Union Budget 2022: Economic Survey OUT; No legislative business in 1st part of session

American companies having a foothold in India and those planning to expand their business in the fastest growing economy of the world expect tax parity in the annual budget to be tabled by Finance Minister Nirmala Sitharaman, the head of a top India-centric US business advocacy group said.

Mukesh Aghi, president, US India Strategic and Partnership Forum (USISPF) said the American companies have high expectations from what Sitharaman would present in her fourth annual budget on Tuesday. The US companies, he noted, are very keen on investing in India as they believe that the fundamentals of the economy remain strong in the country, offer a big market and they would like to diversify given the Chinese risk factor.

They (US companies) are looking at tax parity. For example, e-commerce companies that have equalisation levy, that needs to be done away with. They are looking at lowering of tariffs. It is good for India also because domestic companies become much more competitive and efficient, he told PTI in an interview on Monday.

American companies, Aghi said, are looking at more investment in India's infrastructure. They also want the labour laws and land acquisition process streamlined, he observed.

Because ease-of-doing business is still very critical in the minds of these investors. They spent a lot of time putting in an application for more land or water so that has to be sorted out, he said. 
 

After the Union government postponed all legislative discussions for the second leg of the Budget session, the leader of the opposition in Rajya Sabha, Congress’ Mallikarjun Kharge expressed his inhibitions on the decision and stated that several parliamentarians wanted a discussion on various issues.

“Many people thought that there should be a discussion on President's speech & Union Budget, during the all-party meeting. We also said that there should be a Calling Attention Motion per week. Now we'll see how they react in the business advisory,” Kharge said to ANI.

Rajya Sabha Chairman M Venkaiah Naidu on Monday held a meeting with the floor leader of 15 political parties virtually. According to ANI sources, he said that in the first phase of the Budget Session till February 11, only 23 hours will be available for business other than Question Hour, Zero Hour, and Private Members' Business.

"Discussion on Motion of Thanks to the President for his address to members of both the Houses today and discussion on Union Budget 2022-23 to be presented tomorrow will get priority during the first part of the session," sources informed.

Carmakers are saddled with a backlog of over 7 lakh orders as of December 2021, due to the the shortage of semiconductors, according to the Economic Survey. With the delay in supply, the average lead time (the difference between the date of order and actually receiving in the automobile) for the industry for 2021 has been around 14 weeks globally. 

Investors' wealth on Monday gained over Rs 3.33 lakh crore as markets witnessed heavy buying a day ahead of the Union Budget, with the 30-share BSE benchmark rallying about 814 points.

The BSE benchmark index jumped 813.94 points or 1.42% to settle at 58,014.17. During the day, it zoomed 1,057.4 points to 58,257.63.

Cheering the gains in equities, the market capitalisation of BSE-listed companies jumped by Rs 3,33,502.95 crore to Rs 2,64,41,207.18 crore.

"The Indian equity market witnessed decent gain one day ahead of the Union Budget as there is calmness in the global market. Investors are looking for value in many pockets after a recent correction," Tradingo founder Parth Nyati said.

Vinod Nair, head of research at Geojit Financial Services, said taking positive cues from global markets and favourable takeaways from the Economic Survey report, the market rallied ahead of the Budget day.

The Economic Survey on Monday said India's economy is expected to grow 8-8.5% in the financial year beginning April 1 and is well placed to meet the future challenges on the back of widespread vaccine coverage, supply-side reforms and easing of regulations.

The Survey, tabled by Finance Minister Nirmala Sitharaman in Parliament, expects the economy to grow by 9.2% during the current financial year, indicating a recovery to the pre-pandemic level.

Tech Mahindra was the biggest gainer among the BSE 30-share frontline companies pack, rallying 4.88% followed by Wipro, Bajaj Finserv, Infosys, SBI, PowerGrid and Reliance Industries.

In the broader market, the mid-cap and small-cap indices jumped up to 1.76%

Finance Minister Nirmala Sitharaman is likely to strike a fine balance between being fiscally prudent and growth supportive when she presents her fourth straight budget on Tuesday, which is expected to have plans to boost spending to revive investment and create jobs.

The Budget for the fiscal year starting April 1, 2022 is likely to raise spending on infrastructure to set the economy on a firmer footing.

The stage for the Budget presentation was set by the Economic Survey stating that the government has the fiscal space to do more to support the economy that is forecast to grow at a healthy 8-8.5 per cent growth in the 2022-23 fiscal.

The budget comes days before the first phase of voting in Uttar Pradesh, which along with four other states is going to the polls to elect a new state government. And naturally, it is expected to contain measures for higher rural and agriculture spending.

Asia's third-largest economy is estimated to expand 9.2 per cent in the fiscal year that ends in March, following a contraction of 7.3 per cent in the previous fiscal.

Analysts said the finance minister will have to strike a fine balance while keeping up the momentum of the country's promising but fledgling economic recovery and tax collections, but at the same time look at bringing in measures to spur demand, create jobs and tackle inflation as the country deals with the ongoing third wave of the Covid-19 pandemic.

While being 'fiscally prudent' as well as 'growth supportive, she is widely expected to continue growth agenda via higher capex allocation, which will accelerate the investment cycle and employment while at the same time taking a fiscal conservatism approach.

With a goal to reach a USD 5-trillion economy by FY25, capital expenditure allocation is expected to continue to remain higher while healthy tax revenues and mega disinvestment pipeline may help contain the fiscal deficit to 5 per cent in FY23.

The buoyancy in tax revenues, relatively contained spending and higher nominal GDP growth is expected to have contained the fiscal deficit in the current fiscal to 6.3 per cent, below the projection of 6.8 per cent.

Within infrastructure segment, higher allocation towards roads, railways and water are expected.

Also, the focus would be on ease of tax compliance, simplification and digitisation as well as ease of doing business.

Measures to support small businesses and the rural economy are also likely to form part of the Budget.

To boost domestic manufacturing, the budget presentation may also touch upon the government's Production Linked Incentive Scheme (PLI) applicable for the telecom, pharmaceuticals, steel, textiles, food processing, white goods, IT hardware and solar sectors.

It is unclear if Sitharaman will tinker with income tax rates but there is an expectation that the exemption limit of Rs 2.5 lakh will be raised.

Sitharaman would use the Budget as the cornerstone to put the economy on an accelerated growth path after the impact caused by the pandemic. Amendments in the tax law to bring about sustainable growth, infrastructure investment, focus on R&D spending, nurturing incentives to the core sectors, including manufacturing and services, tapping the huge experience of running captive centres are some of the priority items on the agenda of the government.

(PTI)

Indian economy contracted by 6.6% in 2020-21 on account of the outbreak of COVID-19 and subsequent nationwide lockdown to contain the pandemic. As per the provisional estimates released in May 2021, the GDP had contracted by 7.3% in 2020-21.

"Real GDP or GDP at constant (2011-12) prices for the years 2020-21 and 2019-20 stands at Rs 135.58 lakh crore and Rs 145.16 lakh crore, respectively, showing a contraction of 6.6 per cent during 2020-21 as compared to growth of 3.7 per cent during 2019-20," National Statistical Office said in the revised national account data released on Monday. 

Press Note on FRE 2020-21M1643630762880 by Republic World on Scribd

Union Finance Minister Nirmala Sitharaman on Monday presented the Economic Survey 2021-22 documenting the Indian economy's performance in the last 12 months and charting out the future course of action for different sectors. Prepared by Principal Economic Advisor Sanjeev Sanyal, the survey comprises 11 chapters focusing on several aspects such as fiscal developments, external sector, monetary management and financial intermediation, prices and inflation, sustainable development and climate change, agriculture and food management, industry and infrastructure, services and employment. 

From a detailed review of the economic development in India, to requisite policy changes that should be undertaken to accelerate growth, here are the top 10 highlights of the Economic Survey 2022.

READ THE FULL STORY HERE

Equity benchmarks notched up solid gains on Monday after a two-session sliding streak as healthy growth projections in the Economic Survey and supportive global cues enthused investors.

A robust recovery in the rupee further bolstered sentiment, traders said.

The 30-share BSE Sensex opened on a firm footing and kept its momentum throughout the session. It finally closed at 58,014.17, clocking a gain of 813.94 points or 1.42 per cent.

Likewise, the broader NSE Nifty rallied 237.90 points or 1.39 per cent to end at 17,339.85.

Tech Mahindra topped the Sensex gainers' chart, climbing 4.88 per cent, followed by Wipro, Bajaj Finserv, Infosys, SBI, PowerGrid and Reliance Industries.

Only three counters closed in the red -- IndusInd Bank, Kotak Bank and HUL, shedding up to 3.51 per cent.

The Economic Survey on Monday said India's economy is expected to grow by 8-8.5 per cent in the fiscal beginning April 1 and is well placed to meet the future challenges on the back of widespread vaccine coverage, supply-side reforms and easing of regulations.

The Economic Survey 2021-22, tabled by Finance Minister Nirmala Sitharaman in Parliament, expects the economy to grow by 9.2 per cent during the current financial year, indicating a recovery to the pre-pandemic level.

The economy had contracted by 7.3 per cent in 2020-21 on account of the impact of the COVID-19 pandemic and subsequent nationwide lockdowns to check the spread of coronavirus.

"Taking positive cues from global markets and favourable takeaways from the Economic Survey report, the market rallied ahead of the Budget day with all major sectors in the green. The major macro indicators of the Survey gave confidence that the country is well placed to face future challenges with GDP growth for FY23 projected at 8-8.5 per cent.

"Global markets turned positive backed by gains in the US market as investors ignored geopolitical disturbances and turned their eye towards strong earnings numbers from tech firms," said Vinod Nair, Head of Research at Geojit Financial Services.

Ajit Mishra, VP - Research, Religare Broking Ltd, said participants will now be closely eyeing the Union Budget.

"The main focus would be on the GDP growth numbers, fiscal deficit target and disinvestment plans. Besides, sector-specific announcements and any relief on the taxation front will also be on participants' radars. At the same time, corporate earnings and auto sales numbers would continue to induce stock-specific volatility," he noted.

Barring metal, all BSE sectoral indices closed higher, led by realty, IT, teck, consumer durables, energy and auto.

In the broader markets, the midcap and smallcap gauges spurted up to 1.76 per cent.

World markets shrugged off Russia-Ukraine tensions and inflation concerns, but remained on course for their worst monthly show in five years.

Elsewhere in Asia, bourses in Hong Kong and Tokyo finished with gains.

Markets in China and South Korea were closed for a holiday.

Stock exchanges in Europe were trading on a firm note in mid-session deals.

Meanwhile, international oil benchmark Brent crude rose 0.86 per cent to USD 90.80 per barrel.  The rupee surged 42 paise to close at 74.65 against the US dollar on Monday, supported by positive domestic equities and improved risk appetite.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 5,045.34 crore Friday, as per provisional data.

(PTI)  

The Economic Survey 21-22 indicates key supply-side measures and reforms in India's defence sector. The survey highlights the
Corporatization of Ordnance Factory Board (OFB) approved and 7 new Defence Public Sector Undertakings created. FDI has been enhanced in the Defence sector up to 74% through the automatic route and up to 100% via the government route.

The changes in the FDI policy can be broadly categorized into measures taken to improve foreign participation while protecting Indian industry from opportunistic takeovers, to enhance transparency and rationalization of processes, and steps to monitor and expedite implementation.

READ THE FULL STORY HERE

The COVID-19 vaccination should be treated as a macro-economic indicator since it is not merely a health response but is critical for opening up the economy, according to the Economic Survey 2021-22.

The country crossed the milestone of administrating more than 156 crore doses of vaccines on January 16, 2022.

More than 88 crore people (93 per cent of the adult population) have received at least one dose and around 66 crore people (70 per cent of the adult population) stands fully vaccinated, the Survey pointed out.

Besides, more than 50 per cent of the country's population in the 15-18 age group has received their first dose of the COVID-19 vaccine as of January 19, 2022, it added.

READ THE FULL STORY HERE

The Indian aviation sector has started to rebound with accelerated pace of COVID-19 vaccine roll-out and easing of travel restrictions globally, stated the Economic Survey released on Monday.

In 2021, the Centre took various initiatives to boost the aviation sector which included calibrated opening of the domestic sector as the first wave of the pandemic ebbed and introduction of air transport bubbles or air travel arrangements with specific countries, it mentioned.  "The domestic traffic in India has more than doubled from around 61 million in 2013-14 to around 137 million in 2019-20, registering a growth of over 14 per cent per annum," said the Economic Survey released by the Centre.

READ THE FULL STORY HERE

The various policy initiatives that have been taken including the relaxation of Other Service Provider (OSP) regulations and telecom sector reforms would significantly increase job creation and catapult the IT services sector to the next level of growth, as per the Economic Survey.

The Economic Survey 2021-22, which was tabled in Parliament on Monday, noted that the IT-BPM sector revenues (excluding e-commerce) reached USD 194 billion during 2020-21, up 2.26 per cent year-on-year.

Over the last year, a number of policy initiatives have been undertaken to drive innovation and technology adoption in the sector, including relaxation of Other Service Provider regulations, Telecom Sector Reforms and Consumer Protection (E-commerce) Rules, 2020, the Survey said.

"This would significantly expand access to talent, increase job creation, and catapult the sector to the next level of growth and innovation," it added.

READ THE FULL STORY HERE

There has been a revival in economic activities to pre-pandemic levels in the year 2021-22. Even though the health cost of the second COVID wave was much more severe, the economic cost of it was much milder: Principal Economic Advisor Sanjeev Sanyal said. The economy is estimated to have grown by 9.2% this year after a contraction of 7.3% in the previous year, he added during the Finance Ministry briefing. 

Tune in to watch the press conference by Chief Economic Advisor V. Anantha Nageswaran on Economic Survey 2021-22 here -

A day ahead of the Union Budget, the Economic Survey 2021-22 has presented a snapshot of the overall state of India's economy, positing that economic activity has returned to pre-pandemic levels and that the country is poised to grow at 9.2% this year and 8-8.5% in the next.  

Read the full Economic Survey 2021-22 here

Final Economic Survey 2021-22 English by Republic World on Scribd

Finance Minister Nirmala Sitharaman on Monday presented the Economic Survey that details the state of the economy ahead of the government's Budget for the fiscal year beginning April 1, 2022.

It projects an 8-8.5 per cent growth rate for the Indian economy in 2022-23 fiscal year (April 2022 to March 2023).

This compares to 9.2 per cent GDP expansion projected by the National Statistical Office (NSO).

The Economic Survey 2021-22, details the state of different sectors of the economy as well as reforms that should be undertaken to accelerate growth.

The gross domestic product (GDP) contracted by 7.3 per cent in 2020-21.

The Survey focuses on supply-side issues to improve the resilience of the Indian economy.

(PTI)

"Govt has taken the initiative of 'One Sun, One World, One Grid', it is the first such international network of an interconnected solar grid,"he said adding, "ndia has become the fastest growing economy due to constant efforts of the govt; GST saw record numbers in the past few months. Govt moving fast to building a strong foundation on the principles of Sabka Sath Sabka Vikas Sabka Vishwas; Challenging period of COVID-19 inspired us to achieve goals".

Speaking to ANI, Shiv Sena MP Sanjay Raut said, "Covid-19 lockdowns have taken a toll on savings of common man. Hope budget will keep in mind the problems of people. Several businessmen, industrials benefit due to BJP's budget. Unemployment and inflation major challenges to Indian economy".

"Women empowerment remains our govt's main priority. We have removed laws like Triple Talaq. We have also introduced a bill to raise the minimum age of marriage of women to 21 years," he said.

He added, "Places that were left behind earlier are now connected to the mainstream to initiate development; J&K is one such example; 7 medical colleges and 2 AIIMS are being constructed there".

"Local languages are being promoted as part of NEP; emphasis being laid to conduct entrance examinations in Indian languages. 19 engineering colleges across 10 states to teach in 6 Indian languages this year," said Kovind.

Local languages are being promoted as part of NEP; emphasis being laid to conduct entrance examinations in Indian languages. 19 engineering colleges across 10 states to teach in 6 Indian languages this year: President Kovind 

"India won 7 medals in the Tokyo Olympics in 2021. India also set a record in Tokyo Paralympics by winning 19 medals. There are also several Khelo India centres being installed across India," said President Kovind.

"I bow down to the lakhs of freedom fighters who prioritised their duties and helped India get its rights. I also respectfully remember the personalities who contributed to the development journey of India," said President Kovind.

Lauding Centre-State coalition during COVID pandemic, he added:

Hailing India's vaccination, he said, "We have crossed 150 cr vaccinations in less than a year. Over 90% eligible people have taken 1st dose of vaccination. Precautionary dose has also begun. Indian vaccines have saved lives of crores of people".

Market expert Sharad Kohli said, "I think that is the need of the hour and seeing that job creation and employment is this year's focus is very encouraging as some of the recent data is very disturbing. Govt should speed up spending as boost private investments as they were lagging in last 2 years. We might see some relief coming to middle class, govt has got golden opportunity so tp please poor, middle class this is a great opportunity".

Economist Arvind Mohan said, "Shift should be on paradigm any growth henceforth should focus on 140 crore Indians not on a small little group that has been happening in past. Focus should be on MSME and  rural development - known as second generation reforms- major areas of focus agriculture, small scale and cottage industry , human development- health and education -secotrs govt should focus on , on logistics lines critical savings should be focused on as it is not focused on in past few years."

Similarly, Economist Alok Puranik said, "Putting some money in the pocket of middle class, should be budget's focus. Middle class is the worst sufferers with job loss and 30% salary cut, I hope some tax cut is also announced".

"Budget Session commences today. I welcome you & all MPs to this session. In today's global situation, there are a lot of opportunities for India. This session instils confidence in the world regarding the country's economic progress, vaccination program, Made in India vaccines," said PM Modi outside Parliament.

He added, "In this Session too, discussions, issues of discussions & open-minded debates can become an important opportunity for global impact. I hope that all MPs, political parties will have quality discussions with open mind & help take the country on the path to development swiftly".

"Today there'll be President's address & Budget to be presented tomorrow. Everyone's ready to discuss these but new issues & issues already there -inflation, unemployment, farmers' issue, crimes against women & Dalits- will be raised from time to time," said Mallikarjun Kharge.
 

"We're expecting a higher MGNREGA outlaw & a similar scheme for urban poor. It is very important to provide support to MSMEs, which have been affected by pandemic & are clearly the job-creating machine of economy," said FICCI senior VP Subhrakant Panda.

Ahead of the commencement of the Budget session, sources told Republic TV that the focus of this year's Economic Survey will be job creation. It could peg growth in the 9% range and is likely to concentrate on boosting consumption. Sources also indicated that the Economic Survey might focus on preserving domestic industry and increasing exports through Free Trade Agreements. 

India's new Chief Economic Adviser Dr V Anantha Nageswaran will address the press conference to present the Economic Survey (2021-22) on Monday, after Union Finance Minister Nirmala Sitharaman tables it in parliament. Centre appointed Dr V Anantha Nageswaran as the new Chief Economic Advisor (CEA) on January 28. Nageswaran, the former part-time member of the Prime Minister’s Economic Advisory Council (EAC), had earlier worked as a writer, author, teacher, and consultant.

Anantha Nageswaran graduated in 1985 with a Post-Graduate Diploma in Management (MBA) from the Indian Institute of Management, Ahmedabad. Later in 1994, he obtained a doctoral degree in Finance for his work on the empirical behaviour of exchange rates from the University of Massachusetts.  

Between 1994 and 2011, Nageswaran took the responsibilities of leadership roles in macro-economic and capital market research for several private wealth management institutions in Switzerland and in Singapore. He was Dean at IFMR Graduate School of Business at Krea University from October 2018 to December 2019. Anantha Nageswaran is a ‘Distinguished Visiting Professor’ of Economics at Krea University (India) and Adjunct Faculty at the Singapore Management University. 

The Budget Session of Parliament is set to start today with President Ram Nath Kovind's joint address to both Houses of Parliament at 11 AM. Then Finance Minister Nirmala Sitharaman will table the Economic Survey (2021-22) in Lok Sabha.

Briefing on the day's business, The Lok Sabha Secretariat stated, "There will be a break from February 12 to March 13 during which the Standing Committees will examine Demands-for-Grants of Ministries/Departments and prepare reports thereon. In all, there will be 29 sittings; ten in the first part and 19 in the second part."

Special arrangements are being made to ensure social distancing and Parliament timing for both Lok Sabha and Rajya Sabha are staggered. The upper House of Parliament will function from 10 am to 3 pm, whereas the lower House will function from 4 pm to 9 pm except for the first two days.

Centre forwent the traditional Halwa Ceremony due to the ongoing COVID spread, opting to provide sweets to the core staff who are due to undergo “lock-in” at their workplaces. Moreover, the udget will be presented in paperless form, and the document will be made available to the Members of the Parliament and the general public alike, at one place - Union Government Budget App.

There will be no Question Hour and Zero Hour on the first two days of the Budget Session (January 31 and February 1) in the Parliament, stated Centre. Zero Hour has been cancelled owing to the address of the President to both Houses of the Parliament and the Presentation of Union Budget 2022 respectively. Both the Question Hour and Zero Hour and matters of Urgent Public Importance will be raised on February 2 this year.

Lok Sabha and Rajya Sabha, are likely to deliberate on the Motion of Thanks to the President's address for three days commencing on February 2. For the Members of Parliament to raise issues on Urgent Public Importance, they are expected to serve a notice before 10 AM to the Speaker on the day of sitting. 

In Union Budget 2021-22, FM Sitharaman maintained the two tax regimes offering taxpayers to forego all deductions and switch to a new tax regime with higher tax cuts or remain in the old regime with same deductions. Taxpayers expect the Centre to maintain the same tax slabs while raising the standard deduction to Rs 1 lakh, as per market analysts. Similarly, experts hope that the Centre will increase limits on tax exemptions related to investments (section 80 C) like home loans, insurance, property tax etc. from Rs 1 lakh to 3 lakhs, offering relief to the cash-starved middle class.

Other expectations from the Union Budget include a deduction in insurance premiums, no additional taxation on NRIs. Analysts expect the Centre to continue its tax breaks from 2021-22 like - exemptions to senior citizens with only pension and interest as incomes, tax holiday on affordable housing projects, faster dispute resolution, exemptions from audits to accounts which carry 95% transactions digitally upto Rs 10 crores, exemptions to small trusts whose income don't exceed Rs 5 crores annually.

 As Web 3.0 unfolds, crypto assets encompassing a wide array of digital assets like non fungible tokens, wrapped asset token etc, will gain tremendous traction. it is being expected that a specialised regime for taxation of cryptocurrency will be introduced in the budget.

The burden of the long-term capital gains tax (LTCG), introduced vide Finance Act 2018, has somewhat dented investor confidence. Major economies do not have LTCG tax. In India too, it is expected that LTCG on the sale of Indian-listed equity shares will be exempted as it would boost investment through the stock exchange.

Corporates are expecting that the entire amount, or an appropriate proportion of expenditure incurred for helping the society and employee welfare during COVID-19 will be allowed as deductible expenditure. Also, the government is expected to reduce the tax rates for companies engaged in R&D activities to 15 per cent or less and allow weighted deduction on in-house R&D expenditure.

Rationalisation of Customs duty structure for EV and ancillary components, renewable energy generation devices and related components is likely.

Budget allocations for the expansion of the PLI scheme for sectors such as leather and laminates; additional incentive schemes will also lure companies into setting up additional manufacturing in sectors that were not the focus in previous budgets and help reverse the impact of the pandemic. 

The government is already reviewing 400 customs duty exemptions (as announced in the previous budget). The final list is expected to be proposed as part of the 2022 budget and industry is awaiting it so that there is no adverse impact on trade as a result of this exercise. 

Extension of customs duty exemption on goods imported for testing, and setting up of a customs dispute resolution forum, ease compliances under customs, and integration of the current ICEGATE, DGFT and SEZ online portal into a common digital platform.

The government should look at according priority status to the healthcare segment while increasing the public expenditure on the sector to at least 3 per cent of the GDP in the upcoming Union Budget. As per the leading healthcare providers in the country in the private sector, the government should also consider continuation of tax incentives, upgradation of medical facilities in smaller towns and skilling of workforce in the Budget.

"Tax incentives should also be extended to R&D as this would encourage further innovation in healthcare. Another key area that the budget needs to address is skilling of healthcare workers. This will help to address the manpower challenge that we face and bring India up to par with the recommended ratio in terms of trained doctors and nurses," said Apollo Hospitals Group Joint Managing Director Sangita Reddy.

"We hope the government will rationalise the GST rates, in order to enable reduced cost of treatments for patients.  Since it is planning to merge the GST rates of 12 per cent and 18 per cent, the pharmaceutical products  a majority of which are charged at 12 per cent, while some are charged at 5 per cent  should be taxed at a single merit rate of 5 per cent," said Pfizer India CFO Milind Patil.

Market experts are expecting Union Finance Minister Nirmala Sitharaman to clearly state the tax structure under which incomes in cryptocurrencies will be regulated. Moreover, experts seek clarification from the Centre, if cryptocurrency transactions must be reported in companies/individuals' financial transactions. The Centre may also task the regulatory body Securities and Exchange Board of India (SEBI) to regulate the transactions of cryptocurrency, trade, sale, purchase of the cryptocurrencies sanctioned by the Centre. Crypto investors also expect Centre or Reserve Bank of India (RBI) to elaborate on its its plan to introduce Central Bank Digital Currency (CBDC).

In the winter session, Sitharaman told Lok Sabha, "Introduction of CBDC has the potential to provide significant benefits, such as reduced dependency on cash, higher seigniorage due to lower transaction costs, reduced settlement risk. There are also associated risks which need to be carefully evaluated against the potential benefits". She stated that CBDC will not have volatility associated with private cryptocurrencies as it will be backed by the RBI. The Centre sought more time to introduce the Cryptocurrency Bill in Parliament, skipping it in the Winter session.
 

Experts have noted the average selling price (ASP) of mobile phones has been pushed up to Rs 17,800, from Rs 14,600 a year ago - pegging it as a positive sign for the sector. Recently, several smartphone manufacturers have witnessed the market on the rise, backed by the government’s production-linked incentive (PLI) scheme. Industry experts are now suggesting ways to support the formation of an ecosystem to push exports and support the resurrection of home-bred brands. As of today, the industry experts recommend the government budget to enhance credit to domestic companies, in order to help them outgrow the foreign players in the market.

The India Cellular and Electronics Association (ICEA) is also demanding a lowering in GST on mobile phones. Currently, the tax on mobile phones is at 18%, which the experts suggest being brought down to 12%. Moreover, the companies are also expecting more PLI schemes to increase the domestic manufacturing of products relating to the technology market.

Furthermore, the companies are expecting a continuation of the 20% customs duty placed on high-end phones. However, several experts want the maximum peg to be lowered to around Rs 4,000 per device.
 

The first Union Budget of Colonial India was introduced by the East India Company to the British Crown on April 2, 1860. A Scottish Economist and politician James Wilson had presented that year's Budget. 

The first Union Budget of Independent India was presented by RK Shanmukham Chetty on November 26, 1947. Chetty was the first finance minister of India who served from 1947 to 1948.  In 1950, the Budget was leaked and after this, the government decided to shift the printing of the budget from Rashtrapati Bhawan to a press at Minto Road. Further, the printing was shifted to a government press in North Block, in 1980. 

Morarji Desai holds a record of presenting 10 Budgets which is the highest so far, followed by P Chidambaram with 9 Budgets and Pranab Mukherjee with 8. Since Independence India, a total of 73 annual Budgets of been presented along with 14 interim budgets, four special budgets, or mini-budgets. It is interesting to note that Jawaharlal Nehru, Indira Gandhi, and Rajiv Gandhi are the only Prime Ministers to have presented the Union budget.

In the year 1999, the time for the presentation of the Union Budget was changed from 5 pm to 11 am by Finance Minister Yashwant Sinha. While Arun Jaitley changed the day of Budget from the last day of February to the first day of February. This has been followed since the year 2017. Finance Minister Nirmala Sitharaman replaced the standard Budget briefcase with the traditional 'Bahi Khata' with the National Emblem, in 2019.