Evaluating the 2022 Union Budget of India: Areas for Improvement

The 2022 Union Budget of India, while presenting several positive initiatives, has faced criticism for certain shortcomings. Specifically, the budget has come under scrutiny for its lack of specific measures to benefit the middle class, the emphasis on long-term solutions to unemployment, and its stance on digital assets. In this article, we analyze the shortcomings of the 2022 budget and suggest areas for improvement.

1. Middle Class Tax Relief: A Missed Opportunity

The middle class, which forms the backbone of the Indian economy, deserves substantial relief in the form of a reduced tax slab or other fiscal measures to ease the financial burden caused by ongoing inflation. Instead, the budget left many middle-class Indians feeling let down, as there were no substantial tax reductions or inflation alleviation measures introduced. The lack of tangible relief for the middle class is a significant area for the government to focus on for the future budgets.

2. Immediate Job Creation: Short-Term Needs

While the budget does offer some provisions for job creation, these benefits are expected to manifest themselves only after a few years. The youth of India, who are both the largest and the most dynamic segment of the population, need immediate solutions to combat high unemployment levels. The government should prioritize providing short-term job opportunities and skills training programs to equip the youth with the necessary skills for in-demand jobs.

3. Digital Assets Tax: A Policy Hurdle

The government's decision to impose a 30% tax on digital assets, instead of setting it at a more balanced level like 10-20%, may deter investors from exploring this nascent field. A more moderate tax rate and better regulatory framework could have fostered a more conducive environment for digital asset investments, which could contribute significantly to the country's economic growth.

Conclusion

The 2022 Union Budget of India, although commendable in many aspects, missed the mark in addressing some pressing issues such as the middle class's financial strain, job creation for the youth, and the regulation of digital assets. As India continues to navigate the complexities of the modern economy, it is crucial for the government to remain responsive to the needs of its citizens by considering the following improvements in future budgets:

More targeted tax relief measures for the middle class to combat inflation. Initiatives to provide immediate job opportunities and skills training programs. A revised, more balanced tax rate for digital assets to encourage investment growth.

By addressing these areas, the Indian government can better serve its people and ensure sustainable economic growth for the long term.