The government has allocated Rs 2.1 trillion for food subsidy and Rs 730 billion for the MNREGA programme. While both these amounts are expectedly lower than the FY2022 levels, it will likely raise the allocation on these accounts if warranted during the course of the year
The government deserves praise for Budget 2022 that has significant announcements aimed at infrastructure development, inclusive growth, productivity enhancement, and impetus on digitisation opportunities
Even though the CBDC is going to be backed by blockchain technology, the virtual world is prone to cyber-attacks. If it is not accompanied by a robust IT system, the reliability will be severely affected
A change has been made in respect of dividends received from foreign companies. These were earlier taxable at a concessional rate of 15 percent. They are now fully taxable unless, of course, the receiving companies declare an onward dividend
As India is set to clock a growth rate of 9.2 percent, in Budget 2022 the Union Finance Minister goes with all guns blazing to create new smart urban cities that are also centres for sustainable living with opportunities for all
Budget 2022 is frankly underwhelming in totality when measured against what were the critical thresholds that needed to be accomplished
The five key announcements are: an increase in the PLI scheme outlay for solar manufacturing; a boost to the energy storage ecosystem; creation of climate financing avenues; welcome power sector reforms; and a continued focus on energy access via decentralized clean energy.
Thrust areas identified by the government in the Budget are forward-looking
Calculating the capex for roads after including the IEBR (market borrowings) and asset monetisation proceeds for NHAI, the total capital outlay is up only marginally
The government’s support for industry aims to solve several problems in one shot but much depends on companies’ risk appetite and demand assessment
Indian Railways should address capacity constraints as dedicated freight corridor aids freight traffic shift to rail
People were expecting more direct cash enhancement measures for the agriculture and rural belts, as growing joblessness and weak demand in rural belts is acting as a major drag on India’s economic recovery in the current phase
The rural economy is suffering, and if the government had announced something for that section, I think it would have given a strong signal
The path chosen is one of providing a sustainable growth push through investments in transportation, green energy and urban development
It is good to see that the government is not obsessing over fiscal consolidation, while juicing growth a bit in FY23
Measures such as battery swapping policy and special mobility zones will sustain demand for EVs that sparked with the FAME II policy
Unlike past exercises, this year’s budget is conservative on many counts, including growth estimates and expenditure projections. The government has also resisted the temptation, again marking a departure, to launch populist measures to coax voters
Government uses the Budget as an instrument of structural reforms
With a focus on EVs, solar power, renewable energy, startups and the defence sector, the finance minister has pressed all the right buttons for the market
India does not have enough domestic manufacturing capacity in solar modules and depends on imports. New incentives should help in building domestic manufacturing capacity
It appears the government has been very cautious, and conservative in calculating the tax for this year. The government could have made a more realistic assessment, and use that extra amount to give relief to people, which it has failed to do
Government borrowing is higher than expected. Does the market have the wherewithal to absorb this supply?
The main number that would be of interest to banks would be the deficit and borrowing of the government as that will shape the state of liquidity during the year
Putting climate action as one of the focus areas of the Budget is a major move, since the Budget should not only focus on economic development but also on sustainable development for securing the future of generations to come
What people allegedly had on their minds about the Union Budget, but wouldn’t dream of saying out loud
