Budget 2022: Key Expectations To Watch Out

Union Finance Minister Nirmala Sitharaman is all prepared to unveil the Union Budget 2022 on 1 February. The Budget speech will most likely go anywhere from 1 hour 30 minutes to 2 hours. The Budget 2022 address will be broadcast live on Lok Sabha TV. Apart from the date and timing of the budget announcement, India's major focus is on stimulating the economy by announcing a number of significant initiatives for various sectors of the country.

The healthcare and infrastructure sectors may anticipate more from the Budget, given that India is in the midst of a COVID epidemic. Many experts believe that additional help should be given to these sectors, as India has been fighting the epidemic since 2019.

Because healthcare has grown to become one of India's leading sectors, the clinical, medical, and public healthcare sectors may receive additional attention on Budget Day. On the other hand, the unorganised and middle-class workers were the most hit by the epidemic, which the government might address by offering insurance schemes. Over the last few years, the government has maintained a persistent focus on infrastructure, and upcoming Budget 2022 may continue to do so.

On the other side, Indian startups are the hottest part of our economy, with 42 Indian startups have already joined the unicorn club by 2021. Going forward, the Indian startup ecosystem may bloom even stronger in 2022, since these startups behaved admirably throughout the economic downturn caused by the COVID-pandemic, as well as in terms of supply chain and market trend.

Investors, stockholders, and traders anticipate the government to stop collecting the Securities Transaction Tax (STT). STT is a tax charged on all purchases and sales of stocks listed on India's registered stock exchanges. Furthermore, the anticipation of ending STT tax has intensified as shareholders are compelled to pay capital gain tax in addition to STT on the sale of their shares.

Also read: Union Budget 2022: How Should I Prepare My Pre-Budget Personal Finance?

The major emphasis of our Indian citizens and government is on the healthcare and education sectors since these two areas have been impacted hard by COVID over the past two years. Several liquidity initiatives to help MSMEs were launched in response to the economic suffering caused by Covid-19, and this budget must focus on improved execution of the schemes, as the SME sector is the core of the Indian economic system.

It is critical that the Hon'ble Finance Minister announces meaningful steps to help the MSMEs, healthcare, and education sectors to recover and flourish expeditiously. Liquidity assistance for NBFCs and payment service providers due to historical volumes of online transactions is also expected, and where term insurance has grown in popularity since the COVID pandemic, the government should introduce new schemes that allow policyholders to reduce their tax burden, and enhance deduction for insurance premiums regardless of tax structure would be a better treatment for individuals on the budget announcement day.

Modifications to the taxation system, infrastructure projects, attention on R&D spending, along with healthcare, education and the creation of new jobs are among the top priorities on the government's budget speech.