No, I am not going to bore or lecture you all about India’s latest Financial Budget by talking about it’s itty bitty but more on the very nature of a Financial Budget and will try to explain in the language we all understand without talking about the technical aspects.
You see, I am no economist but well read when it comes to finance.
My problem is with the presentation of the budget. I feel that when presenting a budget one must give a detailed view of the percentage being allocated to the suggested field/sector and compare it with last year’s budget for all the topics being covered and not just for those which are being increased in the current year. This will help to make a rational decision in the minds of the common public about whether it was a good budget or not and not be on the mercy of “certain experts” on the television which may take a pro or against approach according to the political party they belong to or are loyal to.
The opposition party will always slam the budget, the leader party will always appreciate and defend the budget. Thus, making it more for the political advantage rather than addressing the true nature of the budget.
The most important thing that I hear the common people complain about is that it is not people friendly as in it is not for the people per se as opposed to. It may seem like there is nothing in it for us, the common people but in reality there are always indirect benefits that one gets to avail or can avail.
You see, rather than increasing the tax slabs, the government of India gave a Digital push to the economy benefitting the public in general. The same thing happened during the first budget after the pandemic struck. The general public was expecting compensation in cash to be credited in their bank accounts to battle the lockdown blues of “Zero Economic Activity”. Many of our relatives abroad were giving us examples as to getting certain thousand dollars in their account to make way for living expenses, which is great. It bode well for those countries or not is a topic for some other time but I will provide you with one hard fact, that as a result of handing out money by printing more of it, Inflation sure has increased and they are grappling with the problem of Inflation.
Did our government make a right move, by not handing out money and instead gave a “Loan Push” is still up for debate. To some, it was a good move while for others, not so much. I leave it with you to decide.
Here are some of the highlights which I found in the Fiscal Budget of India for 2023.
The government of India :-
·Is introducing the much awaited e-passport following the 80 countries who have already started issuing. It would basically have a smart chip imbibed on the last page which will help the system to know the last 30 visits of an Individual along with basic personal details for verification. Some of them have already been issued to higher officials. The idea is to promote a faster immigration for our convenience.
·Introducing Digital Rupee by foraying in the crypto currency world and tapping into the digital finance world. Although, one wonders whether it would be decentralized like the rest of the crypto currencies or will it be centralized. It sure is being issued by the Reserve Bank of India , thereby hinting it to be centralized system.
·30% tax is being imposed on the income from trading crypto currencies and trading NFT’S (Non fungible token) and not banning them as opposed to the rumors from last year. It is sort of a bitter sweet news for all as the government is not banning crypto activities but intend to take 30% from the profits, so essentially one gets to eat their bread and butter but almost 1/3rd of it would be chucked away by the government.
·5g Spectrum Auctions are to be initiated as the government plans to launch 5g by 2023, thereby allowing bids and making the field more competitive.
·Digital Universities are going to be opened which is a welcome step towards the future of EdTech sector in our country.
·We really needed a big Infrastructure push to perform at optimum levels and the government intends to the same. Needless to say, the ongoing overhaul of updating and making highways and express-ways aggressively and timely is a commendable job by the honorable Minister of Road Transport and Highways of India, Shree Nitin Gadkari is much appreciated. That is why, our budget has increased a significant chunk to be spent on our connectivity and infrastructure.
·Last but not the least; it is the first time that our government has recognized the importance of Mental Health. The post pandemic world has had a major paradigm shift in our understanding of happiness and prioritizing what Is more important and what is not. Therefore, the government of India is spending from its Union Budget for the first time that there is a need for better mental health.
With that said, I am sure some people may be happy and some will be sad after finding the tax slabs stationary at the current levels while others not giving a damn about it, so to that I say, to each its own.
I have to make myself clear here that I do not endorse any political party nor am I affiliated with any. It is just my observation and viewpoint. The Frank Banc is unequivocally candid and that's that.