The tax on dividends on equity mutual funds will not discourage equity mutual fund flows. Shift of savings into financial instruments is here to stay. Investors will gradually move to growth option and choose systematic withdrawal plans if in need of regular cash flows.
Circle rate relaxation of 5pc will still prohibit/limit genuine commercial real estate transactions as the circle rate and market rate difference is very high for some parts in cities like Mumbai and Delhi. More could have been done in this regard.
The grandfathering clause on Capital Gains is a masterstroke and hence markets did not see any panic selling post introduction of LTCG on listed equities. The health insurance scheme to cover 10 crore families is a fantastic initiative. Fiscal deficit number is a disappointment. The already roiled bond markets continued to be under pressure. One-fourth of financing needs of corporates to be met from the market will increase supply further.