BUDGET 2022-23 ANALYSIS FOR UPSC IAS & competitive exams

Budget 2022-2023 decoded in competitive exam perspective for easier understanding and quick revision.

Discuss the major measures proposed in BUDGET 2022-23 for various sectors and their significance in Indian economy.

The annual financial statement /budget is an estimation of total revenues and expenditure for the upcoming financial year. Budget 2022-23 focus on increased spending ie. capital expenditure and limit the revenue expenditure. Let’s discuss various significant measures in various sectors.

Budget 2023-Agriculture and food processing

Significant measures proposed in budget 2022-23

1. ‘Kisan Drones’ to be promoted for crop assessment, digitization of land records and spraying of insecticides
2. Zero budget natural farming will be encourages by agriculture universities.
3. A fund with blended capital raised under co-investment model through Nabard will be set to finance start ups & rural enterprises working in agri space.
4. ~2.4 lakh crore for procuring wheat and paddy benefiting 1.63 crore farmers
5. A provision of Rs 8,513.62 crore has been made for the department of agricultural research and education  under the Union Ministry of Agriculture and Farmers’ Welfare in the budget.

Some concerns regarding budget 2023 in agricultural sector.

1. Allocation to the Agriculture Infrastructure Fund (AIF) increased to Rs 500 crore in 2022-23 from Rs 200 crore in RE for 2021-22. It was, however, Rs 900 crore in last year’s budget estimate.
2. Development of agriculture sector through tech initiatives than sustainable agri practices.
3. The actual expenditure for crop science of last year (2020-21) was Rs 805.37 crore. That is, the budget for crop science has been cut by 14.35 per cent.
4. The expenditure on the management of natural resources has been estimated at Rs 185.77 crore. The revised estimate for 2021-22 was Rs 215 crore and the actual expenditure for 2020-21 was Rs 220.26 crore. So the net reduction has been about 17 per cent.

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BUDGET 2023- Industries and infrastructure

Significant measures in budget 2023 for industries and infrastructure

1. PM GatiShakti national master plan will encompass 7 engines for economic transformation and logistics efficiency.
   • 7 Engines: Roads, Railways, airports, ports, mass transport, waterways and logistic infrastructure.
2. 2000KM of railway network & 400 new Vande Bharat trains in 3 years.
3. Integration of postal and rail way network to facilitate parcel movement.
4. Capping surcharge of startups to 15% and extending the incentives for domestic start ups by 1 year.
5. Sovereign green bonds to mobilize resources for green infrastructure.
6. PM –DevINE scheme to fund infrastructure in North East.

Concerns with Budget 2023 regarding industries and infrastructure.

1. Less focus on support for revival of industries worse hit by pandemic.
2. The cost of compliance continues to remain high ever after many regulatory changes.

BUDGET 2023-Education and health care

Significant measures by BUDGET 2023 for education and health care.

1. National Tele mental health program to be launched.
2. An open platform for national digital health ecosystem will be rolled out.
3. Increased allocation of 37000 crore for national health mission.
4. One class one TV channel to be expanded to 200 TV channels.
5. Virtual labs and skilling e-labs to stimulate learning environment.
6. DESH-stack e portal for digital ecosystem for skilling and livelihood.

Concerns in education and health care.

1. Health spending remains less around 1.5% of GDP .
2. Less allocation for MGNREGA and other social sector schemes.

BUDGET 2023- Other major areas

Significant measures in budget 2023

1. Higher Capex with multiplier effect on various fields creating demand and increasing consumption.
2. Regulating digital currency by taxing digital assets transfer at 30%.
3. RBI to launch digital currency known as Central Bank Digital currency (CBDC) backed by assets.
4. Emergency credit line guarantee scheme (ECLGS) to be extended till 2023 with schemes for MSME.
5. Defense budget increased by 10% with private partnership.
6. Urban planning support extended to tier 2 and 3 cities with increased allocation for urban development.

Concerns with budget 2023

1. Growth of 8.5% is possible unless there are no further economic disruptions; Oil prices already reaching 90$ disrupting balance of 70-75$.
2. Concerns of fiscal responsibility with high fiscal deficit (over 6% ) and threat of high interest payment(FRBM).
3. Continues to rely on Union excise and service tax apart from one nation one tax regime.
4. Prevalence of high inequality without wealth tax and cancellation of direct tax.
5. Less emphasis for middle class demands.

Budget 2023 tried to address all major problems. Focus on economic growth through effective implementation and convergences between schemes are commendable in difficult pandemic times. Hence its evident that BUDGET 2023 is promising towards India’s dream of $5 trillion economy.