Everything you need to know about the Union Budget for 2022

All eyes will be on how the Center balances populist initiatives while treading the tightrope of fiscal consolidation when Union Finance Minister Nirmala Sitharaman presents her fourth Union Budget for the upcoming financial year tomorrow.

According to analysts polled before Tuesday’s release of the country’s federal budget, India, which is on track to reclaim the title of world’s fastest-growing major economy, would emphasize growth above fiscal reduction by increasing expenditure.

Budget 2022: What to Expect

• Personal taxes is one of the most eagerly anticipated announcements in the annual union budget. According to certain observers, the finance minister may offer significant tax relief for taxpayers.
• The basic exemption level would be increased from 2.5 lakh to 3 lakh, as part of the anticipated relief. It is expected to be hiked to 3.5 lakh from the current 3 lakh for older folks. The top salary bracket, which is now set at 15 lakh, is also expected to be raised.
• The fintech sector emphasizes the importance of fiscal and non-fiscal incentives in promoting financial inclusion and moving away from a cash economy.
• Fintech companies and experts have encouraged Finance Minister Nirmala Sitharaman to decrease TDS rates, claiming that doing so will free up cash for the sector while having no impact on government income.
• According to analysts, the next Budget should prioritize environmental, social, and governance (ESG) concerns by giving tax and non-tax incentives to boost the green economy.
• The CII has proposed that new incentive rates depending on the amount of jobs generated be incorporated in the Production Linked Incentive Schemes.
• Individual taxpayers expect more spare cash in their hands to invest and spend more, while Indian corporations await some important pronouncements that will enable them to reset their growth goal.
• In the forthcoming Union Budget, the government should consider giving healthcare priority status and raising public spending on the sector to at least 3% of GDP.
• In light of the ongoing epidemic, the tourist industry is expecting tax relief in the next Union Budget 2022-23.

Tomorrow, the Cabinet will convene to adopt the Budget for 2022.

The Union Cabinet will convene at 10:10 a.m. on Tuesday to finalize the Union Budget for 2022-23.

Finance Minister Nirmala Sitharaman will submit the Union Budget 2022-23 in a paperless format for the second time on February 1 after receiving cabinet approval. Last year, for the first time, the Union Budget for 2021-22 was given in a paperless format.

According to the Secretariat, Finance Minister Nirmala Sitaraman will lay the Economic Survey 2021-22 in Lok Sabha on January 31, and she will introduce the Budget on February 1 at 11 a.m.

The House will meet from 4 p.m. to 9 p.m. from February 2 to February 11. During the first portion of the Budget Session, five hours have been set aside for each sitting.

According to the Secretariat, during the first half of the budget session, there will be two key items of business: a debate of the Motion of Thanks on the President’s Address and a general discussion of the budget.

In FY23, India’s economic growth is expected to decrease to 8-8.5 percent

 As it battles a surge in coronavirus infections and growing inflationary pressure, India has expected its GDP would grow 8% to 8.5 percent for the fiscal year beginning in April, down from 9.2 percent projected for the current fiscal year.

According to the government’s annual economic assessment released today, all macro indicators suggested that Asia’s third-largest economy was well-positioned to tackle difficulties, aided by improved agriculture and industrial production increases.

Finance Minister Nirmala Sitharaman presented the report to parliament.

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