Now that less than a month is left for the budget to be presented. From common to special people have started speculating what they can get in the new budget. This budget is going to be special in many ways. Next year the government will contest elections, in such a situation this budget becomes special. Along with this, in the last year, the Indian economy has proved its strength all over the world and it will be decided from this budget how much more India strengthens its position in the world. Let's take a look at all such signs which can be seen in this budget.
Inflation rate
From the last budget, the biggest issue this budget has been the rate of inflation. The country's inflation rate is above the target of the Reserve Bank and for this, the central bank has had to tighten policies. There has been a sharp jump in loan rates since the last budget. There is a possibility that increasing the rates in this way will affect growth. The Finance Minister has already indicated to take such steps, in which growth can be accelerated without any effect on the Reserve Bank's steps. That means it is possible to announce relief for industries. Which, on the one hand, inflation can be controlled by the steps of the Reserve Banks, but on the other hand there should be expectations for the industries.
Crude oil prices
Between the last budget and this budget, crude oil also did badly for the economy. During this, crude reached record levels and petrol and diesel also broke records. At present, there is softness in crude oil, but it has still not reached those levels where the tension of the government is completely over. In such a situation, there is a possibility that measures can be taken to reduce the effect of oil prices on the budget, whether it is on the common people or the oil companies. In this, there can be announcements ranging from financial assistance to invest in new energy options.
Rupee move
Record weakness in the rupee was also seen between this budget and the last budget. Although the government is not much worried about this because it has not been seen only in the Indian currency, all the currencies have broken against the dollar during this period. On the other hand, due to the focus on increasing exports by India and the benefits to the export sector from the rupee and dollar rate, the government can make many announcements to increase exports in this budget as well.
Covid
During the budget last year, the main focus of the government was recovery from Covid. However, this year when preparations are being made to present the budget. The new wave of Covid is scaring many countries around the world. In such a situation, the Finance Minister can announce the budget keeping Covid in focus. In which funding and many other types of protective steps can be included to prevent the new wave of Covid.
Geopolitical tension
The ongoing tension between Russia and Ukraine has not only entered the new year but has also become more severe. Due to the Russia-Ukraine crisis, the supply of many products was affected and due to this, there was a spurt in inflation. Currently, the Russia-Ukraine crisis does not have a direct impact on the Indian economy. However, due to this, India is feeling the effects of the shocks to the economies of the world. In fact, given the open tension between Russia and the West and the growing possibilities of a war of sanctions between them, the government will have to keep in mind the Russia-Ukraine crisis in any announcement regarding its treasury, policies and budget.
