The upcoming Union Budget that is scheduled to happen on February 1, 2022, in many reports and by the economy experts has termed it as "Growth Budget". But, what makes it a growth budget?
The Indian Economy is moving towards normalcy, as a result, to keep the economy on the track of growth and development it become important to focus on the growth factors. Furthermore, the high-frequency statistics suggest that the economy has nearly recovered to pre-pandemic levels. According to the National Statistical Office's First Advance Estimates of GDP, the economy is expected to grow at a 9.2% annual rate in FY22. The GDP level at the end of FY22 will be quite close to the level at the end of FY20.
There is concern about growth in FY23 and beyond, as well as whether the rate can be maintained. Rising inflation, novel strains of the coronavirus, continued constraints on family consumption expenditure and MSMEs, unorganized sector stress, and private sector investments are expected to be the most prominent obstacles in FY23. Keeping the concern in view, the budget is most likely to be focused on the growth of the economy and helping the sector to grow.
The key imperatives for the Indian Government in the formulation of the Union Budget 2022 must be on three fronts:
- Supporting bottom-of-the-pyramid households to address some consumption-related challenges.
- Pump-priming the economy through higher capital expenditure
- Supporting MSMEs and the unorganized sector through continued easy credit access.
Every industry has huge expectations from the upcoming budget. The economy experts expects that the Union Budget 2022 should prioritize improving the investment climate and simplifying taxation. Also, the government should implement reforms and incentives to attract increased private-sector engagement in every sector. The budget is also expected to focus on growth and equity. Furthermore, it will be a balance between these two. Healthcare, jobs, education, startups, and other sectors would be this budget's main focus.
As the Pandemic is still here among us, Healthcare Sectors would play a major role in Budget 2022, and it is expected that the government will keep its focus on the improvement of the Healthcare sector in India. The government's growth-oriented actions have helped the industry regain momentum, and future announcements in this regard are expected to enhance market sentiments even further.