Budget 2022: Budget to promote consumption, demand for tax exemption and reduction in fuel tax

The upcoming budget needs a lucrative offer in income tax and cuts in taxes on fuel to support the pandemic-hit economy and boost consumption demand. This has been said in the report of rating agency India Ratings. India Ratings, in its pre-Budget report, expressed hope that the new budget would incorporate and strengthen the fiscal plan set out in the previous budget. In this, instead of adopting new things, the revenue and capital expenditure modalities of the current financial year will be adopted so that the existing efforts can be strengthened.

In this report, it is expected from the budget that the focus will be on increasing demand by creating employment opportunities in the areas most affected by the global pandemic Kovid. According to the report, Finance Minister Nirmala Sitharaman is expected to delay fiscal inclusion, make it a gradual and phased process and ensure that necessary financial support is available to the economy till the time the revival picks up pace. Ho.

Pandemic has a bad effect on the purchasing power of the common people

Referring to the adverse impact on the purchasing power of the common people due to the pandemic, the report sought tax relief to them, saying that this could be done by givin⅘g relief in income tax and cutting tax on oil products. In the current financial year after two supplementary demands for grants, revenue expenditure is estimated to be Rs. The budget is likely to fall short by Rs 13,100 crore.

Revenue expenditure in the new FY will be higher than the revised estimate of the current FY

According to the rating agency, the revenue expenditure in the coming financial year will be higher than the revised estimate of the current financial year. The government’s capital expenditure in the current fiscal stood at 2.5 per cent of GDP, from 2.2 per cent in the previous fiscal and 1.6 per cent in 2019-2020.