A Futuristic Budget
Per the economic report, the second wave of covid had a minor influence on the economy. As every sector is seeing strong pre-pandemic growth, the GDP growth rate for FY22 has been set at 9.2%. The demand for housing loans has climbed by 8%, while bank financing to real estate has increased by 0.4 percent.
This year's budget clearly prioritized the development of a better platform that will help the
country in the long run, rather than focusing on the short term. This year's budget covers it all, whether it's talking about the country's infrastructure development or focusing on creating more job possibilities and promoting start-ups. The PM Gati Shakti plan, which states that "PM Gati Shakti will include infrastructure plans of several Ministries and State Governments such as Bharatmala, Sagarmala, inland waterways, dry/land ports, UDAN, and others." To strengthen connectivity and make Indian enterprises more competitive, economic zones such as textile clusters, pharmaceutical clusters, defense corridors, electronic parks, industrial corridors, fisheries clusters, and Agri zones would be covered. It will also leverage technology extensively including spatial planning tools with ISRO (Indian Space Research Organization) imagery developed by BiSAG-N (Bhaskaracharya National Institute for Space Applications and Geoinformatics)”.
In terms of digital money, the finance minister also announced the government's plan to issue a block chain currency. It has been discovered that digital currency can assist the countryman in growing, hence assisting the nation's economic progress.
To help the senior citizens, farmers, and for rural areas to access their accounts, the government has decided to bring all post offices under the framework of core banking. Measures like net banking, mobile banking were mentioned for the efficient workings between post office accounts and bank accounts.
“All in all, Budget 2022 included several beneficial measures and proposals for various
economic sectors. Its true positive impact on the macroeconomic and microeconomic situation will be witnessed in the months to follow. And I am confident that the life insurance industry stands to benefit from the outcomes,” said Tarun Chugh, MD & CEO, Bajaj Allianz Life.
The announcement of policies concentrating on electric vehicles and incentives for solar panel production demonstrates how to create channels that will benefit the economy and open doors for investment in industrial and commercial real estate in the future. FN Nirmala Sitharaman revealed during the budget presentation that INR 48,000 crores has been set aside for the construction of 80 lakh new dwellings. The states' participation, the much-desired digitization of land records, and the development of expert groups for urban capacity building are among the other major announcements. All of this may entice AVGC organizations to continue tapping into Indian talent.
Although the budget has focused on various aspects of the economy there has been no change in tax policy which has disappointed the common man and became a reason for opposition to take a dig at the Budget. “Forget putting cash in the hands of people, Modi Govt plans to handover India's assets to his crony capitalist friends”, tweeted Rahul Gandhi.
“They [Bharatiya Janata Party] lecture others on nationalism, but in practice, they are the ones who are selling the nation. They are selling everything from PSUs [Public Sector Undertakings], Insurance, Railways and Ports. This is a Budget to deceive the masses. It’s an anti-farmer, anti-people and anti-country Budget”, Said Mamata Banerjee, Chief Minister, West Bengal.
Finance minister also mentioned that the government will charge a tax of 30% on any earnings from digital assets. This could be proven as a huge help in boosting the country's economy as there are a considerable amount of people investing in digital assets nowadays and 30% tax on earning is pretty huge to ask for.
With its focus on the digital economy, technical development, climate actions, and energy
transitions, this year's budget has indeed been true to long-term profit and economic growth.