Budget 2022 Expectations: Focus will be on job-creating sectors! Will investors get tax relief?


Written By: Sushil Tripathi

The Union Budget 2022 will be announced in a few days. This year the budget is going to be presented at a time when the country’s economy is recovering rapidly. 

Macro conditions are improving in the country and all the growth indicators are giving positive signals. In such a situation, the stock market and investors have also a lot of expectations from the budget. 

The market is looking for a budget that will be growth oriented and stimulates demand. The market also wants big announcements for such sectors that create maximum jobs and boost the economy. Regarding this Zee business spoke to Sunil Nyati, Managing Director, Swastika Investmart Ltd to know what his expectations are from the budget.

Fiscal expenditure remains high

Sunil Nyati said that people have high expectations from the budget 2022. The market is looking for a budget that is both growth-oriented and reforming.  

The budget should help the country’s economic progress. He said that we hope that the government will keep its fiscal expenditure high with focus on infrastructure. 

Last time the government had focused on growth by doing this. Although many announcements have been made for the infrastructure sector, it needs to be continued.

Job oriented sector should be promoted

He said that under this budget, the focus should also be on those sectors that generate a high number of employments. 

There should be some huge announcements in the real estate and car industries, because both of these industries can provide jobs and growth in multiple sectors. 

The government should boost the tax advantage for home loans, which has been nearly constant for several years.

Focus on increasing consumption

The government has taken several steps to strengthen the economy in the last year, but there was no direct focus to boost consumption. That is why, the market is expecting some significant news for the salaried class. 

At the same time, the market expects the government to provide more clarity on asset monetization and disinvestment. While the world is facing several challenges on the supply-side, India can seize this as an opportunity. The market’s eye will be on this too, whether the government makes any announcement regarding this in the budget.

What are the Expectations on Taxation?

In the matter of taxation related to the stock market, Sunil Nyati said that STT should be removed or should be reduced. Because initially it was introduced instead of long-term capital gains, but now both LTCG and STT are applicable which is not fair for investors. 

The scope of the stock market is increasing in India, it is expected that the government will take policy steps regarding that the Indian market becomes more investment friendly than other emerging markets. So, reducing LTCG and STT can be a good step in that direction. 

Transaction cost is very high in India, hence LTCG and STT are seen as sentiment dampers.


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