UNION BUDGET 2022-23: AN OVERVIEW OF ITS IMPACT ON INDIAN ECONOMY by -Anushka Pankaj & Dr.Snigdha Sarkar
“According to article 112 of the Indian constitution, union budget is the estimated receipts and expenditure of the government for the one financial year. It is known as annual financial statement. The first union budget was presented by R.K. Shanmukham Chetty on 26 November, 1947. Since 1947 (independence) total 73 annual budget have been passed”. This article mainly focuses on the union budget of 2022-23, which mainly focuses on growth and welfare. This article will give us detail about what is union budget, when the concept of union budget has started and who has started and how the union budget of financial year (2022-23) will improve our infrastructure, and its focus on the different sectors like industrial sector and different policies in this union budget such as: PM Gati Shakti, Development in industrial sector and many more. This work is also covering areas like; Types of budget and its allocation.
Keywords: Union Budget, Goals of Budget, union budget 2022-23, capital budget and revenue budget, Allocation of budget to different sectors
According to article 112 of the Indian constitution, union budget is the estimated receipts and expenditure of the government for the one financial year2. It is also called annual financial statement. The first union budget had been presented by R.K. ShanmukhamChetty on 26 November, 1947. Since 1947 (independence) total 73 annual budget have been passed. This article mainly focuses on the union budget of 2022-23.The union budget of 2022-23 focuses on growth and welfare or can be said as “amritkaal”. Union budget of any country is most crucial part of that country. If Union budget is not made by careful observation and research it can cause great economic crisis and if made by proper research it can develop a country to a great extent.
Literature Review of Union budget:
Union budget: During literature review the researcher found ample amount of information and data on union budget from various paper. From those, one study identified macroeconomic functions of the European Union budget and its impact on the economy of the society. The result of this study shows five traditional function of the state budget that are redistributive, allocative, stimulus, information and control but it doesn’t perform the stabilising function. (Wichowska, A., 2013). Budget repair or Budget spectacle: During this Literature review the researcher found that strategic planning process can be achieved by implementing budget it will provide control and accountability. This study also shows how budget can be used to create a political spectacle to generate support for strategic decision (Pernsteiner, A, et. Al., 2016). Influence of Budget policy: During this Literature review the researcher found that budget policy helps to attain macroeconomic stability and accelerating economic growth. They also found that a budget policy is based on a forecast assessment of budgetary parameters, that are based on the projected macro-economic of socio-economic development of the country, tools etc. (Макогон, В. 2021). The impact of balanced budget: During this Literature review author’s highlighted problems faced by the states due to financial crisis. They also showed financial crisis results in budget deficits, unemployment. Researchers found that there is an impact of globalization on the budget policy (Gałuszka, J. 2013). The impact of a trend for sustainable marketing budgets: During this Literature review author’s found that sustainable marketing helps to adopt environmentally and social sustainability and they also found that sustainable marketing budgets will create a balance between market needs and need to use existing resources. The study provides information about the benefits of sustainable marketing budgets (Capatina, A., et al, 2017). An Analytical Network Process for resolving risks in megaprojects: During literature review authors found that effectiveness of ANP (analytical network process) in assessment, risk in development of mega project they also found that the main problem in mega projects are developers don’t
communicate with community around the project which make mega project more complex and impossible. Therefore this research paper thought us that this research paper thought us how to complete mega project with less complexity and less expenses (Boateng, P,et al, 2015).
Here the writer has used descriptive research method to find out the facts related to the concerned topic3. Here the author has used the secondary source to build a strong and reliable conclusion4. The target group for this article are government departments, the people who are concerned about the economic status of rural people in India. For drawing a valid conclusion it has used related articles, news clips, books, government data, etc. The work is aiming to find out the answer of the following question;
- What is the current status of the Indian economy?
- What is impact of union budget 2022-23 on Indian economy?
Budget: A budget is the estimation of total revenue and expenditure for a specified period of time.5Goals of budget: Some goals or objectives of budget are: Allocating resources across the nation; Managing cash flow in different sectors. Development in Budget: It means developing the framework of budget allocation so it could reach to the broader environment it can be done: by enhancing planning process of budget; by analysing past performance of budget.6
There is a process of budget development that are:7
- Review of budget performance of recent years
- Discussion among the department
- Listening to new ideas or proposals
- Reviewing that proposals
- Providing feedback
- Then preparing the final budget
Capital budget and Revenue budget:
The budget of India is of two types: Capital budget and Revenue budget. Revenue Budget: Revenue budget is the combination of the government’s revenue receipts and revenue expenditure. Revenue receipts are (income tax, excise duty, corporate tax, profit, interest, fines etc.). Revenue expenditure is the regular expenses required in daily functioning of the government.8Capital Budget: The components of capital budget are capital expenditure and capital receipts. Some of the primary sources of government receipts are citizens’ loans, Reserve Bank of India (RBI) and foreign investments. Capital expenditure comprises of costs required in development and maintenance of different sectors such as health facilities, building public properties, education, etc.
Allocation of budget to different sectors
Rs. 3.37 Lakh Crore
UptoRs 5 Lakh per annum : No tax Rs 5- 7.5 Lakh per annum: 10 %
Rs 7.5- 10 Lakh per annum: 15%
Rs 10-12.5 lakh per annum: 20% Rs 12.5-15 lakh per annum:25%
Rs 15 lakh and above: 30% (No change)
The government allocated Rs. 2826.92 crore to the sports budget for the next financial year
Deposit Insurance Coverage has to be increased upto 5 lakh rupees
Facts behind preparation of budgetBudget is made through consultations involving the ministry of finance along with various ministries and the NITI Aayog and presented by finance minister. Procedure of preparation of budget:
Objectives of the budget:
The objective of the union budget is to make a balance economic development. The Union Budget of FY 2022-23 aims to strengthen the infrastructure with its focus on priorities:9
- PM Gati Shakti
- Development in industrial sector
- Productivity Enhancement, Investment and Climate Action
- Financing of investments
- The vision of AtmaNirbhar
- Health and Nutrition and etc.
The government will focus on these specific goals in AmritKaal–
- Macro-economic level growth focuses with a micro-economic level including
- Amritkaal helps in promoting digital economy and development of technology and climate action.
IV. ANALYSIS OF POLICIES INTRODUCED BY GOVERNMENT OF INDIA
PM Gati Shakti:
Prime Minister launched PM Gati Shakti, a National Master Plan for ‘Multi- modalConnectivity’, to bring almost all the Ministries including Railways and Roadways etc, together and connect them to make the movement of the people easy and feasible. The PM GatiShakti Master Plan for Expressways will be formed in 2022-23. The National Highways network will be expanded by 25,000 km in 2022-23.10
Development of industrial and transport sector:
- There is a development in a industrial sector such as cement industry, automobile industry etc.
- Roadways: The PM Gati Shakti Master Plan for Expressways will be formed in 2022-
- The expansion of National Highways network by 25,000 km in 2022-23.
- Railways: one product in one station concept will be implemented to help local businesses and supply chains. 400 new Vande Bharat trains will be manufactured during the next three
Productivity Enhancement, Investment and Climate Action:
It aims to ease the living and doing business and to promote energy transition and climate action during the Amritkaal11. For example e-passports, using solar power, swappable battery policy for electric vehicles will be implemented. An industry for conversion of coal into chemicals will be set-up.
An e-Passport is a chip-enabled passport with a biometric identification card to secure the travel documents.
Benefits of e-passports are:
- Person with e passport had not to wait in line as it is scanned quickly.
- No fraud can occur as it is totally digital as there is biometric record of each Features of e passport:
- It is valid for 5 to 10 years, according to the age of the applicant.
- Bearer’s Biometric
- Iris scan of the
- Digital signature of the
- All 10 fingers, finger print of the
It is used to convert sun’s energy (light) into electrical energy, either directly or by using photovoltaic cells which converts light energy into electrical energy.
Benefits of solar power:
- It protects environment as it is pollution
- Causes no green gas house
- It is the renewable source of
Financing of investment:
To improve financial sector government introduce many policies or programmes such as public capital investment, digital rupee etc.
Digital rupee is an electronic form of money, that can be used in contactless transactions.
The vision of Atma Nirbhar Bharat:
The aim is to make the country and its citizens independent and self-reliant in all fields. And the five pillars of AatmaNirbhar Bharat – Economy, Infrastructure, System, Vibrant Demography and Demand.
AtmaNirbhar Bharat basically means ‘self-reliant India’ that India will become self- sufficient in different sectors agricultural sector, industrial sector, production sector which will help us to export more and import less resulting in the income generation which ultimately will improve our economical status.
V. SOME MORE KEY FEATURES OF UNION BUDGET 2022-23 ARE12:
- Agriculture field: promoting chemical free farming and production. Initiating fund for agricultural start up’s.
- In educational field: One class One TV channel programme to be expanded to 200 TV channels, establishment of digital labs and establishment of digital university to get a world class education.
- Health sector: national digital health system to be established, anganwadis13 to be converted into sakshamanganwadis. Under Ayushman Bharat Digital Mission, a National Digital Health system is It will facilitate everybody with digital registries of health facilities, unique health identity, and universal access to health facilities and worldwide consultant with doctors throughout India. A National Tele Mental Health Programme is launched to provide counselling for mental health and its care.
VI. SOME POLICIES OF UNION BUDGET 2022-23 ARE14:
Emergency Credit Line Guarantee Scheme (ECLGS) is extended up to March 2023 and its guarantee cover expanded by Rs 50,000 cr. making the total cover of five lakh crore rupees. Under this scheme or policy small industries will get mudra loan without any collateral, loan is given by merely sharing the unique ideas of business, which encourages small businessman and small industry to grow.15
Health and Nutrition:
Under the Ayushman Bharat Mission, a National Digital Health system will be established. (This mission is introduced under Ayushman Bharat mission)16. It will facilitate us with digital registries of health facilities, unique health identity, and universal access to health facilities and worldwide consultant with doctors throughout India. A National Mental Health Programme will be launched to provide mental health counselling and its care, anganwadis to be converted into sakshamanganwadis
Labour and Employment:
The Digital Ecosystem for Skilling and Livelihood (DESH) e-portal will be launched in this budget 2022-23. This portal will help citizens learn skills, and this will help them in finding relevant jobs.
The PM GatiShakti Master Plan for Expressways will be formed in or by 2022-23. The National Highways network will be expanded by 25,000 km in 2022-23.
Railways: One-station-one-product idea will be implemented more efficiently to help local businesses and supply chains. 400 new Vande Bharat will be inaugurated during next 3 years.
Energy and Environment:
A policy of battery swapping for electric vehicles will be implemented. An industry for conversion of coal into chemicals will be set-up, e-passport (which will reduce the use of paper), solar power etc.
AatmaNirbhar Bharat: The aim of this scheme is to make the India and its citizens independent and self-reliant in all fields. There are the five pillars of AatmaNirbhar Bharat – Economy, Infrastructure, System, Vibrant Demography and Demand.
AtmaNirbhar Bharat basically means ‘self-reliant India’ which will make India elf reliant in every sector such as agricultural sector, industrial sector, production sector which will help us to export more and import less resulting in the income generation which ultimately will improve our economical status.
PM Gati Shakti: Prime Minister launched PM Gati Shakti is a National Master Plan for ‘Multi-modal Connectivity’, to bring almost all the Ministries including Railways and Roadways etc, together and connect them to make the movement of the people easy and feasible. The PM Gati Shakti Master Plan for the expressways will be be formed in 2022-23. The National Highways network will be expanded to 25,000 km in 2022-23.17
Ayushman Bharat Digital Mission18, This National Digital Health system will be established, to facilitate us with digital registries of health facilities easy , unique health identity, and universal access to health facilities and worldwide consultant with doctors. A National Mental Health Programme will be launched to provide mental health counselling and care services
The Digital Ecosystem for Skilling and Livelihood (DESH): It is the electronic platform which will be launched to help citizens learn skills, and this will assist them in finding relevant jobs.19
One class One TV channel programme to be expanded to 200 TV channels, establishment of digital labs and establishment of digital university to get a world class education
VII. IMPACT OF GOVERNMENT POLICIES INTRODUCED IN BUDGET:
MSMEs had increased the employment rate in India, as it supports all small businesses because of which it contributes significantly in the growth of GDP or growth of economy.
Aayushman digital Bharat: This policy had significantly impacted the health sector of the country, it allowed affordable, easily accessible and efficient health facilities.
PM Gatishakti: It made transportation easy and feasible which in turn increased the efficiency of different sectors and this further help us to improve our economy.
All the policies which were introduced in this budget are very good and impactful for our economy.
In this budget government has improved many sectors but there is a need of more development in different sectors such as in electric vehicle sector there should be increase in the charging infrastructure in all over India which will encourage future generation to buy electric vehicles. And in future if it is possible I think it is good to have solar power station this will be cheaper and better for the environment as it is the renewable source of energy, and there should be also increased in hydro power plant in India.
- The budget 2022-23, will improve our industrial sector, by establishing many production units in our
- As a result it will increase export of our country which will had a positive impact on our
- The budget 2022-23, will make the vision of digital India clearer and
- I think the budget 2022-23, can be very beneficial for our environment and also for economy as our GDP (Gross domestic product) is decreasing rapidly especially after pandemic, we need quick and effective policies to tackle with this situation and I think this purpose can somewhat be accomplished in budget 2022-23.
In this budget government has improved many sectors but there is a need of more development in different sectors such as in electric vehicle sector there should be increase in the charging infrastructure in all over India which will encourage future generation to buy electric vehicles. This budget has focused more on development of Industrial sector as it can increase our production rate, because of which we can export, more than the import, successively enhancing our economic condition, as we already know the country can improve its economy by exporting more, as the foreign money will be imported in our country.
And also this budget has focused on digital India, which I think is very beneficial for our country and for our environment. It is beneficial for our country because the more we digitalised ourselves the more it is easy to trade and connect across the world. And as I said that it is also beneficial for our environment as everything is going digital, the use of paper is becoming less which was coming from tree, and therefore it will reducing the cutting of the tree which will as a result reduce the global warming to some extent.
At last I want to conclude that, in this budget government has improved many sectors but there is a need of more development in different sectors.
- INDIA CONSTITUTION art, 112, 1949
- Wichowska, A. (2013). Macroeconomic Functions of the European Union Budget and the Multinational Financial Framework for 2014-2020. OeconomiaCopernicana, 4(2), 21-37.
- 1Pernsteiner, A., Becker, D. A., Fish, M., Miller, W. F., & Drum, D. (2016). Budget repair or budget spectacle? The passage of Wisconsin’s Act Public Money & Management, 36(7), 507-514.
- Макогон, В. (2021). INFLUENCE OF BUDGET POLICY ON ECONOMIC GROWTH OF THE COUNTRY. Financial and credit activity problems of theory and practice, 1(36), 243-249.
- Gałuszka, J. (2013). The Fiscal Union as a Remedy For the economic and Financial Crisis in the european Equilibrium. Equilibrium. Quarterly Journal of Economics and Economic Policy, 8(1), 49-67.
- Capatina, A., Micu, A., Cristache, N., &Micu, A. E. (2017). The impact of a trend pattern for sustainable marketing budgets on turnover dynamics (a case study). Contemporary Economics, 11(3), 287-302.
- Boateng, P., Chen, Z., &Ogunlana, S. O. (2015). An Analytical Network Process model for risks prioritisation in International journal of project management, 33(8), 1795-1811.
- Yang, Chapter 1 Basic Concepts of Research in Economics,https://www.csus.edu/indiv/y/yangy/145ch1.htm,visited on 28/05/2022 at 21.34pm
- Kothari, C.R. (2004). Research Methodology-Methods and Techniques. New Delhi: New Age International Publishers
- EPIGEUM,https://epigeum.com, (last visited may 25, 2022)
- Forum Ias, http://blog.forumias.com
- INDIA GOVERNMENT, http://www.indiagov.in
- PM GATI SHAKTI, launched in 13oct, 2021, by Prime Minister Narendra Modi ji
- AMRIT KAAL, Launched in february1,2022, launched by Union Finance Minister Nirmala Sithraman
- India Budget, http://www.indiabudget.gov.in/
- Aanganwadi Budget, budget allocated for sakahamanganwadi and POSHAN 0
- Drishti IAS, https://www.drishtiias.com/
- MSME(ministry of micro, small, medium enterprises),became operational on October 2, 2006, launched by Nitin Gadkari
- Aayushmanbharatyojana: This mission had been started from 23 September, 2018 under this programme only Aayushmanbharat digital mission
- NATIONAL PORTAL OF INDIA, https://india.gov.in/
- NATIONAL PORTAL OF INDIA, https://india.gov.in/
- My Government Blog, https://blog.mygov.in/creating-a-digital-ecosystem-for- skilling-and-livelihood/
- indiangov.in, PM Gati Shakti
- niti.gov.in, statistical growth
- Drishtias.in, different policies in this union budget
- prsinda.org, explanation of different policy
- coverfox.com, key highlights of budget 2022-23, Allocation of budget to different sectors.
- google.com, General information
- indiatimes.com, Detail about budget 2022-23
1Student & Assistant Professor at KIIT School of Law, Bhubaneshwar Respectively.
2INDIA CONSTITUTION art, 112, 1949.
3Prof. Yang, Chapter 1 Basic Concepts of Research in Economics,https://www.csus.edu/indiv/y/yangy/145ch1.htm,visited on 28/05/2022 at 21.34pm
4Kothari, C.R. (2004). Research Methodology-Methods and Techniques. New Delhi: New Age International Publishers
7EPIGEUM,https://epigeum.com, (last visited may 25, 2022)
8Forum Ias, http://blog.forumias.com
9INDIA GOVERNMENT, http://www.indiagov.in
10PM GATI SHAKTI, launched in 13oct, 2021, by Prime Minister Narendra Modi ji
11 AMRIT KAAL, Launched in february1,2022, launched by Union Finance Minister Nirmala Sithraman
12 India Budget, http://www.indiabudget.gov.in/
13Aanganwadi Budget, budget allocated for sakahamanganwadi and POSHAN 2.0
14 Drishti IAS, https://www.drishtiias.com/
15MSME(ministry of micro, small, medium enterprises),became operational on October 2, 2006, launched by Nitin Gadkari
16Aayushmanbharatyojana: This mission had been started from 23 September, 2018 under this programme only Aayushmanbharat digital mission
17NATIONAL PORTAL OF INDIA, https://india.gov.in/
18 NATIONAL PORTAL OF INDIA, https://india.gov.in/
19My Government Blog, https://blog.mygov.in/creating-a-digital-ecosystem-for-skilling-and-livelihood/