"Digital-first economy, blockchain, tech-mediated edu" - Union budget 2022 highlights

Every year, the swords & daggers come out as early as the afternoon of 1st Feb with media & parties taking sides conveniently on the outcome of the budget as per their allegiance. There is always a big hype on the union budget, but the build-up was enormous, particularly this year when people under COVID-19 trauma expected some ‘covid’ relief.

How the paradigm shifted in 365 days –

Last year, just before the budget, the vaccination had just started (16th Jan 2021) & the bid to invest in the world’s biggest vaccination program warranted some ‘covid’ tax. When the hoi polloi (read: Aam Junta) was spared from such ‘tax’ in Budget 2021, in the next 365 days, the expectation increased to a ‘WFH’ (work from home) relief in Budget 2022 plus a host of other wannabes (human mind is greedy, indeed).

Let us analyze Union Budget 2022:

Broadly, the significant announcements included digital currency, e-passports & a slew of infrastructure projects with edible oil, wearable electronics, imitation jewelry, polished diamond - all set to be cheaper. Tax relief was announced to persons with disabilities while no change in personal income tax rates.

So what is there for us – education & health-wise?

A Digital University has been proposed to provide supplementary education in all regional languages to make up for the loss of formal education due to Covid & is to be made in different Indian languages, based on the networked hub model. One Class, One TV channel will be expanded from 12 to 200 TV Channels and a National Digital Health Ecosystem to be rolled out. On the health front, a National Tele Mental Health program to be set up to focus on mental health, citing so many mental health issues arising due to Covid. Twenty-three tele mental health centers of excellence have been proposed along with integrated benefits to women & children through Mission Shakti, Mission Vatsalya, Saksham Anganwadi & Poshan 2.0.

Even today, one of the biggest pitfalls after 75+ years of independence – clean water has been addressed by allocating Rs. 60,000 crore to cover 3.8 crore households in 2022-23 under Har Ghar, Nal se Jal.

The COVID-19 pandemic has taken a heavy toll on the mental health of individuals, which has been recognized as a threat and received more focus. Already several companies have taken up a slew of measures like the 1-to-1 counseling sessions with psychiatrists, webinars, round-the-clock helplines, peer group support & grief counseling (especially during the second wave) to help employees & their families cope with the stress & other mental health issues. Money also to be pumped into safeguarding the mental health of the Indian workforce in the coming months is a welcome step towards embracing mental well-being with dignity & compassion.

Apart from health & education – the standout point for me in this budget was the sudden parachuting of India in the exclusive club of a handful of countries to have their sovereign digital currency. The shock & awe of this development has not been internalized enough: a digital currency built on the latest blockchain technologies will unleash a tsunami of innovation & efficiency gains throughout the economy. Block-chain will be the future by 2030, and a developing country like India going ahead with this is seen as a bold step.

I like that we are not just limiting ourselves to ‘first’ providing the basics to the poor and the BPL but also taking giant steps towards digitalizing the growth and matching the world step by step (or going one step ahead of the majority of them). The digital-first economy is being encouraged already on the school education platforms. The budget’s thrust on bringing technology-mediated education to all students irrespective of the urban-rural or income divides is like setting alight a billion dreams.

The budget has also announced that PSU banks will make the intergenerational leap & set up at least 75 digital banking units. Freeing the banks of brick & mortar confines puts infinite possibilities in the hands of each Indian citizen, making each mobile phone a fully functioning bank, education outlet & health access system. When we add the security layer of the digital rupee to that, it becomes a bonus.

On the flip side, yes, direct taxpayers and various industries were left high & dry. However, as a relief, despite being ahead of 5 state elections, the budget did not have any significant populist measures, anticipating which many investors were nervous.

The Indian economy is still in a recovery phase, given the recent challenges posed by Omicron. On the other hand, the future is already showing bright spots by positioning India as one of the fastest-growing economies globally. Encouragingly, like last year, Budget 2022 estimates are realistic, believable, & transparent, making international investors look at India with a different lens compared to China.

The key themes that stand out from the budget announcements are a big focus on capital expenditure, promoting a greener economy, leveraging the impact of the digital world & creating a more conducive environment for businesses. The next step towards growth has been taken by laying down the foundation for the next 25 years because the budget attempts to strike a balance between fiscal prudence and economic growth, and given the COVID-19 shadow for two years, that is a big step.

The best outcome would still be a timely implementation of the above announcements. In this scenario, the key is to ensure that the growth journey that India has started should continue its momentum & the budget appears to have aimed to do just that.

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