Budget 2022 promises push for infrastructure, welfare schemes take backseat

Hyderabad: The Union Budget 2022 garnered mixed reactions. While the opposition politicians criticized the budget, the ministers came out in support of it. However, looking at the budget allocations for 2022-23 which is estimated at Rs. 39,44,909 crore, the government has put a lot of effort into building infrastructure rather than spending on welfare schemes. The revised estimate of 2021-22 budget is around Rs. 37,70,000 crore.

The government has estimated the Defence budget at Rs. 3,85,370 crore for 2022-23. It was Rs. 3,68,418 core last year. The Centre has slightly increased the health budget from Rs. 85,915 crore in 2021-22 to Rs. 86,606 crore in 2022-23.

Similarly, in a first, the education budget has been increased from Rs. 88,002 crore to Rs. 1,04,278 crore. The budget for agriculture and allied activities has also been hiked from Rs. 1,47,764 crore to Rs. 1,51,521 crore. IT and Telecom budget went from Rs. 28,757 crore to Rs. 79,887 crore, transport from Rs. 3,25,443 crore to Rs . 3,51,851 crore, urban development from Rs. 73,850 crore to Rs. 76,549 crore, commerce and industry from Rs. 45,833 to Rs. 53,116, and scientific departments from Rs. 28,510 to Rs. 30,571 crore.

The Central government, however, has decreased the subsidy budget for 2022-23. The subsidy for fertiliser has been decreased from Rs. 1,40,122 crore to Rs. 1,05,222 crore, food from Rs. 2,86,469 crore to Rs. 2,06,831 crore, and petroleum from Rs. 6,517 crore to Rs. 5,813 crore.

Similarly, the rural development budget has been decreased from Rs. 2,06,948 crore to Rs. 2,06,293 crore.

There is a slight increase in the energy budget from Rs. 48,684 crore to Rs. 49,220 crore while the social welfare budget had also increased from Rs. 44,952 crore to Rs. 51,780 crore.

Presenting the Union Budget 2022 on 1 February, finance minister Nirmala Sitharaman announced that there will be no changes in the existing Income Tax slabs. But Budget 2022 proposed permission to allow individuals to file an updated tax return within two years of the relevant assessment year, i.e. those who have committed errors while filing Income Tax returns can correct them within two years.

In a move to bring parity between state and Central government employees, Budget 2022 proposed an increase in the tax deduction limit for state government employees from 10% to 14%. That is, hereafter 14% of the income will be deducted and sent to the National Pension System (NPS) for state government employees. This will enhance the social security benefits of state government employees, too.

'All style, no substance'

Calling the Union Budget a "golmal budget", Telangana Chief Minister K. Chandrasekhar Rao said the budget introduced by the BJP government on Tuesday was ambiguous and useless. He said the Centre's budget has caused severe frustration to the SCs, STs, BCs, minorities, the farmers, the common man, the poor, and the working class. He said the budget was directionless and useless and added that the budget speech read out by the Union finance minister was full of ambiguity and juggling of words. It is a "golmal budget" that is frustrating and depressing the common man, he said.

Also terming the Union Budget disappointing, YSRCP said it had expected a booster dose but it was all style and no substance.

Speaking to the media on Tuesday, YSRCP MP V. Vijayasai Reddy said the allocation of Rs. 1 lakh crore for capital expenditure seems huge but when it comes to the state share as per the set formula Andhra Pradesh gets just 4.047 per cent which works out to just Rs. 4,000 crore.