Union Budget 2022: From Large Scale Spending To Ease On Taxation - 10 Key Points In This Year’s Budget

Some policies regarding cryptocurrencies, start ups are expected in this year's budget. A push to increase jobs and investments in order to move towards an economy of $5 tr by 2025 is also expected.  

Finance Minister Nirmala Sitharaman | Photo: Getty

New Delhi: The day when the Union Budget 2022 will be presented has arrived and every sector of the economy has its own expectation from the budget.

Income tax exemption, Expenditure on infrastructure are some of the key points that everyone will have an eye on as Finance Minister Nirmala Sitharaman would present the Union Budget in the Parliament on Tuesday.

The Budget is also given in the backdrop of five assembly elections, thus, some announcements might be made for the pol-bound states. 

Here is a list of 10 Key Points 

1. The Economic Survey 2021-22, released by the Finance Minister on Sunday projected a growth rate of 8-8.5 percent which hints towards more investment in the economy. 
2. In continuation with point 1, it is expected that this year’s budget will help in upticking growth from the levels that were in 2019 after the country recovered from the worst recession after independence last year. 
3. It is being expected that this year’s budget will give a push to large scale spending so as to increase jobs and investments in order to move towards an economy of $5 trillion by 2025. 
4. As prices of everyday commodities increase, one of the main things mostly everyone will look out for is a rise in the income tax exemption which is currently at Rs 2.5 lakh.
5. Experts expect that in order to increase its expenditure in infrastructure, the government may increase spending on railways, roads and waterways. 
6. As the budget comes just before Assembly elections in five states of Manipur, Goa, Punjab, Uttarakhand and Uttar Pradesh, increased expenditure in rural and agricultural areas are expected. 
7. In order to support small business, ease of doing business along with ease of tax compliance, simplification and digitisation are expected to give small traders a moral boost. 
8. Lately, Prime Minister Narendra Modi has been stressing on startups, so startup friendly policies and tax relaxations are also expected for upcoming and existing entrepreneurs. 
9. The fiscal deficit for this year is expected to be at 6.3 percent which is lower than the projected deficit of 6.8 percent. Tax revenues, higher nominal GDP growth and limited spending are expected to be contributing factors. 
10. Cryptocurrencies have been much discussed in this fiscal year. The Union Budget 2022 may classify the virtual currencies as an asset class with higher tax rates.