Budget 2016: Where it surprised, where it disappointed

Finance Minister Arun Jaitley presented his Union Budget in Parliament today.

 Where Jaitley Surprised

•    No increase in Service Tax
•    No changes to Long Term Capital Gains tax on equities
•    Redressal mechanism for infrastructure projects
•    Stayed with the fiscal consolidation road map
•    Steps to open up the road transportation sector (abolish permit raj over time)
•    Reduced corporate tax for new companies
•    High net worth dividend earners (earning more than Rs 10 lakh as dividend income) to pay additional 10 percent tax
•    STT increased
•    Domestic tax amnesty scheme announced

Where he disappointed

•    Not a bold budget
•    No out of the box measures to boost growth
•    Public sector investment may not be enough to kick start the investment cycle
•    Just Rs 25,000 crore for PSU bank recapitalisation; seen as inadequate
•    No major announcement on banking sector reforms
•    Infra cess on cars (they will now turn costlier, especially diesel cars which carry a higher cess)
•    No across the board reduction in corporate tax that was keenly anticipated
•    Divestment target on the lower side, raises concerns about revenue mobilisation
 
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Budget 2016: Where it surprised, where it disappointed
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