Budget 2022: Safety Net For Vulnerable Sections Likely

Schemes such as PM-KISAN and MGNREGA have provided a safety net to a large section of the vulnerable population in rural areas. Ind-Ra expects these schemes to not only continue but also get expanded through adequate budgetary allocation in the FY23 budget.

"National Statistical Organisation's (NSO) Periodic Labour Force Survey for 2019-20 released in July 2021 shows a rise in the share of labour force employed in agriculture, despite the policy objective of moving labour force out of agriculture into manufacturing. The share of workers employed in the agricultural sector rose to 45.6% in 2019-20, from 42.5% in 2018-19 and simultaneously the share of workers employed in manufacturing and construction declined to 11.2% and 11.6%, respectively, in 2019-20 from 12.1% each in 2018-19. These numbers are for the pre-COVID period. Post COVID-19, reverse migration is expected to have only accentuated this process. This points towards not only a disturbing trend but also the distress that is building up in the Indian economy," India Ratings has said.

Pragmatic Disinvestment Target

"Budgeting and then not able to achieve targets more than often erodes the credibility of the government and also pushes G-sec yields higher, as the market starts anticipating higher borrowings than budgeted to bridge the gap before the fiscal year comes to an end. Ind-Ra expects a more pragmatic and achievable disinvestment target in FY23," the ratings agency has further added.