Union budget

The governmental expenditure in the economic budget can increase more than 2020 and the estimated budget of 2021 is increasing 13 % than 2020. GDP also increased in the economic statement of the government, mainly 14.4 % in 2021-2022. According to the economic union budget of 2021, the main tax proposals included in the budget of 2021 are to limit the tax-free income from different funds and change no rules regarding the tax for individuals. On the other hand, another proposal is to extend the tax by the years 2021-2022. This study discusses the budget of 2021-2022 and also discusses the comparison between the budget of 2021-22 and 2019-20.

Discussion on the union budget of 2021 

The total expenditure of the government during the pandemic is very low, around 12% in 2019-2020. According to the 2021-22 budgets it increases around 14.4 % which can impact the capital expenditure which was mainly 29%. Total revenue receipts are 3%, capital receipt is 66% and total GDP rate is 3.1 %. The budget of the union also increased in 2021 and indirect tax by the government also expected rules that are mainly known as GST and the GST rate included in the 16% of the total expenditure. The collection of the taxes for all companies expected the margin around 1% from 2019-20 but in 2021-22 estimates the total corporation tax that includes the corporation and that also estimates the 35% lower of the total expenditure and taxes. The total collection of the income tax expected records is 7% lower than the budget estimation. In 2021-22 total expenditure and gross tax revenue will increase with the GDP rate of the union.

Budget estimation of 2021-22 compared to 2019-20

The government estimates that the union budget is increased from the last years, basically 2019-20. The Total expenditure also increased by 14% in 2019-20 around 14 % increases. However, in 2019-20 the total expenditure is around 12% and the capital expenditure also increases over 2019-20 around 29%. The total receipts increase around 6 % over the 2019-20 and estimating budget showed that the total annual receipts are around 27% increases in 2021-2022. During the pandemic, economic growth decreased and total expenditure also decreased over 2019-2020. GDP rate also increased compared to the 2019-2020 budgets that are around 14.4 % in 2021-2022. GDP rate estimated and showed around 10% increase over the last few years.  Expanding the budget of the union also depends on the total receipts. Capital revenue, GDP rates as well as other taxes that included different types of corporations. In 2021-22 capital expenditure is also increased for the revenue of the expenditure rate and it is higher than 2019-2020. In 2019-2020 capital expenditure rate was 12% due to the pandemic and in 2021-2022 it is increased as shown in the union budget. Based on this study it also observed that the union budget also increased economic growth compared to recent years.

Emphasising inclusive development based on the union budget

This study is emphasising that the Indian government is focused on raising the income of the people and trying to enhance the infrastructure of the country. An increase in the budgets from previous years shows that the government focused on such a framework that is helping the country in inclusive and holistic development. This is possible as the government has the intelligence to understand the budgets and find the paths which will be helpful to improve the country. The targeted budget of the country is 34.8 trillion in the year 2021-22, and that amount is 13% higher than the previous budget which means there is some development in the Budget section. This development is estimated as the “Finance minister” announces the budgets are covering various areas such as rural India, financial factors of the rural area, farmers’ welfare.” This will help to increase the budgets in future years and increase the strategy of the country. The government of India focused on the development of infrastructure and the rate of increment is 35% and this improvement helps the nation in future action. 

Conclusion 

It is concluded this study is developing the union budget of India in the year 2021-22 and about their improvement policies. This study discusses the union budgets and targeted budgets and the achievement of the government. There was also a brief discussion on the comparison of the budget amounts of 2019-20 and in 2021-22. This study helps to understand the ability of the government to achieve their aims which help to improve the budgets of the country. This study also emphasises the “Inclusive development” of the union budgets and their development in the future. Therefore it is concluded that this study analysed the budget of the country in previous years and determined the increment in the budgets in the future.