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Budget 2022: Growth Focused

There are 2 words that reflect this budget - Growth & Conservatism. Budgets with minimal to no negatives are usually very positively viewed; this one hits that sweet spot!!


  1. Capex Push - Incremental Capex Rs 2L Crore; that is 19% of total expenditure vs 12% for Prior Year.

2. Conservative GDP number: 11% nominal GDP for FY 23 is low, considering the real GDP is at 8.5%. We should get higher tax revenues as well. Also the divestment targets are also quite realistic. Upsides will be gladly welcome.

3. Fiscal Deficit: The difference between what is earned and spent will be at 6.9%.

4. Personal Taxes: No changes sadly. Cryptos will be taxed at 30% which I welcome.

5. Investments: Surcharge on Capital Gains capped at 15% while Bonus stripping loophole has been closed.

Organised sector is doing very well and this is reflected in the highest GST collection of January 2022. The third wave doesn't seem to be slowing this momentum and growth is looking up. The pro growth budget should help and now all eyes will be back on Inflation, US rate hikes and the upcoming state elections.

Budgets are done and the focus will now shift to inflation, US fed rate hikes and the upcoming state elections. With sound macro fundamentals, higher forex reserves and lesser reliance on FIIs, Investors should remain invested.

Every correction provides an opportunity to add

Source: Moneycontrol, ET now, News 18

#budgets2022 #Markets #Taxation

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