Budget 2022 Expectations: From new schemes to change in tax structure - How the upcoming budget may impact common man?
Union Budget 2022: The Union Budget 2022-23 will be presented by the Union Minister of Finance Nirmala Sitharaman on February 1, 2022. It has to be remembered that in the previous budget, the main focus of the government was on health and rural infrastructure development. Expectedly, this year also, the government can make many important announcements to strengthen the economy and empower the common man. Furthermore, the Omicron variant of COVID-19 has raised concerns amid the economic recovery in the economy. Let us see what can be in store in the upcoming budget for the common people.
New scheme announcements on its way?
The government may announce new schemes in the budget, keeping in mind the welfare of the common man. For instance, in the last year's budget, PM's Self-Reliant Healthy India Scheme, Vehicle Scraping Policy was announced. Also, in the last budget, the focus of the Finance Minister was on health and infrastructure. In the present situation, in this budget, the Finance Minister can make important announcements to speed up the economic recovery, promote entrepreneurship as well as give relief to the taxpayers. Source: Reuters
Changes in the tax structure?
In the budget itself, the government may decide that for the next financial year to what extent the taxpayers will get tax exemption or what changes will be made in the tax structure. However, no such new tax was imposed in the last budget. At the same time, in the last budget, no significant relief was announced among the income taxpayers. There was no change in the tax slab as well. However, senior citizens more than 75 years old and have income from pension and deposits, then announced an exemption from their income tax return. Source: Reuters
Big boost for education and infrastructure?
In the budget, announcements are likely to made regarding education and further strengthening of the country's infrastructure. The announcements in the field of education are meant to shape the future of the children and help them lead a good life. At the same time, the announcements made regarding infrastructure like roads, houses, hospitals, railway tracks, electric towers etc. are meant to make the life of the common man easy and convenient.
For example, in the last budget Mega Investment Textile Park Scheme, National Hydrogen Energy Mission, PM Self-Reliant Swasth Bharat Yojana of 64180 crores for Health Infra, 35,000 thousand crores were announced for Kovid Vaccination. At the same time, important announcements were made in the education sector like the opening of more than 100 new Sainik Schools, new Central University in Leh, 750 Eklavya Residential Schools in tribal areas and scholarship scheme for Scheduled Castes. Source: Reuters
Announcements on cess or excise duties?
In the budget, if the government increases or decreases excise duty, custom duty, import duty, cess on anything, then it can announce it. This has a direct effect on whether inflation is low or high. The consumer may have to pay a higher price due to higher duty on imported products. At the same time, due to reduction in duty, the product will become cheaper. Apart from this, the budget also announces the imposition of any new cess or change in the rate from the old one. Its direct effect is on the pocket of the common man. For example, Agriculture Infra cess will be levied on some goods in the last budget. Its benefit is given to the farmers. At the same time, in the last budget, the Finance Minister, giving relief to the jewelery industry, reduced the custom duty from 12.5 per cent to 10.75 per cent.
Apart from this, the rule of banning the export of a product or not to export or import more than a certain limit can be implemented in the budget. If the government implements any new rule related to import or export, then that too will have a direct impact on inflation. Source: Reuters