Union Budget 2022-23: What to expect?

Union Budget 2022-23: What to expect?

Economy

Anirudh Gupta

Anirudh Gupta

17 Jan 2022, 10:26 — 4 min read

The current economic scenario seems to be a mixed bag. This has been a year of recovery led by government support on both the social and the economic front. As February 1 approaches, all eyes are on the Finance Minister.

 

What is needed?

  • A focus on infrastructure beyond the current situation.
  • Strengthening Defence and establishing it as an exportable merchandise.
  • Maintaining consumer confidence and thus the business confidence from Kashmir to Kanyakumari.
  • Revamping the healthcare system.
  • Strengthening education at the grassroot levels.
  • Having a provision for streamlining of legal cases through Artificial intelligence as China has done.

 

What is likely?

Infrastructure

Infrastructure and related sectors to receive the manna from heaven, through budgetary allocation. This is a typical Keynesian but very effective in times when commodity prices are rising and private sector is not open to capex as there is a lot of spare capacity. Infrastructure tax free bonds can also be allowed. Already Infrastructure reits have a passthrough status. Only issue is that the attractiveness is low as the sector is capital intensive.

Defence

Increasing income through defence can be a good long-term solution. It is difficult not to run into loggerheads with allies and key defence suppliers like France, USA and the UK. An additional investment in building capability would be good for the sector as a whole. That said allowing technology transfer JVs could be an uphill task as creators of the technology are unlikely to part ways with the creation. Indigenous capability built over the medium and long term through budgetary support is a better pathway to the future like in case of Brahmos missile export to Philippines.

Healthcare

We face a shortage of doctors and critical illness centres across the country. A vision which encompasses making sure that the patient does not need to travel to other locations for treatment especially for major critical illness is important. An additional outlay to increase the quality of current medical institutions across the country would be a welcome move.

Provision for upgraded hi-tech legal infrastructure

Better legal infrastructure is critical to unlock the capital in the country. It also helps us to attract Capital through the FDI route. It is critical as the wheels of commerce should not be stuck as business stalls in the absence of it thereof. This could be piloted in key commercial centres through Artificial intelligence as suggested by Niti Aayog to reduce the workload enabling savings of time, energy and money.

The India story stays. The corridors in Delhi move the world of commerce. Let’s hope that the budgetary halwa is sweet enough for all of us!

 

Image source: Canva

 

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views, official policy or position of GlobalLinker. 

 

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