1) Adherence to fiscal discipline. Projects 3.5 per cent fiscal deficit for FY17
2) Higher spends on road infrastructure will improve supply chain efficiency and reduce the wastage of perishable commodities
3) Efforts to bring undisclosed income to tax base is a welcome step
4) Gross market borrowings are lower than market estimate. This may open up the possibilities for rate cut
5) Thrust on rural development, agriculture and doubling the farmers' income would boost rural demand.
6) Attempt to address pain points around tax dispute and uncertainty.Key Negatives:
1) Most substantive thing which could have positively turned sentiment would have been the fate of GST. However, not a single word on that
2) Less-than-expected support for banks' recapitalization has disappointed
3) Dividend over Rs 10 lakh will get taxed at10 per cent in the hands of recipient.
4) Cess of 0.50 per cent levied on all taxable services and all type of cars and SUVs between 1 per cent and 4 per cent