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On February 7, 2022, the International School of
Informatics and Management hosted a panel discussion on "Post Budget Analysis -
2022."
Prof. C.S. Barla, Eminent Economist and Ex-Professor, University of Rajasthan,
Mr. J S Upadhyay, Retired AGM, SBI Bank, Jaipur, Mr. Nesar Ahmad, Director,
Budget Analysis & Research Centre, Jaipur, Mr. Varun Sharma, Programme Director,
Aravali, Jaipur, Mr. Ankit Somani, Regional Council Member, Seven States, Ajmer.
Mr. Shailendra Agarwal, Senior Journalist, Rajasthan Patrika, were amongst the
eminent panelists who presented their views on the latest budget.
The purpose of the session was to explore the benefits and drawbacks of the
recent budget from various viewpoints, as well as to inform students about the
budget's financial impact on the country's micro and macroeconomic elements.
Mr. C S Barla provided a comprehensive overview of the budget, discussing the
budget's numerous economic consequences across all macro factors. He also
stressed the importance of comprehending the country's major issues, such as
rural suffering and unemployment. He talked about the expectations that a common
man has from the budget and the role of Finance Ministry in meeting those
expectations by means of budget. He apprised the participants with the
exclusivity of the recent budget by announcing heavy emphasis on increasing
capital expenditure to increase the overall speed of the economy.
Mr. J S Upadhyay commented upon the various moves taken by the finance minister
in the existing budget like charging 1% TDS on purchase of virtual digital
asset, subject to stipulated thresholds, income from transfer of virtual digital
asset will be taxed at 30% from now onwards, announcement of the upcoming
central bank digital currency (CBDC) and considered all the moves as
appropriate. He shared that tax revision for such assets is needed to reduce gap
of inequality and levying tax on those who are earning more returns through
different investment avenues.
Mr. Nesar Ahmad, shared his views over reduced GDP and slower pace of recovery
of the country. He appreciated budget on the ground of allocating budget to
housing sector as to meet basic need of the people. But he raised his concern
over not allocating anything differently to agriculture sector. He said that
heavy reliance on building road and bridges is undoubtedly required but core
sectors which include agriculture also need significant attention. He said that
Government has not done anything differently to curb employment but the decision
in the budget to increase capital expenditure might result in increasing
employment opportunities. He informed that existing budget has given due
consideration to education sector which would help India immensely.
Mr. Varun mentioned that Finance Ministry should prepare budget keeping in view
the real problems and should not just pay attention to data available. The
sectors which are lacking behind should be primarily emphasized. The government
should decide the ratio of budget allocation between infrastructure and health,
as capital expenditure might give wings to economy but health infrastructure can
add to life expectancy and quality of life. He shared that government needs to
focus on tackling problems like disparity in mortality rate in different states,
gender issues and resources allocation.
Mr. Shailendra drew attention to India’s unstoppable growth trajectory. He
informed that every year budget outlay is a decisive factor in India to be a
powerful country. He appreciated New Education Policy of Government of India and
is expecting a significant contribution of it in creating new India. He shared
that in India, Government should work less on report preparation and analyze the
available data more. He threw light on the fact that next five years are very
important for India to prove its mettle in the world economy.
Mr. Ankit shared that the latest budget made no changes to the existing income
tax structure, disappointing the general public and several other groups. There
were, however, moves that could prove to be a significant boost to the economy
as a whole in the future. He also mentioned a fee on long-term capital gains (LTCG)
that will be capped at 15% and will be applied to all assets. It only applies to
listed equity shares and equity-oriented fund units till recently. He spoke on
wage rates, explaining that while MGNREGA wage rates grew by 4% between FY
2020-21 and FY 2021-22, actual salaries paid in most states remained lower than
the announced wage rates until December 31, 2021, which is not a positive sign.
He expressed his concern over the problem of unemployment and fair wages
prevalent in the country.
Mr. C S Barla while concluding the session shared that it is not just about
making new policy but it is the effective implementation that will ensure its
utility and success. He expressed that the budget should be prepared and viewed
in the light of affects of Covid-19. The high dependency on Foreign Direct
Investment should be reviewed every year in respect of GDP growth secured.
Government should try to reduce fiscal deficit for securing real growth of the
country. He shared that currently retail price index is discouraging and should
be considered for the purpose of understating the purchasing power of the common
man. He emphasized that savings should be encouraged to spur investments.
He acquainted the students with the nitty-gritty of the financial climate and
also spoke about the aspects that must have been incorporated in the budget to
make it a stable budget in his concluding remarks.
Students posed a lot of questions to the panelists and learned how important it
is to engage in budget analysis.
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