For the global economy, Budget 2022 has brought its own set of problems. The continuing epidemic, geopolitical tensions, inflation, and tapering measures have contributed to an unpredictable situation with several hazards.
Budget 2022 Highlights
During this volatile period, India, on the other hand, has shown signs of recovery, with real GDP growth of 9.2% in FY22 and foreign reserves of $634 billion, both record highs.
However, the budget deficit and inflation continue to be significant concerns. Budget 2022 continues to boost growth by making India more inclusive, sustainable, and clean.
The Gati Shakti plan aims to bring various infrastructural engines together in sync. In contrast, data interchange between multiple operators via a single interface is envisaged to allow smooth and efficient products transportation.
The budget also emphasizes energy transition and climate action, with measures like clean and sustainable mobility, promoting energy efficiency and savings, increased allocation for solar power under the PLI scheme, and the issuance of green bonds expected to help India achieve its goal of becoming carbon-zero by 2070.
The government has intended to boost the outlay of effective capital spending to 10.68 lakh crore, which is around 4.1 percent of GDP, in line with the idea of enhancing economic resurgence and consolidation through the multiplier impact.’
Additional loan lines are being sought to alleviate liquidity difficulties in the MSME sector.
A higher allocation would boost consumption to capital spending.
There is also a continuous focus on affordable housing, with a budget of 48,000 crore, which contributes to the government’s inclusion strategy.
The budget aims to boost the recent manufacturing boom by expanding the PLI plan to include 5G telecom infrastructure and extending the time limit for newly established enterprises to begin production.
The startup ecosystem has also benefited from the lengthening of the deadline for taking advantage of tax holiday benefits and the decrease of the levy on long-term capital gains.
crypto-assets in the tax system
Crypto assets have now been included in the tax system. The government also plans to launch a digital currency shortly. It is believed that digital money will not have any underlying or inherent value while the concept is being developed.
There have also been some blunders. Changes in personal taxes and measures such as decreased input prices, mainly imports, would have encouraged consumption.
Overall, it is a forward-thinking budget with a long-term goal of consolidating the capital investment cycle and building the groundwork for a new India.
Edited By- Kritika Kashyap
Published By- Satheesh Kumar
