Mr. Sanjay
Dutt, Executive Managing Director- South Asia, Cushman & Wakefield.
This budget has
followed a similar pattern of populism.
"Given the
political compulsions of heading into elections next year, the overall budget
focuses on the middle class and is quite populist in nature.
Additionally,the
Finance Minister Mr. P. Chidambaram was also constrained in meeting the
expectations of the international rating agencies, banks and financial
institutes by trying to reign in the fiscal deficit, whilst still trying to
promote growth through government spending. While the real estate sector had
outlined a number of demands, deep down most knew that the budget would mainly
focus on affordable housing, which was highlighted by the additional housing
loan interest deduction, increased allocation for rural housing loans and
introduction of funds for urban housing.
The budget has not
met the expectations of the developers and investors in the real estate
industry as it did not address their concerns on MAT and DDT taxation on
SEZs,recognition as an industry / or infrastructure sector, steps to reduce the
input costs and encourage more investments in real estate.
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