FinShiksha - Union Budget 2022 Reviewed in 15 mins

What does the Union Budget 2022 hold for the economy?
Was the budget positive for the economy?
What were the hits, and what were the misses.
We discuss some of these aspects on the Union Budget in this video.
- There were no major changes in the taxation structure. This year has been really good from the tax collection perspective, and even though the expenditure was higher, and disinvestment target is not expected to meet, the fiscal deficit remains controlled at 6.9% of GDP (as against the Budget Estimate of 6.8% of GDP)
- The government expects traction in tax revenues next year as well. The government was able to exceed its overall Budgeted Tax Income by nearly 12-14% this year, which will result in nearly Rs 3 lakh crore of extra tax income this year in the revised estimates. For the next year, from the revised estimates, the government is expecting a jump of 13% in Direct Taxes, and 5% in Indirect taxes
- This higher tax collection taxes care of the reduction in capital receipts as the government missed the disinvestment target
- Capital Expenditure continues to be the focus, with the government planning an increase of 25% from the Revised Estimates. The estimated Rs 7.5 lakh crore is a big jump over the nearly Rs 3.5 lakh crore Capital expenditure in FY20. Infra segment is the key beneficiary.
- Assuming fiscal deficit to be at 6.4% of GDP, the Nominal GDP growth is expected to be nearly 12%.
In all, a decent budget, with no major surprises. The government had prioritized growth over fiscal discipline in the last year, and they have continued with that stance.
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[@satthyas3698]

Love this.
Subscribed 💖

[@riteshgupta2010]

Much awaited analysis from Finshiksha...thanks a lot

[@FinShiksha]

Most welcome!