Budget 2015 low on big bang reforms; real estate only an indirect beneficiary

In this year's budget, the Finance Minister has conveyed a message wherein the benefits lie only in the fine print. For the common man, though the cumulative savings implied by various provisions are stated to be to the tune of Rs. 4.44 lakh, this is assuming a certain magnitude of personal investments into pension funds and health insurance.

The budget has not provided any additional relief via increased income tax deduction limit or on repayment of housing loans. The regime on these fronts, which was announced during the previous budget from eight months ago remains unchanged. This is a disappointment, since there were expectation that the Finance Minister would further increase either or both of these limits and thereby address the reality of high property prices in India.

The budget is low on big bang reforms and real estate is only an indirect beneficiary at best:

Smart Cities: The budget did not provide any details on this initiative taken by the Government. Factors such how it will define these cities and which cities have been identified remain unclear. However, increased allocations for rail-road development, penetration of education and training centres and towards the Digital India initiative could contribute to the shaping of Smart Cities in the country.

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