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Union Budget 2022 will be presented at a time when India’s economic recovery from the pandemic blow is firming up. Infrastructure spending is likely to remain the top focus along with additional allocation for ramping up India’s healthcare facilities. The finance minister is expected to make announcements to clear the cobwebs for making India more business-friendly in line with recent moves like scrapping retrospective taxation.
Latest on the Budget
- The Union budget 2022-23 to be presented by finance minister Nirmala Sitharaman on February 1 will be in paperless form
- No ‘Zero Hour’ on 31st January and 1st February
- No ‘halwa’ ceremony this time around amid Omicron worries
- Naidu to chair virtual meeting with parties on RS agenda for budget session
- Strict Covid-19 protocols will continue in parliament
- Congress to raise farmers’ issue, Chinese aggression, Air India disinvestment
Budget expectations
- Budget 2022 will be MSME and Export Oriented, says FIEO
- Budget should focus on amping up health infra, say health experts
- Fintech industry hopes for incentives in Budget to push financial inclusion
- Scheme to develop 700 districts as export hubs on the cards
- The realty sector is pinning high hopes on Budget to boost market sentiments
- Economy may need more hand-holding, fiscal correction can wait, shows a recent report
- Budget to aim at boosting growth, achieving fiscal consolidation, says BoB eco research
- Real estate sector expects tax relief, industry status from Sitharaman
- Experts want Budget to focus on bridging widened inequality in economy and create jobs
- PVC producers say leave the import duty on material untouched
- Pharma industry wants Budget to announce incentives for conducting R&D
- India is likely to boost budget spending on infrastructure
- Budget should announce something to encourages entities to build a world-class shipping line, says FIEO
- Aluminium Association seeks elimination of coal cess in upcoming Union Budget
Budget and Markets
- Market watchers believe that despite the higher target divestment for the upcoming financial year in the Union Budget, LIC IPO will be the key for the targets.
- Though market sees volatility pre and post Budget, net-net, the event hardly leaves any impact in the two-week period
- Centre is likely to miss the targets of divestment and the strategic stake sales in FY2021-22
- Market experts believe disinvestment and privatisation are likely to gain further traction
- Crypto startups seeking clarity over issues like taxation, legislation, exemptions and regulations
- Analysts do not see any change in capital gain tax on equity
Minds behind Budget 2022
- TV SOMANATHAN, Finance Secretary and Secretary, Department of expenditure
- AJAY SETH, Secretary, department of economic affairs
- DEBASHISH PANDA, Secretary, Department of Financial Services
- TARUN BAJAJ, Secretary, Department of Revenue
- TUHIN KANTA PANDEY, Secretary, Department of Investment & Public Asset Management
Expert opinion
“Union Budget on February 1 and the Russia-Ukraine conflict would keep the market volatility high in the coming week as well. Expectations are running high from the government to present a progressive budget which can revive economic growth. However, given the various state elections, the risk of a populist budget cannot be ruled out completely. Capital goods, infra, housing, real estate, PSU banks amongst others are some of the sectors that would remain in focus ahead of the budget
– Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services
“The domestic trend will be muted in the short-term considering budget and state elections outcome. In the coming week, the release of PMI data for January will be another key domestic data point that the investors should watch.
– Vinod Nair, Head of Research at Geojit Financial Services
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FM Sitharaman to begin Budget day at 9 am on February 1
- The Minister along with her team is scheduled to leave for Rashtrapati Bhavan from the Finance Ministry at 9 a.m.
- After meeting President Ram Nath Kovind, the Finance Minister will brief the cabinet, headed by Prime Minister Narendra Modi
- Then leave for the Parliament, informed the director general (media and communication) of the Ministry of Finance
- The President of India is the first to be briefed about the budget provisions by the Union Finance Minister
Budget and the Russia-Ukraine conflict would keep market volatility high in the coming week. Expectations are running high from the government to present a progressive budget which can revive economic growth. However, given the various state elections, the risk of a populist budget cannot be ruled out completely.
– Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services
Realty growth expectations from Budget
- The Finance Minister Nirmala Sitharaman will table the Union Budget 2022 on 1st February and the realty sector is pinning high hopes
- The growth-oriented steps taken by the government have helped the sector regain momentum and more announcements in this direction can boost the market sentiments further
The domestic trend will be muted in the short-term considering budget and state elections outcome. In the coming week, the release of PMI data for January will be another key domestic data point that the investors should watch.
– Vinod Nair, Head of Research at Geojit Financial Services
Major challenges ahead of Budget 2022
Economy needs more hand-holding, fiscal correction can wait: Report
Warning that any sudden and sharp fiscal consolidation steps can throttle the nascent and uneven recovery of the Indian economy, a Wall Street brokerage has said the Budget should instead focus on boosting overall demand, from rural consumption in particular, and invest more in infrastructure.
Fintechs hope for incentives in Budget 2022 to push financial inclusion
- Stepping up demand for tax concessions in the forthcoming Budget, the fintech industry is stressing that the fiscal and non-fiscal incentives are needed to promote financial inclusion and move towards a less-cash economy
- The fintech industry and experts have urged Finance Minister Nirmala Sitharaman to lower the TDS rates, saying such a move would free the capital for the sector without any impact on the government’s revenue
Naidu to chair virtual meeting with parties on RS agenda for budget session
- Rajya Sabha Chairman M Venkaiah Naidu will hold a virtual meeting with leaders of various parties and groups in the House on Monday evening for setting the agenda for the Budget session of Parliament
- It is customary for the Rajya Sabha chairman to hold a meeting with leaders of various parties and groups ahead of every session of Parliament to seek their cooperation in the smooth running of the house and for discussing the agenda for the session
Steps should be taken in Budget to ensure hassle-free credit to MSMEs: PHD Chamber
Steps should be taken in the upcoming Union Budget to ensure hassle-free credit availability to industry, particularly for MSMEs, and reduce the costs of doing business, said Pradeep Multani, President, PHD Chamber of Commerce and Industry.
ICAI seeks tax, accounting reforms
The Institute of Chartered Accountants of India (ICAI) has sought about 14 tax and accounting reforms in the upcoming Union budget. The suggestions essentially aim at making laws simple, fair, transparent. less litigative and user friendly, ICAI president Nihar N Jambusaria said.
Budget should focus on amping up health infra, say health experts
The Union Budget should have provisions for incremental budgeting for healthcare services so that the health sector can upgrade the infrastructure and be ready to protect the nation from the onslaught of any disease that comes down, said Dr Naresh Trehan, Chairman-MD of Medanta Hospital on Saturday.
Budget 2022 will be MSME and Export Oriented: FIEO
While Finance Minister Nirmala Sitharaman and her team are busy giving the final touch to the Union Budget 2022, the Federation of Indian Exporters Organisation has said that this year focus of the Budget will be on Micro, Small and Medium Enterprises (MSME) and Export oriented.
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