Budget 2022: Economy needs more support, property tax in the budget will hurt

Budget 2022: Economists of the country’s largest bank SBI (State Bank of India) have urged the government in the budget to continue to stimulate the pandemic-hit economy and not focus too much on fiscal consolidation. He says that there is still a need to take more measures to provide stability to the economy to make the revival sustainable.

SBI’s pre-budget report presented on Wednesday
State Bank of India (SBI) Chief Economist Soumyakanti Ghosh said in a pre-Budget report on Wednesday that the best way to start the new financial year would be to complete the share sale of LIC in the current financial year. This will be helpful in rectifying the high-pressure books of account. This will help bring down the fiscal deficit to a low of 6.3 per cent in the fiscal year 2022-23, as the new fiscal will begin with a cash surplus of at least Rs 3 lakh crore in the exchequer.

The emphasis should not be on reducing the fiscal deficit by more than 0.4 percent in the budget
Soumyakanti Ghosh said the budget should not focus on reducing the fiscal deficit beyond 0.3 to 0.4 per cent as most sectors of the economy still need support. Ghosh said that there should be a system to take gradual steps on fiscal consolidation in the budget. For the fiscal year 2022-23, the reduction in fiscal deficit should be limited to 0.3 to 0.4 percent as compared to the current financial year.

Warned against levying property tax or other taxes
Soumyakanti Ghosh also cautioned against the imposition of property tax or other tax at this time and said that if this happens, it will cause more harm than benefit.

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