Union Budget 2022!! Yes, it’s that time of the year when the finance minister of our country, Nirmala Sitharaman, is all set to present it in the Parliament on February 1st.
So, what should we expect from the Budget this year? As we have seen, the stock market is already volatile, and Nifty 50 fell around 450 points on Monday.
Considering the ongoing pandemic and the associated hardships, the industry is expecting a lot from the Government this time around.
Experts predict that this year’s Budget can focus on digitalization for MSMEs as the pandemic has led to an era of digital transformation.
So, in today’s blog, we will discuss 5 things that we can expect from the year’s Budget:
The main focus of this year’s Budget should likely be on growth. However, the fiscal deficit may remain high in the coming year due to this.
The Government may construct a balanced budget focusing on growth as well as take into account revenue-generating options such as disinvestments.
In order to improve overall transparency, the Government may choose to continue the process of bringing off-balance-sheet borrowing on NHAI and also other entities onto the balance sheet.
Finance Minister Nirmala Sitharaman faces challenges in slab revisions that are contrasted by limited existing fiscal headroom.
The Government may increase the standard deduction limit currently at Rs 50,000 available to salaried taxpayers in the upcoming Budget.
There has been a rise in the Centre’s tax revenues, leading to the Indian economy’s recovery mainly after the Delta variant-led Covid wave.
The last quarter collections came in at around Rs 3,91,400 crore and saw a growth of 20% compared to the previous year, indicating a recovery in the economy. Thus, we can see that GST collections in December were up more than 13% year-on-year.
However, with the emergence of a new variant of Covid- Omicron and the uncertainties, experts have opined that the Centre may not push the tax slabs.
Also, we can expect an increase in the deduction limit in Section 80D, which covers paid medical insurance premiums.
3. Boost in Infrastructure in this Budget 2022
Also, this year’s Budget focus will be on improvement in the infrastructure sector. The Budget might contain a list of government assets that can range from roads to railroads.
There are the assets that the Government wants to monetize in FY 2022-23. According to reports, expressways may also be considered.
The Indian Government is working on a law regulating cryptocurrencies in India, which was supposed to be introduced to Parliament in November during the Winter Session.
However, there was no significant progress on the same. So, according to some experts, the Government may address it in this Budget as it was not discussed throughout the period.
So, assumptions are there that announcements related to the taxability and regulatory compliances of cryptocurrencies might be made in Budget 2022.
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Also, in this Budget, there can be a declaration relating to the monetization of public undertakings under the National Monetization Pipeline.
By monetization, we mean converting tangible or intangible assets into a source of generating revenue.
So, the Government may declare the monetization of public assets and disposal of holdings in PSUs, CAPEX (including Infra and Railways). It can also use REITs for monetizing the housing and commercial real estate it owns.
You can watch our video on 10 Stocks to Watch this Budget 2022:
The above are some of the predictions or assumptions which may be included in the Union budget 2022. So now let us see how the union budget 2022 will be on February 1st that our finance minister, Nirmala Sitharaman, will present. We hope you found this blog informative and use it to its maximum potential in the practical world. Also, show some love by sharing this blog with your family and friends and helping us in our mission of spreading financial literacy.