The year has started in full swing and has brought with it expectations for a better financial year. Now, with a few weeks left before the announcement of the union budget,expectations have started pouring in. From real estate, retail to banking services, and education, every sector is anticipating its share of benefits in the upcoming budget.
So, what to expect from budget 2022?Here are a few predictions.
Amidst the rising concerns for the Omicron variant, there is also an increasing need for better healthcare facilities. No doubt then, healthcare is expecting some big announcements. Keeping this in mind, the government will likely announce a 10 to 12 % rise in healthcare expenditure. This would mean an additional allocation of Rs. 18,000 crores in its overall package of 223,846 crores for the healthcare industry.
Moreover, the allocated fund of Rs. 50,000 crores for the vaccine is likely to be present in Union Budget 2022as well. You can also expect to witness improved healthcare infrastructure in the country as the government prepares to curb the spread of COVID-19.
2. Real estate
To facilitate a strong revival in the post-pandemic period, the real estate industry is expecting tax relaxation and a reduction in GST from the budget 2022. The sector is expecting incentives for private investments in the affordable housing sector and GST waiver on under-construction properties.
Furthermore, the real-estate experts are anticipating the standardisation of registration charges by bringing them under the GST.
Additional Read – Budget 2022: Key Highlights and Takeaways
3. Farming and agriculture
The government is likely to increase the farm credit target to Rs. 18 lakh crores to ensure the availability of credit to farmers. The agriculture credit level has consistently increased over the years, and reached 16.5 lakh crores in 2021-22.
And, why not? Crop loans from financial institutions play a vital role in boosting the output of the farming sector. It also helps prevent the farmers from borrowing from unregulated sources at higher rates.
4. Home loans
Considering applying for a home loan in 2022? Well, there might be some good news for you!
As per Budget 2022 expectations, the government may extend higher tax deductions on home loans to increase housing demand and offer relief to potential home buyers. Tax deduction for home loan repayment on principal will likely increase to Rs. 2 lakhs from the existing Rs. 1.5 lakhs.
Moreover, expectations to allow lenders to extend up to 90% of the cost of the property have increased. If done right, the move will bring a major boost in the sector, encouraging increased investment and affordable loans to homebuyers.
Additional Read – Reasons Why Budget 2022 will be Focusing More on Affordable Housing
The fiscal budget 2022-23 is expected to be presented on February 1, 2022. If the expectations are correct, the government policies and financial incentives this year will surely bring a huge relief to the public. Whether it is a home loan or reasonable healthcare, you can expect great benefits.
And if you find yourself in need of affordable loans this year, turn to Tata Capital for the best finance options!