Hey guys, Welcome to FactsMinister. Today we are going to talk about the Budget 2022. And what can we expect from it?
On February 1, 2022, Indian Finance Minister Nirmala Sitharaman will present the Union Budget for FY22-23. We expect India’s forthcoming Budget to aim to reconcile short-term fiscal demands with structural reforms to enhance medium-term growth as we enter the third – and presumably final – year of COVID disruption.
Here are the top five things we can expect from this year’s Budget 2022. :
- In the immediate term, we can expect considerable welfare spending to be a fiscal priority. In light of recent farmer protests and upcoming statewide elections in February, the government can use its good income performance to maintain critical social benefits. Food and fertiliser subsidies have been a lifeline for the most needy people hit hardest by the pandemic, and job guarantee schemes have helped to boost domestic demand. As a necessity, these projects should be continued.
- We anticipate that the finance minister will look for ways to increase the economy’s medium-term growth potential. New policies should ideally focus on encouraging exports and domestic investment to take advantage of global structural shifts such as rising real wages in other regions of Asia and shifting trade and investment patterns.
- We anticipate a larger MGNREGA budget as well as a similar urban poor scheme. MSMEs, which have been impacted by the epidemic and are clearly the economy’s job-creating machine, require special attention.
- We anticipate a major focus on investing and rewarding capital spending in healthcare at CII. If you exclude last year, when the majority of expenses were spent to avoid COVID infections, healthcare spending is around 1.2 percent each year. There is a need to increase this from 1.2 percent to 2.5 percent per year in a phased manner programme. We should use this money to build and update our public healthcare infrastructure, as well as upgrade and improve primary care clinics’ efficiency.
- We expect a significant emphasis on capital spending will boost the country’s economic potential and generate millions of new jobs each year. According to the Reserve Bank of India, capital expenditures promote GDP growth more than any other area of government spending. Last year’s 25% increase in the capital spending budget was a solid start that should be up with a similar increase this year.
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