India’s Finance Minister Nirmala Sitharaman on Tuesday (February 1), presented the Budget 2022-2023 aiming to put the economy on the path of development amid the ongoing coronavirus (COVID-19) pandemic. Overall, the government emphasised capital expenditure and investments to power the country’s GDP growth forward with a pro-growth Budget.
The government is aiming to step up spending to $529.7 billion (Rs39.45 trillion) in the coming fiscal year to drive economic growth and infrastructure. It is important to note that it involves a wider fiscal deficit than targeted and record borrowing.
While presenting the budget, Sitharaman said that total government spending in the 2022-23 fiscal year beginning in April will be 4.6 per cent more than the current year.
In her opening remarks, Sitharaman said that the growth is estimated to be 9.2 per cent for 2021-2022, the fastest among the world’s major economies.
As mentioned by an Indian politician and Bharatiya Janata Party (BJP) leader Kiren Rijiju, it is an “inclusive” Budget that takes care of the interests of every section of society including the poor, rural and border areas.
But how will it impact the Non-Resident Indian (NRI)? Here’s a report:
-The introduction of the digital rupee might benefit NRIs in reducing the cost of cross-border remittances.
-E-passports with the embedded chip will help in managing arrival and departure with ease. The chip will help in linkages of data with the Indian Ministry of External Affairs and tax authorities.
-Those who want to file updated tax returns can do it for 2 years from the end of the assessment year. It will also help those who are living abroad.
Bharat Bhatia, who is the founder and CEO of Conares, the second-largest private steel manufacturer in the UAE, said as quoted by an India-based news agency ANI: “The finance minister presented a highly promising budget projecting a lot of opportunities for growth and investments that would prove to be beneficial to the economy at large.”
“The budget promises marginal allocations for urban capacity building, modernisation of building by laws, town planning schemes and transit-oriented development will be implemented,” he said.
Bhatia also appreciated revoking customs duty on stainless steel, flat products and high steel bars; in addition to the extension of customs duty exemption on steel scrap for another year for small and medium-sized businesses.
Dr Sunil Kumar K, who is the Managing Director of SAM Corporate in Dubai, hailed the announcements on e-passports and digital currency.
As quoted by the news agency, Kumar said that e-passports will help NRIs and the RBI’s digital Rupee will be a trendsetter in the digital currency market, “where state can play a catalyst and bring controls and confidence. The future is bright.”
During her Budget speech, Sitharaman proposed that the Reserve Bank of India (RBI) will introduce digital currency in the next financial year beginning April 2022 to boost the digital economy and efficient currency management. She also said e-passports with the embedded chip will be rolled out.
According to Kumar, the voluntary winding up of companies will bring in increased growth without bad baggage and improve investors confidence.
“Financing of Investment is a welcome move which is going to provide huge impetus to growth of early stage companies. Nothing could be better than supporting the young entrepreneurial generation,” he added.
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(With inputs from agencies)