Mahindra University School of Law organized an analytical discussion on the Budget–2022 and highlighted the need for better strategy in spending the money rather than increased allocations. The Budget meet was attended by a large number of academicians, lawyers and scholars of Mahindra University.
Speaking on Tax on digital assets, Prof. Shruti Kakkar highlighted that taxation precedes policy in the category. She spoke on how there is no law so far in India authorising use of digital currency/assets and stated that we need appropriate digital currency policy preceding the taxation on digital assets.
Speaking on CapEx in the Budget, Prof. Vinay Sharma said that the strategy to spending is more important than increased allocations. He said that the government increased Capital Expenditure to 7.5 lakh crores, which may result in inflation but more employment would be created too with increased spend. Though the Government is committed to limit the fiscal deficit to 6.4 per cent of GDP (last year it was 6.9%), it is a bold initiative to increase the outlay of capital expenditure. He added that the budget has continued the impetus for the growth of MSMEs sector and maintained through Emergency Credit Line Guarantee Scheme, Green Bonds, etc.
Prof. Rishi Raj talked about the replacement of the SEZ Act and how that should result in creation of more jobs, in addition to exports aimed production. It also increased the scope of involving the states as partners in building the development hub. The Budget also focussed upon the potential of semiconductor industry in India- to be the next manufacturing destination on the globe.
Dr. Samyukta Bhupatiraju, while assessing the impact of allocations in the budget, said that the schemes like National Employment Guarantee should have been increased, so that employability could have continued and prevented sudden loss of jobs. She felt at least the same fund should have been allocated. Though there is a small increase in allocation to Education, up to 3.1 percent of GDP, it is far less than 6% recommended by the New Education Policy.
Recalling the popularity of budget lectures of eminent Advocate Nani Palkhivala, Prof. (Dr.) M. Sridhar Acharyulu, Dean, School of Law, Mahindra University, explained the Constitutional link to the budget, which is legally called annual financial statement, and the mandate that not a single rupee could be spent without the sanction by the Parliament, which necessitated national debate on economy every year. He emphasized the need for high allocations to the tune of 6 % of GDP to the Education sector. He thanked all the faculty members, students and scholars for a very spirited and mentally stimulating session.