, reduced
overall taxation in various areas will result in higher disposable incomes and will have some
positive effects for this sector.

Short term capital gains tax has been raised to 15%. This will not have a significant
bearing on future investments in real estate, which in any case is not a suitable route for
investment horizons below 3-5 years.

The budget seems to have overlooked affordable housing in urban areas.

No decisive announcement has been made on the extension of the STPI scheme which is
discouraging. It is also of definite concern to IT/ ITES occupiers and developers, given that a
large number of SEZs will take beyond March 31, ���09 to be fully functional.