Budget or Annual Financial statement(Constitutional term for budget) for 2022-23 was proposed on the 1st of February. The most popular topic in the budget 2022 is personal tax and like in 2021 there is no change in personal income tax.
Fundamental Component of Budget 2022
The finance minister started her speech by highlighting that this year there will be a big focus on growth. And in the budget, there has been a huge jump in capital expenditure. That shows a part of macroeconomics. Also lighted a great part towards the microeconomics like Inclusive welfare.
And this year there will be a compliment of the base of microeconomics and macroeconomics in the economy.
In the current year, India’s economic growth is estimated at 9.2%, which is the highest among all large economies. This year, there will be 60 lakh new jobs to be created under the productivity-linked incentive scheme(PLI) in fourteen sectors. PLI schemes also have the prospect to develop an additional production of Rs. 30 lakh crore.
In this article, we will talk about what is Amrit Kaal means. It’s goals and priorities.
There was a highlight on the term Amrit Kaal. That this budget seeks to lay the foundation and give a blueprint to steer the economy over the Amrit Kaal of the next twenty-five years. Basically, Amrit Kaal is used to show that we will have more focus on opportunities, enhancement, growth, etc. Many of us are confused about the maths of 25 and 100. So this is nothing but simply a mean that this year we have completed our 75 years of Independency. So with the period of Amrit Kaal(25 years), we will have geat 100 years of Independency. And there are some certain goals of Amrit Kaal.
Goals of Amrit Kaal
- Focus on growth and all inclusive walfare.
- Promoting technology enabled development, energy transition and Climate action.
- Virtuous Cycle starting from private investment, crowded in by public capital investment.
Amrit Kaal is Focusing on Four Priorities
- PM GatiShakti
- Inclusive Devlopment
- Productivity, Enhancement & Investment, Sunrise Opportunities, Energy Tranistion and Climate Action.
- Financing and Investment.
PM GatiShakti in Budget 2022
The part of Amrit Kalli will focus on the Infrastructure of the Nation. Last year PM GatiSakti was planned with a 100 Lakh crore investment. This approach is driven by Seven engines are Roads, Airports, Ports, Mass Transport, Waterways, and Logistics Infrastructure. This approach will also reduce the disputes between the ministries.
This Plan of PM GatiShakti will be merged with the National infrastructure pipeline. The scope is to transform the economy, seamless multimodal connectivity, and logistics efficiency.
If we look at the performance of the BJP then we can conclude that the highway network in India improves and expands to a great extent after 2011.
Inclusive Development as a major target in Budget 2022
Inclusive Development “advancement that incorporates. minimized individuals, areas, and nations in friendly, political, and monetary cycles for expanded human. prosperity, social and ecological supportability, and. strengthening”
Under this year’s Budget FM announced a 2.37 lakh crore direct payment of MSP to farmers’ accounts. It was also mentioned that chemical-free natural farming will also be promoted. Also lighted Betwa project and other river Linking projects.
For MSME Udyam, e-Shram, NCS, and ASEEM portals will be interlinked that will widen the scope of implementation. This year government will also focus on skill development and also provide universalization of Quality Education. And also build a digital university.
To improve mental health a ‘National Tele Mental Health Programme’ will be launched. It will work to improve mental health through counseling and care services. The budget also includes Har Ghar, Nal Se Jal, Housing for all, PM’s Development Initiative for North East Region, and Vibrant Villages Programme.
Digital payments and digital Banking were also in Focus.
Productivity, Enhancement & Investment, Sunrise Opportunities, Energy Transition, and Climate Action.
Productivity, Enhancement & Investment
This part of the budget started with ease of doing Business 2.0 & Ease of Living that will work on the idea of ‘trust-based governance.’ And talk about a single-window portal, PARIVESH, for all green clearances that were launched in 2018. This year the scope of the portal will expand.
In the budget 2022, it was mentioned that the issuance of e-passports using embedded chips and futuristic technology will be rolled out this year.
This part also includes clean &Sustainable Mobility, Battery swapping Policy, Land Records Management, Insolvency, Accelerated Corporate Exit, and Bankruptcy code.
Most interestingly this year for the first time in history. Animation, Visual effects, gaming, and comics (AVGC) Sector is introduced. FM said that this sector has immense potential to employ youth. And also this year 5G will also introduce.
In the defense sector government is reducing imports of armed equipment and promoting AtmaNirbharta. And providing 68% of the Capital procurement budget.
In this year Budget government focused on those sectors that have immense potential to assist sustainable development at a line and that will also modernize the country. Like Artificial Intelligence, Geospatial systems and drones, semiconductors and their eco-system, space economy, Genomics, and pharmaceuticals, green energy, and clean Mobility system.
Energy Transition and Climate Action
As we all know that the problem of climate change is bad for the earth. So to minimize this negative we have to opt for a sustainable development path. The budget mentioned several long-term as well as short-term solutions.
The government set a goal of installing a solar capacity of about 280 GW by 2030 and an additional allocation of 19500 crores will be made. And the circular economy transition is also expected to enhance productivity and will also increase opportunities for new jobs and businesses.
The Budget also includes transitions to carbon Neutral Economy. It will have five to seven percent biomass pellets that will be co-fired in thermal power plants.
Financing and Investments
As our readers know, this website provides knowledge around finance and politics. So we will provide a separate article on Financing and Investment that will be done this year according to this year’s Budget.
After going through all the aspects around the budget 2022. We can conclude that the articulation of this budget is very good. As it introduces and enhances many new sectors that meet today’s needs. But if we look towards the history of implementation of government, then it lacks some trust.
So overall if the budget will implement in a better way then it will move India in a new direction.