Budget 2022

The steep rise in food subsidy bill was on account of Pradhan Mantri Garib Kalyan Ann Yojana introduced as part of the Economic Response to Covid-19 Budget 2022 : Nearly 60 % of the increase in revenue expenditure during 2020-21 was due to increase in major subsidies. The major subsidies registered a growth of over 200 per cent in 2020-21 over 2019-20, Economic Survey 2021-22 said. This increase was driven by almost 400% growth in food subsidies from Rs 1.09 lakh crore in 2019-20 to Rs 5.25 lakh crore in 2020-21. The steep rise in food subsidy bill was on account of Pradhan Mantri Garib Kalyan Ann Yojana introduced as part of the Economic Response to COVID-19, and the pre-payment of around Rs 1.5 lakh crore of outstanding food subsidy related loans of the Food Corporation of India. The expenditure policy during the pandemic year 2020-21 was focused on prioritisation of expenditure according to evolving situation. In the initial phase of the pandemic, the Government ensured that funds

Carmakers are saddled with a backlog of over 7 lakh orders as of December 2021, due to the the shortage of semiconductors, according to the Economic Survey. Budget 2022 : With the delay in supply, the average lead time (the difference between the date of order and actually receiving in the automobile) for the industry for 2021 has been around 14 weeks globally. India has also experienced similar trends in the automobile sector, Economic Survey 2021-22 pointed out. As per data from the Society of Indian Automobile Manufacturers (SIAM), carmakers sold 2,19,421 passenger vehicles in the domestic market in December 2021, down 13 per cent (year-on-year), it stated. "This is not a demand problem but a supply-side issue. The information from various car manufacturers' websites reveals a cumulative pendency of over 7 lakh orders as of December 2021," the Survey noted. The Survey also outlined the efforts on the part of the government to boost semiconductor production in the coun

Out of the total fertiliser production, urea output was at 18.7 million tonne, Di Ammonium Phosphate (DAP) at 3 million tonne and complex fertilisers at 6.8 million tonne The government's fertiliser subsidy touched Rs 85,300 crore in the first nine months of the ongoing fiscal year, according to the Economic Survey . Domestic fertiliser production reached 28.5 million tonne during April-December period of 2021-22. Out of the total fertiliser production, urea output was at 18.7 million tonne, Di Ammonium Phosphate (DAP) at 3 million tonne and complex fertilisers at 6.8 million tonne. According to the Survey, total fertiliser subsidy reached Rs 85,300 crore during the nine-month period. Of this, Rs 49,800 crore subsidy was on urea and the balance Rs 35,500 crore on phosphatic and potassium (P&K) fertilisers. The government's fertiliser subsidy had touched a record Rs 1,38,500 crore in 2020-21. Much of the subsidy was spent on urea at Rs 99,500 crore followed by P&K fertil

The impact of the second wave of Covid-19 on GST collection was much more muted than the impact of the nationwide lockdown during the first wave, The Economic Survey for 2021-22 noted. Budget 2022 : The impact of the second wave of Covid-19 on GST collection was much more muted than the impact of the nationwide lockdown during the first wave, The Economic Survey for 2021-22 noted. After falling during the nationwide lockdown in 2020-21 and during the second Covid wave, there was a quick recovery in monthly GST collection. Over the last four years, GST revenues have steadily grown and the year-average of monthly GST collection has increased from Rs 0.9 lakh crore in 2017-18 to Rs 1.19 lakh crore in 2021-22 (up to December). The improvement in GST collection has been due to the combined effect of the rapid economic recovery post the pandemic, the nationwide drive against GST evaders and fake bills along with many systemic changes introduced recently, and various rate rationalisation me

T he Central government has done a lot of work for the real estate sector in the previous years with landmark initiatives. The Central government has done a lot of work for the  real estate   sector in the previous years with landmark initiatives. The sector is hoping that the continued support will positively impact not just the   real estate   sector, but the overall economy of the country. It's noteworthy that the government has also paid constant attention to the suggestions, advice and recommendations of the   real estate   sector and has made many changes in the rules and regulations accordingly. Due to these efforts, the real estate sector in the country has received a lot of impetus and has been able to come out of its slowdown days. In any case, a few issues and key regions actually remain, which should be settled soon. With this, the public authority will actually want to establish a solid framework and furthermore have the option to satisfy its main goal of 'lodging

Asia's third-largest economy is estimated to expand 9.2% in the fiscal year that ends in March, following a contraction of 7.3% in the previous fiscal year Union Budget 2022 : India plans to raise spending on  infrastructure   in its annual budget next week to set the economy on a firmer footing, but fiscal constraints leave little chance of concessions for households hurting from the pandemic, officials said. Asia's third biggest economy is assessed to grow 9.2% in the monetary year that closures in March, following a withdrawal of 7.3% in the past financial year. However private utilization, which makes up almost 55% of GDP, is beneath pre-pandemic levels in the midst of rising degrees of family obligation, while retail costs have expanded almost a 10th since the Covid episode started in mid 2020. The Feb. 1 financial plan comes days before the beginning of decisions in five states, including the most crowded, Uttar Pradesh, which could spike Finance Minister Nirmala Sitharam

Union Budget 2022 Highlights: Keeping with recent tradition, Union Finance Minister Nirmala Sitharaman is expected to announce Union Budget 2022 on February 1 this year. Budget 2022 : The annual report of India as a country. It contains the government of India's revenue and expenditure for the end of a particular fiscal year, which runs from April 1 to March 31. The Union Budget is the most extensive account of the government's finances, in which revenues from all sources and expenses of all activities undertaken are aggregated. It comprises the revenue budget and the capital budget.  It likewise contains gauges for the following financial year. Keeping with late custom, Union Finance Minister Nirmala Sitharaman is relied upon to declare Union Budget 2022 on February 1 this year. This will be gone before by a virtual gathering of the Rajya Sabha floor pioneers, in front of the spending plan meeting of the Parliament, will be hung on January 31. The gathering will be led by Chai

The Feb. 1 budget comes days before the start of elections in five states, including the most populous, Uttar Pradesh Budget 2022 : India plans to raise spending on infrastructure in its annual budget next week to set the economy on a firmer footing, but fiscal constraints leave little chance of concessions for households hurting from the pandemic, officials said. Asia's third largest economy is estimated to expand 9.2% in the fiscal year that ends in March, following a contraction of 7.3% in the previous fiscal year. Yet private consumption, which makes up nearly 55% of GDP, is below pre-pandemic levels amid rising levels of household debt, while retail prices have swelled nearly a tenth since the coronavirus outbreak began in early 2020. The Feb. 1 budget comes days before the start of elections in five states, including the most populous, Uttar Pradesh, which could spur Finance Minister Nirmala Sitharaman to promise higher rural spending and subsidies on food and fertiliser. Yet

The increased spending comes ahead of crucial assembly polls and amid efforts by the ruling BJP to win over farmers after facing massive protests against new laws that have since been scrapped Budget 2022 : India is likely to earmark nearly $19 billion in the federal budget to compensate fertilizer companies for selling their products to farmers at lower than market prices, according to people with knowledge of the matter. The finance ministry has penciled in Rs 1.4 trillion ($18.8 billion) as fertilizer subsidy in the budget due Feb. 1, up from Rs 1.3 trillion in the year ending March 31, due to higher raw material costs, the people said, asking not to be identified as the information is not public. Discussions are still going on and a final decision is yet to be taken. The increased spending comes ahead of crucial assembly polls and amid efforts by the ruling Bhartiya Janata Party to win over farmers after facing massive protests against new laws that have since been scra

The organisation noted that the reduction of GST on medical devices and medical cold chain from 12 per cent to 5 per cent would lead to the expansion of the healthcare sector through reduced costs The Medical Technology Association of India (MTaI) has urged the government to reduce GST and customs duties on medical devices, cold chain units and spare parts used in the healthcare appliances in the upcoming Union Budget. The organization noted that the reduction of GST on medical devices and medical cold chain from 12 % to 5 % would lead to the expansion of the healthcare sector through reduced costs improving patient accessibility, MTaI said in a statement. The organization, which represents research-based medical technology companies, also sought to streamline of Customs Duty and GST on spare parts. Read more Updates on  Budget 2022  here Currently, the customs duty and GST on spare parts of medical equipment are currently charged at a higher rate than the equipment itself,

Gems and Jewellery  Export Promotion Council has urged the government to reduce import duty on gold to 4% from 7.5% and a special package for the sector in the forthcoming Budget Budget 2022 : Gems and Jewellery Export Promotion Council (GJEPC) has urged the government to reduce import duty on gold to 4 per cent from 7.5 per cent and a special package for the sector in the forthcoming Budget to boost shipments. As part of its pre-Budget recommendations, the council has also suggested a reduction in the import duty on cut and polished diamonds; cut and polished precious and semi-precious gemstones from 7.5 per cent to 2.5 per cent. “If (gold) imported at 4 per cent duty rate….working capital amounting to Rs 225 crore would be blocked instead of Rs 500 crore,” the council said in a statement. The other suggestions of the council include an amendment in taxation provisions to allow the sale of rough diamonds in Special Notified Zone in Mumbai; clarification on online equalisat

Insurance penetration in India stands at 4.2% as of 2020-21, with life at 3.2% and non-life at 1%, according to Irdai’s 2020-21 annual report Ahead of the Union Budget 2022-2023, which is less than a fortnight away, insurers are asking for various tax sops from the central government to incentivize the Indian population to buy more pure-risk products. Traditionally, tax exemptions have acted as a catalyst for people to buy insurance products. But, since the pandemic, there has been an organic demand for insurance products, especially pure risk products and guaranteed income products, given the uncertainty associated with the pandemic. Read more Updates on  Budget 2022  here However, the insurance industry still wants the government to continue with tax exemptions so that enough people get insurance coverage because India still remains a highly under-penetrated market when it comes to insurance. Insurance penetration in India stands at 4.20% as of 2020-21, with life insuranc

They put forward their views for the development of their respective regions Ahead of the Budget, representatives from the ruling BJP and its state units sought support from finance minister Nirmala Sitharaman for the sectors that have been the worst affected by the pandemic. These include hospitality, leisure and tourism. They said the Centre should continue its spending thrust and not go for a steep fiscal consolidation. BJP national leaders, including its vice-president Baijayant Panda, general secretary Arun Singh, spokesperson Gopal Krishna Agarwal and party representatives from 25 state units interacted virtually with the finance minister on Sunday, as part of pre-budget consultations. Read more Updates on  Budget 2022  here “Small businesses and the informal sector need much more support, post-pandemic. Tourism and other touch services have also been badly affected. These points were raised in the interaction,” Agarwal said Business Standard. Agarwal said there were