Upcoming Budget for the financial year 2022-23 of our country will be "Gati Shakti Budget with Atmanirbhar Strength" as per the vision of our Prime Minister Narendra Modi Ji pet 111 Crore Gati Shakti Yojana for providing the modern Infrastructure keeping in view of augment the living standards of the people for inclusive and sustainable growth. Previous Budget for Current Financial Year 2021-22 was primarily concerned with Covid19 Uncertainty and pertinent to Atmanirbhar Bharath. We learned lessons from Covid19, which makes us much determinant for Atmanirbhar to stand on our own as per the wishes of Prime Minister Narendra Modi Ji. Our Economy has revived with 21 Lack Crore Atmanirbhar Bharath package announced by the Finance Minister to register growth rate on track with 8.4% in the Second Quarter of the Current Financial Year as compared to the 7.4% contraction a year ago. Though Fiscal Deficit projected as 15.06 lack crores for the current financial year 2021-22, the Actual fiscal deficit had registered 6.96 lack crores by November 2021 worked out around 46% and it may be confined around 10 to 11 lack Crores due to effective growth in the GST collections consistently improving since July 2021. After -23.9% ( Negative ) contraction in the GDP of the first Quarter of the 2020-21during the initial days of Lockdown - 1, Atmanirbhar Bharath Package for 21 Lack Crores of the Union Government had given opportunity to get Economy on track and Growth Rate was registered at -7.30% ( Negative ) for the Financial Year 2020-21.
The strength of Atmanirbhar Bharath Package, Successful Vaccination Drive and Role of NHAI and MNREGA have been playing the key role for the successful growth for the Current Financial Year 2021-22. RBI had projected the Growth Rate at 9.50% for Current Financial Year 2021-22, compared to a contraction at -7.30% for the previous Financial Year 2020-21. Apart from this, World Bank also projected the Growth Rate at 8.30% and 8.70% for the current 2021-22 and upcoming financial years 2022-23 respectively. Provisional Estimation of Nominal GDP for the Current Financial Year 2021-22 for Rs. 232.15 Lack Crores with 17.60% Growth Rate as against the Previous Financial Year 2020-21 for Rs. 197.46 Lack Crores. Really, the strength of Atmanirbhar Bharath has been shown the right path with illuminative lights on our Economy from the darkness of Covid19 Uncertainty with successful support of Indigenous Bharat Biotech's Covaxin Vaccination of over 160 Crores Doses for reposing confidence among the general public. Further, GST Collections have been raised consistently as Rs. 3.30 lack Crores in Q1, Rs. 3.45 lack Crores in Q2, Rs. 3.90 lack Crores respectively and 4th Quarter has been projected around for Rs. 4.25 lack crores in the Current financial year 2021-22. In addition to this Direct Tax Collections also improved significantly as collected Rs. 9.45 Lack Crores by 16th December, 2021 compared to Rs. 5.88 Lack Crores corresponding period of the previous year 2020-21 with Growth in Direct Tax Collections at 60.08% with positive Product manufacturing Index Rate at 55.50 had been registered by 31st December, 2021. In PMI point of view, above 50 points means expansion, while a score below 50 points denotes contraction. Further, Unemployment Rate in India decreased to 7.91 percent in December, 2021 from 11.84 percent in May of 2021. Apart from this, Our Forex Reserves for 632.7 Billion USD is the 4th largest country in the world with sufficient balances of Reserves and Current Account Deficit stands at 1.3% of GDP by 30th September, 2021 under control. Most of the Economists had not expected this kind of revival and even criticized the Atmanirbhar Bharat Package though it was tuned properly on the need basis of sector wise to cover all the segments of the people in the Country.
In the process of the revival of our Economy post pandemic, NHAI has been playing the predominant role and committed for Output from NHAI by laying Road Infrastructure plan under Bharathmala Pariyojana consists of 65000 K.Ms new National Highways worth 10.50 lack crores as the Corridor base approach with an intention to bridge the critical Infrastructure Gaps through Development of 50 Economic Corridors, Inter Corridors and Feeder Routes, National Corridor Efficiency improvement, Boarder and International Connectivity Roads, Coastal and Port Connectivity Roads and Green field Expressway with coverage of 550 Districts of our country. in which, Phase 1 for 24800 KMs new Roads and widening of 10,000 KMs of the existing Roads with an outlay of 5.35 Lack Crores are Work in Progress and almost 60% of this projects have been completed with a plan to provide North to South India Connectivity along with Industrial clusters, Entertainment Zones and Food Courts in the strategic locations. Already, Delhi to Mumbai 8 line Expressway with expansion plan for 12 line for 1350 KM has completed with Rs. 98000 Crores investment with 50 Lakh Man Days Employment Generation to reduce the transportation time for 12 hours instead of 24 hours and expected revenue for Rs. 1000 to 1500 Crores per month along with an expectation of Rs. 2 Lack Crores as additional contribution for the National GDP. In the process of connecting road networks from North to South India for reducing the traffic time and provide better services for strategic locations, Union Transport Ministry has taken a decision for develop the Chennai - Surat National Highway 1461 KMs Corridor under Bharathmala Pariyojana with an investment for Rs. 50,000 Crores and cut down the travel time for 6 hours. Apart from this, there are huge extent of National Highways development has been going on Jammu and Kashmir, Ladakh and North Eastern States for last 3 years. This pace of Infrastructure development will be continued to serve the multiple needed requirements and yields multiple benefits simultaneously for the augment of Economy for the creation of Nation's Wealth. Hence, Roads and transport Infrastructure should have adequate Allocations in the upcoming Budget.
At present, Prime Minister Narendra Modi vision is that Bharat needs to build the World Cross Infrastructure for the better Living Standards of 140 Crore people as a part in the future sustainable inclusive growth in all the key sectors of our Economy, which includes 16 Departments of various miniseries from the Union Government with an expectation of huge potentiality of employment opportunities under " Gati Shakti Yojana " for Rs 111 Lacks Crores worth 6835 projects in various Departments with an expectation of additional GDP for 4% to 5% to the Nation. This investment comprises the Sagaramala, Bharatmala and Inland Waterways into road, rail, Air and Water Ways for effective transportation of goods with an aim for inclusive growth in all the key segments. In addition to this, modern Infrastructure in Agriculture, Education, Medical and Health, Power and Electricity, Digital India etc. In this upcoming Budget, Capital Expenditure Allocations will be utmost priority to those Departments and it will have connected with PM Gati Shakti Yojana Projects. But, success of implementation of PM Gati Shakti Yojana depends up on the State Government margin money for 40% and Private Participation for 21% together though the Union Government prepared the plan for its contribution 39%. We can expect that PM Gati Shakti Yojana will have priority like a backbone for the Upcoming Budget 2022-23.
Certain things needs to be addressed by the Finance Minister as follows,
1) Over All Budget Allocations:
A) PM Narendra Modi ji vision had expressed in his Independence Day speech on 15th August, 2021 about the Gati Shakti Yojana Infrastructure for 111 lacks crores shall be part in this Budget.
B) The Flavour of Atmanirbhar shall be continued after successful Indigenous vaccine Covaxin achieved the Global reputation and the fruits of Atmanirbhar Bharath Package is delivering positively.
C) Object of this Budget should be reached towards 5 Trillion USD Economy in next 3 years.
2) Industry & Service Sectors:
A) MSME had allowed around 3.75 Lack Crores altogether for the Liquidity infusion through Atmanirbhar Bharath Package. But, still MSME hasn't reached it's momentum to the extent of available potential since those MSMEs became NPA had opted OTS with Banks and those have capacity to recover are facing financial difficulties to operate their business though they have ability to turn around their business with positive asset base. Hence, allow the credit facilities up to 5 Crores for OTS exercised and cleared MSMEs before 1st April, 2021.
B) GST payments for contractors are required to pay as per due dates though their bills from work proceeds haven't received by the Contractors from either Central or State Government or even Private parties. Hence, Working Capital of the Contractors adversely impacting due to this pain.
C) Special Industrial Parks and Incentives have been requested for North Andhra, Rayalaseema and Praksam District for the augment of Industrial Investments for the upliftment of Backwardness of these regions.
3) Agriculture & Allied Sectors:
A) Encourage Farmers Producing Organisations (FPO) for Agriculture Infrastructure and Encourage for Value Addition to the Agro Output with Own Brand Marketing.
B) Encouragement for Fish and Aqua Farmers Producers Organizations is very much necessary for International and Domestic Market, Special Food Processing Parks with incentives shall be announced.
C) Seeds, Fertilizer and Equipment Companies for Agriculture Sector shall be encouraged for direct agreements with FPOs for Quality supplies with effective price for maximization of the net benefit to the FPOs.
Tax slabs for Individuals, Exemptions and Deductions shall be benefitted to the Assesse for their family savings to use for their needs and Existing Corporate and Firms Tax Rates being moderate, further cut in the tax rates may not be required. Strong appeal, Financial discipline of the State Governments shall be adhered with stringent policies from the Union Government since mismanagement of the systems in raising loans out of FRBM limits have been driving the State towards debt trap. Further, stringent guidelines for Central Sponsored Schemes are required as Funds have been diverted by the State Governments and branding those schemes with their individual names or their family members as funds have been allocated out of their family pocket. Finally, Upcoming Budget 2022-23 shall be prepared with in the object of Gati Shakti and Atmanirbhar concepts to create self sustainable future Employment, Revenue Generating Wealth to the Nation with double digit prosperous growth rate to adopt the Infrastructure for enhance the living standards of the common public of the Nation.