It is imperative for the Union Budget 2022-23 to have empathetic policy support for the lives and livelihood of the salaried people that are facing unprecedented challenges amid the global pandemic.
Conferring to the International Monetary Fund (IMF), the world economy has been observed to be tapered by 3.2 percent in 2020 and was projected to expand by 6 percent in 2021. However, these are neither encouraging nor assuring for a healthy growth trend. During these critical times of the global pandemic (COVID-19) of the 21st Century, India as one of the world’s eminent economies needs to steer away from the path of protectionism and isolation from global economic activities. Rather, it should most certainly interface with the world and gain the benefits of convergence. On a grand scale. Nonetheless, for such practical compulsion and efforts, India is well-suited to get a calibrated domestic economy with the capacity to stimulate sufficient employment in formal sectors and support in the burgeoning middle-class populace to give the economy traction of support in terms of sustained demand.
Even though the stakeholders’ layout blueprint of their anticipations from the upcoming Budget, it’s worth reflecting on the latest tax changes that the economy has countersigned in the financial services space. There are few expectations from the new Budget 2022 that would not just ensure economic integration but will also further help in the overall development of the country as a whole. A few points that are expected to be inculcated in Budget 2022 are mentioned below.
The prime focus of the Government should remain in devising a robust growth map in order to recover from all the collateral damages caused by COVID-19. There should be a minimum of 7-7.5% of the growth of the country that is expected from this Budget with realistic and achievable revenue targets. This will further help us utilise extra revenue to build more assets.
A majority of the nation’s consumers and small independent companies and businesses are anticipated to take on advanced digital means to access financial services and payments. As a result, a requirement for a more engaged methodology towards supporting the development and ensuring client confidence is estimated.
Budget 2022 needs to focus on job creation, both by private and government participation in sectors that have higher backward and forward economicintegration.
The Government must allocate a significant amount of resources towards healthcare since the major chunk of the populace is yet to be vaccinated. As the new variant of Coronavirus
‘Omicron’ has made its presence felt in India as well at a much higher rate than expected, the Government must see a roadmap to be laid ensuring 100 percent healthcare coverage to all the citizens.
Another major region that the Budget is expected to focus on is the improvement of Infrastructure. Themajor focus should remain on improvising the road, highways, and expressways. Road. Transport and Highways, Power, Civil Aviation, Railways, Shipping Ports and Waterways, Power, Petroleum and Natural Gas, Food and Public Distribution, Telecommunications are a few others that are expected to be considered in the infrastructure improvement.
COVID has proven to be the Chief Transformational Officer especially for the financial service provider and digital banking ergo, it is essential to draw bold policy intervention for digital infrastructure to further strengthen it that would eventually aid the digitization of all the financial services including banking and thereby will boost the overall economy.
The FinTech industry also looks forward to the new Union Budget and what can be expected from it.
POS Terminal and Biometric Devices
The platform that has emerged as a highly affordable mode than the ATMs in terms of finance, infrastructure, and operations are the PoS terminal along with Biometric Devices and are considered to be less intrusive. The Budget is expected to give a green flag to the making of a PoS terminal or Biometric Device as the feasible acquiring infrastructure for both banks and FinTech companies by offering in form of the GST subsidy.
Incentivise Development of more Technology Solutions Such As UPI
It is UPI has been a revolution, technology and it is vital we replicate its triumph through newer and more innovative technologies. Since India is a diverse country, we need to develop more technology solutions like UPI and the budget ought to encourage FinTech’s and technology start-ups to invest more in Research and Development to introduce newer products and diversify into newer geographies.
Data Security Infrastructure
In the post-COVID world, digital infrastructure will be a distinct advantage for organisations and nations and along these lines, it is significant we go to opportune lengths to ride this wave.
Considering how much information or data is being created and stored across ventures and industries which is developing at extraordinary rates, the Budget should energise companies or organisations who work towards improving the security framework to ensure and oversee data consistently.
EdTech’s new companies, which are trailblazers in dispersing skills just as conceptual information, need monetary help from the Government budget as longer-term tax exemption and subsidizing support.
Moreover, the Government authority ought to report projects or programmes to cultivate better Internet connectivity infrastructure across the nation that guarantees last-mile connectivity, admittance to affordable 5G gadgets, and above all, assist e- learning players with a vigorous e-learning infrastructure and foundation.
The Government ought to include education innovation and technology start-ups companies to make new initiatives or drives available to the majority, such as Coding for the youngsters will prosper assuming it can arrive at every one of the students in the country, which is troublesome with the current infrastructure and a couple of ed-tech startups are tackling accessibilities by welcoming Coding on mobile.
Our education system today utilises tech-oriented educators. Abilities and expertise- building programmes are coordinated as a vital part of planning students for the future labor force. This shift has brought about the emergence of recent fads that are digging in for the long haul and will characterise the nation’s skills and education landscape in the future.
A Reduced GST & TDS to the BC network
A diminished GST and TDS particularly for banks’ business correspondents (BC) in rural areas could assist with decreasing the expense of offering consistent banking services and push for greater noteworthy financial inclusion and a digital economy.
The production of a separate Fintech Division at RBI is a welcome advance and we anticipate the RBI advancing development in this sector as well as distinguishing the difficulties and open doors related to it and tending to them quickly.
Views expressed in this article are the personal opinion of Ankit Agarwal, Managing Director, Alankit limited.