The Budget is an annual exercise, which shows the people at large, the earning and the expenditure of the country in the past financial years the financial year of India start from 1st April of one year to 31st of March of the next year. This exercise mainly of Government to analyze what is saved, what it spend through the year gone by.
The Article 266 of the constitution of India deal with parliamentary approval to draw money from the consolidated fund of India the term Budget is not mentioned in the constitution, constitution refer it as Annual Financial Statement. Article 112-117 deals with financial matter. Besides Article 114 (5) of the constitution deal say that no amount can be withdrawn from consolidated fund without the enactments of law that is with appropriation bill the Budget division of the Department of Economic Affairs in the finance ministry is the nodal body responsible for preparing Budget.
As every year this year also budget came on 1st of February 2022 but the special as it comes in Covid pandemic after third wave with lots of ups and down in last two years. This year with main theme is to complement macro-economic level with a focus on microeconomic level all inclusive welfare.
The Budget is an annual exercise, which shows the people at large, the earning and the expenditure of the country in the past financial years the financial year of India start from 1st April of one year to 31st of March of the next year. This exercise mainly of Government to analyze what is saved, what it spend through the year gone by.
The Article 266 of the constitution of India deal with parliamentary approval to draw money from the consolidated fund of India the term Budget is not mentioned in the constitution, constitution refer it as Annual Financial Statement. Article 112-117 deals with financial matter. Besides Article 114 (5) of the constitution deal say that no amount can be withdrawn from consolidated fund without the enactments of law that is with appropriation bill the Budget division of the Department of Economic Affairs in the finance ministry is the nodal body responsible for preparing Budget.
As every year this year also budget came on 1st of February 2022 but the special as it comes in Covid pandemic after third wave with lots of ups and down in last two years. This year with main theme is to complement macro-economic level with a focus on microeconomic level all inclusive welfare.
Aiming at post covid development, India’s economical growth estimated 9.2%. Highest among the all major economy in world after the hit of third covid wave with omicron, this is third covid wave with omicron, this is good for India. Our finance minister say that 60 lakh new job created and productivity linked incentive (PLI) schemes in major 14 sector of India with PLI lead the great additional Rs.30 lakh crore production.
As we are entering in Amrit Kal India @100, long term and short term goal are there for new India mainly focusing on four priorities.
- PM Gatishakti Scheme
- Inclusive Development
- Productivity enhancement and investments sunrise opportunities, energy transition and climate action
- Financing of investment
PM Gatishakti National Master Plan lead to develop 100 lakh crore infrastructure in India with main seven engine Road, Railway, Airport, Port, Mars Transport, Waterway, Logistic infrastructure. These seven-engine held for economic transformation, multimodal connectivity and logistic efficiency. Road transport aim is to expand National Highway Network by 25000 km road in 2022-23 whole over India. Multi Logistic Park (MLP) goes with Public Private Partnership (PPP) model in 2023 with MLP at four locations.
Budget say for railway that one station one product that help for local business and supply chain. Under the “Kavach” aiming to develop 2000 km of railway network with Indigenous world class technology. New 400 Vande Bharat Train will be manufactured in India in next three years. Parvatmala Yojna mainly for hills areas aiming to develop National Roadway Development Program, which help to increase tourism, accessibility easy work for that construct & roadway project of 60 km length in 2022-23.
In Agriculture Budget aim to provide direct Rs.2.37 lakh crore direct payment to 1.63 crore farmer for procuring wheat and paddy. It also say to provide chemical free natural farming at least in 5 km corridor in Ganga river region. NABARD facilated with fund for agricultural & rural enterprises. The most Important manufacturing of Kisan drone for crop assessment, digitalization of land record, spreading pesticides and nutrients. The new development for next year with Rs.1400 crore for link “Ken-Betwa” Project that helps 9.08 lakh hectors of farmer land to benefited with irrigation facility and give relief to the Bundelkhand area.
Digital ecosystem for skilling and livelihood (DESH Stock e portal) will be launches to empower citizens to skill, reskill and upskill through online training.
In MSME, Udyam, e-shram, NCS and ASEEM portal to be interlinked. 130 lakh MSME provided additional credit under Emergency Credit Linked Guaranteed Scheme (ECLGS). ECLGS to be extended upto March 2023 with expanded by Rs.5000 crore to total cover of Rs.5 lakh crore.
In Education aim to expand one class, one TV channel programme of PM e-Vidya to 200 TV channel virtual lab and skilling e-labs to be setup to promote critical thinking skills and simulated learning environment. High quality e-content will be developed for delivery through digital teacher.
In Health Sector, An open platform for National Digital Health ecosystem to be rolled out. The network of 23 tele mental health centre of excellence will be setup with NIMHANS being Nodal centre and international institute of information technology Bangalore providing technological support.
Saksham Anganwadi will give integrated benefit to women and children through Mission Shakti, Mission Vatsalya, Saksham Anganwadi and Poshan 2.0 with two lakh anganwadi to be upgraded housing for all under PM Aawas Yojna allocated Rs.48,000 crore for completion of 80 lakh house in 2022-23.
New scheme Prime Minister’s Development Initiative for north-east region (PM-Devine) launched to fund infrastructure and social development project in north-east. An initial allocation of Rs.1500 crore made to enable livelihood activities for youth and women under the schemes. Vibrant Village Programme for development of Border Village with spare population, limited connectivity and infrastructure on northern Border.
In Banking sector, schedule Commercial Bank to set up 75 Digital Banking units in 75 districts. E-Passport with embedded chip and futuristic technology to rolled out. In urban planning, modernization of building by laws, Town planning schemes, Transit oriented development will be implemented. Land Record Management with unique land parcel identification number for IT-Based management of land records. Centre for processing accelerated corporate exit (C-PACE) to be established for speedy winding up of companies.
In Telecom sector, the scheme for design led manufacturing to be launched to build a strong ecosystem for 5G as part of production linked Incentive schemes Budget shows Atmanirbharta in defense as 68% of capital procurement budget marked for domestic industry in 2022-23 with defense R&D to be opened for industry. Startup and academia with 25% of defense R&D budget. Government contribution to be provided for R&D in sunrise opportunities like Artificial Intelligence, Geospatial system and Drones semiconductor and its ecosystem, Space economy, Green energy etc.
In Energy Transition and climate action additional allocation of Rs.1,9500 crore for production linked sensitive for manufacture of high efficiency solar module to meet the goal by 280 GW of installed Solar power by 2030. Four pilot to be set up for Coal gasification & conversion of coal into chemical industry.
Budget also says about world class foreign universities and institution to be allocated in GIFT city. An international Arbitration centre to be set up for timely settle dispute under international judiciary.
A very awaited and new decision taken in the budget to introduce Digital Rupee by Reserve Bank of India starting 2022-23 and also to introduce 5G technique find scheme for design led manufacturing to be launched to build strong ecosystem for 5G as apart of PLZ.
In last year Budget estimated 34.83 lakh crore, but in this year 2022-23 it is estimated Rs.39.45 lakh crore. Our total receipts other than borrowing in 2022-23 estimated at Rs.22.84 lakh crore with fiscal deficit 2023-23 estimated at 64% of GDP.
As lots of schemes and spending are made this year but some criticism also there. In this year no recommendation and policy made for controlling inflation. As covid hit citizen and inflation reach to peak still not any policy made for controlling is the most important issue in covid period is unemployment. In pandemic lots of people loss their job with we already have unemployment before pandemic so combining regular unemployment and unemployment in pandemic era need to solved by giving priorities but nor provisions and schemes are there to deal with this big issue. No specific schemes are there for rural development. As we know in GIFT schemes foreign universities will come to India. It may lead to create threat to Indian education as well only rich students can admitted to these universities. So it may create inequality between students. As budget increase more by 35% it may pressurized government to borrow the money. In education sector only benefit are given to digital education, no benefit for physical lab and study, no specific provision for women empowerment.
This year Budget is mostly focusing on infrastructure, inclusive development, MSME etc. It also look to North-East region education, Health, Banking, New 5G technology, Defense Aatmanirbhar. It also give new initiative to introduce digital rupee etc. But still not give sufficient focus on inflation, women empowerment, rural development etc. We are hoping that all these policies made implement properly and complete its goal.