-Prof. Esha Khanna – Assistant Professor, NMIMS Sarla Anil Modi School of Economics – Mumbai
An all-inclusive Budget dominated by supply-side measures with an appropriate emphasis on welfare and digitisation for sustained recovery. Extension of Emergency Credit Guarantee Line Scheme for MSME until March 2023 is a welcoming step which will not only provide much needed impetus to severely hit services sector but it is likely to enhance youth employment imperative to boost consumer spending. Budget recognised that digitisation is the need of the hour. Enhanced allocation of Digital infrastructure in education, health, and banking sector alongside the proposal of issuing digital currency by RBI makes FY Budget 2022 progressive and lends a modern outlook. Three new schemes launched for the integrated development of women and children will serve as pre-requisite for enhancing the women labour force participation. Provision for quality services for improving mental health problems in all ages will contribute in accentuating the productivity and efficiency of workers in the long-run. Issuance of sovereign green bonds, focus of use of public transport, and additional allocation of 19,500 crores for production linked incentives for manufacturing of high efficiency modules for solar power will be instrumental in the goal of achieving zero carbon emission. These initiatives will provide multiple benefits by enabling commercially viable funding opportunities for public and private sector, growth of electric vehicles, greener technology and most importantly improved urban governance. Tax incentives for one additional year to start ups, task force for animation, visual effects, gaming and fund mobilization via NABARD for start-ups serving agricultural and rural sectors will infuse optimism. Although no changes in the marginal tax rates and not many special provision except agro-forestry might leave a wave of disappointment but makes budget clearly apolitical.