New Delhi: With the annual Union Budget commencing today, employment generation, agriculture reforms, and reduction in inflation rate are on the top of the list of expectations by the common masses. Noted Indian Economist Akash Jindal spoke exclusively to ETV Bharat about his concrete insights into the issues that may be put under the limelight in the budget session, especially when the assembly elections are just around the corner.
"Due to the economic losses that the ongoing pandemic has incurred upon the country, the pace of economic growth in India has slowed down considerably. Consequently, the output has also started sinking, adversely impacting the middle class, poor strata, small traders, and the population working in the agriculture sector. In the current circumstances, the masses may expect a soft and populous budget," says Jindal.
Jindal further added that the government should prioritise the issues of both unemployment and inflation in the budget in order to avoid creating an imbalance in society. If these issues are not brought under control in time, they have the potential of creating considerable social unrest, he added.
Jindal said that the housing issues have been a major priority of this government. "It's likely that the upcoming budget could also focus on an increment in home loan deduction limit. The other major priority should be given to the agriculture sector. Though the government has repealed the three contentious farm laws, the agriculture sector still faces a bleak future," he said. Further clarifying, he said, "We should expect a 40% escalation in the PM Kisan Samman Nidhi Yojna, which would largely benefit our farmers and perhaps bring them some relief."
Pointing out how the impact of Covid has not only affected the lives of people but has also affected the government, Jindal said that at this crucial moment the government might not be able to afford high investments, since a large amount of capital went into the welfare schemes such as providing free food to the poor strata, free vaccination schemes, etc. "Though all the sections of the society can expect to get something from the budget, there are chances that the size of it would be relatively smaller," he said in this context.
It is pertinent to note here that since 2020, when the ongoing pandemic hit the world, a disturbing revelation of a huge gap between the rich and the poor has become overtly conspicuous. Speaking about this, Jindal said that to bridge this gap between the two sections which is, in fact, being widened during the pandemic, the government should bring and impose a "Super Rich Tax" to help the middle class and the poor strata.
On the issue of pandemic spiking again and 'Work from Home' becoming more or less a permanent affair, he said that the current budget session might be expected to provide deduction in the home office allowance for employees who are working from home.
"As Work from Home has become a trending affair ever since the genesis of Covid-19, expenses like electricity bills and other additional expenses at the corporate workplaces are getting reduced. There would be an additional exemption of Rs 40,000 to 50,000 for people who are doing WFH. The budget is expected to take this into consideration too."
The Financial year 2020-2021 undoubtedly hit the Indian economy adversely, while the country's GDP witnessed two successive quarters of negative growth. On this equation, Jindal pointed out that this year's GDP had already bounced up. "In spite of Omicron hitting the nation in November and December, the economy has witnessed a robust come back," he said adding that his organization is expecting a GDP of 9% this year. "If this happens, our economy would become the fastest growing economy among all major economies such as China, the United States, Germany, and Japan," he added.
Also read: Union Budget 2022: All you need to know about economic terms of the budget
