Expectations from the Union Budget for Fiscal Year 2022-23

For the general public of India, the Union Budget offers a lot of hope. Besides recovering from the pandemic, the government of India may also want to focus on infrastructure development, healthcare development, income tax, provident fund, GDP, and many other important aspects. India's economy and livelihood are once again at risk because of the new COVID-19 variant Omicron. To help India become more integrated into the global supply chain, more money will be spent on capital projects and healthcare programs in the Budget 2022-23. The following is an overview of what the budget for 2022 may include.

Main Objectives of Union Budget:

As part of his commitment to boosting demand, creating jobs, and stabilizing the Indian economy, the Finance Minister has drawn more attention to those areas.
In this year's budget 2022-23, the government is expected to offer more financial assistance to the MSME sector and implement reforms to enhance self-reliance. MSMEs can also create a sustainable economy by using green energy as part of their programs and reducing domestic energy dependence.

Tax Rebates Expectation from Union Budget:

• India is experiencing a rise in Omicron cases. Direct tax deductions, incentives, and exemptions may eventually be phased out by the government. Those affected by COVID-19 will be able to save more money by using this.
• Through increased transaction scrutiny in the budget for 2022-23, steps could be taken to reduce tax litigation and increase compliance.
• Petroleum products may be subject to reduced excise duties
• An additional reduction of Rs 50,000 should be given to staff who work from home in the form of a "work from home" allowance. Under Section 16 of the Income Tax Act, the standard deduction limit is also set to increase from Rs 50,000 to Rs 1 lakh.
• In addition to extending the tax benefits on house loans, both interest payments and principal repayments will be increased by Rs 50,000 each from the current limits of Rs 2 lakh and Rs 1.5 lakh, respectively.
• In light of the fact that the PPF maximum was left unaltered in the last Budget. According to the budget, it is also expected to increase by under 80 C from Rs 1.5 lakh by 2022-23.

Numerical Estimates from Union Budget:

• A national growth rate of up to 7.5% has been forecast by the economic advisory committees.
• Additionally, the budget for 2022 will use the added revenue for the construction of more assets.
• India's MSMEs contribute around 30% to the country's GDP. As they are India's second-biggest employer, they expect the government to reduce compliance burdens such as taxes, loans, audits, etc.
• The budget for 2022-23 anticipates an increase in capital expenditures. Budgeted for FY22 is a total of Rs 5.54 lakh crore, up 26% over FY21's 4.39 lakh crore.

Development of Infrastructure:

Improvement of infrastructure is likely to be a priority for the Indian government as well. You can expect more expressways in the Budget 2022 that will ease travel and you can expect major roads, railways, highways, and expressways to be built.

Development of Healthcare:

• In response to a new threat of Omicron variants in India. To develop healthcare infrastructure, the government is likely to play a major role. Mass vaccinations should be a major focus of the government's efforts. Healthcare financing via medical subsidized loans will also be improved in the healthcare sector. There may be new hospitals and land allocated by the government.
• A national health insurance program might be extended.
• There will be more trauma centers at Primary Health Centers and Community Health Centers.
• Health insurance coverage might also increase to 100%.
• In Budget 2022-23, FHRAI, a group representing the hospitality industry, has asked the Finance Minister to offer capital and assistance to the banks and NBFCs. In addition, they have requested that a loan moratorium or new loan structure be instituted to assist the sector that has been immensely affected by the pandemic.

Summary:

Third-wave COVID is likely to affect this year's budget for FY 2022-23. COVID-19's new variant, Omicron, will be a major concern in 2019. Since this new strain is more infectious and resistant to vaccines than the current strain, the government may focus more on healthcare development and mass vaccination across all age groups. By offering rebates on direct taxes, the government could give individuals a chance to save money instead of threatening them with Omicron.