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Budget 2022 Analysis | What did Middle Class Get? | Pros and Cons | Dhruv Rathee - YouTube
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Hello, friends!
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Budget 2022.
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This is a very important year for the Budget.
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Because if you'd recall,
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New India 2022,
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was a major campaign by the government for this year.
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They claimed that this year, 2022, would be the deadline for several promises.
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Every Indian would get a house by 2022.
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Each house would get a water connection by 2022.
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Every village would have 24*7 electricity by 2022.
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Farmers' income would be doubled by 2022.
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It was even said that bullet trains would be a reality in India by 2022.
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Because a New India was supposed to emerge by 2022.
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The year is here.
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And the Budget has been proposed for the year.
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So what does this Budget have for the middle-class?
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How many dreams would become realities?
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What are the boons and banes of this Budget?
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Come, let's find out in today's video.
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According to the Finance Ministry,
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this year's Budget focuses on
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creating a blueprint for India's next 25 years.
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We were talking about India @ 75 till now,
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from now, we will start talking about India @ 100.
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This would be the Amrit Kaal for India.
[Amrit: Elixir; Kaal: Era]
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"This Budget seeks to lay the foundation
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and give a blueprint to steer
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the economy over Amrit Kaal.
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From India @ 75,
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to India @ 100."
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They listed four areas of focus.
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[Gatishakti: Dynamism]
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According to the PM Gatishakti plan,
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there would be 7 engines of growth.
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Several people have criticised this.
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Because they are basically using new words for marketing
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and the old words are being forgotten.
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There were promises of Smart Cities at one point.
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There were promises of investing ₹100,000 trillion in infrastructure.
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Where are the Smart Cities now?
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Why aren't they talked about?
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The words that they use here,
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shouldn't be given much importance,
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because in a few years, the government will forget these words.
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But if we look at the numbers,
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Capital Expenditure got a big boost
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by 35% for the next year.
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And the government has said that National Highways Network would be expanded,
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by 25,000 km,
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in the Financial Year 2023.
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These are both good things.
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If we get infrastructure development,
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it will boost employment as well.
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But the thing that doesn't benefit employment is that
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reduction in MGNREGA.
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MGNREGA or the Mahatma Gandhi National Rural Employment Guarantee Scheme.
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It is the biggest scheme for rural jobs by the government.
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And the government has cut its budget by 25% as compared to last year.
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From last year's ₹980 trillion,
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it is at ₹730 trillion this year.
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Reasons haven't been cited for doing so.
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So it does raise questions,
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whether the government is even interested in issues like unemployment?
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According to the data,
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there were 30 million unemployed people in India in 2019,
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And after the onset of the Covid-19 pandemic,
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this number has increased by more than 10 million.
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According to some other estimates,
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more than 50 million people are unemployed in the country currently.
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So unemployment should have been the #1 priority of the government.
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Additionally, the government has cut the budget for food subsidies by 27%.
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From ₹2,990 trillion
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it has been reduced to ₹2,070 trillion.
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It is the same with fertiliser subsidy and petroleum subsidy.
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If the budget has been cut at so many places,
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where has it been increased?
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A good thing is that the spending on Education has been increased.
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This year, ₹1,040 trillion would be spent
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as compared to last year's ₹930 trillion.
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In my opinion,
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this is a small increase
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it is welcome but it isn't very significant,
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because if you recall,
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the government had introduced the New Education Policy in 2020,
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I had praised it too,
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in it, the government had said that
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they aim to take the education budget to 6% of the GDP.
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And though the actual number has increased a bit,
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it is still a long way from 6%.
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It is still around 3%.
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Talking a bit more about the education field,
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the government has proposed to establish a digital university,
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and has said that it would expand the One Class, One TV Channel scheme.
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It would be expanded from 12 to 200 TV Channels.
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So that supplementary education can be imparted
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in every regional language of the country.
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So that the loss to the formal education due to Covid,
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can be minimised.
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In the Health Sector,
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the government has proposed a minor increase in the budget of the Health Ministry.
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From ₹860 trillion
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it is increased to ₹862 trillion.
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But the money that was being spent on medical and public health,
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saw a huge budget cut of 45%.
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From ₹740 trillion,
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it has been cut to approximately ₹410 trillion.
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The reasoning for this by the government is that
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they would not need to spend a huge amount on Covid vaccination.
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But an outstanding thing in this budget is that,
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the government has a new focus on mental health.
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National Tele-Mental Health Programme has been proposed,
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under which, more than 23 Tele-Mental Health Centers of Excellence would be set up,
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to help people.
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And as you know, this is such an issue
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that is rarely focused upon in our Indian society.
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During the pandemic, the mental health of the people has taken a hit
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by staying locked in their homes.
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According to the WHO,
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in every 1 out of 4 families,
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at least one of the family members
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suffers from some mental health disorders.
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And in such cases,
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there is little to no support from friends and family.
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This initiative by the government is a very positive step.
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Moving on, the defence budget has been increased by 10%.
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From ₹4,780 trillion,
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to ₹5,250 trillion.
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The sports budget saw a significant increase too.
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An increase of ₹3 trillion,
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this year, the budget allocated to it is ₹30 trillion.
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It is good news,
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the reason behind it is said to be
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the outstanding performance by our sportspersons in the Tokyo Olympics.
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Perhaps that has influenced the government
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to spend more on sports.
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Now, let's come to the most important part of the Budget.
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The middle-class.
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What did the average person get from this Budget?
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The common man got the same thing, friends
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that he was getting in the past several Budgets.
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A big Nothing.
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You heard it right.
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Many people were expecting that
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there would be a change in the tax slabs
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that the government would raise the income limits a bit,
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so that the tax burden on the middle-class man could be reduced.
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But nothing of the sort happened.
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People's disappointment was evident on Twitter.
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#MiddleClass was trending on Twitter
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when the Budget was being presented.
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The financial condition of a common man had deteriorated to quite an extent in this pandemic.
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Many economists believed
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that if we want to revive the economic growth,
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we need to focus on the middle class.
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If the middle-class people have more money with them,
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they will spend more.
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The more they consume,
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there would be more manufacturing because of the increase in consumption.
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Because of the increased demand, there would be more supply.
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And then the economic growth would be revived.
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But the government did not focus on it at all.
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The supporters of the government will argue saying that
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though they did not lower the taxes,
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at least the government didn't increase the tax.
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That this should be enough to make everyone happy.
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Initially, you may think that they are right,
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but think about it a little,
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because of the inflation,
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each year the value of your money is decreasing.
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But the tax slabs are the same.
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What is the inflation here, on average?
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We get to see an inflation of about 6%-7% every year.
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The cost of things keeps on increasing.
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But your salary stays the same.
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And your salary is taxed the same.
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If the tax slabs aren't modified with inflation,
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it would mean that each year,
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the government is taking more and more tax from you.
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But think about it for a bit,
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is the government using your tax money properly?
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Do you see development in the country?
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Do you see economic growth in the country?
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Because of inflation,
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a normal, salaried person is taxed more.
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And there are tax cuts for the corporates.
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For large companies.
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You heard it right.
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this time, the Corporate Surcharge Tax has been reduced from 12% to 7%.
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This isn't something that
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has been done in this year's Budget only.
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If you have followed the last three Budgets,
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year on year, the corporate tax has kept on reducing.
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Coming back to the topic.
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Additionally, there has been a lot of focus on Crypto in this Budget.
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It was decided that
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the RBI would issue a digital Rupee.
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With its help, it is being said,
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the digital economy would get a boost.
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It has become a controversial decision.
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India would not be the first country
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to introduce a cryptocurrency for its legal currency.
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But the fans of cryptocurrency,
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believe that the basic concept of cryptocurrency
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is decentralisation.
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It is a currency
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that is not controlled by any bank or any government.
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So when the various governments and banks around the world
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introduce their own cryptocurrency,
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they go against the fundamentals of cryptocurrency.
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It is something that can be discussed in detail in some other video.
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But apart from this,
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the government has decided to tax crypto.
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The crypto transactions would be charged 30% as tax.
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In fact, not only on crypto,
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on any virtual, digital asset.
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NFTs are also being included in it.
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This 30% tax is only on profits.
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If you invest money in any cryptocurrencies
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and get a profit from there,
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a 30% tax would be levied on your profits.
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But if you incur a loss there,
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you cannot off-set that loss
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from any other income.
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Some people criticised the government for this as well.
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Saying that they are the only ones to bear the loss,
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but if they earn any profit,
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the government would take away 30% of it.
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One thing is certain,
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if you are incurring a loss, you can off-set it
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against the profits on any digital assets.
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Against other cryptos.
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If you incurred a loss from investing in any coin,
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and you get a profit from another,
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you can combine that loss and profit
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to get the net profit,
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and you'd have to pay 30% tax on it.
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Imposing a tax on crypto by the government is seen as
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acceptance or acknowledgement of the cryptocurrencies by the government.
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Although they aren't legal yet,
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but this is seen as the first step
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towards legalising it.
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But even if the government hasn't said so literally,
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that cryptocurrencies are now legal,
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but the government is still charging tax on it,
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it becomes a weird circumstance.
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That though the government doesn't acknowledge something as legal,
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the government would still collect tax from it.
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Apart from these, there were some other things that I found to be interesting,
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e-Passports.
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It means passports that would have a chip embedded in them.
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It is a technology
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that is already being used in the passports of some of the developed countries,
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and it would now be introduced in India too,
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from 2022-2023, as per the government.
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The 5G spectrum auction would be held in 2022-2023,
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after 4G, 5G would also be introduced.
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Another interesting and bold promise by the government here is that,
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we would see optical internet fibre in all Indian villages by 2025.
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The promises sound great in the Budget every year.
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But the thing that matters the most is
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to what extent will they be actually implemented?
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As I said at the start of the video,
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there were so many promises for 2022,
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that it was unbelievable.
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How many of them have been actually being implemented by the government?
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How many schemes, has the government absolutely stopped talking about?
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We must ponder on these.
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What is your opinion on this Budget?
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Comment below to let me know.
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I hope you found this video informative.
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Thank you very much!
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