New Delhi. Finance Minister Nirmala Sitharaman will present her fourth Union Budget 2022 on Tuesday. According to economic advisors, India’s growth rate is expected to be 7% to 7.5%. The main focus of the government will be on the plan to lift the economy out of the COVID-19 pandemic slowdown.
It is expected that the Finance Minister will try to strike a balance between fiscal prudence and support for growth. It is believed that the general budget for the next financial year will focus on increasing expenditure for investment and job creation. The general budget for the financial year starting April 1, 2022 will focus on strengthening the economy and for this, spending on infrastructure can be increased. The Economic Survey has set the stage for the Budget.
The government has fiscal space to support the economy growing at a good growth rate of 8-8.5 per cent in FY 2022-23. In the fiscal year ending in March, Asia’s third-largest economy is expected to expand by 9.2 per cent. Earlier in the last financial year, the economy had contracted by 7.3 percent.
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It is expected that Sitharaman will push the growth agenda while supporting growth as well as being financially cautious, by taking the route of higher capital expenditure. This will accelerate the investment cycle and employment. Along with this, the Finance Minister will adopt a financial protectionist stand.
In the infrastructure sector, there may be more allocation for roads, railways and water. Measures to strengthen small businesses and the rural economy can also be part of the budget. It is expected that the income tax exemption limit may be increased from Rs 2.5 lakh. (with agency input)