The budget, whose impact comes on all that is involved in the Indian economy. Whether it is about the industries or the roadside vendors, the budget is such an event that influences the entire business.
Know about the expectations of Union Budget 2022.
What are the expectations from the 2022 budget
The expectations for the 2022 budget to focus on the following area:
- Increase the deduction of section 80C and examination of housing loan repayment.
- Upscaling will be done for infrastructure spreading and sector momentum.
- Government can reduce the tax rate or increase the income tax slab.
- Tax relief will be provided to individual taxpayers.
- The revival of the residential real estate sector will be continued.
- Spending on infrastructure such as roads, railways, etc. will be increased up to 25%.
- The support provided to the rural economy will be maintained.
There are some economic concerns that the government can address in Budget 2022:
- Rise in interest rates
- Rise in inflation
- High current account deficit
- High fiscal deficit
It is expected that the fiscal deficit and the current account deficit will remain high, as the government is currently doing public spending. It can do more, whether it is in the form of relief programs or infrastructure-building.
Some such majors can also be introduced in the 2022 budget which will control the rising interest rate because growth and economic recovery slow down significantly due to the high-interest rate.
Inflation is also increasing in India, so the government can reduce the tax rate or increase the income tax slab.
The government can also increase the deduction of section 80C and examination of housing loan repayment.
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There are expectations of getting some relief on dividend taxation as well.
Simultaneously, the government may rationalize capital gains across multiple asset classes and there are expectations to remove the STT (Security Transaction Tax) tax as well.
Apart from this, it is also being expected that GST will also be removed on the services used by the common man.
The reason behind all these steps is that more money should be kept with the taxpayers so that consumption and investment can increase in the country.
In addition, a dedicated tax examination is expected on emerging needs such as tax breaks for employees doing work from home, tax relief on investments in children’s education, etc.
It is being expected that the ongoing relief programs like MGNREGA, PM Kisan Yojana, and Farm loan waivers will be kept continuously so that the people of the rural region continue to get benefits.
The spending on electronic infrastructure such as roads, railways, etc. will be increased from 20 to 25%.
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Along with this, more attention will be given to green energy and alternate fuel. For financing this painting, tax is expected to be increased on certain goods.
Along with this, it is also being expected that the government will push privatization more. Diversification in state assets and state own enterprises will also be given more attention.
These steps will generate additional funds for the government.
Manufacturing sector
To make India a global manufacturing hub and fulfill the vision of a self-reliant India, the government can bring more schemes, with their help, other sectors will also be addressed.
Affordable housing plans like PM Awas Yojana will be kept on hold as the real estate sector has been hit hard due to covid-19.
So according to our analysis, these were some of the major things that we can expect from the 2022 budget.
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What is Union Budget
Union Budget is the annual budget of India. The Government of India presents it every year on 1st February so that it can be materialized before the new financial which starts in April.
Therefore, this year also, on February 1, 2022, at 11:00 PM, India’s Finance Minister Nirmala Sitharaman will introduce the Union Budget 2022-23.
The Union Budget will be broadcast live on Lok Sabha TV and social media channels such as YouTube and Twitter. The economy has been hit hard due to the pandemic and there are a lot of expectations from this budget to get it back on track.
There are also some traditions related to the Union Budget, earlier it was announced on the last working day of February at 5 pm.
In the year 1999, the Government of India made a slight change in the timing to 11:00. Then in 2016, the Government of India changed the budget day to February 1.
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This article is only for education purpose and the author has his own views and research, so if you invest in these stocks then do it at your own risk and do the research yourself before investing.
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Budget 2022 Expectations: FAQ
The expectations for the 2022 budget to focus on the following area:
Increase the deduction of section 80C and examination of housing loan repayment.
Upscaling will be done for infrastructure spreading and sector momentum.
Government can reduce the tax rate or increase the income tax slab.
Tax relief will be provided to individual taxpayers.
The revival of the residential real estate sector will be continued.
Spending on infrastructure such as roads, railways, etc. will be increased up to 25%.
The support provided to the rural economy will be maintained.
Union Budget is the annual budget of India. The Government of India presents it every year on 1st February so that it can be materialized before the new financial which starts in April. In the year 1999, the Government of India made a slight change in the timing to 11:00. Then in 2016, the Government of India changed the budget day to February 1.