An overview of Union Budget 2022-23, writes N. Kar Purkayastha

Feb. 1: Union Budget 2022 was presented by Finance Minister Nirmala Sitharaman today amid Covid-19 third wave. This is the fourth budget in a row as presented by Finance Minister Nirmala Sitharaman. Fiscal deficit was estimated at 6.9 per cent.

As expected, fiscal deficit target almost met at 6.9% of GDP in 2021-22 against BE target of 6.8%. For 2022-23, fiscal deficit estimated at 6.4% of GDP. The government proposes to spend Rs 34,83,236 crore in 2021-22. Fiscal deficit is targeted at 6.8% of GDP in 2021-22, down from the revised estimate of 9.5% in 2020-21 (4.6% in 2019-20). The government aims to steadily reduce fiscal deficit to 4.5% of GDP by 2025-26.

This budget is not a kind of traditional budget, rather it is a populist budget. Because like all other budgets, there are no issues about tax reduction and changes in tax slabs etc. Some changes and introduction in direct and indirect tax are there in the budget . One important provision is that IT Returns can now be revised for omission, mistakes, says Govt . Union budget emphasises to strengthen First Nation’s Sankalp, double the income of farmers, strong infrastructure, healthy India, good governance, young chances, training for everyone, empowerment of women, and inclusive development.

This Budget lays stress mainly on following six areas of focus :

1. Health and well-being.
2. Physical and capital infrastructure
3. Inclusive development for Aspirational India
4. Re-invigorating human capital,
5. Innovation and R&D,
6. Minimum government and maximum governance.

Further, the Budget focused on overall physical and financial capital, infrastructure, inclusive development for aspirational India and fully committed to reinvigorating the economy of the country as well as “Human Capital. In a nutshell, the thrust is on ‘Aatma Nirbhar Bharat.’

N K Purkayastha is a Cost Accountant