The annual financial statement of the government is called the budget which is the layout of the financial roadmap for the country for that year.
The ministry of finance is responsible for preparing the budget consultation with Niti Aayog and other ministries of concern.
This year, our finance minister Nirmala Sitharaman presented the budget worth Rs 39.44lakhs, Infrastructure and its development was one area where massive spending has been decided. In her budget 2022 speech, the Minister of Finance estimated India’s economic growth at 9.2%. This is the highest of the major economies. The budget includes a multi-sector, multi-stakeholder, integrated systematic approach that harmonizes economic growth with sustainable development. Taking a futuristic blueprint for Amrit Kaal and PMGati Shakti-Comprehensive development for women, youth and farmers is a transformational move.
In this blog, we will overview the key sectors of the Indian economy and how much the government plans to spend in these sectors, we will be covering the fiscal deficit, education policy, NREGA, rural development, health, and family planning, and 30% tax on virtual cryptocurrency.
The fiscal deficit meaning is how much excess money is spent than the available revenue, now that the fiscal deficit meaning is clear we can understand its stake in the budget 2022. Last year India’s fiscal deficit was at 6.9% this year the government plans to bring it down to 6.4% and further down to less than 5% in the upcoming financial years. The total fiscal deficit for this year is projected to be Rs16,61,196cr and the total government spending is estimated to be at Rs39.54 lakh cr.
The education sector is a crucial sector of the economy, it shapes the future of the country with the onset of pandemics we saw the whole sector shift to online education, changes in education policy were made to suit the then scenario. New education policy was also introduced with the aim to bring a more holistic approach to the field of education. For this year the aim of the government’s revenue spending in this sector is Rs 1,04,278 crore, the key area of focus is reopening educational institutions and building a parallel infrastructure for online education.
What is NREGA? In simple language, it’s a law that guarantees employment to the rural population.
Due to the large unemployment caused by pandemics in recent years, labor demand under the Mahatma Gandhi National Rural Employment Guarantee Act is increasing. Rights activists claim that the program suffers from late payments and lack of opportunities when funds are inadequate.
When was NREGA implemented?
In its first phase, the scheme was implemented in 200 most backward districts of the country on February 2, 2006, which was subsequently extended to 113 additional districts from April 1, 2007, and 17 from May 15, 2007, its aim is to enhance the livelihood security of households in rural areas of the country by providing at least 100 days of guaranteed wage employment every household whose adult members volunteer to do unskilled manual work.
It seems clear even to the government that last year’s allocation wasn’t enough-it was planning to spend 73,000 rupees under the scheme, so it ended up spending 98,000 rupees. Despite this knowledge, the government budget for this year is allocated the same as last year that is again 73,000 rupees which is 25.51% less than the revised estimate for this year.
Health and family welfare
Covid-19 had a vast impact on the world healthcare system and we saw a devastating impact on our healthcare system as well. Last year the government spent more than allocated for the health and family welfare sector. This year the government budget has increased to
Rs 86,200.65 crore which is a hike of 16 per cent over Rs 73,931 crore in 2021-22.
National Tele Mental Health Programme was also announced to improve access to quality mental health counseling and care services.
An open platform for National Digital Health Ecosystem will also be rolled out.
The budget 2022 allocation for the National Health mission also increased from Rs 36,576 crore in 2021-22 to Rs 37,000 crore in 2022-23.
A strong emphasis was seen on rural up-gradation, employment in rural areas, and development, it’s crucial to draw focus on agriculture and allied activities in India’s rural sector. By doing high consumption, increased employment in rural areas and growth in the rural economy will be enabled.
These are the following announcements done-
- The budget for rural development is Rs 1,39,208 cr
- Through the rural development policy 163 lakh farmers will receive INR 2.37 lakh crore Direct Benefit Transfer (DBT) payment of Minimum Support Price (MSP) in their respective bank accounts for wheat and paddy. 2. Promotion of ‘Kisan Drones’ for crop assessment, digitization of land records, spraying of insecticides, and nutrients.
- The rural development policy also talks about promoting chemical-free and natural farming.
- Millet production to be supported and encouraged of branding, marketing, and value addition to millet. (Post Harvest)
- The rural development policy also promotes schemes to increase the domestic production of oilseeds.
Budget 2022 proposed tax on virtual cryptocurrency, the finance minister stated that “any income from transfer of any virtual digital asset” at a rate of 30 per cent and impose a 1 per cent tax deduction at source (TDS) of transactions above a monetary threshold. Further, it was added that no set-off will be allowed in case of losses. If gifts are sent in the form of virtual cryptocurrency or any other virtual assets they will be taxed in the hands of the recipient.
Through this step virtual assets such as cryptocurrencies, non-fungible tokens got formal recognition by the government