Union Budget always used to be an exciting annual affair. However, many components of today’s budget were a repetition of the past year’s proposals or presented in a new avatar. In a developing economy like India, the focus must be on macro issues and matters of a larger interest. Therefore, the Indian FM, Nirmala Sitharaman’s tight-rope walking by focusing on growth by leaning heavily on the Increase of a massive 35% in Government’s Capital expenditure for growth comes as no surprise. While the estimated GDP growth is 9.2%, one cannot miss out on the lower average growth in the previous year due to Covid.
Besides the Capex of 7.5 lac crores, Rs.48000 crores for the PM Awaz Yojana and Rs. 2.38 lacs have been proposed for the MSP of farm purchases. The proposal to interlink rivers went without any specific allotment. The proposal must pass the NGOs’ scrutiny and the courts. Such dazzling announcements merely satiate a few in the government.
Nirmalaji emphasized the PM Gati Shakti scheme, the multimodal connectivity, essentially a digital platform integrating 16 ministries, including roadways and the railways. Four hundred new Vane Bharat trains would be introduced in three years. Rs.20000 crores have been allotted for Urban transport, and 25,000 km of National highways added, which I am sure, Shri Nitin Gadkari will utilize the best.
Many non-fiscal policy steps occupied the speech, like rolling out E-passports by 22-23, or 2023 as the ‘Year of Millets.’ The announcement of one portal for all approval is merely a repainted one-window scheme, repeatedly announced for several years. 5G Spectrum is likely to be in 22-23 and could earn nearly Rs.4 lac crores, though resisted by telecom companies.
The defence had an outlay of 4.78 lac crores in 21-22 and could be much higher in 22-23, given the worsening global scenario. 1 lakh crore additional funds for states have been provided. A cover of Rs. 5 lac crores to the hospitality sector, Rs.19500 crores for solar energy have been announced. Health and E-learning have received emphasis with planned e-universities all over India.
The government announced that the RBI would be introducing digital currency, while profits from the digital currency will attract 30% tax, and digital gift a tax of 9.3%. New employment to 60 lac persons under PLI scheme in 24 sectors is expected. Post Offices will enter and integrate with the core banking system.
A cleaner environment has not missed focus, as investments in EVs and swappable batteries have been encouraged with fiscal sops.
I have not covered all the micro details, which will soon flood the social networks. For the critics, the Hon’ble FM made a special mention of the government’s allotment to the National Tele Mental Health Program. I guess she also had me in mind!
Sampath Kumar
Intrépide Voix
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Balanced and unbiased analysis with an excellent finishing punch