The budget is released just days before elections in four states, including Uttar Pradesh.
Nirmala Sitharaman’s Union Budget 2022: It’s unknown whether she’ll tinker with income tax rates.
New Delhi, India: Budget 2022 will be announced soon by Finance Minister Nirmala Sitharaman. She is anticipated to increase infrastructure expenditure, but budget limits leave little room for pandemic-affected households to receive concessions.
Here’s a 10-point summary of the story:
- As the economy recovers from the worst recession since independence, the budget for the fiscal year beginning April 1 is expected to reveal measures to boost growth beyond 2019 levels.
- Although it is unclear whether Nirmala Sitharaman would change income tax rates, many will expect that the 2.5 lakh exemption ceiling will be increased in light of the rising prices of everyday products.
- The government’s annual economic survey released a day before the budget, predicted that India will lead the globe in economic growth at 8-8.5 percent and that it would have room to spend more.
- The budget was released just days before elections in Uttar Pradesh and four other states, sparking hopes for increased rural and agricultural expenditure.
- The GDP of Asia’s third-largest country is expected to grow 9.2% in the fiscal year that ends in March, following a decline of 7.3 percent the previous year, but the recovery is expected to slow.
- Ms. Sitharaman is widely expected to continue pushing for large-scale spending with the aim of increasing investment and jobs in order to get the GDP to $5 trillion by 2025.
- Experts anticipate a bigger allocation for roads, railroads, and water as part of efforts to spend more on infrastructure.
- Tax compliance, simplification, and digitization, as well as ease of doing business, are expected to be prioritized, as are small business support initiatives.
- Tax collections are expected to be strong next year, and an aggressive disinvestment strategy could help keep the fiscal deficit under 5%.
- On the back of buoyant tax receipts, restrained spending, and faster nominal GDP growth, the fiscal deficit is forecast to be 6.3 percent this year, lower than the projection of 6.8 percent.