Budget 2022: Emphasis will be on infrastructure development, but no relief expected on tax front – Report
No special relief is expected for the common man affected by Corona in this budget. Due to the fiscal situation, the government is unable to provide relief on the tax front.
On the tax front, there is no hope of relief for the individual.
Nirmala Sitharaman challenging budget on February 1Budget 2022) to present. According to a Reuters report, the government’s emphasis in the budget will be on infrastructure development. According to official sources, in this budget, there is no provision for the corona affected common man. special relief is not expected. Asia’s third largest economy is expected to grow at 9.2 per cent in the current financial year (2021-22). At the same time, the growth rate has been projected to be 7.3 percent in the next financial year. The report states that private consumption accounts for 55 percent of India’s GDP. The problem is that still private consumption has not reached the previous level of Corona. The main reason for this is that the debt burden on the household is increasing continuously. Apart from this, inflation is increasing continuously due to which the spending capacity has decreased.
This budget will be presented just before the assembly elections to be held in 5 states. This includes states like Uttar Pradesh which is very important for the Centre. Apart from this, elections are also going to be held in states like Uttarakhand, Punjab. In such a situation, it is more likely that Finance Minister Nirmala Sitharaman should focus on rural India. More can be spent on food and fertilizer subsidies. Analysts say that an increase of 12-25 per cent is possible in the budget for transport and healthcare.
Emphasis will be on increasing investment
An official told Reuters that the emphasis will be on increasing investment to revive the economy. There is less chance of any change in tax for individual and corporate. The debt burden on the government is increasing continuously, while there is a continuous decline in private investment. In such a situation, the government can expand the PLI scheme to increase private investment. This will help in generating employment.
There will be emphasis on the development of roads, highways and railways.
In this budget, the government will do 25 percent more capital expenditure. Under this, more will be spent on the development of roads, highways and railways. Nomura analyst Sonal Verma has said this. Talking about the fiscal deficit, the government can keep this target at 6.4 percent of GDP for the financial year 2022-23. This target for the current financial year is 6.8 per cent. With this, the government’s market borrowing will increase to 13 trillion.
No big target for privatization
Regarding privatization, it was said that the government will not set any big target regarding privatization in the budget 2022. This target for the current financial year is Rs 1.75 lakh crore. The government has been missing this target for the last three years.
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