The finance minister of India, Nirmala Sitharaman will present the union budget 2022 on February 1. From 31st January onwards budget session would be started. Amid all this, the new variant omicron has caused a huge ravagement on the mind of people across the country. These variant cases have forced more States to impose localized restrictions.
Once the third wave passes in the first quarter of the next financial year, it is being assumed that the economy will get a boost again.
Right now some of the thoughts are scraping every Indian mind like: Will this budget session provides relief to the ongoing omicron outbreak? Will the Indian economy be impacted again due to this outbreak?
And many more thoughts…
To all this outrage the Finance ministry in November guaranteed that the economy would be less struck this time, through the policy support by RBI and excessive vaccinations speed. Thus, these successful vaccination programs brought back the consumer’s faith in the market.
The increase in revenue collection under GST was 25% higher in November 2021 than in November 2020. Overall, 27% higher than the year 2019-20. During this omicron outrage, the elections are also being planned across 5 states. Thus, these events provide an optimistic vision towards the union budget for 2022.
Predicted Highlighted areas in the upcoming annual budget 2022 :
In the upcoming budget session, the infrastructure would be highlighted area. As the government continuously focuses on boosting consumption by keeping the interest rate low. Programs such as “Pm Gati Shakti Yojana “is a major booster for the upcoming youth of India. These programs will support them amid the commotion of omicron. When it comes for the furtherance for the farmers reduction in the exercise duty on petrol and 2 times less on diesel is been executed. The condition of the manufacturing market is also getting better thus providing an increase in the employment rate. A well-ordered work from home culture has also been incorporated effectively. Hence, resulting in more productivity from the employees.
Also read: WHY WAS ANNUAL BUDGET 2021 UNIQUE?
Here’s a little glimpse of what different sectors are expecting from the next fiscal year:
- Hospitality sector: This sector aims for an interest-free loan, subsidies, and a reduction in taxation rates. Also new schemes for promoting tourism due to the after-effects of Covid.
- Health care sector: The health care sector expects the government to allocate more funds for developing resources for monitoring the genome-related health status of the whole population. Hence, developing genome mapping projects in the aspect of the public-private partnership. Also, the deduction limit is expected to increase in section 80 D, which covers medical insurance premiums paid.
- Real estate sector: The real estate sector aims to get mobility in the projects that are being stuck in the past time. Also a deduction in TDS from 10 % to 2% in coworking space. The GST abandonment is also being expected on raw materials like cement, and on under-construction projects which will help to recover the affected real estate sector. Moreover, incentivizing private investment in the affordable housing sector will also be one boosting factor.
- Service sector: The Bombay Chamber of Commerce and Industry (BCCI) recommended a concessional rate extension of 15% for the manufacturers to be available for the service sector also.
- Businesses: All the micro, small and medium enterprises expect financial support from the government. Thus, looking forward to the redesigned GST rate structure in a more simplified manner.
The budget session will surely have some major announcements in regards to the taxability of cryptocurrencies in India. The cryptocurrency bills are the longest awaited in the queue for passing the regulatory compliances under the direct and indirect tax laws. The Crypto industry expects the government to include crypto assets for the existing tax laws.
- Textile Industry: The high-level export cost of cotton is the major cause of the increasing price of cotton. The textile sector expects the government the introduction of export duty on cotton. So that they can have an eye on the price of cotton. Along with this removal of a 5% import duty will help them to increase the import of cotton as the price will be stabilized through this.
Binding up altogether as, one country residents expectation from the union budget 2022 we can say :
Different sectors have different expectations from the upcoming budget session. All in all, aiming towards better success in their sectors and more relief after being stabbed hard by the previously implemented lockdown restrictions. Though this third wave is expected to be less mild than the second wave. With the continuous vaccination programs and different Yojana programs such as Pradhan Mantri Garib Kalyan Yojana, Atmanirbhar Bharat Rojgar Yojana for creating employment for the underprivileged people persist in India. It is predicted by India’s Economic Advisory in the year 2022-23, a growth of 7% to 7.5%.
Stay in tuned for the budget sessions update !!