Budget 2022 | Economic Survey pegs FY23 GDP growth at 8-8.5%; fintechs call for relaxed tax norms, digital infra boost and more

Episode 191,   Jan 31, 2022, 03:45 PM

Just one day to go for Nirmala Sitharaman to make the Budget 2022 speech and for the country to find out what the government has decided for each industry for FY23 and how the reforms will impact the common man.

In this edition of Budget Podcast, CNBCTV18.com’s Kanishka Sarkar will not only share what various sectors are expecting from tomorrow’s announcement but also about the Economic Survey 2021-2022 tabled by Union Finance Minister Nirmala Sitharaman in Parliament on Monday

The survey has projected India's growth for the financial year 2023 at 8-8.5 percent whereas the FY22 GDP growth is seen at 9.2 percent.

It survey states the economy is in a good position to see this growth with the COVID-19 vaccination programme having covered the bulk of the population, economic momentum building back, and the likely long-term benefits of supply-side reforms that are in the pipeline. However, the economy needs to remain wary of imported inflation, the survey flagged.

India’s Consumer Price Index inflation stood at 5.6 percent YoY in December 2021, which is within the targeted tolerance band. Wholesale price inflation, however, has been running in double-digits.

Though the high WPI inflation is partly due to base effects, which will even out, India must remain cautious against imported inflation, especially from elevated global energy prices, it said.

In an exclusive interview with CNBC-TV18, Niti Aayog Vice-Chairman Rajiv Kumar said the 8-8.85 percent GDP growth forecast seemed "just about right" and that he expects investment in the private sector to take off. He added that exports, domestic investment, and consumption will all drive growth towards the target estimate.

While many sectors are looking for reforms in the GST levied on several products and services, MS Mani, Partner- GST, Deloitte India has highlighted that the Budget only provides directional clarity and that the future reform in GST is something which people should wait and watch carefully.

According to Akash Sinha, founder and CEO of CashFree Payments, if there’s one thing we know from the PM’s call for a fintech revolution, financial inclusion and empowerment along with digitalisation will rule the roost this Union Budget. He says the govt must consider relaxing tax norms and infusing funds. It should also focus on creating an active banking population.

Tune in to the Budget 2022 Podcast for more

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