The financial budget of a country is vital as it decides the direction of its economic growth. In the past few years, we have witnessed fluctuations in almost every economy around the world—courtesy of the COVID, economic downturn due to the recessions, etc. Thus, leading countries in the world are now concentrating on presenting a solid budget that will address their financial issues as well as set a path for their economy to grow.
Recently, the Indian government has announced to introduce its annual financial budget. Like every year, people are anticipating the financial budget 2022 to resolve some of the major issues like income disparity, betterment of the lower middle class, uncertainties around taxation, approach towards cryptocurrency, etc.
Anticipating the prime focus of the upcoming budget, a Chief Economist of BOI says, “The government will walk a tightrope in terms of promoting growth and closing the gap between its income and spending in the upcoming budget”. The gap between income and spending has long been a major issue for developing countries like India and no wonder why people are anticipating the latest budget to address this issue.
But, why Income Disparity is one of the biggest issues?
According to a report, the top 10% and top 1% people in India hold 57% and 22% of the total national income while the bottom 50% people only hold 13%. This goes to show that income disparity is one of the most critical issues faced by the country today. The rich are getting richer and the poor are leading towards more mediocre lives.
Thus, a conscious effort in this budget towards reducing income disparity is the need of the hour for India. It can not only reduce the poverty rate and empower the poor but also assist the lower middle class with jobs that offer decent wages. It can also contribute in improving the financial management as well as the taxation process. Less income disparity will mean more uniform income distribution and ultimately much more satisfaction for the ‘common man’.
Will the Budget Suffice the Lower Middle Class?
The pandemic was detrimental for the lower middle class. Thus, alongside a reduction in income disparity, they have a long list of expectations from the new budget 2022-23. Assistance in terms of the standard deduction in income tax, control on the rising fuel prices, enhanced accessibility of education in rural areas, increased pension and health funds, etc. are some of the many expectations the lower middle class has from this budget.
From the promised $4 trillion economy and employment for women to doubling farmers’ income, India has been chasing several economic goals for a while. Given its increased focus on economic growth over the past few years, we can expect the government to present a more comprehensive budget for this fiscal year. We hope that the budget brings a lot of positives for the lower middle class and leads the country towards a prosperous future.
Read more: Tax Saving Investments Tips For FY 2021-22
