Union Budget: 2022-23- Good for Growth, but lacks push on employment
Swadeshi Jagarn Manch believes that the Union Budget 2022-23 is a growth oriented budget with sufficient push for development of infrastructure of various kind including digital infrastructure, infrastructure of education, potable water and housing for poor. Giving a push to PM Gati Shakti Master Plan can go a long way towards more efficient infrastructure and reduction in logistic cost to make the economy competitive. A quantum jump of 35 percent in capital expenditure, taking capital expenditure in the budget to over rupees 7.5 lakh crores, can improve the future growth prospects in the country.
We are also happy to note that continuing its thrust for Aatmanirbhar Bharat, the Finance Minister has adopted a calibrated approach towards protecting domestic industry, which has been badly hit due to the excessive obsession for globalization. We are sure that the Production Link Incentive (PLI) scheme will go a long way towards self-reliance in these sectors. We hope that the declared push towards production of semi-conductors and solar power equipment will go a long way in making the economy self-reliant in these segments.
Announcement of minimum tax of 15 percent for cooperative sector and capping of surcharge on long term capital gains on equities for unlisted companies not only ends anomaly, will help attracting more domestic investors. Continuation of tax free holiday to start up is also a welcome step. Allowing 15 per cent lower tax for new units in MSME sector upto 31/03/2024 is also welcome.
We are also appreciative of the budget for its push for natural farming, zero budget farming and organic farming. We also welcome government’s announcement to declare 2023 as National Millet Year. However, we feel that limiting the chemical free farming endeavour to only a limited area, it should be extended to more parts of the country, where only limited chemicals are be used in farming. Farmer Producer Organisations (FPOs) are our new rural start ups and there is an urgent need to simplify the formation of FPOs including reducing the membership requirement to 50. Fiscal support for new FPOs is also urgently needed.
Swadeshi Jagaran Manch expresses its concerns for very limited efforts towards promotion of small scale industry and creation of employment in the country. We understand that the there is an urgent need to promote self employment in the country, for which central as well as state governments need to push entrepreneurship development programs (EDPs), infuse more funds and seed capital for small businesses, which can motivate the youth to start their own enterprises. There is a need for an Entrepreneurship Development Centre in each district of the country. We welcome the scheme for enhanced lending to MSME sector by extending the guarantee cover for such loans. However, we feel that government support by way of equity subsidy is something which is urgently required.
Though the budget 2022-23 has provided for taxing the income from the virtual digital assets at the rate of 30 percent and taxing the gift of virtual digital asset at the hands of recipients, Swadeshi Jagaran Manch firmly believes that looking at the dangers of national security, the menace of money laundering and other related dangers emanating from the transactions in cryptos, ban on private crypto currencies is the only solution. However, the announcement of the issue of Central Bank Digital Currency (CBDC) is a welcome move.
Dr Ashwani Mahajan
National Co Convenor
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