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January 31, 2022 / 11:02 PM IST

Economic Survey 2022 Highlights | How to read the Union Budget 2022: A beginner’s guide

Economic Survey 2022 Highlights: The survey announced that India's GDP growth in 2022-23 is projected to grow between 8-8.5 percent. However, this is based on the assumption that 'there will be no more debilitating pandemic related economic disruption, normal monsoon, significant withdrawal etc.'

Budget Session 2022 Highlights | The pre-budget Economic Survey, which is tabled in Parliament ahead of the Union Budget to present the state of the economy and suggest policy prescriptions, quite often misses on the GDP forecast, sometimes by a significant margin. This time, Finance Minister Nirmala

Sitharaman tabled the Economic Survey for 2021-22 in the Lok Sabha on Monday soon after the President's Address to both Houses of Parliament. She will present the Union Budget for the next financial year beginning April 1, 2022, on Tuesday.

One of the most-watched numbers in the pre-Budget Economic Survey, authored by a team led by Chief Economic Advisor (CEA), is the projection of the Gross Domestic Product (GDP) for the next fiscal. The previous economic survey was presented in the midst of the Covid-19 pandemic. The ray of optimism as the country recovers from the impact of the pandemic is likely to figure prominently in the current year's economic survey. However, various high-frequency indicators like GST collections and corporate profitability are pointing towards significant upward movement. The previous economic survey was presented in the midst of the Covid-19 pandemic.

Just days before the presentation of the Economic Survey, the government appointed economist V Anantha Nageswaran as the new CEA. Nageswaran, an academic and former executive with Credit Suisse Group AG and Julius Baer Group, succeeds K V Subramanian, who demitted the office of CEA in December 2021 after the completion of his three-year term. The Economic Survey for 2021-22 is expected to give a growth projection of around 9 per cent for the next financial year as Asia's third-largest economy is showing signs of recovery from the pandemic.
  • January 31, 2022 / 11:00 PM IST

    This live blog session has ended. Stay tuned to MoneyControl tomorrow for all actions and updates related to Budget 2022. 

  • January 31, 2022 / 10:38 PM IST

    Economic Survey 2022 Live | How to read the Union Budget 2022: A beginner’s guide

    Every year, the union budget invites a significant amount of noise, right from the speculations to very specific sectoral asks. Every year, it is a tightrope walk between limited resources and the ever increasing need for expenditure.

      

    The ground reality is that the Budget isn’t a festival of bumper-dhamaka offers. It is more like an annual conference, where the CFO gives an account of the finances. Transparency and credibility are key.  

    Therefore, even a non-event budget is a good budget. 

    For those of us who find the budget clamour too disorienting, here are the four simple things to look out for.

    READ MORE HERE

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  • January 31, 2022 / 10:10 PM IST

    Economic Survey 2022 Live | Why the Budget must incentivise millennial consumers

    Every sector of the economy from financial services to agriculture along with each and every market segment in between has its own set of budget wish-list. Yet, there is one group whose interests unite them all – consumers.

    The individual consumer has, on the whole, been through exceptionally trying times over the past two years, emotionally, physically and financially. India’s economic growth has been largely driven by this section of stakeholders.

    To ensure strong long-term growth, it is in the interest of all stakeholders to push for the consumer’s well-being, be it in terms of savings and investments to education and wealth. There are 440 million millennials, who make up 34 percent of the population and will be the driving force behind India’s growth over the coming decades.

    READ MORE HERE

  • January 31, 2022 / 09:49 PM IST

    Economic Survey 2022 Live | Market gains over 1% on Economic Survey takeaways, next stop Budget

    Indian equity benchmark indices erased losses of the previous two sessions to close a percent higher on January 31, the day the annual Economic Survey, released on the Budget eve, pegged the FY23 GDP forecast between 8 and 8.5 percent.

    After a positive opening, the market extended the gains in the afternoon trade, with the Nifty crossing 17,400 ahead of the Union Budget for the financial year 2022-23 which would be presented by Finance Minister Nirmala Sitharaman on February 1.

    At close, the Sensex was up 813.94 points or 1.42 percent at 58,014.17, and the Nifty was up 237.80 points or 1.39 percent at 17,339.80. 

    READ MORE HERE

  • January 31, 2022 / 09:44 PM IST

    Economic Survey 2022 Live | Govt sets up NLMC to fast-track monetisation of public sector entities' land

    The Economic Survey presented by Finance Minister Nirmala Sitharaman on January 31 said that the government has set up a National Land Monetisation Corporation (NLMC) to fast-track monetisation of land and non-core assets of public sector entities.

    "In pursuance of the Budget announcement, National Land Monetisation Corporation (NLMC) is being incorporated as a 100 per cent Government of India owned entity with an initial authorised share capital of Rs 5,000 crore and subscribed share capital of Rs 150 crore," the survey said.

    So far, central public enterprises have referred 3,400 acres of land and other non-core assets for monetisation to NLMC, the survey said.

    READ MORE HERE

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  • January 31, 2022 / 09:31 PM IST

    Economic Survey 2022 Live | FY23 growth expectations based on resilience of economy, says PEA Sanjeev Sanyal

    A quick revival in India's economic growth nearly two years into the Covid pandemic has boosted growth expectations even in an uncertain climate, Principal Economic Advisor Sanjeev Sanyal said on January 31. He added that most sectors were reaching pre-pandemic levels.

    Addressing the press after the latest Economic Survey was tabled in Parliament earlier today, Sanyal said growth expectations in the coming year is based on higher government spending, focus on fiscal stability, and a high forex reserve.

    While the newly appointed Chief Economic Advisor (CEA) V Anantha Nageswaran began his tenure on January 28, the latest survey has been created by Sanyal and team.

    Nageswaran said the overall theme of the economic survey has been on providing short-term support to vulnerable sections, during these uncertain times while keeping a firm focus on the medium-term fiscal stability and never letting go of the opportunity that a crisis provides to initiate structural supply-side reforms.

    The survey announced that India's GDP growth in 2022-23 is projected to grow between 8-8.5 percent. However, this is based on the assumption that 'there will be no more debilitating pandemic related economic disruption, a normal monsoon, significant withdrawal of global liquidity, average global oil prices in the range of $70-75, and global supply chain disruptions easing over time'.

    READ MORE HERE

  • January 31, 2022 / 09:11 PM IST

    Economic Survey 2022 Live | Here are list of bills likely to be taken up during Budget Session 2022


    I – LEGISLATIVE BUSINESS:


    a) The Warehousing (Development and Regulation) Amendment Bill, 2022
    b) The Competition (Amendment) Bill, 2022
    c) The Cantonment Bill, 2022
    d) The Indian Antarctica Bill, 2022
    e) The Emigration Bill, 2022
    f) The Pension Fund Regulatory and Development Authority (Amendment) Bill, 2022
    g) The National Dental Commission Bill, 2022
    h) The Identification of Prisoners Bill, 2022
    i) The Metro Rail (Construction, Operation and Maintenance) Bill, 2022
    j) The Mines and Minerals (Development and Regulation) Amendment Bill, 2022
    k) The Energy Conservation (Amendment) Bill, 2022
    l) The Constitution (Scheduled Castes and Scheduled Tribes) Order (Amendment) Bills, 2022 relating to UP
    m) The Constitution (Scheduled Castes and Scheduled Tribes) Order (Amendment) Bills, 2022 relating to Jharkhand
    n) The Constitution (Scheduled Tribes) Order (Amendment) Bills, 2022 relating to Tripura

    II – FINANCIAL BUSINESS:

    1) The Finance Bill, 2022

    2) Discussion and Voting on Supplementary Demands for Grants   for the 2021-22 and introduction, consideration and passing of the related Appropriation Bill.

    3) Discussion and Voting on Excess Demands for Grants for the year 2018-19 and introduction, consideration and passing of the related Appropriation Bill.

    4) Discussion and Voting on Demands for Grants for 2022-23 and introduction, consideration and passing of the related Appropriation Bill.

    5) Discussion and Voting on Supplementary Demands for Grants of Union Territory of Jammu & Kashmir for the financial year 2021-22 and introduction, consideration and passing of the related Appropriation Bill.

    6) Discussion and Voting on Demands for Grants of Union Territory of Jammu & Kashmir for the financial year 2022-23 and introduction, consideration and passing of the related Appropriation Bill.

  • January 31, 2022 / 08:58 PM IST

    Economic Survey 2022 Live | FY22 fiscal deficit target of 6.8% of GDP achievable, says Nomura

    While sharing the first insights on India's Economic Survey, rating agency Nomura said that FY22 fiscal deficit target of 6.8% of GDP is achievable. The agency added that this implies a strong rampup of public spending in the coming months, which should contribute to GDP growth. However they expect the a Budget which provides fiscal consolidation ‘in spirit’, but also focuses on growth ‘in intent', adding, the announcement of a fiscal deficit target of 6.4% of GDP in FY23 from 6.8% of GDP expected in FY22.

    It said, "Backed by strong revenue collection so far in FY22 and with the primary deficit trending at nearly half the level of FY19 ytd, the Survey believes that there is fiscal capacity to ramp up spending while achieving the fiscal deficit target."

    Apart from this Nomura noted that the Economic Survey has maintained that the government is looking to improve the quality of expenditure, with the focus on capex over revex, highlighting the former’s multiplier effect. It also highlights the government’s ‘barbell strategy’, under which it combines safety nets for the vulnerable on the one hand, and a tailored government response to evolving macro data on the other, Nomura added.

    India needs to invest around $1.4 trillion by 2024-25 in order to achieve a gross domestic product (GDP) of $5 trillion by 2024-25, even as scaling up investment in the sector remains a challenge, the Economic Survey 2022 said.

  • January 31, 2022 / 08:34 PM IST

    Economic Survey 2022 Live | India needs to invest $1.4 trillion by 2024-25 on infrastructure to achieve $5 trillion GDP

    India needs to invest around $1.4 trillion by 2024-25 in order to achieve a gross domestic product (GDP) of $5 trillion by 2024-25, even as scaling up investment in the sector remains a challenge, the Economic Survey 2022 said.

    India invested a total of $1.1 trillion on infrastructure fiscal years 2008-17.

    “The challenge is to step up infrastructure investment substantially.  Keeping this objective in view, National Infrastructure Pipeline (NIP) was launched with projected infrastructure investment of around Rs 111 lakh crore (US$ 1.5 trillions) during FY 2020-2025 to provide world-class infrastructure across the country, and improve the quality of life for all citizens,” the survey said.

    NIP was launched with 6,835 projects, which has expanded to over 9,000 projects covering 34 infrastructure sub-sectors. Between financial years 2020 to 2025, sectors such as energy (24 percent), roads (19 percent), urban (16 percent), and railways (13 percent) amount to around 70 percent of the projected capital expenditure in infrastructure in India.

    “It (NIP) also envisages to improve project preparation and attract investment, both domestic and foreign in infrastructure,” the survey said.

    READ MORE HERE

  • January 31, 2022 / 08:05 PM IST

    Economic Survey 2022 Live | India's GDP contracted 6.6% in FY21, lower than previously estimated

    India's Gross Domestic Product (GDP) contracted by 6.6 percent in FY21, according to the National Statistical Office's first revised estimate released on January 31. The revised estimate compares favorably with the provisional estimate of a 7.3 percent contraction, released in May 2021. The first revised estimate is compiled using institution-wise detailed data instead of the benchmark-indicator method, which is employed to arrive at the provisional estimate.

    Read more here

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  • January 31, 2022 / 07:57 PM IST

    Economic Survey 2022 Live | Government collects Rs 1.38 lakh crore as GST in January

    The goods and services tax (GST) collection crossed Rs 1.30 lakh crore-mark for the fourth time as the government collected Rs 1,38,394 crore gross GST revenue for January 2022, the Ministry of Finance said on January 31. Revenues for month of January 2022 were 15% higher than GST revenues in the same month last year & 25% higher than the GST revenues in January 2020, the ministry said.

    Read more here

  • January 31, 2022 / 07:45 PM IST

    Economic Survey 2022 Live | Govt sets up National Land Monetisation Corporation to fast track monetisation of land

    The Economic Survey presented by Finance Minister Nirmala Sitharaman on January 31 said that the government has set up a National Land Monetisation Corporation (NLMC) to fast-track monetisation of land and non-core assets of public sector entities. "In pursuance of the Budget announcement, National Land Monetisation Corporation (NLMC) is being incorporated as a 100 per cent Government of India owned entity with an initial authorised share capital of Rs 5,000 crore and subscribed share capital of Rs 150 crore," the survey said. So far, central public enterprises have referred 3,400 acres of land and other non-core assets for monetisation to NLMC, the survey said.

    Read more here