Amid the uncertainties of a global pandemic and economy, Finance Minster Nirmala Sitharaman presented the Union Budget 2022 on Tuesday. While the allocations readily favour the expansion of capital and infrastructure spending, the people of Lucknow have expressed mixed reactions to the new budget. From taxation on crypto gain to lack of rebates for personal income tax, here’s what the city has to say:
What is Lucknow’s youth saying?
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The foundations stone of the ‘Amrit Kal’ in India, Union Budget 2022 has evoked a tepid response from the general public. While allocations on infrastructure, housing, defence and agriculture are expected to have a multiplier effect on the economy, the common man and the salaried middle class seem to have found the short end of the deal.
There has been no change in the tax slabs and rates for personal income tax, directly impacting the public, which has already suffered at the hand of a pandemic. “While most of the people lost their jobs, others faced salary cuts. Honestly, each budget session brings some kind of hope to everyone, especially the middle class. Our takeaways from the budget are nothing but drawbacks, be it not giving any rebate in personal tax or the 30% tax on digital currency. Many middle-class employees like me have these as basic investment plans and a 30% tax definitely derails those plans”, said local marketing executive, Jaanvi Srivastava.
On the other hand, there are a few who have lauded the same 30% tax on digital investment. To quote Avinash Singh Vishen, a law student, “I think taxing cryptocurrency and introducing digital currency in India is a great step towards giving clarity in the respect of the dilemma towards cryptocurrency. While it is understandable that tax cuts are not present in this budget given the present COVID-19 situation, we hope they are there next year. Bringing petroleum products into the realm of GST would also be very desirable for the general public, and we hope they are introduced.”
The healthcare response
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Similarly, the healthcare industry experts have mixed reactions to the Union Budget 2022. Some experts have welcomed the provision for National Digital Health Ecosystem in the post-vaccination first budget while some have opined that other essential services have been ignored. “The allocation to health ministry has reduced this year. Given the COVID duress, there were higher expectations”, said Siddharth Pandey, a government official.
Though no clear announcement has been made with respect to the Indian Medical Devices Industry, the budget gives a definitive push to telemedicine boost as one of the ‘sunrise sectors’ this year. This will also have a positive impact on the IT industry, Pandey added.
Budget 2022 for inclusive growth
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As far as the MSMEs are concerned, the ECGL has been raised to ₹50,000. This allows inclusive growth in the fiscal year, starting from April 1. “The underlying theme of ‘Atmanirbhar’ and ‘Make in India’ will undoubtedly create good job opportunities, bringing a positive outlook towards domestic demand of consumer tech products in India. The overall growth-oriented approach will promote the rise of startups in the city. The same is evident from the tax incentives extended to these new companies”, said Vikram Bansal, a stock market enthusiast. He also shared his opinion on the upsides of budget investment, awarded by the new budget.
Knock Knock
There are many aspects of the budget which affect our consumer and investment patterns and behaviours, and it’s far reaching impact will play out in the long run. What are your thoughts about this Budget2022? Do let us know in the comments.
