Finance Minister Nirmala Sitharaman
Image Credit: Bloomberg
On the 1st of February, our honorable Finance Minister of India Nirmala Sitharaman will present the union budget. India is observing a strong economic rebound as all the signs are reflecting a green signal and looking up. The economy of India recorded a strong comeback in the first growing quarter at 20.1%. According to an SBI report, India’s growth is recently expected to be in the range of 9.3% to 9.6% in the current fiscal. There are several expectations from the union budget 2022 as state polls and the COVID pandemic makes Nirmala Sitharaman’s task challenging.
In this continued rising of the COVID pandemic, health has become a major priority for the people of the nation. During this pandemic, there are several gaps exposed in the current healthcare infrastructure. In addition to this, the government will come up with new reforms and policies that contribute to changing the level of healthcare infrastructure. In light of COVID variant spreading, healthcare will be the most critical topic during the budget session.
Expectations from budget 2022 on the healthcare sector show that there will be an increase in the credit line for the healthcare sector along with additional grants. In concern with hospitals, an increase in incentives and decrease in depreciation cost for setting up Greenfield hospitals can consider as a good move to improve the hospitality facility in India. With this ongoing pandemic, the healthcare bills are causing a hollow in customers’ budgets. Industry experts are expecting some tax relief in COVID treatment while some are expecting an increase in hospital budgetary funding
Salaried Class
In budget 2022, the salaried class expects a subtraction in calculating their taxes. If we take it from a cost perspective, then it is clear that the employee needs complete backing. Working with multiple members of the family required a large personal space for office work and to accommodate online classes. Salaried class workers are moving to homes with their requirements. The equipment will be costly for salaried worker to install their offices in the home. This clearly shows that additional ongoing investments are necessary for salaried class to manage their work from home.
The automobile industry expects to prioritize electric vehicles and encourage people to opt for them at low-interest rates. It also demands sufficient funds for R&D in a private partnership model for the development of batteries. In the Budget wish list, the Society of Manufacturers of Electric Vehicles (SMEV) also mentioned in their demands that there is a need to amend the PLI scheme for automobile components. However, in the current form, it is an unfair disadvantage of price for small and medium-size EV players.
Agricultural Sector
There are approximately half of India’s population is working in this sector. In the upcoming budget 2022, the government focuses on improving farmers' earnings. The government is also looking at this concern to ensure that there is no disruption of supply in the key fertilizers for the next financial year. The main focus is to improve agricultural productivity from limited sources. The government may show interest to create an allocation that spread awareness about sustainable farming practices.
In the upcoming budget 2022, the government also an allocation for R&D that would significantly contribute to developing the farming practice and sustainable production method. It would help in focusing on reducing the import dependence on essential items including pulses and oilseeds. The government will focus on promoting food safety and nutrition through fortification.
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