What is the average man looking forward to? Focus on getting richer, or at least not poorer. Some major concerns, right?
However, from an economic perspective, I believe that stronger and enabling decisions are absolutely necessary for the country’s well-being and economic recovery. Especially considering inflation concerns, Omicron’s concerns and the US Federal Reserve’s decision to taper off.
In the last budget, since the focus was on health, infrastructure and education as it should be, it would be very good to note the current focus of the government in the current situation with the new COVID variant and the additional way to deal with it.
However, the markets have shown their reaction to this new alternative.
The 2021 budget raised capital spending to a total of 15.9% of the total budget, the highest level since fiscal year 2008. Will capital expenditures increase this year?
Several industries are showing signs of reaching pre-Covid levels but it remains to be seen if we are completely out of the hole.
However, there is still a need for employment, health, education, reskilling, and the development of manufacturing and the service sector that drive growth in the formal economy in general.
Besides, how will we deal with the obstacles to development in the informal economy? Once again, concerns arise from Social Security.
Aside from the above and more common concerns, there are many other questions I keep scratching my mind about:
Here are some:
To what extent will there be changes in the tax structure and will there be any new tax breaks?
From POV to GEN-Zz, will there be a boost to startups, electric vehicles, green energy, etc.?
What could become cheaper/expensive in terms of product duties and taxes if they were increased/decreased at all?
Will measures be taken to increase financial inclusion?
Which industry will be stimulated and pushed up as the pandemic has hit a lot of the industry, the effects of which are still there.
What alternative measures would be adopted if the country faced another lockdown?
Damn, so many questions, and I’m definitely not the only one popping up on the list of questions.
I would like to know what others are saying about the 2022 budget for this year and what one can/do, expect or worry about before the big day on February 1st.
Finally, if you only had to answer a question, how would you bet the market on the big day?