Principal of Fiscal Conservatism is followed: Allocations to MGNREGA drastically reduced. Allocations for food subsidies reduced by almost half. Why Fiscal Conservatism is followed? Falling revenues had forced the government to restrict its aggregate spending. A sharp reduction in corporate tax rates in September 2019, The under-performance of Goods and Services Tax regime. Failure of …
Key shortcomings of the Budget: Impact on revenue expenditure: Revenue estimates have remained stagnant. Fiscal Consolidation targets require reducing expenditure to GDP ratio. Thus, to meet fiscal targets, revenue expenditure will be reduced. Implications for development spending: Reduction in development expenditure will lead to fall in development expenditure. Impact on income and livelihood: The reduction …
Definition of Crypto Assets: The Finance Bill, 2022 has for the first time provided a definition for crypto assets. According to the definition, any information or code or number or token generated through cryptographic means or otherwise providing a digital representation of value exchanged with or without consideration that can be transferred, stored, or traded …
What is in the Budget related to Financing of Investments? Public Capital Investment: Outlay for capital expenditure stepped up sharply by 35.4% to Rs. 7.50 lakh crore in 2022-23 in comparison to the current year. Outlay in 2022-23 to be 2.9% of GDP. The ‘Effective Capital Expenditure’ of the Central Government is estimated at 10.68 lakh crore in 2022-23, which will be …
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How does the Budget promote Ease of Living and Doing Business? Next Phase of Ease of Doing Business & Ease of Living: In recent years, over 25,000 compliances were reduced and 1486 union laws were repealed, result of ‘minimum government & maximum governance’, and Ease Of Doing Business (EODB). For the Amrit Kaal, the next phase …
What is New for Agriculture & Food Processing? Agriculture: Rs. 2.37 lakh crore direct payment to 1.63 crore farmers for procurement of wheat and paddy. Chemical-free Natural Farming will be promoted throughout the country, with a focus on farmers’ lands in 5-km wide corridors along river Ganga, at the first stage. 2023 has been announced as the International Year of …
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PM Gati Shakti: PM Gati Shakti National Master Plan for Multi-Modal Connectivity is an initiative aimed at coordinated planning and execution of infrastructure projects. The objective is to bring down logistics costs. Gati Shakti is a digital platform bringing development projects of 16 ministries, including railways and roadways, together for integrated planning and implementation. Focus Area for Budget …
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With this Budget, India has marked the 75 years of Independence through Azadi ka Amrit Mahotsav. Apart from this, the budget also lays down a plan for next 25 years and refers to the same period as Amrit Kaal. Amrit Kaal: India has entered into Amrit Kaal, the 25-year-long leadup to India@100. During the Amrit Kaal, the government aims to attain the …
Health: There has been a 16% hike in healthcare sector allocation. However, the ₹83,000-crore outlay is almost equal to last year’s actual spend. The Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PMABHIM) has seen a substantial increase in budgetary allocation. A scheme to improve pandemic preparedness via research and development as well as strengthen “bio security” has …
Context: The pandemic over the last two years has had a severe impact on the health, education and food security of the poor and informal sector workers. It was expected that the current Budget would see an expansion in government spending on the social sector. Social Sector Spending in India: The World Social Protection Report …
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