From the mega event Budget, economists and other dignitaries who are specialists in their own field of business have opined their expectations from the Union Budget 2022- which is expected to be Pro-Growth predominantly-spurring the current growth momentum.
Arvind Panagrariya preview on Budget
Arvind Panagariya-Economics professor at Columbia University is quoted as saying, "This budget is going to come on the heels of the reversal by the government of the farm laws. So, there is some apprehension as to whether that is going to fundamentally alter the course of the government in terms of reforms". He is of the view that special weightage should be provided to the weaker class while he is of the belief that return to the path of reform is portrayed. " I would hope we do at least symbolically return to fiscal consolidation. The debt-to-GDP ratio is actually quite high today", points out Panagariya.
IMF's Gita Gopinath:
The IMF's first deputy MD seconds government's steps in the direction of capital incentive in order to give a fillip to consumption and hence in return a better economy. Also, she wants the government should continue with its infra spend along with asset monetisation plans. Further she is stressing to further enable and address the problem of uneven recovery by offering enough funds to the rural employment guarantee scheme and even continuing to offer free food ration beyond March. It may be noted that the government has extended the free food scheme, Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), till March, 2022. Additional thrust is also needed for health and education.
"As the US economy gears up to face increased interest rates, the Indian government should prepare accordingly and decide for a credible medium-term target for fiscal deficit to aid in keeping the financing costs down", adds the expert.
On the taxation front there are expectations that the government may increase the limit for higher tax slab. According to Archit Gupta, Founder and CEO of Clear, "The Finance Ministry may revise the personal income tax slab in this year's Budget. Many experts believe that the two tax regimes still confuse the common man. The government may consider increasing the highest tax slab to Rs.20 lakh from Rs.15 lakh or allow certain deductions to make the new regime more enticing."