Ahead of the Union Budget 2022-23, here is what some key sectors expect from the Finance Minister
File image showing Finance Minister Nirmala Sitharaman after presenting the 2021-2022 Union Budget. AP
As the date for the presentation of the Union Budget nears, several sectors including steel, banking, infrastructure and healthcare are looking forward to 1 February. Many believe that Finance Minister Nirmala Sitharaman can make some key announcements related to these industries in this year’s financial statement.
Ahead of the Union Budget 2022-23, here is what some key sectors expect from the Finance Minister:
Healthcare:
According to news reports, healthcare is expected to remain a prime focus for the government this year as well, amid the ongoing COVID-19 pandemic. Many reports suggest that the government could hike the outlay for the sector by 10 to 15 percent.
Many healthcare providers are demanding simplified Goods and Services Tax (GST) norms, especially with regards to health insurance and life-saving equipment and drugs.
Many in the healthcare sector believe that sustained investment in healthcare facilities is required to prepare the industry to deal with any future disasters or pandemics efficiently.
Some also expect the government to declare primary healthcare as a priority sector, which could help in investment from private banks and lenders.
Steel:
The sector expects the government to revert to pre-Budget 2021-22 basic customs duties for steel. The industry also wants the government to continue the anti-dumping duties on countries who are exporting steel to India.
The steel industry has been facing issues such as increasing cost of raw materials and electricity, impact of the coronavirus pandemic, increased competition from foreign steel companies and so on. The industry wants the government to provide a level playing field for domestic steel manufacturers to enable them to compete with foreign ones.
Banking:
The Banking sector wants the waiver of GST and TDS on financial inclusion services offered through the Business Correspondent (BC) outlets, according to a News18 report.
Experts also hope that the government could revise rules related to Know Your Customer (KYC) regulations and Non-Performing Assets (NPAs). Many are hoping that the Centre announces the launch of the India Debt Resolution Company Ltd (IDRCL) and the National Asset Reconstruction Co (NARCL) soon, to help mitigate risk for the banking sector.
Infrastructure:
The infra sector is hoping that the government allocates more resources for the construction of roads, railways and highways. The government could attract both foreign and domestic institutional investors by reducing the holding period for (Infrastructure Investment Trusts) InvITs from 36 months to 12 months. This could help boost investment in the infra sector.
According to a report by Economic Times, many experts also believe that the Centre can broaden the Production linked incentive (PLI) scheme, which is applicable to 13 sectors right now.
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