Budget 2022: What’s in it for me?

What is the common man looking forward to? Focusing on getting richer, or hey atleast not poorer. Some of the major concerns, right?

However, from the economic perspective, I guess it’s very imperative that stronger and empowering decisions are taken for the country’s welfare and economic recovery. Especially considering inflation worries, Omicron concerns, and US Fed’s decision for tapering.

In the last budget, as the focus was towards health, infrastructure and education as it should be, it would be quite nice to notice the current focus of the Government in the current situation with the new COVID variant and the further road to deal with it.

The markets, however, have shown their reaction to this new variant.

The Budget 2021, pushed up the capex spending to a total of 15.9% of the total budget, highest since the fiscal 2008. Will the capex spending be further stepped up this year?

Many Industries are showing signs of reaching pre covid levels but it remains to be seen if we are out of the hole completely.

That being said, there is still a need for employment, health, education, reskilling, development of the manufacturing and the service sector which drives the growth of the formal economy overall.

Along with this, how will we tackle the development hurdles in the informal economy? Again, concerns of social security arise.

Apart from what has been mentioned above and the most common concerns, there are so many other questions that i keep scratching my mind on:

Below are some:

  • To what extent will there be changes in the Tax structure and will there be any new Tax exemptions?

  • From a POV of GEN-Zz, will there be a boost given to the startups, EVs, green energy, etc.?

  • What would get cheaper/expensive in terms of the duties and cess on the products if they are increased/decreased at all?

  • Will there be measures taken to increase financial inclusion?

  • Which industry will be incentivised and pushed up as the pandemic has hit a lot of industry, the effects of which still remain.

  • What alternate measures will be adopted if the country faces another lockdown?

Damn, too many questions, and surely I’m not the only one dwelling on a list of questions.

Would love to know others’ views on this year’s Budget 2022 and what can/does one expect, demand, or be concerned about before the big day of February 1st.

Lastly, if you just had to answer one, how would you bet on the market on the Big Day?

  • Long
  • Short

0 voters

8 Likes

I think we will eventually reach the pre-pandemic level but the question might be what happens next. I am more interested in that.

How will the budget have an impact on the liquidity in the markets? Will there be more policies to provide direct funds to people?
And what about the fiscal deficit will that have an adverse impact on the markets?

2 Likes

One thing I’m looking forward to is if the Government takes seeding action to tackle problems in Real Estate in Large cities. People on average invest one-third of their savings in real estate. The real estate sector is primarily suffering due to over-regulation and incomplete projects that have led to delays and defaults. Yes, the government has put the system online, developers still need to approach 50-60 departments for approvals. The Bad Loans restructuring needs to happen sooner.

4 Likes

This seems like an interesting move if it materialises

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Abolish income tax. Apart from the savings that govt will make trying to make people comply this will lead to a spending spree which will lead to more tax collection at goods and services point of sale.

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Interesting read:

Home office expenses do form a considerable part of the monthly expenditure.

Would be nice to notice to what extent will populism be this time given the elections ahead.

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Battery swapping policy along with interoperability standards, a good move for private players and startups in this space.

Battery swapping is already there in India - https://www.sunmobility.co.in/. This space will pick up further for 2 and 3 wheelers. For four wheelers it would be a challenge with the big battery underneath the vehicle which is not “portable”. It would probably need an industry wide standardization of battery modules to make it work. In USA there exist a solution in this line - https://ample.com/

1 Like