Incorporation of a taxpayer charter in the laws is a positive step and message, that rights of taxpayers are respected and honest taxpayers need not worry about procedures or tax harassment. With regard to individual tax regime, we need to wait and observe whether and what proportion of taxpayers opt for the reduced tax rates, and what effect it has on the savings culture of households.
Disinvestment is going to be a major factor: IPO of LIC and selling stake in IDBI Bank are bold steps. It makes sense to fund productive investments like infrastructure through such resources. Overall it is a commendable effort not to stray too far from the path of fiscal discipline despite the increase in allocations.’