Union Budget 2022 will be presented at a time when India's economic recovery from the pandemic blow is firming up. Infrastructure spending is likely to remain the top focus, along with additional allocation for ramping up India's healthcare facilities. The finance minister is expected to make announcements to clear the cobwebs for making India more business-friendly, in line with recent moves like scrapping retrospective taxation.
Latest on the Budget
- The Union budget 2022-23 to be presented by finance minister Norman Starman on February 1 will be in paperless form
- No 'Zero Hour' on 31st January and 1st February
- No ‘HAWA’ ceremony this time around amid Omicron worries
- Raja Sheba floor leaders to meet virtually on January 31
- Strict Covid-19 protocols will continue in parliament
- Congress to raise farmers' issue, Chinese aggression, Air India disinvestment
Budget expectations
- Fintech industry hopes for incentives in Budget to push financial inclusion
- Scheme to develop 700 districts as export hubs on the cards
- The realty sector is pinning high hopes on Budget to boost market sentiments
- Economy may need more hand-holding, fiscal correction can wait, shows a recent report
- Budget to aim at boosting growth, achieving fiscal consolidation, says Bob eco research
- Real estate sector expects tax relief, industry status from Starman
- Experts want Budget to focus on bridging widened inequality in economy and create jobs
- PVC producers say leave the import duty on material untouched
- Pharma industry wants Budget to announce incentives for conducting R&D
- India is likely to boost budget spending on infrastructure
- Budget should announce something to encourages entities to build a world-class shipping line, says FIE O
- Aluminum Association seeks elimination of coal CSS in upcoming Union Budget
- Small businesses and MSMEs seek easier access to capital at lower interest rates
- Extend benefit of MAY, CLSS to encourage housing consumption, says Rajeev Salwar, former President PhD CCI
Budget and Markets
- Market watchers believe that despite the higher target divestment for the upcoming financial year in the Union Budget, LIC IPO will be the key for the targets.
- Though market sees volatility pre-and post-Budget, net-net, the event hardly leaves any impact in the two-week period
- Center is likely to miss the targets of divestment and the strategic stake sales in FY2021-22
- Market experts believe disinvestment and privatization are likely to gain further traction
- Crypto startups seeking clarity over issues like taxation, legislation, exemptions and regulations
- Analysts do not see any change in capital gain tax on equity
Minds behind Budget 2022
- TV SWAMINATHAN, Finance Secretary and Secretary, Department of expenditure
- AJAY SETH, Secretary, department of economic affairs
- DEBASING PANDA, Secretary, Department of Financial Services
- TA RUN BAJAJ, Secretary, Department of Revenue
- TURIN SANTA PANDER, Secretary, Department of Investment & Public Asset Management
Expert opinion
"The stock market is an engine of economic growth. After two tumultuous years, India's economy is likely to be the fastest-growing major economy in the world again, according to most productions. Nudging more people to participate will only support future growth.
- Kavita Subramaniam, Co-Founder, Upshot
"Unlike last year when the US Federal Reserve was unleashing a deluge of liquidity in the international banking system, in 2022 the Indian government is drawing up its annual Budget at a time when global financial conditions are not quite so conducive. With the Fed signalling an aggressive rate hike path, the degree of monetary support that the Reserve Bank of India has the room to extend is now constrained, and the government may therefore have to rely more on fiscal ammunition to ensure that the country’s growth recovery remains on track.
- HDFC Bank’s Chief Economist
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